Basis of Interim Financial Statements

6 Months Ended

Jun. 30, 2011

Basis of Interim Financial Statements [Abstract]

Basis of Interim Financial Statements

Note 1. Basis of Interim Financial Statements

The accompanying unaudited condensed consolidated financial statements of Goodrich Corporation and its subsidiaries have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. Unless indicated otherwise or the context requires, the terms “we,” “our,” “us,” “Goodrich” or “Company” refer to Goodrich Corporation and its subsidiaries. The Company believes that all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain amounts in prior year financial statements have been reclassified to conform to the current year presentation. Operating results for the three and six months ended June 30, 2011 are not necessarily indicative of the results that may be achieved for the twelve months ending December 31, 2011. Unless otherwise noted, disclosures pertain to the Company’s continuing operations. For further information, refer to the consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2010.

Use of Estimates. The preparation of financial statements requires management to make estimates and assumptions that affect amounts recognized. Estimates and assumptions are reviewed and updated regularly as new information becomes available. During the three and six months ended June 30, 2011 and 2010, the Company changed its estimates of revenues and costs on certain long-term contracts primarily in its aerostructures and aircraft wheels and brakes businesses. The changes in estimates increased income from continuing operations before income taxes during the three months ended June 30, 2011 and 2010 by $20.6 million and $32.8 million ($13 million and $20.6 million after tax, or $0.10 and $0.16 per diluted share, respectively). The changes in estimates increased income from continuing operations before income taxes during the six months ended June 30, 2011 and 2010 by $41.3 million and $48.8 million, respectively ($26.2 million and $30.6 million after tax or $0.20 and $0.24 per diluted share, respectively). These changes were primarily related to favorable cost and operational performance, changes in volume expectations and sales pricing improvements and finalization of contract terms on current and/or follow-on contracts.

Accrued Expenses. Accrued expenses consisted of the following:

	June 30,		December 31,
	2011		2010
	(Dollars in millions)
Deferred revenue	$	355.5	$	274.9
Wages, vacations, pensions and other employment costs		285.5		313.2
Warranties		98.7		90.0
Postretirement benefits other than pensions		28.2		29.7
Accrued taxes		40.6		31.1
Foreign currency hedges		8.4		22.5
Other		284.3		280.4
Total	$	1,101.2	$	1,041.8