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Operating Segments and Related Disclosures
 9 Months Ended
Aug. 31, 2014
Segment Reporting [Abstract]  
Operating Segments and Related Disclosures
Operating Segments and Related Disclosures
The Company’s operations are organized into two operating segments based on different products and customer bases: Aerospace and Defense and Real Estate.
The Company evaluates its operating segments based on several factors, of which the primary financial measure is segment performance. Segment performance represents net sales from continuing operations less applicable costs, expenses and unusual items relating to the segment operations. Segment performance excludes corporate income and expenses, legacy income or expenses, unusual items not related to the segment operations, interest expense, interest income, and income taxes.
Customers that represented more than 10% of net sales for the periods presented are as follows:
 
Three months ended August 31,
 
Nine months ended August 31,
 
2014
 
2013
 
2014
 
2013
Lockheed Martin
28
%
 
19
%
 
26
%
 
26
%
United Launch Alliance
27
%
 
20
%
 
26
%
 
14
%
Raytheon
15
%
 
27
%
 
17
%
 
36
%
NASA
11
%
 
12
%
 
12
%
 
*

________
 * Less than 10%
Sales to the U.S. government and its agencies, including sales to the Company’s significant customers discussed above, were as follows (dollars in millions):
 
 
U.S. Government
Sales
 
Percentage of Net
Sales
Three months ended August 31, 2014
$
395.8

 
94
%
Three months ended August 31, 2013
353.2

 
96
%
Nine months ended August 31, 2014
1,090.1

 
95
%
Nine months ended August 31, 2013
859.8

 
96
%


Selected financial information for each reportable segment is as follows:
 
Three months ended August 31,
 
Nine months ended August 31,
 
2014
 
2013
 
2014
 
2013
 
(In millions)
Net Sales:
 
 
 
 
 
 
 
Aerospace and Defense
$
418.0

 
$
365.9

 
$
1,147.7

 
$
893.6

Real Estate
1.5

 
1.6

 
4.6

 
4.2

Total Net Sales
$
419.5

 
$
367.5

 
$
1,152.3

 
$
897.8

Segment Performance:
 
 
 
 
 
 
 
Aerospace and Defense
$
33.6

 
$
35.9

 
$
90.6

 
$
101.5

Environmental remediation provision adjustments
(4.7
)
 
(1.7
)
 
(6.6
)
 
(2.3
)
Retirement benefit plan expense
(6.1
)
 
(11.3
)
 
(18.3
)
 
(32.8
)
Unusual items
(0.1
)
 
(0.2
)
 
(0.2
)
 
(1.8
)
Aerospace and Defense Total
22.7

 
22.7

 
65.5

 
64.6

Real Estate
0.8

 
0.9

 
2.6

 
2.9

Total Segment Performance
$
23.5

 
$
23.6

 
$
68.1

 
$
67.5

Reconciliation of segment performance to loss from continuing operations before income taxes:
 
 
 
 
 
 
 
Segment performance
$
23.5

 
$
23.6

 
$
68.1

 
$
67.5

Interest expense
(14.0
)
 
(12.4
)
 
(39.0
)
 
(36.2
)
Interest income
—

 
—

 
—

 
0.2

Stock-based compensation expense
(1.5
)
 
(3.4
)
 
(4.5
)
 
(9.7
)
Corporate retirement benefit plan expense
(2.8
)
 
(5.2
)
 
(8.4
)
 
(15.7
)
Corporate and other
(5.8
)
 
(5.0
)
 
(15.5
)
 
(16.7
)
Unusual items
(9.8
)
 
(6.6
)
 
(60.8
)
 
(17.2
)
Loss from continuing operations before income taxes
$
(10.4
)
 
$
(9.0
)
 
$
(60.1
)
 
$
(27.8
)