Kaman

AR 13

Financials

Part II

Financials/Business/Research and Development Expenditures

Government funded research expenditures (which are included in cost of sales) were $3.3 million in 2013, $7.8 million in 2012, and $5.5 million in 2011. Independent research and development expenditures (which are included in selling, general and administrative expenses) were $7.2 million in 2013, $5.5 million in 2012, and $4.8 million in 2011.