Delaware
|
52-2314475
|
(State
or other jurisdiction
|
(I.R.S.
Employer
|
of
incorporation or organization)
|
Identification
No.)
|
400
Collins Road NE
|
|
Cedar
Rapids, Iowa
|
52498
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large accelerated filer þ
|
Accelerated filer ¨
|
Non-accelerated filer ¨ (Do not check if a smaller reporting company)
|
Smaller reporting company ¨
|
Page
No.
|
|||
PART
I.
|
FINANCIAL
INFORMATION:
|
||
Item
1.
|
Condensed
Consolidated Financial Statements:
|
||
Condensed
Consolidated Statement of Financial Position (Unaudited) —
|
|||
June
30, 2009 and September 30, 2008
|
2
|
||
Condensed
Consolidated Statement of Operations (Unaudited) —
|
|||
Three
and Nine Months Ended June 30, 2009 and 2008
|
3
|
||
Condensed
Consolidated Statement of Cash Flows (Unaudited) —
|
|||
Nine
Months Ended June 30, 2009 and 2008
|
4
|
||
Notes
to Condensed Consolidated Financial Statements (Unaudited)
|
5
|
||
Item
2.
|
Management's
Discussion and Analysis of
|
||
Financial
Condition and Results of Operations
|
21
|
||
Item
3.
|
Quantitative
and Qualitative Disclosures about Market Risk
|
30
|
|
Item
4.
|
Controls
and Procedures
|
31
|
|
PART
II.
|
OTHER
INFORMATION:
|
||
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
32
|
|
Item
6.
|
Exhibits
|
33
|
|
Signatures
|
34
|
June 30,
|
September 30,
|
|||||||
2009
|
2008
|
|||||||
ASSETS
|
||||||||
Current
Assets:
|
||||||||
Cash
and cash equivalents
|
$ | 218 | $ | 175 | ||||
Receivables,
net
|
907 | 950 | ||||||
Inventories
|
998 | 970 | ||||||
Current
deferred income taxes
|
151 | 139 | ||||||
Other
current assets
|
118 | 104 | ||||||
Total
current assets
|
2,392 | 2,338 | ||||||
Property
|
714 | 680 | ||||||
Intangible
Assets
|
259 | 198 | ||||||
Goodwill
|
688 | 609 | ||||||
Other
Assets
|
319 | 319 | ||||||
TOTAL
ASSETS
|
$ | 4,372 | $ | 4,144 | ||||
LIABILITIES AND SHAREOWNERS'
EQUITY
|
||||||||
Current
Liabilities:
|
||||||||
Short-term
debt
|
$ | 117 | $ | 287 | ||||
Accounts
payable
|
350 | 419 | ||||||
Compensation
and benefits
|
174 | 295 | ||||||
Advance
payments from customers
|
331 | 308 | ||||||
Product
warranty costs
|
221 | 226 | ||||||
Other
current liabilities
|
234 | 205 | ||||||
Total
current liabilities
|
1,427 | 1,740 | ||||||
Long-Term
Debt, net
|
530 | 228 | ||||||
Retirement
Benefits
|
490 | 600 | ||||||
Other
Liabilities
|
191 | 168 | ||||||
Shareowners'
Equity:
|
||||||||
Common
stock ($0.01 par value; shares authorized: 1,000; shares issued:
183.8)
|
2 | 2 | ||||||
Additional
paid-in capital
|
1,391 | 1,378 | ||||||
Retained
earnings
|
2,359 | 2,058 | ||||||
Accumulated
other comprehensive loss
|
(572 | ) | (578 | ) | ||||
Common
stock in treasury, at cost (shares held: June 30, 2009, 26.0; September
30, 2008, 25.2)
|
(1,446 | ) | (1,452 | ) | ||||
Total
shareowners' equity
|
1,734 | 1,408 | ||||||
TOTAL
LIABILITIES AND SHAREOWNERS’ EQUITY
|
$ | 4,372 | $ | 4,144 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Sales:
|
||||||||||||||||
Product
sales
|
$ | 978 | $ | 1,086 | $ | 2,965 | $ | 3,170 | ||||||||
Service
sales
|
106 | 108 | 315 | 322 | ||||||||||||
Total
sales
|
1,084 | 1,194 | 3,280 | 3,492 | ||||||||||||
Costs,
expenses and other:
|
||||||||||||||||
Product
cost of sales
|
687 | 754 | 2,062 | 2,218 | ||||||||||||
Service
cost of sales
|
72 | 73 | 214 | 218 | ||||||||||||
Selling,
general, and administrative expenses
|
108 | 119 | 331 | 350 | ||||||||||||
Interest
expense
|
5 | 5 | 12 | 15 | ||||||||||||
Other
income, net
|
(3 | ) | (5 | ) | (16 | ) | (21 | ) | ||||||||
Total
costs, expenses and other
|
869 | 946 | 2,603 | 2,780 | ||||||||||||
Income
before income taxes
|
215 | 248 | 677 | 712 | ||||||||||||
Income
tax provision
|
70 | 74 | 217 | 216 | ||||||||||||
Net
income
|
$ | 145 | $ | 174 | $ | 460 | $ | 496 | ||||||||
Earnings
per share:
|
||||||||||||||||
Basic
|
$ | 0.92 | $ | 1.09 | $ | 2.91 | $ | 3.07 | ||||||||
Diluted
|
$ | 0.91 | $ | 1.07 | $ | 2.89 | $ | 3.03 | ||||||||
Weighted
average common shares:
|
||||||||||||||||
Basic
|
158.0 | 160.3 | 158.0 | 161.5 | ||||||||||||
Diluted
|
159.7 | 162.4 | 159.4 | 163.7 | ||||||||||||
Cash
dividends per share
|
$ | 0.24 | $ | 0.24 | $ | 0.72 | $ | 0.56 |
Nine
Months Ended
|
||||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Operating
Activities:
|
||||||||
Net
income
|
$ | 460 | $ | 496 | ||||
Adjustments
to arrive at cash provided by operating activities:
|
||||||||
Depreciation
|
84 | 76 | ||||||
Amortization
of intangible assets
|
20 | 18 | ||||||
Stock-based
compensation
|
15 | 15 | ||||||
Compensation
and benefits paid in common stock
|
49 | 46 | ||||||
Tax
benefit from the exercise of stock options
|
1 | 7 | ||||||
Excess
tax benefit from stock-based compensation
|
(1 | ) | (7 | ) | ||||
Deferred
income taxes
|
27 | 17 | ||||||
Pension
plan contributions
|
(87 | ) | (11 | ) | ||||
Changes
in assets and liabilities, excluding effects of acquisitions and foreign
currency adjustments:
|
||||||||
Receivables
|
60 | (60 | ) | |||||
Inventories
|
(33 | ) | (161 | ) | ||||
Accounts
payable
|
(73 | ) | (12 | ) | ||||
Compensation
and benefits
|
(139 | ) | (31 | ) | ||||
Advance
payments from customers
|
7 | (6 | ) | |||||
Income
taxes
|
14 | (53 | ) | |||||
Other
assets and liabilities
|
(23 | ) | (24 | ) | ||||
Cash
Provided by Operating Activities
|
381 | 310 | ||||||
Investing
Activities:
|
||||||||
Property
additions
|
(117 | ) | (114 | ) | ||||
Acquisition
of businesses, net of cash acquired
|
(146 | ) | (107 | ) | ||||
Acquisition
of intangible assets
|
(1 | ) | (6 | ) | ||||
Other
investing activities
|
(1 | ) | 1 | |||||
Cash
Used for Investing Activities
|
(265 | ) | (226 | ) | ||||
Financing
Activities:
|
||||||||
Purchases
of treasury stock
|
(95 | ) | (492 | ) | ||||
Cash
dividends
|
(114 | ) | (91 | ) | ||||
(Decrease)
increase in short-term borrowings
|
(170 | ) | 429 | |||||
Net
proceeds from the issuance of long-term debt
|
296 | - | ||||||
Proceeds
from exercise of stock options
|
10 | 16 | ||||||
Excess
tax benefit from stock-based compensation
|
1 | 7 | ||||||
Cash
Used for Financing Activities
|
(72 | ) | (131 | ) | ||||
Effect
of exchange rate changes on cash and cash equivalents
|
(1 | ) | 3 | |||||
Net
Change in Cash and Cash Equivalents
|
43 | (44 | ) | |||||
Cash
and Cash Equivalents at Beginning of Period
|
175 | 231 | ||||||
Cash
and Cash Equivalents at End of Period
|
$ | 218 | $ | 187 |
1.
|
Business
Description and Basis of
Presentation
|
2.
|
Recently
Issued Accounting Standards
|
3.
|
Acquisitions
|
4.
|
Receivables
|
June 30,
|
September 30,
|
|||||||
2009
|
2008
|
|||||||
Billed
|
$ | 699 | $ | 726 | ||||
Unbilled
|
243 | 254 | ||||||
Less
progress payments
|
(24 | ) | (21 | ) | ||||
Total
receivables
|
918 | 959 | ||||||
Less
allowance for doubtful accounts
|
(11 | ) | (9 | ) | ||||
Receivables,
net
|
$ | 907 | $ | 950 |
5.
|
Inventories
|
June 30,
|
September 30,
|
|||||||
|
2009
|
2008
|
||||||
Finished
goods
|
$ | 193 | $ | 244 | ||||
Work
in process
|
282 | 270 | ||||||
Pre-production
engineering costs
|
222 | 166 | ||||||
Raw
materials, parts, and supplies
|
372 | 362 | ||||||
Total
|
1,069 | 1,042 | ||||||
Less
progress payments
|
(71 | ) | (72 | ) | ||||
Inventories
|
$ | 998 | $ | 970 |
6.
|
Property
|
June
30,
|
September
30,
|
|||||||
2009
|
2008
|
|||||||
Land
|
$ | 31 | $ | 30 | ||||
Buildings
and improvements
|
354 | 342 | ||||||
Machinery
and equipment
|
852 | 807 | ||||||
Information
systems software and hardware
|
250 | 243 | ||||||
Furniture
and fixtures
|
62 | 60 | ||||||
Construction
in progress
|
112 | 99 | ||||||
Total
|
1,661 | 1,581 | ||||||
Less
accumulated depreciation
|
(947 | ) | (901 | ) | ||||
Property
|
$ | 714 | $ | 680 |
7.
|
Goodwill
and Intangible Assets
|
Government
|
Commercial
|
|||||||||||
Systems
|
Systems
|
Total
|
||||||||||
Balance
at September 30, 2008
|
$ | 418 | $ | 191 | $ | 609 | ||||||
SEOS
acquisition
|
20 | 8 | 28 | |||||||||
DataPath
acquisition
|
50 | - | 50 | |||||||||
Foreign
currency translation adjustment
|
2 | - | 2 | |||||||||
Other
adjustments to goodwill
|
(1 | ) | - | (1 | ) | |||||||
Balance
at June 30, 2009
|
$ | 489 | $ | 199 | $ | 688 |
June 30, 2009
|
September 30, 2008
|
|||||||||||||||||||||||
Accum
|
Accum
|
|||||||||||||||||||||||
Gross
|
Amort
|
Net
|
Gross
|
Amort
|
Net
|
|||||||||||||||||||
Intangible
assets with finite lives:
|
||||||||||||||||||||||||
Developed
technology and patents
|
$ | 199 | $ | (99 | ) | $ | 100 | $ | 181 | $ | (87 | ) | $ | 94 | ||||||||||
License
agreements
|
21 | (5 | ) | 16 | 20 | (4 | ) | 16 | ||||||||||||||||
Customer
relationships
|
158 | (31 | ) | 127 | 105 | (25 | ) | 80 | ||||||||||||||||
Trademarks
and tradenames
|
23 | (9 | ) | 14 | 14 | (8 | ) | 6 | ||||||||||||||||
Intangible
assets with indefinite lives:
|
||||||||||||||||||||||||
2 | - | 2 | 2 | - | 2 | |||||||||||||||||||
Intangible
assets
|
$ | 403 | $ | (144 | ) | $ | 259 | $ | 322 | $ | (124 | ) | $ | 198 |
8.
|
Other
Assets
|
June 30,
|
September 30,
|
|||||||
2009
|
2008
|
|||||||
Long-term
deferred income taxes
|
$ | 112 | $ | 144 | ||||
Long-term
receivables
|
89 | 71 | ||||||
Investments
in equity affiliates
|
10 | 9 | ||||||
Exchange
and rental assets, net of accumulated depreciation of $104 at June 30,
2009 and $98 at September 30, 2008
|
48 | 41 | ||||||
Other
|
60 | 54 | ||||||
Other
assets
|
$ | 319 | $ | 319 |
9.
|
Other
Current Liabilities
|
June 30,
|
September 30,
|
|||||||
2009
|
2008
|
|||||||
Customer
incentives
|
$ | 123 | $ | 119 | ||||
Contract
reserves
|
11 | 13 | ||||||
Income
taxes payable
|
10 | 2 | ||||||
Other
|
90 | 71 | ||||||
Other
current liabilities
|
$ | 234 | $ | 205 |
10.
|
Debt
|
June 30,
|
September 30,
|
|||||||
2009
|
2008
|
|||||||
Principal
amount of notes due July 15, 2019, net of discount
|
$ | 298 | $ | - | ||||
Principal
amount of notes due December 1, 2013
|
200 | 200 | ||||||
Principal
amount of variable rate loan facility due June 2011
|
25 | 24 | ||||||
Fair
value swap adjustment
|
7 | 4 | ||||||
Long-term
debt
|
$ | 530 | $ | 228 |
11.
|
Retirement
Benefits
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Service
cost
|
$ | 1 | $ | 2 | $ | 4 | $ | 6 | ||||||||
Interest
cost
|
42 | 41 | 126 | 122 | ||||||||||||
Expected
return on plan assets
|
(51 | ) | (50 | ) | (151 | ) | (151 | ) | ||||||||
Amortization:
|
||||||||||||||||
Prior
service cost
|
(5 | ) | (5 | ) | (14 | ) | (14 | ) | ||||||||
Net
actuarial loss
|
8 | 12 | 22 | 35 | ||||||||||||
Net
benefit income
|
$ | (5 | ) | $ | - | $ | (13 | ) | $ | (2 | ) |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Service
cost
|
$ | 1 | $ | 1 | $ | 2 | $ | 3 | ||||||||
Interest
cost
|
4 | 3 | 11 | 11 | ||||||||||||
Expected
return on plan assets
|
(1 | ) | - | (1 | ) | (1 | ) | |||||||||
Amortization:
|
||||||||||||||||
Prior
service cost
|
(5 | ) | (8 | ) | (16 | ) | (25 | ) | ||||||||
Net
actuarial loss
|
2 | 3 | 7 | 10 | ||||||||||||
Net
benefit expense / (income)
|
$ | 1 | $ | (1 | ) | $ | 3 | $ | (2 | ) |
12.
|
Stock-Based
Compensation
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Stock-based
compensation expense included in:
|
||||||||||||||||
Product
cost of sales
|
$ | 1 | $ | 1 | $ | 3 | $ | 3 | ||||||||
Service
cost of sales
|
- | - | 1 | 1 | ||||||||||||
Selling,
general and administrative expenses
|
4 | 4 | 11 | 11 | ||||||||||||
Total
|
$ | 5 | $ | 5 | $ | 15 | $ | 15 |
Performance
|
Restricted
|
Restricted
|
||||||||||||||||||||||||||||||
Options
|
Shares
|
Stock
|
Stock Units
|
|||||||||||||||||||||||||||||
Weighted
|
Weighted
|
Weighted
|
Weighted
|
|||||||||||||||||||||||||||||
Number
|
Average
|
Number
|
Average
|
Number
|
Average
|
Number
|
Average
|
|||||||||||||||||||||||||
Issued
|
Fair Value
|
Issued
|
Fair Value
|
Issued
|
Fair Value
|
Issued
|
Fair Value
|
|||||||||||||||||||||||||
Nine months ended
|
||||||||||||||||||||||||||||||||
June
30, 2009
|
1,327,860 | $ | 7.12 | 308,705 | $ | 30.61 | 98,670 | $ | 30.39 | 40,902 | $ | 35.83 | ||||||||||||||||||||
Nine
months ended
|
||||||||||||||||||||||||||||||||
June
30, 2008
|
355,440 | $ | 23.36 | 112,491 | $ | 73.37 | 45,900 | $ | 72.12 | 19,828 | $ | 66.19 |
2009
|
2008
|
|||||||
Grants
|
Grants
|
|||||||
Risk-free
interest rate (U.S. Treasury zero coupon issues)
|
2.37 | % | 3.86 | % | ||||
Expected
dividend yield
|
1.59 | % | 0.98 | % | ||||
Expected
volatility
|
0.24 | 0.30 | ||||||
Expected
life
|
6.4
years
|
6.0
years
|
13.
|
Comprehensive
Income
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
income
|
$ | 145 | $ | 174 | $ | 460 | $ | 496 | ||||||||
Unrealized
foreign currency translation adjustment
|
15 | 3 | 1 | 14 | ||||||||||||
Foreign
currency cash flow hedge adjustment
|
4 | (2 | ) | 2 | (2 | ) | ||||||||||
Amortization
of defined benefit plan costs
|
3 | 3 | 3 | 5 | ||||||||||||
Comprehensive
income
|
$ | 167 | $ | 178 | $ | 466 | $ | 513 |
14.
|
Other
Income, Net
|
Three
Months Ended
|
Nine Months
Ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Royalty
income
|
$ | 2 | $ | 1 | $ | 6 | $ | 10 | ||||||||
Earnings
from equity affiliates
|
1 | 3 | 5 | 7 | ||||||||||||
Interest
income
|
1 | 2 | 4 | 6 | ||||||||||||
Other
|
(1 | ) | (1 | ) | 1 | (2 | ) | |||||||||
Other
income, net
|
$ | 3 | $ | 5 | $ | 16 | $ | 21 |
15.
|
Income
Taxes
|
16.
|
Fair
Value of Financial Instruments
|
|
Level
1 -
|
quoted
prices (unadjusted) in active markets for identical assets or
liabilities
|
|
Level
2 -
|
quoted
prices for similar assets and liabilities in active markets or inputs that
are observable for the asset or liability, either directly or indirectly
through market corroboration, for substantially the full term of the
financial instrument
|
|
Level
3 -
|
unobservable
inputs based on the Company’s own assumptions used to measure assets and
liabilities at fair value
|
Carrying
|
Quoted
prices
|
Significant
other
|
Significant
|
|||||||||||||
Amount
|
in
active
|
observable
|
unobservable
|
|||||||||||||
Asset
|
markets
|
inputs
|
inputs
|
|||||||||||||
(Liability)
|
(Level 1)
|
(Level 2)
|
(Level 3)
|
|||||||||||||
Deferred
compensation plan investments
|
$ | 31 | $ | 31 | $ | - | $ | - | ||||||||
Interest
rate swaps
|
7 | - | 7 | - | ||||||||||||
Foreign
currency forward exchange contracts, net
|
1 | - | 1 | - |
Asset (Liability)
|
||||||||||||||||
June 30, 2009
|
September 30, 2008
|
|||||||||||||||
Carrying
|
Fair
|
Carrying
|
Fair
|
|||||||||||||
Amount
|
Value
|
Amount
|
Value
|
|||||||||||||
Cash
and cash equivalents
|
$ | 218 | $ | 218 | $ | 175 | $ | 175 | ||||||||
Short-term
debt
|
(117 | ) | (117 | ) | (287 | ) | (287 | ) | ||||||||
Long-term
debt
|
(530 | ) | (537 | ) | (228 | ) | (216 | ) |
17.
|
Derivative
Financial Instruments
|
Asset Derivatives
|
Liability Derivatives
|
|||||||||
Fair
|
Fair
|
|||||||||
Classification
|
Value
|
Classification
|
Value
|
|||||||
Foreign
currency forward
|
Other
current
|
Other
current
|
||||||||
exchange
contracts
|
assets
|
$ | 11 |
liabilities
|
$ | 10 | ||||
Interest
rate swaps
|
Other
assets
|
7 |
Other
liabilities
|
- | ||||||
Total
|
$ | 18 | $ | 10 |
Amount
of Gain (Loss)
|
|||||||||
at June 30, 2009
|
|||||||||
Three
|
Nine
|
||||||||
Location
of
|
Months
|
Months
|
|||||||
Gain (Loss)
|
Ended
|
Ended
|
|||||||
Fair
Value Hedges
|
|||||||||
Foreign
currency forward exchange contracts
|
Cost
of sales
|
$ | (1 | ) | $ | (1 | ) | ||
Interest
rate swaps
|
Interest
expense
|
1 | 3 | ||||||
Cash
Flow Hedges
|
|||||||||
Foreign
currency forward exchange contracts:
|
|||||||||
Amount
of gain recognized in AOCL (effective portion)
|
AOCL
|
$ | 7 | $ | 1 | ||||
Amount
of loss reclassified from AOCL into income
|
Cost
of sales
|
- | (2 | ) |
18.
|
Guarantees
and Indemnifications
|
Nine
Months Ended
|
||||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Balance
at beginning of year
|
$ | 226 | $ | 213 | ||||
Warranty
costs incurred
|
(39 | ) | (38 | ) | ||||
Product
warranty accrual
|
34 | 50 | ||||||
Increase
from acquisitions
|
2 | 1 | ||||||
Pre-existing
warranty adjustments
|
(2 | ) | (1 | ) | ||||
Balance
at June 30
|
$ | 221 | $ | 225 |
19.
|
Environmental
Matters
|
20.
|
Legal
Matters
|
21.
|
Business
Segment Information
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Sales:
|
||||||||||||||||
Government
Systems
|
$ | 651 | $ | 607 | $ | 1,838 | $ | 1,730 | ||||||||
Commercial
Systems
|
433 | 587 | 1,442 | 1,762 | ||||||||||||
Total
sales
|
$ | 1,084 | $ | 1,194 | $ | 3,280 | $ | 3,492 | ||||||||
Segment
operating earnings:
|
||||||||||||||||
Government
Systems
|
$ | 158 | $ | 131 | $ | 443 | $ | 361 | ||||||||
Commercial
Systems
|
75 | 139 | 282 | 416 | ||||||||||||
Total
segment operating earnings
|
233 | 270 | 725 | 777 | ||||||||||||
Interest
expense
|
(5 | ) | (5 | ) | (12 | ) | (15 | ) | ||||||||
Stock-based
compensation
|
(5 | ) | (5 | ) | (15 | ) | (15 | ) | ||||||||
General
corporate, net
|
(8 | ) | (12 | ) | (21 | ) | (35 | ) | ||||||||
Income
before income taxes
|
215 | 248 | 677 | 712 | ||||||||||||
Income
tax provision
|
(70 | ) | (74 | ) | (217 | ) | (216 | ) | ||||||||
Net
income
|
$ | 145 | $ | 174 | $ | 460 | $ | 496 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Government
Systems product categories:
|
||||||||||||||||
Airborne
solutions
|
$ | 452 | $ | 429 | $ | 1,286 | $ | 1,203 | ||||||||
Surface
solutions
|
199 | 178 | 552 | 527 | ||||||||||||
Total
Government Systems sales
|
$ | 651 | $ | 607 | $ | 1,838 | $ | 1,730 | ||||||||
Commercial
Systems product categories:
|
||||||||||||||||
Air
transport aviation electronics
|
$ | 244 | $ | 306 | $ | 723 | $ | 927 | ||||||||
Business
and regional aviation electronics
|
189 | 281 | 719 | 835 | ||||||||||||
Total
Commercial Systems sales
|
$ | 433 | $ | 587 | $ | 1,442 | $ | 1,762 |
(dollars
in millions)
|
Three
Months Ended
|
|||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Total
sales
|
$ | 1,084 | $ | 1,194 | ||||
Percent
(decrease)
|
(9 | )% |
(dollars
in millions, except per share amounts)
|
Three
Months Ended
|
|||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Net
income
|
$ | 145 | $ | 174 | ||||
Net
income as a percent of sales
|
13.4 | % | 14.6 | % | ||||
Diluted
earnings per share
|
$ | 0.91 | $ | 1.07 |
(dollars
in millions)
|
Three
Months Ended
|
|||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Airborne
solutions
|
$ | 452 | $ | 429 | ||||
Surface
solutions
|
199 | 178 | ||||||
Total
|
$ | 651 | $ | 607 | ||||
Percent
increase
|
7 | % |
(dollars
in millions)
|
Three
Months Ended
|
|||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Segment
operating earnings
|
$ | 158 | $ | 131 | ||||
Percent
of sales
|
24.3 | % | 21.6 | % |
(dollars
in millions)
|
Three
Months Ended
|
|||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Wide-body
in-flight entertainment products
|
$ | 23 | $ | 23 | ||||
All
other air transport aviation electronics
|
221 | 283 | ||||||
Total
air transport aviation electronics
|
244 | 306 | ||||||
Business
and regional aviation electronics
|
189 | 281 | ||||||
Total
|
$ | 433 | $ | 587 | ||||
Percent
(decrease)
|
(26 | )% |
Three
Months Ended
|
||||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Original
equipment
|
$ | 211 | $ | 325 | ||||
Aftermarket
|
199 | 239 | ||||||
Wide-body
in-flight entertainment products
|
23 | 23 | ||||||
Total
|
$ | 433 | $ | 587 |
(dollars
in millions)
|
Three
Months Ended
|
|||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Segment
operating earnings
|
$ | 75 | $ | 139 | ||||
Percent
of sales
|
17.3 | % | 23.7 | % |
(dollars
in millions)
|
Nine
Months Ended
|
|||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Total
sales
|
$ | 3,280 | $ | 3,492 | ||||
Percent
(decrease)
|
(6 | )% |
(dollars
in millions, except per share amounts)
|
Nine
Months Ended
|
|||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Net
income
|
$ | 460 | $ | 496 | ||||
Net
income as a percent of sales
|
14.0 | % | 14.2 | % | ||||
Diluted
earnings per share
|
$ | 2.89 | $ | 3.03 |
(dollars
in millions)
|
Nine
Months Ended
|
|||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Airborne
solutions
|
$ | 1,286 | $ | 1,203 | ||||
Surface
solutions
|
552 | 527 | ||||||
Total
|
$ | 1,838 | $ | 1,730 | ||||
Percent
increase
|
6 | % |
(dollars
in millions)
|
Nine
Months Ended
|
|||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Segment
operating earnings
|
$ | 443 | $ | 361 | ||||
Percent
of sales
|
24.1 | % | 20.9 | % |
Nine
Months Ended
|
||||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Wide-body
in-flight entertainment products
|
$ | 61 | $ | 99 | ||||
All
other air transport aviation electronics
|
662 | 828 | ||||||
Total
air transport aviation electronics
|
723 | 927 | ||||||
Business
and regional aviation electronics
|
719 | 835 | ||||||
Total
|
$ | 1,442 | $ | 1,762 | ||||
Percent
(decrease)
|
(18 | )% |
Nine
Months Ended
|
||||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Original
equipment
|
$ | 750 | $ | 936 | ||||
Aftermarket
|
631 | 727 | ||||||
Wide-body
in-flight entertainment products
|
61 | 99 | ||||||
Total
|
$ | 1,442 | $ | 1,762 |
(dollars
in millions)
|
Nine
Months Ended
|
|||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Segment
operating earnings
|
$ | 282 | $ | 416 | ||||
Percent
of sales
|
19.6 | % | 23.6 | % |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
June 30
|
June 30
|
|||||||||||||||
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Pension
benefits
|
$ | (5 | ) | $ | - | $ | (13 | ) | $ | (2 | ) | |||||
Other
retirement benefits
|
1 | (1 | ) | 3 | (2 | ) | ||||||||||
Net
benefit income
|
$ | (4 | ) | $ | (1 | ) | $ | (10 | ) | $ | (4 | ) |
|
·
|
Total
revenues of about $4.55 billion
|
|
·
|
Diluted
earnings per share in the range of $3.70 to
$3.90
|
|
·
|
Cash
flow from operations in the range of $625 million to $675
million
|
|
·
|
R&D
expenditures of about $900 million, or about 20 percent of
sales
|
Operating Activities
|
||||||||
(in
millions)
|
Nine
Months Ended
|
|||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Cash
provided by operating activities
|
$ | 381 | $ | 310 |
Investing Activities
|
||||||||
(in
millions)
|
Nine
Months Ended
|
|||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Cash
used for investing activities
|
$ | (265 | ) | $ | (226 | ) |
|
·
|
$146
million in 2009 acquisitions including DataPath for $118 million on May
29, 2009 and SEOS for $28 million on November 24,
2008.
|
|
·
|
$107
million in 2008 for the acquisition of Athena on April 4,
2008.
|
Financing Activities
|
||||||||
(in
millions)
|
Nine
Months Ended
|
|||||||
June 30
|
||||||||
2009
|
2008
|
|||||||
Cash
used for financing activities
|
$ | (72 | ) | $ | (131 | ) |
|
·
|
$397
million decrease in the amount of treasury share repurchases as a result
of the accelerated share repurchase agreement executed in the first
quarter of fiscal year 2008.
|
|
·
|
$303
million decrease in debt related financing in comparison to the same
period a year ago.
|
|
·
|
$23
million in higher dividend payments in comparison to the same period a
year ago.
|
Period
|
Total Number of
Shares
Purchased
|
Average Price
Paid per Share
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
|
Maximum Number
(or Appropriate
Dollar Value) of
Shares that May
Yet Be Purchased
Under the Plans or
Programs 1
|
||||||||||||
April
1, 2009 through
April
30, 2009
|
451,600 | $ | 35.15 | 451,600 | $ | 106 million | ||||||||||
May
1, 2009 through
May
31, 2009
|
315,000 | 40.06 | 315,000 | 93 million | ||||||||||||
June
1, 2009 through
June
30, 2009
|
600,000 | 43.99 | 600,000 | 67 million | ||||||||||||
Total
|
1,366,600 | $ | 40.16 | 1,366,600 | $ | 67 million |
(a)
|
Exhibits
|
12
|
Computation
of Ratio of Earnings to Fixed Charges for the nine months ended June 30,
2009.
|
31.1
|
Certification
by Chief Executive Officer Pursuant to Rule 13a-14(a) of the Securities
Exchange Act of 1934.
|
31.2
|
Certification
by Chief Financial Officer Pursuant to Rule 13a-14(a) of the Securities
Exchange Act of 1934.
|
32.1
|
Certification
by Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
32.2
|
Certification
by Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
ROCKWELL COLLINS, INC.
|
||
(Registrant)
|
||
Date:
July 30, 2009
|
By
|
/s/ M. A. Schulte
|
M.
A. Schulte
|
||
Vice
President, Finance and Controller
|
||
(Principal
Accounting Officer)
|
||
Date:
July 30, 2009
|
By
|
/s/ G. R. Chadick
|
G.
R. Chadick
|
||
Senior
Vice President,
|
||
General
Counsel and
Secretary
|