Balance Sheet Accounts and Supplemental Disclosures

a. Accounts Receivable



	As of December 31,
	2016			2015
	(In millions)
Billed	$	55.7		$	114.1
Unbilled	124.1			91.6
Reserve for overhead rate disallowance	(44.5		)	(36.8		)
Total receivables under long-term contracts	135.3			168.9
Other receivables	1.1			0.6
Accounts receivable	$	136.4		$	169.5

The net unbilled receivable amounts as of December 31, 2016 expected to be collected after one year are $31.1 million.

b. Inventories



	As of December 31,
	2016			2015
	(In millions)
Long-term contracts at average cost	$	551.9		$	543.5
Progress payments	(368.2		)	(388.5		)
Total long-term contract inventories	183.7			155.0
Total other inventories	1.4			1.2
Inventories	$	185.1		$	156.2

Long-term contract inventories included an allocation of general and administrative costs incurred throughout fiscal 2016 and the one month ended December 31, 2015 amounted to $257.4 million and $18.3 million, respectively, and the cumulative amount of general and administrative costs in long-term contract inventories is estimated to be $21.1 million and $17.1 million at December 31, 2016 and 2015, respectively.

c. Other Current Assets, net



	As of December 31,
	2016		2015
	(In millions)
Recoverable from the U.S. government for Rocketdyne Business integration costs (see Note 3(f))	$	11.9	$	11.9
Prepaid expenses	16.5		11.9
Receivables, net	17.8		10.6
Indemnification receivable from UTC, net	5.5		15.7
Recoverable from the U.S. government for competitive improvement program obligations (see Note 10)	7.6		9.1
Income tax receivable	26.8		1.6
Other	5.6		8.4
Other current assets, net	$	91.7	$	69.2

d. Property, Plant and Equipment, net



	As of December 31,
	2016			2015
	(In millions)
Land	$	71.4		$	71.4
Buildings and improvements	304.2			290.1
Machinery and equipment	540.8			510.6
Construction-in-progress	30.4			32.5
	946.8			904.6
Less: accumulated depreciation	(580.8		)	(541.3		)
Property, plant and equipment, net	$	366.0		$	363.3

Depreciation expense for fiscal 2016, 2015, 2014, and one month ended December 31, 2015 was $49.6 million, $49.8 million, $48.5 million, and $3.8 million respectively. The Company had $5.0 million of property, plant and equipment additions included in accounts payable as of December 31, 2016.

e. Intangible Assets



	As of December 31, 2016
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In millions)
Customer related	$	83.8	$	37.4	$	46.4
Intellectual property\trade secrets	34.2		9.2		25.0
Non-compete agreements	0.5		0.5		—
Trade name	20.5		2.4		18.1
Acquired technology	18.3		13.4		4.9
Intangible assets	$	157.3	$	62.9	$	94.4



	As of December 31, 2015
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In millions)
Customer related	$	83.8	$	28.3	$	55.5
Intellectual property\trade secrets	34.2		6.6		27.6
Non-compete agreements	0.5		0.4		0.1
Trade name	20.5		1.7		18.8
Acquired technology	18.3		12.6		5.7
Intangible assets	$	157.3	$	49.6	$	107.7

Amortization expense related to intangible assets was $13.3 million, $13.4 million, $13.5 million, and $1.1 million in fiscal 2016, fiscal 2015, fiscal 2014, and one month ended December 31, 2015, respectively.

Future amortization expense for the five succeeding years was estimated to be as follows:



Year Ending December 31,	Future Amortization Expense
	(In millions)
2017	$	13.1
2018	13.1
2019	13.0
2020	12.8
2021	9.3
	$	61.3

f. Other Noncurrent Assets, net



	As of December 31,
	2016		2015
	(In millions)
Recoverable from the U.S. government for Rocketdyne Business integration costs	$	10.9	$	21.2
Deferred financing costs	3.4		2.1
Recoverable from the U.S. government for conditional asset retirement obligations	20.3		17.8
Grantor trust	16.6		10.3
Note receivable, net	9.0		9.0
Recoverable from the U.S. government for competitive improvement program obligations (see Note 10)	1.3		3.2
Recoverable from the U.S. government for restructuring costs	12.8		3.3
Income tax receivable	10.8		7.9
Other	5.1		6.8
Other noncurrent assets, net	$	90.2	$	81.6

The current and noncurrent Rocketdyne Business integration costs capitalized as of December 31, 2016 and 2015 totaled $22.8 million and $33.1 million, respectively. These integration costs became subject to reimbursement by the U.S. government in the third quarter of fiscal 2016 due to the following: (i) completion of the U.S. government's audit and approval that the Company's planned integration savings will exceed its restructuring costs by a factor of at least two to one; (ii) determination from the Under Secretary of Defense that the audited restructuring savings exceed the costs by a factor of two to one; and (iii) execution on August 16, 2016 of an advance agreement with the Defense Contract Management Agency.

The Company amortizes deferred financing costs over the estimated life of the related debt (a portion of which is classified as a contra liability). Amortization of deferred financing costs was $2.0 million, $2.7 million, $3.6 million and $0.2 million in fiscal 2016, fiscal 2015, fiscal 2014 and the one month ended December 31, 2015, respectively.

g. Assets Held for Sale

As of February 28, 2015, the Company classified approximately 550 acres, known as Hillsborough and representing a portion of the 5,563 acre Easton plan, as assets held for sale as a result of its plans to sell the Hillsborough land. The Hillsborough land was reported as real estate held for entitlement and leasing as of November 30, 2014. For operating segment reporting, the Hillsborough land has been reported as a part of the Real Estate segment.

During the second quarter of fiscal 2015, the Company finalized the sale of the Hillsborough land for a total purchase price of $57.0 million which was comprised of $46.7 million cash and $10.3 million of promissory notes. The total acreage covered by the Hillsborough land transaction was approximately 700 acres, of which approximately 550 acres was recognized as a sale in the second quarter of fiscal 2015. At the initial closing, the buyer paid $40.0 million cash and executed a $9.0 million promissory note secured by a first lien Deed of Trust on a portion of the sale property which resulted in a pre-tax gain of $30.6 million in the second quarter of fiscal 2015. In addition, approximately 150 acres of this land, including a 50-acre portion known as “Area 40,” was held back from the initial closing. Upon receipt of regulatory approvals, a closing will take place for the sale of the developable portions of such holdback acreage for a purchase price of $6.7 million in cash. A summary of the impact of the land sale on the consolidated statement of operations for fiscal 2015 was as follows (in millions):



Net sales from land sale	$	42.0
Cost of sales from land sale	11.4
Income from continuing operations before income taxes from land sale	30.6
Income tax provision related to land sale	12.7
Net income from land sale	$	17.9

In fiscal 2014, the Company classified its energy business (the "Energy Business") as assets held for sale as a result of its plans to sell the business. The Company divested the Energy Business in July 2015 for an insignificant amount of proceeds. The Company incurred approximately $1.8 million of expenses to divest its Energy Business. The assets and liabilities of the Energy Business for all periods presented were insignificant. The plan was a result of management’s decision to focus its capital and resources on its Aerospace and Defense and Real Estate operating segments. The net sales associated with the Energy Business totaled $0.6 million in fiscal 2015 and 2014. For operating segment reporting, the Energy Business has been reported as a part of the Aerospace and Defense segment.

In fiscal 2014, the Company entered into an asset purchase agreement associated with the sale of certain intellectual property related to a solar power contract. The related contract was terminated in connection with the sale. The proceeds from the sale were $7.5 million resulting in a gain of $6.8 million which is included in "Other, net" in the consolidated statement of operations.

h. Other Current Liabilities



	As of December 31,
	2016		2015
	(In millions)
Accrued compensation and employee benefits	$	105.7	$	90.4
Income taxes	2.1		20.3
Competitive improvement program obligations (see Note 10)	7.6		9.4
Payable to UTC for Transition Service Agreements	1.3		1.9
Interest payable	4.1		12.9
Contract loss provisions	6.8		9.1
Other	40.2		59.1
Other current liabilities	$	167.8	$	203.1

i. Other Noncurrent Liabilities



	As of December 31,
	2016		2015
	(In millions)
Conditional asset retirement obligations	$	30.6	$	29.5
Pension benefits, non-qualified	17.5		17.6
Deferred compensation	19.8		11.5
Deferred revenue	13.3		13.8
Competitive improvement program obligations (see Note 10)	1.3		3.2
Uncertain income tax positions	28.4		7.0
Other	13.1		12.6
Other noncurrent liabilities	$	124.0	$	95.2

j. Accumulated Other Comprehensive Loss, Net of Income Taxes

Changes in accumulated other comprehensive loss by components, net of income taxes:



	Actuarial Losses, Net			Prior Service Credits, Net			Total
	(In millions)
November 30, 2014	$	(337.0	)	$	3.3		$	(333.7	)
Actuarial losses arising during the period, net of income taxes	(55.0		)	(1.6		)	(56.6		)
Amortization of actuarial losses and prior service credits, net of income taxes	49.4			(0.8		)	48.6
November 30, 2015	(342.6		)	0.9			(341.7		)
Actuarial losses arising during the period, net of income taxes	(8.6		)	—			(8.6		)
Amortization of actuarial losses and prior service credits, net of income taxes	3.4			(0.1		)	3.3
December 31, 2015	(347.8		)	0.8			(347.0		)
Actuarial gains arising during the period, net of income taxes	7.5			—			7.5
Amortization of actuarial losses and prior service credits, net of income taxes	37.1			(0.6		)	36.5
December 31, 2016	$	(303.2	)	$	0.2		$	(303.0	)

The estimated amounts that will be amortized from accumulated other comprehensive loss into net periodic benefit expense in fiscal 2017:



	Pension Benefits		Medical and Life Insurance Benefits
	(In millions)
Actuarial losses (gains), net	$	67.8	$	(4.1	)
Prior service costs (credits), net	0.1		(0.2		)
	$	67.9	$	(4.3	)

k. Redeemable Common Stock

The Company inadvertently failed to register with the SEC the issuance of certain of its common shares in its defined contribution 401(k) employee benefit plan (the “Plan”). As a result, certain Plan participants who purchased such securities pursuant to the Plan may have the right to rescind certain of their purchases for consideration equal to the purchase price paid for the securities (or if such security has been sold, to receive consideration with respect to any loss incurred on such sale) plus interest from the date of purchase. As of December 31, 2016 and 2015, the Company has classified 0.1 million shares as redeemable common stock because the redemption features are not within the control of the Company. The Company may also be subject to civil and other penalties by regulatory authorities as a result of the failure to register these shares. These shares have always been treated as outstanding for financial reporting purposes. In June 2008, the Company filed a registration statement on Form S-8 to register future transactions in the Company's stock fund in the Plan. During fiscal 2016, fiscal 2015, fiscal 2014, and the one month ended December 31, 2015, the Company recorded less than $0.1 million, ($0.1) million, and $0.9 million, and $0.4 million, respectively, for realized (gains)/losses and interest associated with this matter.