For the Years Ended December 31, 2011, 2010 and 2009

19. SEGMENT AND GEOGRAPHIC INFORMATION

The Company is organized based upon the nature of its products and services, and is composed of two operating segments each overseen by a segment manager. These segments are reflective of how the Company's Chief Executive Officer, who is its Chief Operating Decision Maker ("CODM"), reviews operating results for the purposes of allocating resources and assessing performance. The Company has not aggregated operating segments for purposes of identifying reportable segments.

The Aerospace segment produces and/or markets widely used proprietary aircraft bearings and components; complex metallic and composite aerostructures for commercial, military and general aviation fixed and rotary wing aircraft; safe and arm solutions for missile and bomb systems for the U.S. and allied militaries; subcontract helicopter work; support for the Company's SH-2G Super Seasprite maritime helicopters and K-MAX® medium-to-heavy lift helicopters; and engineering services.

The Industrial Distribution segment is the third largest power transmission/motion control industrial distributor in North America. The segment provides products including bearings, mechanical power transmission, electrical, fluid power, motion control, automation, material handling components, and MRO supplies to a broad spectrum of industrial markets throughout North America.

Summarized financial information by business segment is as follows:

	For the year ended December 31,
In thousands	2011	2010	2009
Net sales:
Industrial Distribution	$ 950,750	$ 831,997	$ 645,535
Aerospace (a)	547,403	486,516	500,696
Net sales	$ 1,498,153	$ 1,318,513	$ 1,146,231
Operating income:
Industrial Distribution	$ 48,144	$ 30,252	$ 12,612
Aerospace (b)	80,424	67,151	74,996
Net gain (loss) on sale of assets	(270)	447	(4)
Corporate expense	(39,467 )	(39,408 )	(46,007 )
Operating income	88,831	58,442	41,597
Interest expense, net (c)	11,692	3,487	5,700
Other expense (income), net	(349 )	(1,042 )	1,232
Earnings before income taxes	77,488	55,997	34,665
Income tax expense	26,346	20,386	9,670
Net earnings	$ 51,142	$ 35,611	$ 24,995

1. Net sales by the Aerospace segment under contracts with U.S. Government agencies (including sales to foreign governments through foreign military sales contracts with U.S. Government agencies) totaled $268.1 million, $287.1 million and $292.3 million in 2011, 2010 and 2009, respectively.
2. Operating income for 2011 includes $6.2 million in expense associated with the settlement of the FMU-143 matter. Operating income for 2010 includes a non-cash non-tax-deductible impairment charge of $6.4 million and a $2.0 million contract loss resulting from finalization of the contract price negotiations for the Sikorsky Canadian MH-92 program.
3. Interest expense, net in 2010 includes $6.6 million of interest income related to look-back interest received from the Internal Revenue Service in response to a claim we filed in connection with the Australian SH-2G(A) Super Seasprite Helicopter program.

	At December 31,
In thousands	2011	2010	2009
Identifiable assets (a):
Industrial Distribution	$ 374,144	$ 301,031	$ 203,845
Aerospace	513,556	471,266	458,475
Corporate (b)	108,698	123,460	110,747
Total assets	$ 996,398	$ 895,757	$ 773,067
Capital expenditures:
Industrial Distribution	$ 8,061	$ 7,831	$ 3,139
Aerospace	11,958	10,520	8,884
Corporate	8,814	3,156	1,544
Total capital expenditures	$ 28,833	$ 21,507	$ 13,567
Depreciation and amortization:
Industrial Distribution	$ 7,082	$ 6,130	$ 3,536
Aerospace	12,540	10,992	10,930
Corporate	3,569	3,362	1,638
Total depreciation and amortization	$ 23,191	$ 20,484	$ 16,104

1. Identifiable assets are year-end assets at their respective net carrying values segregated as to segment and corporate use.
2. For the periods presented, the corporate identifiable assets are principally comprised of cash, short-term and long-term deferred income tax assets, capitalized debt issuance costs, cash surrender value of life insurance policies and fixed assets.

Sales are attributed to geographic regions based on their location of origin. Geographic distribution of sales from continuing operations is as follows:

	For the year ended December 31,
	2011	2010	2009
In thousands
United States	$ 1,313,458	$ 1,158,397	$ 975,501
United Kingdom	41,694	41,944	57,308
Canada	30,142	28,053	25,063
Mexico	27,866	24,858	16,773
Germany	17,577	13,191	17,128
Australia/New Zealand	9,163	10,031	11,537
Other	58,253	42,039	42,921
Total	$ 1,498,153	$ 1,318,513	$ 1,146,231

Geographic distribution of long-lived assets is as follows:

	At December 31,
	2011	2010
In thousands
United States	$ 281,559	$ 196,381
United Kingdom	60,608	62,425
Germany	11,455	11,941
Mexico	2,609	3,016
Canada	488	329
Total	$ 356,719	$ 274,092

< Previous Page      Next Page >