SEGMENTS

The Company reports financial performance based on the following three reportable segments: Integrated Systems, Aerospace Structures and Product Support. The Company's CODM utilizes Adjusted EBITDA as a primary measure of 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. Aerospace Structures also has the capability to engineer detailed structural designs in metal and composites. It also includes 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 provides 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 items such as loss on divestitures and curtailments, settlement and early retirement incentives.

Effective January 1, 2018, the Company combined its Aerospace Structures and Precision Components reporting segments into one reporting segment, Aerospace Structures. Aerospace Structures and Precision Components share many of the same customers and suppliers and have substantial inter-company work on common programs. As a single operating segment, the Company is able to leverage its combined resources to make it more cost competitive and enhance performance. The newly formed operating segment is also a reportable segment. As a result, effective January 1, 2018, the Company has three reporting segments for future financial reporting purposes - Integrated Systems, Product Support and Aerospace Structures.

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 before interest is as follows:



	Year Ended March 31,
	2018			2017			2016
Net sales:
Integrated Systems	$	986,351		$	1,040,805		$	1,094,703
Aerospace Structures	1,954,729			2,172,768			2,500,679
Product Support	281,913			338,325			311,394
Elimination of inter-segment sales	(24,042		)	(19,099		)	(20,704		)
	$	3,198,951		$	3,532,799		$	3,886,072
(Loss) income before income taxes:
Operating (loss) income:
Integrated Systems	$	187,205		$	201,294		$	220,649
Aerospace Structures	(492,457		)	(90,489		)	(1,278,906		)
Product Support	45,702			55,801			24,977
Corporate	(102,856		)	(109,717		)	(57,826		)
	(362,406		)	56,889			(1,091,106		)
Interest expense and other	99,442			80,501			68,041
	$	(461,848	)	$	(23,612	)	$	(1,159,147	)
Depreciation and amortization:
Integrated Systems	$	35,986		$	40,332		$	42,086
Aerospace Structures	113,786			126,116			123,018
Product Support	6,744			9,037			11,009
Corporate	1,852			1,461			1,642
	$	158,368		$	176,946		$	177,755

Impairment charge of intangible assets:
Integrated Systems	$	—		$	—		$	400
Aerospace Structures	535,227			266,298			873,961
	$	535,227		$	266,298		$	874,361

Amortization of acquired contract liabilities, net:
Integrated Systems	$	38,293		$	36,760		$	41,585
Aerospace Structures	86,855			84,244			90,778
	$	125,148		$	121,004		$	132,363

Adjusted EBITDA:
Integrated Systems	$	184,898		$	204,866		$	213,056
Aerospace Structures	69,701			217,681			(360,635		)
Product Support	52,446			64,838			37,886
Corporate	(95,985		)	(89,132		)	(57,428		)
	$	211,060		$	398,253		$	(167,121	)



	Year Ended March 31,
	2018		2017		2016
Capital expenditures:
Integrated Systems	$	6,146	$	16,487	$	28,142
Aerospace Structures	29,519		30,434		48,219
Product Support	2,206		2,630		2,700
Corporate	4,179		2,281		986
	$	42,050	$	51,832	$	80,047



	March 31,
	2018		2017
Total Assets:
Integrated Systems	$	1,225,770	$	1,281,828
Aerospace Structures	2,260,416		2,810,930
Product Support	281,101		284,231
Corporate	39,777		37,611
	$	3,807,064	$	4,414,600

During fiscal years ended March 31, 2018, 2017 and 2016, the Company had foreign sales of $758,936, $768,703 and $797,976, respectively. The Company reports as foreign sales those sales with delivery points outside of the United States. As of March 31, 2018 and 2017, the Company had foreign long-lived assets of $222,841 and $315,224, respectively.