Operating Segments and Related Disclosures

6 Months Ended

May 31, 2012

Operating Segments and Related Disclosures [Abstract]

Operating Segments and Related Disclosures

12. 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 provisions for unusual items relating to the segment operations. Segment performance excludes corporate income and expenses, legacy income or expenses, provisions for 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 May 31,						Six months ended May 31,
	2012			2011			2012			2011
Raytheon		37	%		36	%		36	%		37	%
Lockheed Martin		32	%		31	%		30	%		28	%

Sales during the three and six months ended May 31, 2012 directly and indirectly to the U.S. government and its agencies, including sales to the Company’s significant customers discussed above, totaled 95% of net sales for both periods. Sales during the three and six months ended May 31, 2011 directly and indirectly to the U.S. government and its agencies, including sales to the Company’s significant customers discussed above, totaled 93% of net sales for both periods.

Selected financial information for each reportable segment is as follows:

	Three months ended May 31,						Six months ended May 31,
	2012			2011			2012			2011
	(In millions)
Net Sales:
Aerospace and Defense	$	247.7		$	228.3		$	448.0		$	436.4
Real Estate		2.2			1.6			3.8			3.3
Total Net Sales	$	249.9		$	229.9		$	451.8		$	439.7
Segment Performance:
Aerospace and Defense	$	27.6		$	24.5		$	52.5		$	51.8
Environmental remediation provision adjustments		(2.3	)		(0.8	)		(2.8	)		(1.8	)
Retirement benefit plan expense		(4.7	)		(5.3	)		(9.4	)		(10.5	)
Unusual items (see Note 13)		(0.2	)		(0.2	)		(0.4	)		(0.4	)
Aerospace and Defense Total		20.4			18.2			39.9			39.1
Real Estate		0.9			1.1			2.0			2.3
Total Segment Performance	$	21.3		$	19.3		$	41.9		$	41.4
Reconciliation of segment performance to income from continuing operations before income taxes:
Segment performance	$	21.3		$	19.3		$	41.9		$	41.4
Interest expense		(5.8	)		(7.7	)		(11.8	)		(15.5	)
Interest income		0.1			0.3			0.3			0.6
Stock-based compensation expense		(1.3	)		(1.7	)		(2.2	)		(2.9	)
Corporate retirement benefit plan expense		(5.6	)		(6.3	)		(11.1	)		(12.7	)
Corporate and other		(3.7	)		(2.9	)		(7.4	)		(5.6	)
Unusual items (see Note 13)		(0.4	)		—			(0.4	)		0.2
Income from continuing operations before income taxes	$	4.6		$	1.0		$	9.3		$	5.5