SEGMENTS

Effective April 2016, the Company realigned into four reportable segments: the Integrated Systems, the Aerospace Structures, the Precision Components and the Product Support segments. The Company’s reportable segments are aligned with how the business is managed and views the markets that the Company serves. The Chief Operating Decision Maker (the "CODM") evaluates performance and allocates resources based upon review of segment information. The CODM utilizes earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) as a primary measure of segment profitability to evaluate performance of its segments and allocate resources.

Integrated Systems consists of the Company’s operations that provides integrated solutions including design, development and support of proprietary components, subsystems and systems, as well as production of complex assemblies using external designs. Capabilities include hydraulic, mechanical and electro-mechanical actuation, power and control; a complete suite of aerospace gearbox solutions including engine accessory gearboxes and helicopter transmissions; active and passive heat exchange technology; fuel pumps, fuel metering units and Full Authority Digital Electronic Control fuel systems; hydro-mechanical and electromechanical primary and secondary flight controls; and a broad spectrum of surface treatment options.

Aerospace Structures consists of the Company’s operations that supply commercial, business, regional and military manufacturers with large metallic and composite structures. Products include wings, wing boxes, fuselage panels, horizontal and vertical tails and sub-assemblies such as floor grids. Inclusive of most of the former Vought Aircraft Division, Aerospace Structures also has the capability to engineer detailed structural designs in metal and composites.

Precision Components consists of the Company’s operations that produce close-tolerance parts primarily to customer designs and model-based definition, including a wide range of aluminum, hard metal and composite structure capabilities. Capabilities include complex machining, gear manufacturing, sheet metal fabrication, forming, advanced composite and interior structures, joining processes such as welding, autoclave bonding and conventional mechanical fasteners and a variety of special processes including: super plastic titanium forming, aluminum and titanium chemical milling and surface treatments.

Product Support consists of the Company’s operations that provide full life cycle solutions for commercial, regional and military aircraft. The Company’s extensive product and service offerings include full post-delivery value chain services that simplify the MRO supply chain. Through its line maintenance, component MRO and postproduction supply chain activities, Product Support is positioned to provide integrated planeside repair solutions globally. Capabilities include fuel tank repair, metallic and composite aircraft structures, nacelles, thrust reversers, interiors, auxiliary power units and a wide variety of pneumatic, hydraulic, fuel and mechanical accessories.

Segment Adjusted EBITDA is total segment revenue reduced by operating expenses (less depreciation and amortization) identifiable with that segment. Corporate includes general corporate administrative costs and any other costs not identifiable with one of the Company’s segments, including a loss on divestiture of $4,774 for the six months ended September 30, 2016.

The Company does not accumulate net sales information by product or service or groups of similar products and services and, therefore, the Company does not disclose net sales by product or service because to do so would be impracticable. Selected financial information for each reportable segment and the reconciliation of Adjusted EBITDA to operating income is as follows:



	Three Months Ended September 30,						Six Months Ended September 30,
	2016			2015			2016			2015
Net sales:
Integrated Systems	$	245,367		$	261,481		$	502,723		$	520,052
Aerospace Structures	320,283			385,471			651,879			780,591
Precision Components	259,458			265,825			514,060			530,966
Product Support	85,826			73,777			170,025			148,522
Elimination of inter-segment sales	(36,165		)	(31,780		)	(70,665		)	(65,719		)
	$	874,769		$	954,774		$	1,768,022		$	1,914,412

Income before income taxes:
Operating income (expense):
Integrated Systems	$	45,797		$	51,100		$	93,783		$	101,657
Aerospace Structures	24,867			36,682			34,031			78,480
Precision Components	12,063			25,457			4,281			50,362
Product Support	14,265			9,125			28,324			19,112
Corporate	(26,506		)	(12,317		)	(43,207		)	(31,698		)
	70,486			110,047			117,212			217,913
Interest expense and other	17,896			15,631			36,023			33,747
	$	52,590		$	94,416		$	81,189		$	184,166

Depreciation and amortization:
Integrated Systems	$	10,157		$	10,139		$	20,461		$	20,657
Aerospace Structures	18,385			15,646			36,347			31,579
Precision Components	14,016			13,972			28,345			28,193
Product Support	2,452			2,428			4,936			4,890
Corporate	276			390			659			790
	$	45,286		$	42,575		$	90,748		$	86,109

Amortization of acquired contract liabilities, net:
Integrated Systems	$	9,136		$	10,011		$	19,473		$	20,512
Aerospace Structures	20,647			19,430			39,085			43,208
Precision Components	694			963			1,267			1,782
	$	30,477		$	30,404		$	59,825		$	65,502

Adjusted EBITDA:
Integrated Systems	$	46,818		$	51,228		$	94,771		$	101,802
Aerospace Structures	22,605			32,898			31,293			66,851
Precision Components	25,385			38,466			31,359			76,773
Product Support	16,717			11,553			33,260			24,002
Corporate	(21,456		)	(11,927		)	(37,774		)	(28,045		)
	$	90,069		$	122,218		$	152,909		$	241,383



	Three Months Ended September 30,				Six Months Ended September 30,
	2016		2015		2016		2015

Capital expenditures:
Integrated Systems	$	2,595	$	6,012	$	5,823	$	9,865
Aerospace Structures	3,759		8,895		7,592		15,466
Precision Components	3,503		4,413		8,405		11,126
Product Support	703		711		1,333		1,333
Corporate	684		81		814		338
	$	11,244	$	20,112	$	23,967	$	38,128



	September 30, 2016		March 31, 2016
Total Assets:
Integrated Systems	$	1,326,850	$	1,371,178
Aerospace Structures	1,864,812		1,792,397
Precision Components	1,287,605		1,298,294
Product Support	347,089		350,674
Corporate	28,111		22,550
	$	4,854,467	$	4,835,093

During the three months ended September 30, 2016 and 2015, the Company had international sales of $182,706 and $188,308, respectively.

During the six months ended September 30, 2016 and 2015, the Company had international sales of $363,125 and $379,625, respectively.