Business Segment Information

3 Months Ended

Mar. 31, 2012

Business Segment Information [Abstract]

Business Segment Information

Note 4. 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 or 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 March 31,
	2012			2011
	(Dollars in millions)
Sales:
Actuation and Landing Systems	$	802.5		$	684.3
Nacelles and Interior Systems		757.4			656.4
Electronic Systems		592.7			555.2
	$	2,152.6		$	1,895.9
Intersegment sales:
Actuation and Landing Systems	$	11.2		$	9.8
Nacelles and Interior Systems		3.1			2.8
Electronic Systems		8.4			10.9
	$	22.7		$	23.5
Operating income:
Actuation and Landing Systems(1)	$	97.0		$	86.5
Nacelles and Interior Systems		176.0			157.3
Electronic Systems		88.1			91.0
Segment Operating Income		361.1			334.8
Corporate general and administrative expenses		(32.5	)		(30.9	)
ERP costs		(4.9	)		(3.6	)
Total operating income	$	323.7		$	300.3

(1) The Company will close a facility in its landing gear business 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. Subsequent to the announcement of the closure on June 7, 2011, the Company incurred $20.1 million of costs related to this closure in 2011. During the three months ended March 31, 2012, the Company incurred $2.3 million of costs related to this closure of which $0.3 million was personnel related and $2 million was facility closure and other costs and $2.2 million of these costs were reported in cost of sales and $0.1 million were reported in selling and administrative costs.