Segment Reporting

9 Months Ended

Sep. 30, 2014

Segment Reporting [Abstract]

Segment Reporting

Note 10.Segment Reporting

The Company is organized based on the products and services it offers. The Company’s reportable segments, which are also its operating segments, are comprised of commercial aircraft, consumables management and business jet. The Company is currently evaluating the appropriate structure and reporting classification of its business segments and reporting units in light of the Company’s announcement of its intention to spin-off its consumables management segment and depending on the results of this evaluation our reportable segments and reporting units may change in the future.

The Company evaluates segment performance based on segment operating earnings or losses. Each segment regularly reports its results of operations and makes requests for capital expenditures and acquisition funding to the Company’s chief operating decision-making group. This group is comprised of the Chairman and Co-Chief Executive Officer, the President and Co-Chief Executive Officer, and the Senior Vice President and Chief Financial Officer. Each operating segment has separate management teams and infrastructures dedicated to providing a full range of products and services to their commercial, business jet, military, MRO, aircraft leasing, aircraft manufacturing and logistics customers.

The Company has not included product line information due to the similarity of commercial aircraft segment product offerings and the impracticality of determining such information and the similarity of the product offerings and services for the consumables management segment.

The following table presents revenues and operating earnings by reportable segment:

	THREE MONTHS ENDED				NINE MONTHS ENDED
	SEPTEMBER 30,				SEPTEMBER 30,
	2014		2013		2014		2013
Revenues
Commercial aircraft	$	513.9	$	456.6	$	1,578.4	$	1,307.8
Consumables management		448.7		317.4		1,242.0		956.8
Business jet		139.8		114.1		382.7		316.0
	$	1,102.4	$	888.1	$	3,203.1	$	2,580.6
Operating earnings (1)
Commercial aircraft	$	80.4	$	82.4	$	271.8	$	236.3
Consumables management		75.0		58.8		214.9		184.9
Business jet		(6.9)		18.9		30.1		51.2
		148.5		160.1		516.8		472.4
Interest expense		34.2		30.5		96.5		91.6
Earnings before income taxes	$	114.3	$	129.6	$	420.3	$	380.8

(1) Operating earnings include an allocation of corporate IT costs, employee benefits and general and administrative costs based on the proportion of each segment’s systems users, number of employees and sales, respectively.

The following table presents capital expenditures by reportable segment:

	THREE MONTHS ENDED				NINE MONTHS ENDED
	SEPTEMBER 30,				SEPTEMBER 30,
	2014		2013		2014		2013
Commercial aircraft	$	20.6	$	28.9	$	68.2	$	71.2
Consumables management		36.1		10.6		97.1		29.5
Business jet		3.6		6.4		17.7		13.0
	$	60.3	$	45.9	$	183.0	$	113.7

Corporate capital expenditures have been allocated to the above segments in a manner consistent with our corporate expense allocations.

The following table presents goodwill by reportable segment:

	September 30,		December 31,
	2014		2013
Commercial aircraft	$	388.4	$	394.6
Consumables management		1,380.3		1,086.5
Business jet		484.9		89.9
	$	2,253.6	$	1,571.0

The following table presents total assets by reportable segment:

	September 30,		December 31,
	2014		2013
Commercial aircraft	$	2,028.5	$	2,016.5
Consumables management		3,909.9		3,212.8
Business jet		1,019.7		466.9
	$	6,958.1	$	5,696.2

Corporate assets (including cash and cash equivalents) of $501.4 and $736.8 at September 30, 2014 and December 31, 2013, respectively, have been allocated to the above segments in a manner consistent with our corporate expense allocations.