Operating Segments and Related Disclosures

3 Months Ended

Feb. 28, 2014

Segment Reporting [Abstract]

Operating Segments and Related Disclosures

Note 13. 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
	February 28, 2014			February 28, 2013
United Launch Alliance		27	%			*
Lockheed Martin Corporation		20	%		31	%
Raytheon Company		18	%		44	%
NASA		15	%			*

* Less than 10%.

Sales in the first quarter of fiscal 2014 and 2013 directly and indirectly to the U.S. government and its agencies, including sales to the Company’s significant customers discussed above, totaled 94% and 96%, respectively, of net sales.

Selected financial information for each reportable segment is as follows:

	Three months ended
	February 28, 2014			February 28, 2013
	(In millions)
Net Sales:
Aerospace and Defense	$	328.2		$	242.3
Real Estate		1.5			1.4
Total	$	329.7		$	243.7
Segment Performance:
Aerospace and Defense	$	33.4		$	29.2
Environmental remediation provision adjustments		(1.6	)		0.6
Retirement benefit plan expense		(6.1	)		(10.7	)
Unusual items		—			0.1
Aerospace and Defense Total		25.7			19.2
Real Estate		0.9			1.0
Total	$	26.6		$	20.2
Reconciliation of segment performance to income (loss) from continuing operations before income taxes:
Segment Performance	$	26.6		$	20.2
Interest expense		(12.4	)		(11.2	)
Interest income		—			0.1
Corporate retirement benefit plan expense		(2.8	)		(5.2	)
Stock-based compensation expense		(1.4	)		(3.2	)
Corporate and other expenses		(5.2	)		(3.9	)
Unusual items		(4.9	)		(6.0	)
Loss from continuing operations before income taxes	$	(0.1	)	$	(9.2	)