Goodrich 10-Q 23 Jul 09 2009 Q2 Quarterly report Financial data

Document and Company Informatio

Document and Company Information (USD $)
In Billions, except Share data	6 Months Ended Jun. 30, 2009	Jun. 30, 2008
Document and Company Information [Abstract]
Entity Registrant Name	GOODRICH CORPORATION
Entity Central Index Key	0000042542
Document Type	10-Q
Document Period End Date	2009-06-30
Amendment Flag	false
Amendment Description	n/a
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float		5.9
Entity Common Stock, Shares Outstanding	123,982,974

Condensed Consolidated Statemen

Condensed Consolidated Statement of Income (USD $)
In Millions, except Per Share data	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Sales	1699.7	1849.3	3395.6	3594.3
Operating costs and expenses:
Cost of sales	1203.9	1286.9	2,384	2500.3
Selling and administrative costs	254.4	273.9	502.4	531
Total operating costs and expenses	1458.3	1560.8	2886.4	3031.3
Operating Income	241.4	288.5	509.2	563
Interest expense	-30.7	-27.7	-59.5	-58.5
Interest income	0.1	0.6	0.7	3.7
Other income (expense) - net	-6.4	(3)	-10.8	-12.8
Income from continuing operations before income taxes	204.4	258.4	439.6	495.4
Income tax expense	-54.8	-69.5	-116.7	-148.4
Income From Continuing Operations	149.6	188.9	322.9	347
Income from discontinued operations - net of income taxes	31.2	3	31.7	7.3
Consolidated Net Income	180.8	191.9	354.6	354.3
Net income attributable to noncontrolling interests	-3.7	-5.3	-7.7	-9.8
Net Income Attributable to Goodrich	177.1	186.6	346.9	344.5
Amounts attributable to Goodrich:
Income from continuing operations	145.9	183.6	315.2	337.2
Income from discontinued operations - net of income taxes	31.2	3	31.7	7.3
Net Income Attributable to Goodrich	177.1	186.6	346.9	344.5
Basic Earnings Per Share
Continuing operations	1.16	1.45	2.51	2.65
Discontinued operations	0.25	0.02	0.25	0.06
Net Income Attributable to Goodrich	1.41	1.47	2.76	2.71
Diluted Earnings Per Share
Continuing operations	1.15	1.43	2.49	2.62
Discontinued operations	0.25	0.02	0.25	0.06
Net Income Attributable to Goodrich	1.4	1.45	2.74	2.68
Dividends Declared Per Common Share	0.25	0.225	0.5	0.45

Condensed Consolidated Balance

Condensed Consolidated Balance Sheet (USD $)
In Millions	Jun. 30, 2009	Dec. 31, 2008
Current Assets
Cash and cash equivalents	619.4	370.3
Accounts and notes receivable, less allowances for doubtful receivables $17.7 at June 30, 2009 and $17.2 at December 31, 2008)	1138.7	1048.9
Inventories - net	2125.7	1974.7
Deferred income taxes	147	153.5
Prepaid expenses and other assets	49.9	47.2
Income taxes receivable	18	73.7
Total Current Assets	4098.7	3668.3
Property, plant and equipment - net	1389.7	1391.4
Prepaid pension	0.6	0.6
Goodwill	1415.9	1390.2
Identifiable intangible assets - net	423.5	402.8
Deferred income taxes	92.3	92
Other assets	606.8	537.6
Total Assets	8027.5	7482.9
Current Liabilities
Short-term debt	40.4	37.7
Accounts payable	651.2	646.4
Accrued expenses	896.3	1005.3
Income taxes payable	74.8	5.6
Deferred income taxes	25	25
Current maturities of long-term debt and capital lease obligations	0.5	121.3
Total Current Liabilities	1688.2	1841.3
Long-term debt and capital lease obligations	1708.2	1410.4
Pension obligations	885	973.9
Postretirement benefits other than pensions	278.9	309.4
Long-term income taxes payable	164.2	172.3
Deferred income taxes	92.7	62.3
Other non-current liabilities	499	561.1
Shareholders' Equity
Common stock - $5 par value; Authorized 200,000,000 shares; issued 144,571,258 shares at June 30, 2009 and 143,611,254 shares at December 31, 2008 (excluding 14,000,000 shares held by a wholly owned subsidiary)	722.9	718.1
Additional paid-in capital	1556.2	1525.3
Income retained in the business	1903.3	1619.2
Accumulated other comprehensive income (loss)	-732.2	-978.1
Common stock held in treasury, at cost (20,588,284 shares at June 30, 2009 and 20,410,556 shares at December 31, 2008)	-800.2	-793.2
Total Shareholders' Equity	2,650	2091.3
Noncontrolling interests	61.3	60.9
Total Equity	2711.3	2152.2
Total Liabilities And Equity	8027.5	7482.9

1_Condensed Consolidated Balanc

Condensed Consolidated Balance Sheet (Parenthetical) (USD $)
In Millions, except Share data	Jun. 30, 2009	Dec. 31, 2008
Allowances for doubtful receivables	17.7	17.2
Common stock, par value	5	5
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	144,571,258	143,611,254
Common stock, excluding shares held by a wholly owned subsidiary	14,000,000	14,000,000
Common stock held in treasury, shares	20,588,284	20,410,556

2_Condensed Consolidated Statem

Condensed Consolidated Statement of Cash Flows (USD $)
In Millions	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Operating Activities
Consolidated net income	354.6	354.3
Adjustments to reconcile consolidated net income to net cash provided by operating activities:
Income from discontinued operations	-31.7	-7.3
Pension and postretirement benefits:
Expenses	98.2	51.4
Contributions and benefit payments	-178.9	-35.2
Depreciation and amortization	123.6	127.2
Excess tax benefits related to share-based payment arrangements	-0.9	-8.1
Share-based compensation expense	31.6	15.7
Deferred income taxes	3.8	-10.7
Change in assets and liabilities, net of effects of acquisitions and divestitures:
Receivables	-67.7	-175.1
Inventories, net of pre-production and excess-over-average	-41.9	-70.4
Pre-production and excess-over-average inventories	-76.6	-56.5
Other current assets	1.6	0.4
Accounts payable	-35.2	105
Accrued expenses	(104)	-76.9
Income taxes payable/receivable	125.9	122.4
Other non-current assets and liabilities	-27.9	-16.7
Net Cash Provided By Operating Activities	174.5	319.5
Investing Activities
Purchases of property, plant and equipment	-73.2	-116.3
Proceeds from sale of property, plant and equipment	0.9	2.7
Payments made for acquisitions, net of cash acquired	-29.8	-93.6
Investments in and advances to equity investees	(1)	0
Net Cash Used In Investing Activities	-103.1	-207.2
Financing Activities
Increase (decrease) in short-term debt, net	2.7	-1.6
Proceeds (repayments) of long-term debt and capital lease obligations	177.5	-197.7
Proceeds from issuance of common stock	15.3	24
Purchases of treasury stock	(7)	-37.4
Dividends paid	-62.5	(57)
Excess tax benefits related to share-based payment arrangements	0.9	8.1
Distributions to noncontrolling interests	-7.3	-6.3
Net Cash Provided By (Used In) Financing Activities	119.6	-267.9
Discontinued Operations
Net cash provided by (used in) operating activities	49.6	-2.3
Net cash provided by (used in) investing activities	0	15.8
Net cash provided by (used in) financing activities	0	0
Net cash provided by discontinued operations	49.6	13.5
Effect of exchange rate changes on cash and cash equivalents	8.5	1.6
Net increase (decrease) in cash and cash equivalents	249.1	-140.5
Cash and cash equivalents at beginning of period	370.3	406
Cash and cash equivalents at end of period	619.4	265.5

Basis of Interim Financial Stat

Basis of Interim Financial Statement Preparation and Use of Estimates
	6 Months Ended Jun. 30, 2009 USD / shares
Basis Of Interim Financial Statement Preparation And Use Of Estimates [Abstract]
Basis of Interim Financial Statement Preparation and Use of Estimates	Note 1. Basis of Interim Financial Statement Preparation and Use of Estimates The accompanying unaudited condensed consolidated financial statements of Goodrich Corporation and its subsidiaries have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and notes required by accounting principles generally accepted in the United States for complete financial statements. Unless indicated otherwise or the context requires, the terms we, our, us, Goodrich or Company refer to Goodrich Corporation and its subsidiaries. The Company believes that all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Certain amounts in prior year financial statements have been reclassified to conform to the current year presentation. Operating results for the three and six months ended June30, 2009 are not necessarily indicative of the results that may be achieved for the twelve months ending December31, 2009. For further information, refer to the consolidated financial statements and notes included in the Companys Annual Report on Form 10-K for the year ended December31, 2008. The preparation of financial statements requires management to make estimates and assumptions that affect amounts recognized. Estimates and assumptions are reviewed and updated regularly as new information becomes available. During the three and six months ended June30, 2009 and 2008, the Company changed its estimates of revenues and costs on certain long-term contracts primarily in its aerostructures and aircraft wheels and brakes businesses. The changes in estimates increased income from continuing operations before income taxes during the three months ended June30, 2009 and 2008 by $9million and $8.6million, respectively ($5.6million and $5.3million after tax, respectively). The changes in estimates increased income from continuing operations before income taxes during the six months ended June30, 2009 and 2008 by $13.5million and $48.7million, respectively ($8.5million and $29.9million after tax, respectively).

New Accounting Standards

New Accounting Standards
	6 Months Ended Jun. 30, 2009 USD / shares
New Accounting Standards [Abstract]
New Accounting Standards	Note 2. New Accounting Standards New Accounting Standards Adopted in 2009 Fair Value Measurements The Company adopted Financial Accounting Standards Board (FASB)Staff Position No.157-2, Effective Date of FASB Statement No.157 (FSP 157-2), which delayed the effective date of Statement of Financial Accounting Standards No.157 Fair Value Measurements (SFAS 157) for all non-financial assets and non-financial liabilities, except for items that are recognized or disclosed at fair value on a recurring basis (at least annually). This standard did not have a material impact on the Companys financial condition and results of operations. See Note 8, Fair Value Measurements. The Company adopted FASB Staff Position No.FAS 132(R)-1, Employers Disclosures about Postretirement Benefit Plan Assets (FSP 132(R)-1), which requires additional disclosures about assets held in an employers defined benefit pension or other postretirement plan. Since FSP 132(R)-1 requires only additional disclosures about the Companys pension and other postretirement plan assets, the adoption of FSP 132(R)-1 will not affect the Companys financial condition or results of operations. Two-class Method of Computing Earnings Per Share The Company adopted FASB Staff Position No.EITF 03-6-1, Determining Whether Instruments Granted in Share-Based Payment Transactions Are Participating Securities (FSP 03-6-1). In FSP 03-6-1, unvested share-based payment awards that contain rights to receive nonforfeitable dividends or dividend equivalents (whether paid or unpaid) are participating securities, and thus, should be included in the two-class method of computing earnings per share (EPS). This standard did not have a material impact on the Companys disclosure of EPS. See Note 7, Earnings Per Share. Disclosures about Derivative Instruments and Hedging Activities The Company adopted FASB No.161, Disclosures about Derivative Instruments and Hedging Activities, an amendment of FASB Statement No.133 (SFAS 161). SFAS 161 requires entities to provide greater transparency through additional disclosures about (a)how and why an entity uses derivative instruments, (b)how derivative instruments and related hedged items are accounted for under SFAS No.133 Accounting for Derivative Instruments and Hedging Activities (SFAS 133) and its related interpretations, and (c)how derivative instruments and related hedged items affect an entitys financial position, results of operations and cash flows. See Note 18, Derivatives and Hedging Activities. Business Combinations and Noncontrolling Interests The Company adopted FASB No.160, Accounting and Reporting of Noncontrolling Interests in consolidated financial statements, an amendment of ARB No.51 (SFAS 160). The Company changed the presentation of its noncontrolling (minority)interests in compliance with this standard. See Note 14, Noncontrolling Interests. The Company adopted FASB No.141(R), Business Combinations (SFAS 141(R)) which significantly changed the accounting for and reporting of business combination transactions. This standard was effective for the Company for business combination transactions for which the acquisi

Business Segment Information

Business Segment Information
	6 Months Ended Jun. 30, 2009 USD / shares
Business Segment Information [Abstract]
Business Segment Information	Note 3. Business Segment Information The Companys three business segments are as follows: The Actuation and Landing Systems segment provides systems, components and related services pertaining to aircraft taxi, take-off, flight control, landing and stopping, and engine components, including fuel delivery systems and rotating assemblies. The Nacelles and Interior Systems segment produces products and provides maintenance, repair and overhaul services associated with aircraft engines, including thrust reversers, cowlings, nozzles and their components, and aircraft interior products, including slides, seats, cargo and lighting systems. The Electronic Systems segment produces a wide array of systems and components that provide flight performance measurements, flight management, fuel controls, electrical systems, and control and safety data, and reconnaissance and surveillance systems. The Company measures each reporting segments profit based upon operating income. Accordingly, the Company does not allocate net interest expense, other income (expense) net and income taxes to its reporting segments. The company-wide Enterprise Resource Planning (ERP)implementation costs that are not directly associated with a specific business were not allocated to the segments. The accounting policies of the reportable segments are the same as those for the Companys condensed consolidated financial statements. Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (Dollars in millions) Sales: Actuation and Landing Systems $ 637.2 $ 689.6 $ 1,249.9 $ 1,371.7 Nacelles and Interior Systems 595.2 665.1 1,227.4 1,285.6 Electronic Systems 467.3 494.6 918.3 937.0 $ 1,699.7 $ 1,849.3 $ 3,395.6 $ 3,594.3 Intersegment sales: Actuation and Landing Systems $ 6.8 $ 9.3 $ 13.7 $ 17.9 Nacelles and Interior Systems 2.3 5.2 4.0 9.4 Electronic Systems 9.2 6.6 15.9 12.7 $ 18.3 $ 21.1 $ 33.6 $ 40.0 Operating income: Actuation and Landing Systems $ 62.8 $ 84.5 $ 138.9 $ 158.6 Nacelles and Interior Systems 135.2 160.7 283.9 339.5 Electronic Systems 73.9 71.5 141.0 120.5 271.9 316.7 563.8 618.6 Corporate general and administrative expenses (27.1 ) (24.1 ) (47.2 ) (46.7 ) ERP implementation costs (3.4 ) (4.1 ) (7.4 ) (8.9 ) Total operating income $ 241.4 $ 288.5 $ 509.2 $ 563.0

Other Income

Other Income (Expense) net
	6 Months Ended Jun. 30, 2009 USD / shares
Other Income Expense Net [Abstract]
Other Income (Expense) - net	Note 4. Other Income (Expense) net Other Income (Expense) net consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (Dollars in millions) Retiree health care expenses related to previously owned businesses $ (2.7 ) $ (3.0 ) $ (6.1 ) $ (10.8 ) Expenses related to previously owned businesses (1.3 ) (1.3 ) (2.2 ) (3.8 ) Equity in affiliated companies (2.3 ) 0.2 (2.0 ) 1.0 Other net (0.1 ) 1.1 (0.5 ) 0.8 Other income (expense) net $ (6.4 ) $ (3.0 ) $ (10.8 ) $ (12.8 )

Share Based Compensation

Share Based Compensation
	6 Months Ended Jun. 30, 2009 USD / shares
Share Based Compensation [Abstract]
Share-Based Compensation	Note 5. Share-Based Compensation During the three and six months ended June30, 2009 and 2008, the Company expensed share-based compensation awards under the Goodrich Equity Compensation Plan and the Goodrich Corporation 2008 Global Employee Stock Purchase Plan for employees and under the Outside Director Deferral and Outside Director Phantom Share plans for non-employee directors. A detailed description of the awards under these plans is included in the Companys Annual Report on Form 10-K for the year ended December31, 2008. The compensation cost recorded for share-based compensation plans during the three months ended June30, 2009 and 2008 was $18.2 and $7.9million, respectively. The compensation cost recorded for share-based compensation plans during the six months ended June30, 2009 and 2008 was $31.6million and $15.7million, respectively.

Discontinued Operations

Discontinued Operations
	6 Months Ended Jun. 30, 2009 USD / shares
Discontinued Operations [Abstract]
Discontinued Operations	Note 6. Discontinued Operations Income from discontinued operations was $31.2million (net of income taxes of $18.6million) and $31.7million (net of income taxes of $18.9million) for the three and six months ended June30, 2009, respectively. The income in the three and six month period related primarily to the resolution of litigation for an environmental matter at a divested business that had been previously reported as a discontinued operation. Those amounts are net of reserves related to discontinued operations. See Note 16, Contingencies for a discussion of this matter. Income from discontinued operations was $3million (net of income taxes of $0.6million) and $7.3 million (net of income taxes of $1million) for the three and six months ended June30, 2008, respectively. During the three months ended June30, 2008, discontinued operations included recovery of prior environmental costs from a third party related to a former business previously recorded as a discontinued operation. The six months ended June30, 2008 also included a gain on the sale of a previously discontinued business.

Earnings Per Share

Earnings Per Share
	6 Months Ended Jun. 30, 2009 USD / shares
Earning Per Share [Abstract]
Earnings Per Share	Note 7. Earnings Per Share The computation of basic and diluted earnings per common share for income from continuing operations is as follows: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (In millions, except per share amounts) Numerator Numerator for basic and diluted earnings per common share income from continuing operations attributable to Goodrich $ 145.9 $ 183.6 $ 315.2 $ 337.2 Percentage allocated to common shareholders (1) 98.6 % 98.6 % 98.6 % 98.6 % Numerator for basic and diluted earnings per common share $ 143.9 $ 181.0 $ 310.8 $ 332.4 Denominator Denominator for basic earnings per common share weighted-average shares 123.9 125.2 123.9 125.1 Effect of dilutive securities: Stock options and employee stock purchase plan 1.0 1.3 0.7 1.3 Other deferred compensation shares 0.1 0.1 0.1 0.1 1.1 1.4 0.8 1.4 Denominator for diluted earnings per common share adjusted weighted-average shares and assumed conversion 125.0 126.6 124.7 126.5 Per common share income from continuing operations Basic $ 1.16 $ 1.45 $ 2.51 $ 2.65 Diluted $ 1.15 $ 1.43 $ 2.49 $ 2.62 (1)Basic weighted-average common shares outstanding 123.9 125.2 123.9 125.1 Basic weighted-average common shares outstanding and unvested restricted share units expected to vest 125.7 127.0 125.6 126.9 Percentage allocated to common shareholders 98.6 % 98.6 % 98.6 % 98.6 % As described in Note 2, New Accounting Standards, the Company adopted FSP 03-6-1 on January1, 2009. The Companys unvested restricted share units contain rights to receive nonforfeitable dividends, and thus, are participating securities requiring the two-class method of computing EPS. The calculation of earnings per share for common stock shown above excludes the income attributable to the unvested restricted share units from the numerator and excludes the dilutive impact of those units from the denominator. At June30, 2009 and 2008, the Company had 5.3million and 4.7million of outstanding stock options, respectively. Stock options are included in the diluted earnings per share calculation using the treasury stock method, unless the effect of including the stock options would be anti-dilutive. For the six months ended June30, 2009 and 2008, 0.9million anti-dilutive stock options were excluded from the diluted earnings per share calculation. During the six months ended June30, 2009 and 2008, the Company issued approximately 1million of shares of common stock pursuant to stock option exercises and other share-based

Fair Value Measurements

Fair Value Measurements
	6 Months Ended Jun. 30, 2009 USD / shares
Fair Value Measurements [Abstract]
Fair Value Measurements	Note 8. Fair Value Measurements SFAS 157 defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. SFAS 157 also describes three levels of inputs that may be used to measure fair value: Level1 quoted prices in active markets for identical assets and liabilities. Level2 observable inputs other than quoted prices in active markets for identical assets and liabilities. Level3 unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. The Companys financial assets and (liabilities)measured at fair value on a recurring basis were as follows: Fair Value Fair Value June 30, December 31, 2009 Level 1 Level 2 Level 3 2008 Level 1 Level 2 Level 3 (Dollars in millions) Cash Equivalents (1) $ 361.4 $ 361.4 $ $ $ 291.5 $ 291.5 $ $ Derivative Financial Instruments (2) Cash Flow Hedges (8.4 ) (8.4 ) (156.1 ) (156.1 ) Other Forward Contracts (4.0 ) (4.0 ) Rabbi Trust Assets (3) 37.8 37.8 41.9 41.9 Long-term debt and capital lease obligations (4) 1,718.7 1,718.7 1,546.7 1,546.7 (1) Because of their short maturities, the carrying value of these assets approximates fair value. (2) See Note 18, Derivatives and Hedging Activities. Estimates of the fair value of the derivative financial instruments represent the Companys best estimates based on its valuation models, which incorporate industry data and trends and relevant market rates and transactions. (3) Rabbi trust assets include mutual funds and cash equivalents for payment of certain non-qualified benefits for retired, terminated and active employees. The fair value of these assets was based on quoted market prices. (4) The carrying amount of the Companys long-term debt and capital lease obligations was $1,708.7million and $1,531.7million at June30, 2009 and December31, 2008, respectively. The fair value of long-term debt and capital lease obligations is based on quoted market prices or on rates available to the Company for debt with similar terms and maturities.

Inventories

Inventories
	6 Months Ended Jun. 30, 2009 USD / shares
Inventories [Abstract]
Inventories	Note 9. Inventories Inventories consist of the following: June 30, December 31, 2009 2008 (Dollars in millions) FIFO or average cost (which approximates current costs): Finished products $ 246.3 $ 225.2 In-process 1,327.8 1,253.6 Raw materials and supplies 652.0 595.7 2,226.1 2,074.5 Less: Reserve to reduce certain inventories to LIFO basis (57.7 ) (56.2 ) Progress payments and advances (42.7 ) (43.6 ) Total $ 2,125.7 $ 1,974.7 In-process inventory included $713.2million and $633.1million at June30, 2009 and December31, 2008, respectively, for the following: (1)pre-production and excess-over-average inventory accounted for under long-term contract accounting; and (2)engineering costs guaranteed of recovery under long-term contractual arrangements. The June30, 2009 balance of $713.2million included $432.2million related to the Boeing 787 and $101.3million related to the Airbus A350 XWB contracts. The Company uses the last-in, first-out (LIFO)method of valuing inventory for certain of the Companys legacy aerospace manufacturing businesses, primarily the aircraft wheels and brakes business unit in the Actuation and Landing Systems segment. An actual valuation of inventory under the LIFO method can be made only at the end of each year based on the inventory levels and costs at that time.

Goodwill

Goodwill
	6 Months Ended Jun. 30, 2009 USD / shares
Goodwill [Abstract]
Goodwill	Note 10. Goodwill The changes in the carrying amount of goodwill by segment were as follows: Balance Foreign Balance December 31, Business Currency June 30, 2008 Combinations (1) Translation 2009 (Dollars in millions) Actuation and Landing Systems $ 289.6 $ $ 14.7 $ 304.3 Nacelles and Interior Systems 439.8 (2.1 ) 437.7 Electronic Systems 660.8 14.1 (2) (1.0 ) 673.9 $ 1,390.2 $ 14.1 $ 11.6 $ 1,415.9 (1) Goodwill amounts for acquisitions prior to January1, 2009 are preliminary and may be adjusted when certain pre-acquisition contingencies are resolved. (2) On May1, 2009, the Company acquired Cloud Cap Technology, Inc. (Cloud Cap) for $29.1million, net of cash acquired. Based upon an independent valuation, identifiable intangibles were $13.6million and will be amortized over a weighted-average useful life of 11years.

Financing Arrangements

Financing Arrangements
	6 Months Ended Jun. 30, 2009 USD / shares
Financing Arrangements [Abstract]
Financing Arrangements	Note 11. Financing Arrangements The Company has a $500million committed global syndicated revolving credit facility, which expires in May2012. Interest rates under this facility vary depending upon: The amount borrowed; The Companys public debt rating by Standard Poors, Moodys and Fitch; and At the Companys option, rates tied to the agent banks prime rate or, for U.S. Dollar and Great Britain Pounds Sterling borrowings, the London Interbank Offered Rate and for Euro Dollar borrowings, the Euro Interbank Offered Rate. At June30, 2009, there were no borrowings and $52million in letters of credit outstanding under the facility. At December31, 2008, there were no borrowings and $35.6million in letters of credit outstanding under the facility. The level of unused borrowing capacity varies from time to time depending, in part, upon the Companys compliance with financial and other covenants set forth in the related agreement, including the consolidated net worth requirement and maximum leverage ratio. The Company is currently in compliance with all such covenants. Under the most restrictive of these covenants, $1,791.7million of income retained in the business and additional paid-in capital was free from such limitations at June30, 2009. At June30, 2009, the Company had borrowing capacity under this facility of $448million, after reductions for borrowings and letters of credit outstanding under the facility. At June30, 2009, the Company had letters of credit and bank guarantees of $82.8million, inclusive of $52million in letters of credit outstanding under the Companys syndicated revolving credit facility, as discussed above. At June30, 2009, the Company also maintained $75million of uncommitted domestic money market facilities and $158.5million of uncommitted and committed foreign working capital facilities with various banks to meet short-term borrowing requirements. At June30, 2009 and December31, 2008, there were $40.4million and $37.7million, respectively, in borrowings outstanding under these facilities. These credit facilities are provided by a small number of commercial banks that also provide the Company with committed credit through the syndicated revolving credit facility described above and with various cash management, trust and other services. In February2009, the Company issued $300million principal amount of 6.125% senior notes due 2019, which were issued below par. The discount will be amortized over the life of the senior notes. In addition, the Company deferred approximately $2million of transaction costs which will be amortized over the life of the 6.125% senior notes. Long-term Debt Repayments The Company used a portion of the proceeds from the issuance of the $300million senior notes to repay $120million for the 6.6% senior notes, which matured on May15, 2009. Lease Commitments The Company leases certain of its office and manufacturing facilities as well as machinery and equipment, including corporate aircraft, under various committed lease arrangements provided by financial institutions. Future minimum lease payments under operating leases were $176.5million at

Pensions and Postretirement Ben

Pensions and Postretirement Benefits Other Than Pensions
	6 Months Ended Jun. 30, 2009 USD / shares
Pensions and Postretirement Benefits Other Than Pensions [Abstract]
Pensions and Postretirement Benefits Other Than Pensions	Note 12. Pensions and Postretirement Benefits Other Than Pensions The following table sets forth the components of net periodic benefit cost. The net periodic benefit cost for divested or discontinued operations retained by the Company are included in the amounts below: U.S. Plans U.K. Plans Other Plans Three Months Ended Three Months Ended Three Months Ended June 30, June 30, June 30, 2009 2008 2009 2008 2009 2008 (Dollars in millions) Service cost $ 11.9 $ 11.1 $ 3.3 $ 7.8 $ 0.9 $ 1.7 Interest cost 43.0 42.4 9.5 11.1 1.8 1.5 Expected return on plan assets (45.3 ) (50.1 ) (10.6 ) (17.0 ) (1.4 ) (1.7 ) Amortization of prior service cost 1.9 1.3 (0.2 ) (0.3 ) 0.4 0.1 Amortization of actuarial loss 24.3 12.6 2.2 0.3 0.2 Net periodic benefit cost $ 35.8 $ 17.3 $ 4.2 $ 1.6 $ 2.0 $ 1.8 U.S. Plans U.K. Plans Other Plans Six Months Ended Six Months Ended Six Months Ended June 30, June 30, June 30, 2009 2008 2009 2008 2009 2008 (Dollars in millions) Service cost $ 21.4 $ 21.4 $ 7.6 $ 15.0 $ 1.8 $ 2.9 Interest cost 85.9 83.8 17.8 22.1 3.2 3.2 Expected return on plan assets (87.1 ) (100.1 ) (20.3 ) (33.9 ) (2.5 ) (3.5 ) Amortization of prior service cost 3.7 2.8 (0.3 ) (0.5 ) 0.4 0.1 Amortization of actuarial loss 52.6 24.4 3.5 0.6 0.5 Gross periodic benefit cost 76.5 32.3 8.3 2.7 3.5 3.2 Settlement (gain) loss (0.4 ) Net periodic benefit cost $ 76.5 $ 32.3 $ 8.3 $ 2.7 $ 3.1 $ 3.2 The following table provides the weighted-average assumptions used to determine the net periodic benefit cost. U.S. Plans U.K. Plans Other Plans Three and Six Months Three and Six Months Three and Six Months Ended June 30, Ended June 30, Ended June 30, 2009 2008 2009 2008 2009 2008 Discount rate 6.47 % 6.30 % 5.88 % 5.50 % 6.17 % 5.28 % Expected long-term rate of return on assets 8.75 % 9.00 % 8.50 % 8.50 % 8.12 % 8.24 % Rate of compensation increase 4.10 % 4.10 % 3.75 % 3.75 % 3.31 % 3.38 % Post Retirement Benefits Other Than Pensions The following table sets forth the components of net periodic postretirement benefit cost. Other postretirement benefits (OPEB)related to the divested and discontinued operations retained by the Com

Comprehensive Income

Comprehensive Income (Loss)
	6 Months Ended Jun. 30, 2009 USD / shares
Comprehensive Income Loss [Abstract]
Comprehensive Income (Loss)	Note 13. Comprehensive Income (Loss) Total comprehensive income (loss)consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (Dollars in millions) Net income attributable to Goodrich $ 177.1 $ 186.6 $ 346.9 $ 344.5 Other comprehensive income (loss): Unrealized foreign currency translation gains (losses)during period 133.3 4.8 84.0 30.4 Pension/OPEB liability adjustments during the period, net of tax for the three and six months ended June30, 2009 of $(8.4) and $22.5, respectively; net of tax for the three and six months ended June30, 2008 of $2.2 and $(6.1), respectively 9.0 (1.6 ) 60.3 6.9 Gain (loss)on cash flow hedges, net of tax for the three and six months ended June30, 2009 of $(61.0) and $(54.5), respectively; net of tax for the three and six months ended June30, 2008 of $0.5 and $6.3, respectively 121.7 (1.0 ) 101.6 (12.0 ) Less: Other comprehensive income (loss)attributable to noncontrolling interests Total comprehensive income (loss) $ 441.1 $ 188.8 $ 592.8 $ 369.8 Accumulated other comprehensive income (loss)consisted of the following: June 30, December 31, 2009 2008 (Dollars in millions) Cumulative unrealized foreign currency translation gains $ 135.6 $ 51.6 Pension/OPEB liability adjustments, net of deferred taxes of $509.4 and $486.9, respectively (845.2 ) (905.5 ) Accumulated gains (losses)on cash flow hedges, net of deferred taxes of $11.3 and $65.8, respectively (22.6 ) (124.2 ) Total accumulated other comprehensive income (loss) $ (732.2 ) $ (978.1 ) No income taxes are provided on unrealized foreign currency translation gains as foreign earnings are considered permanently invested.

Noncontrolling Interests

Noncontrolling Interests
	6 Months Ended Jun. 30, 2009 USD / shares
Noncontrolling Interests [Abstract]
Noncontrolling Interests	Note 14. Noncontrolling Interests As described in Note 2, New Accounting Standards, the Company adopted SFAS 160 on January1, 2009. The changes in the Companys noncontrolling interests were as follows: Six months ended June 30, 2009 2008 (Dollars in millions) Balance at January 1 $ 60.9 $ 52.5 Distributions to noncontrolling interests (7.3 ) (6.3 ) Comprehensive income: Net income attributable to noncontrolling interests 7.7 9.8 Other comprehensive income, net of tax Comprehensive income 7.7 9.8 Balance at June 30 $ 61.3 $ 56.0

Income Taxes

Income Taxes
	6 Months Ended Jun. 30, 2009 USD / shares
Income Taxes [Abstract]
Income Taxes	Note 15. Income Taxes The Companys effective tax rate for the three months ended June30, 2009 was 26.9%. Significant items that impacted the Companys effective tax rate as compared to the U.S. federal statutory rate of 35% included foreign and domestic tax credits which reduced the effective tax rate by approximately 3percentage points, earnings in foreign jurisdictions taxed at rates different from the statutory U.S. federal rate which reduced the effective tax rate by approximately 6percentage points, deemed repatriation of non-U.S. earnings which increased the effective tax rate by approximately 2percentage points, adjustments to reserves for tax contingencies, including interest thereon (net of related tax benefit), which increased the effective tax rate by approximately 2percentage points and state income taxes (net of related tax benefit) which increased the effective tax rate by approximately 2percentage points. During the three months ended June30, 2008, the Company reported an effective tax of 26.9%, including a benefit from amended state returns primarily for additional research and development credits and changes in apportionment which reduced the effective tax rate by approximately 9 percentage points, a benefit related to amended returns following the settlement of a foreign tax audit which reduced the effective tax rate by approximately 7percentage points, foreign and domestic tax credits which reduced the effective tax rate by approximately 2percentage points, earnings in foreign jurisdictions taxed at rates different from the statutory U.S. federal rate which reduced the effective tax rate by approximately 2percentage points, deemed repatriation of non-U.S. earnings which increased the effective tax rate by approximately 2percentage points, adjustments to reserves for tax contingencies, including interest thereon (net of related tax benefit), which increased the effective tax rate by approximately 7percentage points and state income taxes (net of related tax benefit) which increased the effective tax rate by approximately 3 percentage points. For the six months ended June30, 2009, the Company reported an effective tax rate of 26.6%, including a benefit from an adjustment to state tax reserves which reduced the effective tax rate by approximately 3percentage points. For the six months ended June30, 2008, the Company reported an effective tax rate of 30%, including a benefit of approximately 5percentage points for amended state returns primarily for additional research and development credits and changes in apportionment, and a benefit of approximately 4percentage points related to amended returns following the settlement of a foreign tax audit. At June30, 2009, the Company had a $279.5million liability recorded for unrecognized tax benefits, which included interest and penalties of $150.1million. The total amount of unrecognized benefits that, if recognized, would have affected the effective tax rate was $203.7million. At December31, 2008, the Company had a $289.4million liability recorded for unrecognized tax benefits, which included interest and penalties of $158.1million. The total amount of unrecogn

Contingencies

Contingencies
	6 Months Ended Jun. 30, 2009 USD / shares
Contingencies [Abstract]
Contingencies	Note 16. Contingencies General There are various pending or threatened claims, lawsuits and administrative proceedings against the Company or its subsidiaries, arising from the ordinary course of business which seek remedies or damages. Although no assurance can be given with respect to the ultimate outcome of these matters, the Company believes that any liability that may finally be determined with respect to commercial and non-asbestos product liability claims should not have a material effect on its consolidated financial position, results of operations or cash flows. Legal costs are expensed as incurred. Environmental The Company is subject to environmental laws and regulations which may require that the Company investigate and remediate the effects of the release or disposal of materials at sites associated with past and present operations. At certain sites, the Company has been identified as a potentially responsible party under the federal Superfund laws and comparable state laws. The Company is currently involved in the investigation and remediation of a number of sites under applicable laws. Estimates of the Companys environmental liabilities are based on current facts, laws, regulations and technology. These estimates take into consideration the Companys prior experience and professional judgment of the Companys environmental specialists. Estimates of the Companys environmental liabilities are further subject to uncertainties regarding the nature and extent of site contamination, the range of remediation alternatives available, evolving remediation standards, imprecise engineering evaluations and cost estimates, the extent of corrective actions that may be required and the number and financial condition of other potentially responsible parties, as well as the extent of their responsibility for the remediation. Accordingly, as investigation and remediation proceed, it is likely that adjustments in the Companys accruals will be necessary to reflect new information. The amounts of any such adjustments could have a material adverse effect on the Companys results of operations or cash flows in a given period. Based on currently available information, however, the Company does not believe that future environmental costs in excess of those accrued with respect to sites for which the Company has been identified as a potentially responsible party are likely to have a material adverse effect on the Companys financial condition. Environmental liabilities are recorded when the liability is probable and the costs are reasonably estimable, which generally is not later than at completion of a feasibility study or when the Company has recommended a remedy or has committed to an appropriate plan of action. The liabilities are reviewed periodically and, as investigation and remediation proceed, adjustments are made as necessary. Liabilities for losses from environmental remediation obligations do not consider the effects of inflation and anticipated expenditures are not discounted to their present value. The liabilities are not reduced by possible recoveries from insurance carriers or other third parties, but do refl

Guarantees

Guarantees
	6 Months Ended Jun. 30, 2009 USD / shares
Guarantees [Abstract]
Guarantees	Note 17. Guarantees The Company extends financial and product performance guarantees to third parties. At June30, 2009, the following environmental remediation and other indemnifications and financial guarantees were outstanding, in millions: Maximum Carrying Potential Amount of Payment Liability Environmental remediation and other indemnifications (Note 16, Contingencies) No limit $ 18.6 Guarantees of residual value on leases $ 27.2 $ 0.5 Guarantees of JV debt and other financial instruments $ 24.7 $ The Company has guarantees of residual values on certain lease obligations in which the Company is obligated to either purchase or remarket the assets at the end of the lease term. The Company is guarantor on a revolving credit agreement totaling 20million between Rolls-Royce Goodrich Engine Control Systems Limited (JV)and a financial institution. In addition, the Company guarantees the JVs foreign exchange credit line and is indemnified by Rolls-Royce for 50% of the amount. Service and Product Warranties The Company provides service and warranty policies on certain of its products. The Company accrues liabilities under service and warranty policies based upon specific claims and a review of historical warranty and service claim experience in accordance with Statement of Financial Accounting Standards No.5, Accounting for Contingencies. Adjustments are made to accruals as claim data and historical experience change. In addition, the Company incurs discretionary costs to service its products in connection with product performance issues. The changes in the carrying amount of service and product warranties for the six months ended June 30, 2009, in millions, are as follows: Balance at December31, 2008 $ 139.2 Net provisions for warranties issued during the period 22.4 Net provisions for warranties existing at the beginning of the year (1.9 ) Payments (29.5 ) Foreign currency translation 3.8 Balance at June30, 2009 $ 134.0 The current and long-term portions of service and product warranties were as follows: June 30, December 31, 2009 2008 (Dollars in millions) Accrued expenses $ 61.7 $ 66.4 Other non-current liabilities 72.3 72.8 Total $ 134.0 $ 139.2

Derivatives and Hedging Activit

Derivatives and Hedging Activities
	6 Months Ended Jun. 30, 2009 USD / shares
Derivatives And Hedging Activities [Abstract]
Derivatives and Hedging Activities	Note 18. Derivatives and Hedging Activities Cash Flow Hedges The Company has subsidiaries that conduct a substantial portion of their business in Euros, Great Britain Pounds Sterling, Canadian Dollars and Polish Zlotys but have significant sales contracts that are denominated in U.S. Dollars. Periodically, the Company enters into forward contracts to exchange U.S. Dollars for Euros, Great Britain Pounds Sterling, Canadian Dollars and Polish Zlotys to hedge a portion of the Companys exposure from U.S. Dollar sales. The forward contracts described above are used to mitigate the potential volatility to earnings and cash flow arising from changes in currency exchange rates that impact the Companys U.S. Dollar sales for certain foreign operations. The forward contracts are accounted for as cash flow hedges and are recorded in the Companys condensed consolidated balance sheet at fair value, with the offset reflected in accumulated other comprehensive income (loss) (AOCI), net of deferred taxes. The gain or loss on the forward contracts is reported as a component of other comprehensive income (loss) (OCI)and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. The notional value of the forward contracts at June30, 2009 and December31, 2008 was $1,967.8million and $1,897.2million, respectively. At June30, 2009 and December31, 2008, the total fair value before taxes of the Companys forward contracts and the accounts in the condensed consolidated balance sheet in which the fair value amounts are included are shown below: June 30, December 31, 2009 2008 (Dollars in millions) Prepaid expenses and other assets $ 12.7 $ 9.8 Other assets 53.2 6.2 Accrued expenses 35.5 70.0 Other non-current liabilities 38.8 102.1 The amounts recognized in OCI and reclassified from AOCI into earnings are shown below: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 (Dollars in millions) Amount of gain/(loss) recognized in OCI, net of tax for the three and six months ended June30, 2009 of $(61.0) and $(54.5), respective; net of tax for the three and six months ended June30, 2008 of $0.5 and $6.3, respectively $ 121.7 $ (1.0 ) $ 101.6 $ (12.0 ) Amount of gain/(loss) reclassified from AOCI into earnings $ (15.8 ) $ 21.0 $ (40.1 ) $ 41.3 As of June 30, 2009, the fair value of the Companys forward contracts of a $8.4million net liability and $23.5million of losses on previously matured hedges of intercompany sales and gains from forward contracts terminated prior to the original maturity dates, totaling $31.9million (net of deferred taxes of $11.3million), is recorded in AOCI and will be reflected in income as earnings are affected by the hedged items. As of June30, 2009, the portion of the $8.4million that would be reclassified into earnings as an increase in sales to offset the effect of the hedged item in the next 12months is a loss of $22.8million. These forward contracts m