Business Segment Information

6 Months Ended

Jun. 30, 2011

Segment Reporting [Abstract]

Business Segment Information

Note 3. Business Segment Information

The Company’s business segments are as follows:

• The Actuation and Landing Systems segment provides systems, components and related services pertaining to aircraft taxi, take-off, flight control, landing and stopping, and engine components, including fuel delivery systems and rotating assemblies.

• The Nacelles and Interior Systems segment produces products and provides maintenance, repair and overhaul services associated with aircraft engines, including thrust reversers, cowlings, nozzles and their components, and aircraft interior products, including slides, seats, cargo and lighting systems.

• The Electronic Systems segment produces a wide array of systems and components that provide flight performance measurements, flight management, fuel controls, electrical systems, control and safety data, reconnaissance and surveillance systems and precision guidance systems.

The Company measures each reporting segment’s profit based upon operating income. Accordingly, the Company does not allocate net interest expense, other income (expense) — net and income taxes to its reporting segments. The company-wide Enterprise Resource Planning (ERP) costs that are not directly associated with a specific business were not allocated to the segments. The accounting policies of the reportable segments are the same as those for the Company’s condensed consolidated financial statements.

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
				(Dollars in millions)
Sales:
Actuation and Landing Systems	$	736.7		$	608.1		$	1,421.0		$	1,221.2
Nacelles and Interior Systems		688.8			577.4			1,345.2			1,133.2
Electronic Systems		575.9			532.0			1,131.1			1,058.3
	$	2,001.4		$	1,717.5		$	3,897.3		$	3,412.7
Intersegment sales:
Actuation and Landing Systems	$	15.0		$	8.0		$	24.8		$	14.8
Nacelles and Interior Systems		3.2			2.9			6.0			4.8
Electronic Systems		11.6			6.0			22.5			12.7
	$	29.8		$	16.9		$	53.3		$	32.3
Operating income:
Actuation and Landing Systems(1)	$	76.5		$	60.5		$	163.0		$	129.9
Nacelles and Interior Systems		178.2			151.4			335.5			270.2
Electronic Systems		89.8			95.1			180.8			165.9
		344.5			307.0			679.3			566.0
Corporate general and administrative expenses		(36.7	)		(27.7	)		(67.6	)		(61.6	)
ERP costs		(4.9	)		(4.0	)		(8.5	)		(8.1	)
Total operating income	$	302.9		$	275.3		$	603.2		$	496.3

(1)	Acquisition of Microtecnica S.r.l
	On May 12, 2011, the Company acquired Microtecnica S.r.l. and incurred $8.1 million of acquisition-related costs which were reported in selling and administrative costs for the six months ended June 30, 2011. In addition, total assets for the Actuation and Landing Systems segment increased from $2,239.9 million at December 31, 2010 to $3,187.1 million at June 30, 2011, primarily related to this acquisition. See Note 9, “Goodwill”.
	Closure of a Landing Gear Facility
	On June 7, 2011, the Board of Directors of the Company authorized a plan to close a facility in its landing gear business. Due to declining program volumes, the Company will close the facility and incur substantially all of the costs by the end of 2012. The Company anticipates that it will incur costs in connection with this closure of approximately $37 million, of which approximately $15 million is for personnel related expenses, including severance, pension charges, outplacement services and assistance with employment transitioning, and approximately $22 million primarily related to facility closure and other costs, including accelerated depreciation, equipment dismantle and relocation costs and lease termination costs.
	During the three months ended June 30, 2011, the Company incurred $15.6 million of costs related to this closure for which $13.8 million was personnel related and $1.8 million was facility closure and other costs. $10.7 million of these costs were reported in cost of sales and $4.9 million were reported in selling and administrative costs.