Operating Segments and Related Disclosures

6 Months Ended

May 31, 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 May 31,						Six months ended May 31,
	2014			2013			2014			2013
Lockheed Martin		30	%		31	%		25	%		31	%
United Launch Alliance		25	%		12	%		26	%		*
Raytheon		18	%		42	%		18	%		43	%
NASA		12	%		*			13	%		*

* 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 May 31, 2014	$	385.1		96	%
Three months ended May 31, 2013		273.5		95
Six months ended May 31, 2014		694.2		95
Six months ended May 31, 2013		506.6		96

Selected financial information for each reportable segment is as follows:

	Three months ended May 31,						Six months ended May 31,
	2014			2013			2014			2013
	(In millions)
Net Sales:
Aerospace and Defense	$	401.5		$	285.4		$	729.7		$	527.7
Real Estate		1.6			1.2			3.1			2.6
Total Net Sales	$	403.1		$	286.6		$	732.8		$	530.3
Segment Performance:
Aerospace and Defense	$	23.6		$	36.4		$	57.0		$	65.6
Environmental remediation provision adjustments		(0.3	)		(1.2	)		(1.9	)		(0.6	)
Retirement benefit plan expense		(6.1	)		(10.8	)		(12.2	)		(21.5	)
Unusual items (see Note 14)		(0.1	)		(1.7	)		(0.1	)		(1.6	)
Aerospace and Defense Total		17.1			22.7			42.8			41.9
Real Estate		0.9			1.0			1.8			2.0
Total Segment Performance	$	18.0		$	23.7		$	44.6		$	43.9
Reconciliation of segment performance to loss from continuing operations before income taxes:
Segment performance	$	18.0		$	23.7		$	44.6		$	43.9
Interest expense		(12.6	)		(12.6	)		(25.0	)		(23.8	)
Interest income		—			0.1			—			0.2
Stock-based compensation expense		(1.6	)		(3.1	)		(3.0	)		(6.3	)
Corporate retirement benefit plan expense		(2.8	)		(5.3	)		(5.6	)		(10.5	)
Corporate and other		(4.5	)		(7.8	)		(9.7	)		(11.7	)
Unusual items (see Note 14)		(46.1	)		(4.6	)		(51.0	)		(10.6	)
Loss from continuing operations before income taxes	$	(49.6	)	$	(9.6	)	$	(49.7	)	$	(18.8	)