SEGMENT REPORTING

12 Months Ended

Dec. 31, 2014

Segment Reporting [Abstract]

Segment Reporting

13.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 and business jet. Each segment regularly reports its results of operations and makes requests for capital expenditures and acquisition funding to the Company’s chief operational decision-making group (“CODM”). This group is comprised of the Executive Chairman of the Board of Directors, the President and Chief Executive Officer and the 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, maintenance, repair and overhaul providers, aircraft leasing and aircraft manufacturing customers.The Company has not included product line information due to the similarity of commercial aircraft segment product offerings. The Company is currently evaluating the appropriate structure and reporting classification of its business segments and reporting units in light of the Company’s spin-off of its consumables management segment and changes in members of CODM and depending on the results of this evaluation our reportable segments and reporting units may change in the future.

The following table presents revenues and other financial information by business segment:

		Year Ended December 31, 2014
		Commercial		Business
		Aircraft		Jet	Consolidated
Revenues	$	2,058.9	$	540.1	$	2,599.0
Operating earnings excluding KLX corporate allocations (1)		356.3		50.0		406.3
KLX corporate allocations						(22.3)
Operating earnings						384.0
Total assets(2)		2,162.0		1,037.9		3,199.9
Goodwill		379.8		479.7		859.5
Capital expenditures(3)
Continuing operations		102.8		28.8		131.6
Discontinued operations						124.0
Total capital expenditures						255.6
Depreciation and amortization(3)
Continuing operations		63.4		17.4		80.8
Discontinued operations						61.5
Total depreciation and amortization						142.3

		Year Ended December 31, 2013
		Commercial		Business
		Aircraft		Jet	Consolidated
Revenues	$	1,784.7	$	418.6	$	2,203.3
Operating earnings excluding KLX corporate allocations (1)		320.3		69.0		389.3
KLX corporate allocations						(26.4)
Operating earnings						362.9
Total assets(2)		2,016.5		466.9		2,483.4
Goodwill		394.6		89.9		484.5
Capital expenditures(3)
Continuing operations		96.5		17.8		114.3
Discontinued operations						40.6
Total capital expenditures						154.9
Depreciation and amortization(3)
Continuing operations		50.4		9.4		59.8
Discontinued operations						29.8
Total depreciation and amortization						89.6

		Year Ended December 31, 2012
		Commercial		Business
		Aircraft		Jet	Consolidated
Revenues	$	1,551.2	$	363.1	$	1,914.3
Operating earnings excluding KLX corporate allocations (1)		271.3		52.0		323.3
KLX corporate allocations						(30.3)
Operating earnings						293.0
Total assets(2)		1,719.1		380.6		2,099.7
Goodwill		388.4		90.0		478.4
Capital expenditures(3)
Continuing operations		92.5		10.3		102.8
Discontinued operations						22.6
Total capital expenditures						125.4
Depreciation and amortization(3)
Continuing operations		42.3		7.7		50.0
Discontinued operations						25.0
Total depreciation and amortization						75.0

(1) Operating earnings includes 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.

(2) Corporate assets (including cash and cash equivalents) of $368.3,  $736.8 and $599.4 at December 31, 2014, 2013 and 2012, respectively, have been allocated to the above segments in a manner consistent with our corporate expense allocations.

(3) Corporate capital expenditures and depreciation and amortization have been allocated to the above segments in a manner consistent with our corporate expense allocations. 

As part of the spin-off, we entered into certain agreements with KLX relating to transition services and IT services for a period of approximately 24 months following the distribution. In addition, we entered into an employee matters agreement and a tax sharing and indemnification agreement with KLX in connection with the spin-off.

Sales and cost of sales to KLX subsequent to the spin-off were immaterial to the consolidated financial statements. There were no material balances due to or due from KLX as of December 31, 2014.

Geographic Information

The Company operates principally in three geographic areas, the United States, Europe (primarily the United Kingdom) and emerging markets, such as Asia, Pacific Rim, and the Middle East. There were no significant transfers among geographic areas during these periods.

The following table presents revenues and operating earnings based on the originating location for the years ended December 31, 2014, 2013 and 2012. Additionally, it presents all identifiable assets related to the operations in each geographic area as of December 31, 2014 and 2013:

	Year Ended December 31,
		2014	2013			2012
Revenues:
Domestic	$	1,552.8	$	1,315.2	$	1,195.3
Foreign		1,046.2		888.1		719.0
	$	2,599.0	$	2,203.3	$	1,914.3
Operating earnings:
Domestic	$	147.2	$	169.0	$	186.0
Foreign		236.8		193.9		107.0
	$	384.0	$	362.9	$	293.0
	December 31,
	2014		2013
Identifiable assets:
Domestic	$	1,996.3	$	4,482.7
Foreign		1,203.6		1,213.5
	$	3,199.9	$	5,696.2

Revenues by geographic area, based on destination, for the years ended December 31, 2014, 2013, and 2012 were as follows:

	Year Ended December 31,
	2014				2013				2012
			% of				% of				% of
	Revenues		Revenues		Revenues		Revenues		Revenues		Revenues
U.S.	$	859.1	33.1	%	$	788.3	35.8	%	$	771.7	40.3	%
Europe		684.6	26.3	%		549.3	24.9	%		465.5	24.3	%
Asia, Pacific Rim, Middle East and other		1,055.3	40.6	%		865.7	39.3	%		677.1	35.4	%
	$	2,599.0	100.0	%	$	2,203.3	100.0	%	$	1,914.3	100.0	%

Export revenues from the United States to customers in foreign countries amounted to $863.4,  $713.6 and $586.2 in the years ended December 31, 2014, 2013 and 2012, respectively.