Segment Reporting 10Q
 3 Months Ended
Mar. 31, 2015
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 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 KLX and changes in the members of the 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 operating earnings by reportable segment:

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

 

 

March 31,

 

 

    

2015

    

2014

    

Revenues:

 

 

 

 

 

 

 

Commercial aircraft

 

$
526.1 

 

$
523.5 

 

Business jet

 

 
163.9 

 

 
121.2 

 

 

 

$
690.0 

 

$
644.7 

 

 

 

 

 

 

 

 

 

Operating earnings(1) 

 

 

 

 

 

 

 

Commercial aircraft

 

$
98.4 

 

$
93.1 

 

Business jet

 

 
27.3 

 

 
21.1 

 

 

 

 
125.7 

 

 
114.2 

 

Corporate allocations related to discontinued operations

 

 

 -

 

 
(4.1)

 

Operating earnings

 

 
125.7 

 

 
110.1 

 

 

 

 

 

 

 

 

 

Interest expense

 

 
24.3 

 

 
30.6 

 

Earnings from continuing operations

 

 

 

 

 

 

 

before income taxes

 

$
101.4 

 

$
79.5 

 

 

(1)

Operating earnings are presented before certain allocations of overhead and corporate IT costs.

 

The following table presents capital expenditures(1) by reportable segment:

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended 

 

 

 

March 31,

 

 

    

2015

    

2014

    

 

 

 

 

 

 

 

 

Commercial aircraft

 

$
23.2 

 

$
26.4 

 

Business jet

 

 
2.1 

 

 
6.2 

 

Discontinued operations

 

 

 -

 

 
23.6 

 

 

 

$
25.3 

 

$
56.2 

 

 

(1)

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:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

    

2015

    

2014

 

 

 

 

 

 

 

 

 

Commercial aircraft

 

$
372.0 

 

$
379.8 

 

Business jet

 

 
451.5 

 

 
479.7 

 

 

 

$
823.5 

 

$
859.5 

 

 

The following table presents total assets(1) by reportable segment:

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

December 31,

 

 

    

2015

    

2014

 

Commercial aircraft

 

$
2,178.1 

 

$
2,139.3 

 

Business jet

 

 
1,024.5 

 

 
1,030.4 

 

 

 

$
3,202.6 

 

$
3,169.7 

 

 

(1)

Corporate assets (including cash and cash equivalents) of $292.6 and $338.1 at March 31, 2015 and December 31, 2014, respectively, have been allocated to the above segments in a manner consistent with our corporate expense allocations.