Operating Segments and Related Disclosures

6 Months Ended

Jun. 30, 2018

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.

Selected financial information for each operating segment is as follows:



	Three months ended June 30,						Six months ended June 30,
	2018			2017			2018			2017
	(In millions)
Net Sales:
Aerospace and Defense	$	465.6		$	458.0		$	956.0		$	861.7
Real Estate	1.6			1.6			3.2			3.2
Total Net Sales	$	467.2		$	459.6		$	959.2		$	864.9
Segment Performance:
Aerospace and Defense	$	69.5		$	58.8		$	106.1		$	97.0
Environmental remediation provision adjustments	(1.0		)	(0.5		)	(2.3		)	(1.1		)
GAAP/Cost Accounting Standards retirement benefits expense difference	(1.2		)	(3.4		)	(2.2		)	(6.9		)
Unusual items	—			1.3			—			1.9
Aerospace and Defense Total	67.3			56.2			101.6			90.9
Real Estate	0.6			0.8			1.2			1.6
Total Segment Performance	$	67.9		$	57.0		$	102.8		$	92.5
Reconciliation of segment performance to income before income taxes:
Segment performance	$	67.9		$	57.0		$	102.8		$	92.5
Interest expense	(8.3		)	(7.8		)	(16.4		)	(15.2		)
Interest income	2.0			0.8			3.6			1.3
Stock-based compensation expense	(5.2		)	(3.4		)	(6.7		)	(10.2		)
Corporate retirement benefits expense	(3.3		)	(5.0		)	(6.6		)	(10.0		)
Corporate and other expense, net	(5.8		)	(5.4		)	(10.7		)	(12.0		)
Unusual items	—			—			—			(1.0		)
Income before income taxes	$	47.3		$	36.2		$	66.0		$	45.4

Customers that represented more than 10% of net sales for the periods presented were as follows:



	Three months ended June 30,				Six months ended June 30,
	2018		2017		2018		2017
Lockheed Martin Corporation	29	%	24	%	29	%	21	%
United Launch Alliance	19		23		19		23
NASA	19		18		18		18
Raytheon Company	15		14		18		16

The Company's sales to each of the major customers listed above involve several product lines and programs.