Transactions with Former Parent
 3 Months Ended
Mar. 27, 2015
Related Party Transactions [Abstract]  
Transactions with Former Parent
TRANSACTIONS WITH FORMER PARENT
The unaudited condensed consolidated and combined financial statements have been prepared on a stand-alone basis. However, prior to September 27, 2014, they were derived from the consolidated and combined financial statements and accounting records of Exelis.
Allocation of General Corporate Expenses
Prior to September 27, 2014 these unaudited condensed consolidated and combined financial statements included expense allocations for certain functions provided by Exelis as well as other Exelis employees not solely dedicated to the Company, including, but not limited to, general corporate expenses related to finance, legal, information technology, human resources, communications, ethics and compliance, shared services, employee benefits and incentives and stock-based compensation. These expenses have been allocated to us on the basis of direct usage when identifiable, with the remainder allocated on the basis of revenue, headcount or other measures. For the three months ended March 29, 2014, we were allocated $7.8 million of general corporate expenses incurred by Exelis which are primarily included within Selling, general and administrative (SG&A) expenses in the unaudited condensed consolidated and combined statements of income.
The expense allocations from Exelis discussed above include costs associated with defined benefit pension and other post-retirement benefit plans (the Shared Plans) sponsored by Exelis in which some of our employees participate. We accounted for such Shared Plans as multiemployer benefit plans. Accordingly, we did not record an asset or liability to recognize the funded status of the Shared Plans. Subsequent to September 27, 2014, the date the employees' benefits were frozen in the plans, we did not incur further costs for the Shared Plans and all assets and liabilities related to the Shared Plans remain with Exelis.
The expense allocations have been determined on a basis that we consider to be a reasonable reflection of the utilization of services provided or the benefit received by us during the periods presented. The allocations may not, however, reflect the expense we would have incurred as an independent, publicly-traded company for the periods presented. Actual costs that may have been incurred if we had been a stand-alone company would depend on a number of factors, including the chosen organizational structure, functions outsourced or performed by employees and strategic decisions made in areas such as information technology and infrastructure.
Separation Agreements
Following the Spin-off, Vectrus and Exelis began operating independently of each other, and neither has any ownership interest in the other. In order to govern certain ongoing relationships between Vectrus and Exelis following the Spin-off and to provide mechanisms for an orderly transition, on September 27, 2014, Vectrus and Exelis executed the various agreements that will govern the ongoing relationships between and among the companies after the Spin-off and provide for the allocation of employee benefits, income taxes, and certain other liabilities and obligations attributable to periods prior to the Spin-off. The executed agreements include the Distribution Agreement, Employee Matters Agreement, Tax Matters Agreement, Master Transition Services Agreement, a Technology License Agreement and a Transitional Trademark License Agreement.
For the three months ended March 27, 2015, charges incurred as a result of the services provided to Vectrus by Exelis under the Master Transition Service Agreement, were $1.0 million and no charges were incurred related to the this agreement for services provided by Vectrus to Exelis. As of March 27, 2015 and December 31, 2014, total payables due from Vectrus to Exelis were $1.0 million and $1.4 million, respectively. Total receivables due to Vectrus from Exelis were $0.1 million as of March 27, 2015.