Document and Company Informatio
Document and Company Information (USD $) | |||
In Billions, except Share data | 12 Months Ended
Dec. 31, 2009 | Jan. 31, 2010
| Jun. 30, 2009
|
Document and Company Information [Abstract] | |||
Entity Registrant Name | GOODRICH CORP | ||
Entity Central Index Key | 0000042542 | ||
Document Type | 10-K | ||
Document Period End Date | 2009-12-31 | ||
Amendment Flag | false | ||
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 | 6.2 | ||
Entity Common Stock, Shares Outstanding | 125,165,336 |
Consolidated Statement of Incom
Consolidated Statement of Income (USD $) | |||
In Millions, except Per Share data | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Consolidated Statement of Income [Abstract] | |||
Sales | 6685.6 | 7061.7 | 6392.2 |
Operating costs and expenses: | |||
Cost of sales | 4724.1 | 4906.2 | 4483.3 |
Selling and administrative costs | 1032.3 | 1054.6 | 1027.6 |
Total operating costs and expenses | 5756.4 | 5960.8 | 5510.9 |
Operating Income | 929.2 | 1100.9 | 881.3 |
Interest expense | (121) | -112.4 | -124.9 |
Interest income | 1.1 | 5.7 | 9.2 |
Other income (expense) - net | -25.2 | -9.6 | -28.2 |
Income from continuing operations before income taxes | 784.1 | 984.6 | 737.4 |
Income tax expense | -207.8 | (293) | -220.9 |
Income From Continuing Operations | 576.3 | 691.6 | 516.5 |
Income (loss) from discontinued operations - net of income taxes | 34.5 | 7.6 | -13.4 |
Consolidated Net Income | 610.8 | 699.2 | 503.1 |
Net income attributable to noncontrolling interests | -13.5 | (18) | -20.5 |
Net Income Attributable to Goodrich | 597.3 | 681.2 | 482.6 |
Amounts attributable to Goodrich: | |||
Income from continuing operations | 562.8 | 673.6 | 496 |
Income (loss) from discontinued operations - net of income taxes | 34.5 | 7.6 | -13.4 |
Net Income Attributable to Goodrich | 597.3 | 681.2 | 482.6 |
Basic Earnings Per Share | |||
Continuing operations | 4.47 | 5.34 | 3.91 |
Discontinued operations | 0.28 | 0.06 | -0.11 |
Net Income Attributable to Goodrich | 4.75 | 5.4 | 3.8 |
Diluted Earnings Per Share | |||
Continuing operations | 4.43 | 5.29 | 3.86 |
Discontinued operations | 0.27 | 0.06 | -0.11 |
Net Income Attributable to Goodrich | 4.7 | 5.35 | 3.75 |
Consolidated Balance Sheet
Consolidated Balance Sheet (USD $) | ||
In Millions | Dec. 31, 2009
| Dec. 31, 2008
|
Current Assets | ||
Cash and cash equivalents | $811 | 370.3 |
Accounts and notes receivable- -net | 1073.2 | 1048.9 |
Inventories - net | 2290.4 | 1974.7 |
Deferred income taxes | 165.2 | 153.5 |
Prepaid expenses and other assets | 59.6 | 47.2 |
Income taxes receivable | 15 | 73.7 |
Total Current Assets | 4414.4 | 3668.3 |
Property, plant and equipment - net | 1451.2 | 1391.4 |
Prepaid pension | 0.8 | 0.6 |
Goodwill | 1,587 | 1390.2 |
Identifiable intangible assets - net | 633.2 | 402.8 |
Deferred income taxes | 16.7 | 92 |
Other assets | 638.1 | 537.6 |
Total Assets | 8741.4 | 7482.9 |
Current Liabilities | ||
Short-term debt | 3.1 | 37.7 |
Accounts payable | 547.8 | 646.4 |
Accrued expenses | 1037.4 | 1005.3 |
Income taxes payable | 0.5 | 5.6 |
Deferred income taxes | 23.8 | 25 |
Current maturities of long-term debt and capital lease obligations | 0.5 | 121.3 |
Total Current Liabilities | 1613.1 | 1841.3 |
Long-term debt and capital lease obligations | 2008.1 | 1410.4 |
Pension obligations | 908.7 | 973.9 |
Postretirement benefits other than pensions | 301.1 | 309.4 |
Long-term income taxes payable | 171.1 | 172.3 |
Deferred income taxes | 257.2 | 62.3 |
Other non-current liabilities | 514.5 | 561.1 |
Shareholders' Equity | ||
Common stock - $5 par value Authorized 200,000,000 shares; issued 145,241,995 shares at December 31, 2009 and 143,611,254 shares at December 31, 2008 (excluding 14,000,000 shares held by a wholly owned subsidiary) | 726.2 | 718.1 |
Additional paid-in capital | 1,597 | 1525.3 |
Income retained in the business | 2,088 | 1619.2 |
Accumulated other comprehensive income (loss) | -673.2 | -978.1 |
Common stock held in treasury, at cost (20,854,137 shares at December 31, 2009 and 20,410,556 shares at December 31, 2008) | (817) | -793.2 |
Total Shareholders' Equity | 2,921 | 2091.3 |
Noncontrolling interests | 46.6 | 60.9 |
Total Equity | 2967.6 | 2152.2 |
Total Liabilities And Equity | 8741.4 | 7482.9 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) (USD $) | ||
Dec. 31, 2009
| Dec. 31, 2008
| |
Shareholders' Equity | ||
Common stock, par value | 5 | 5 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 145,241,995 | 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 | 20,854,137 | 20,410,556 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows (USD $) | |||
In Millions | 12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 |
Operating Activities | |||
Consolidated net income | 610.8 | 699.2 | 503.1 |
Adjustments to reconcile consolidated net income to net cash provided by operating activities: | |||
(Income) loss from discontinued operations | -34.5 | -7.6 | 13.4 |
Restructuring and consolidation: | |||
Expenses | 21.6 | 2.1 | 1 |
Payments | -13.6 | -2.5 | -4.4 |
Pension and postretirement benefits: | |||
Expenses | 199.5 | 97.7 | 116.3 |
Contributions and benefit payments | -271.8 | -254.7 | -163.7 |
Depreciation and amortization | 249.3 | 257.2 | 250.2 |
Excess tax benefits related to share-based payment arrangements | (5) | -8.1 | -16.6 |
Share-based compensation expense | 66.7 | 36.4 | 70 |
Deferred income taxes | 139.4 | 143.4 | 137.8 |
Change in assets and liabilities, net of effects of acquisitions and divestitures: | |||
Receivables | 44.8 | -125.7 | -81.4 |
Inventories, excluding pre-production and excess-over-average | -42.3 | -189.8 | -89.2 |
Pre-production and excess-over-average inventories | -180.2 | -120.6 | -116.3 |
Other current assets | 5.5 | -8.6 | 5.7 |
Accounts payable | -142.7 | 137.8 | -10.5 |
Accrued expenses | 2.5 | 43.4 | 95 |
Income taxes payable/receivable | 51.2 | 36.5 | -84.5 |
Other non-current assets and liabilities | -44.7 | 50.5 | -32.2 |
Net Cash Provided By Operating Activities | 656.5 | 786.6 | 593.7 |
Investing Activities | |||
Purchases of property, plant and equipment | (169) | -284.7 | -282.6 |
Proceeds from sale of property, plant and equipment | 1.3 | 6.5 | 3.3 |
Payments made for acquisitions, net of cash acquired | -392.1 | -131.8 | 0 |
Investments in and advances to equity investees | (2) | 0 | 0 |
Net Cash Used In Investing Activities | -561.8 | (410) | -279.3 |
Financing Activities | |||
Increase (decrease) in short-term debt, net | (35) | 15.9 | 9.2 |
Proceeds from issuance of long-term debt | 597 | 0 | 0 |
Repayments of long-term debt and capital lease obligations | -120.5 | (201) | -1.4 |
Proceeds from issuance of common stock | 35.3 | 24.7 | 95.9 |
Purchases of treasury stock | -23.8 | -138.4 | -214.6 |
Dividends paid | -125.6 | -114.1 | -101.2 |
Excess tax benefits related to share-based payment arrangements | 5 | 8.1 | 16.6 |
Distributions to noncontrolling interests | -27.8 | -9.6 | (7) |
Net Cash Provided By (Used In) Financing Activities | 304.6 | -414.4 | -202.5 |
Discontinued Operations | |||
Net cash provided by (used in) operating activities | 34.1 | -2.6 | 1.3 |
Net cash provided by (used in) investing activities | 0 | 15.7 | 88.8 |
Net cash provided by (used in) financing activities | 0 | 0 | 0 |
Net cash provided by discontinued operations | 34.1 | 13.1 | 90.1 |
Effect of exchange rate changes on cash and cash equivalents | 7.3 | (11) | 2.7 |
Net increase (decrease) in cash and cash equivalents | 440.7 | -35.7 | 204.7 |
Cash and cash equivalents at beginning of period | 370.3 | 406 | 201.3 |
Cash and cash equivalents at end of period | $811 | 370.3 | $406 |
Consolidated Statement of Share
Consolidated Statement of Shareholders Equity (USD $) | |||||||
In Millions, except Share data in Thousands | Common Stock
| Additional Paid-in Capital
| Income Retained In The Business
| Accumulated Other Comprehensive Income (Loss)
| Treasury Stock
| Noncontrolling Interest
| Total
|
Beginning Balance, Shares at Dec. 31, 2006 | 139,042 | ||||||
Beginning Balance at Dec. 31, 2006 | 695.2 | 1313.3 | 666.5 | -260.8 | -437.5 | $39 | 2015.7 |
Consolidated net income | 482.6 | 20.5 | 503.1 | ||||
Other comprehensive income (loss): | |||||||
Translation adjustments | 101.2 | 101.2 | |||||
Pension and OPEB liability adjustment | 130.8 | 130.8 | |||||
Unrealized gain (loss) on cash flow hedges | 43.2 | 43.2 | |||||
Distributions to noncontrolling interests | (7) | (7) | |||||
Change in accounting for tax contingencies | 10.1 | 10.1 | |||||
Repurchase of common stock | -208.8 | -208.8 | |||||
Employee award programs | 16.7 | 81.9 | -8.5 | 90.1 | |||
Employee award programs, Shares | 3,330 | ||||||
Share-based compensation | 33.1 | 33.1 | |||||
Tax benefit from employees share-based compensation programs | 24.8 | 24.8 | |||||
Dividends declared (per share $0.825, $0.925 and $1.02 for year 2007, 2008 and 2009) respectively | -104.4 | -104.4 | |||||
Ending Balance at Dec. 31, 2007 | 711.9 | 1453.1 | 1054.8 | 14.4 | -654.8 | 52.5 | 2631.9 |
Ending Balance, Shares at Dec. 31, 2007 | 142,372 | ||||||
Consolidated net income | 681.2 | 18 | 699.2 | ||||
Other comprehensive income (loss): | |||||||
Translation adjustments | (298) | (298) | |||||
Pension and OPEB liability adjustment | -472.7 | -472.7 | |||||
Unrealized gain (loss) on cash flow hedges | -221.8 | -221.8 | |||||
Distributions to noncontrolling interests | -9.6 | -9.6 | |||||
Repurchase of common stock | -127.2 | -127.2 | |||||
Employee award programs | 6.2 | 21.4 | -11.2 | 16.4 | |||
Employee award programs, Shares | 1,239 | ||||||
Share-based compensation | 41.1 | 41.1 | |||||
Tax benefit from employees share-based compensation programs | 9.7 | 9.7 | |||||
Dividends declared (per share $0.825, $0.925 and $1.02 for year 2007, 2008 and 2009) respectively | -116.8 | -116.8 | |||||
Ending Balance at Dec. 31, 2008 | 718.1 | 1525.3 | 1619.2 | -978.1 | -793.2 | 60.9 | 2152.2 |
Ending Balance, Shares at Dec. 31, 2008 | 143,611 | ||||||
Consolidated net income | 597.3 | 13.5 | 610.8 | ||||
Other comprehensive income (loss): | |||||||
Translation adjustments | 119.2 | 119.2 | |||||
Pension and OPEB liability adjustment | 37.2 | 37.2 | |||||
Unrealized gain (loss) on cash flow hedges | 148.5 | 148.5 | |||||
Distributions to noncontrolling interests | -27.8 | -27.8 | |||||
Repurchase of common stock | -15.9 | -15.9 | |||||
Employee award programs | 8.1 | 27.4 | -7.9 | 27.6 | |||
Employee award programs, Shares | 1,631 | ||||||
Share-based compensation | 37.2 | 37.2 | |||||
Tax benefit from employees share-based compensation programs | 7.1 | 7.1 | |||||
Dividends declared (per share $0.825, $0.925 and $1.02 for year 2007, 2008 and 2009) respectively | -128.5 | -128.5 | |||||
Ending Balance at Dec. 31, 2009 | 726.2 | $1,597 | $2,088 | -673.2 | ($817) | 46.6 | 2967.6 |
Ending Balance, Shares at Dec. 31, 2009 | 145,242 |
1_Consolidated Statement of Sha
Consolidated Statement of Shareholders Equity (Parenthetical) (USD $) | |||
12 Months Ended
Dec. 31, 2009 | 12 Months Ended
Dec. 31, 2008 | 12 Months Ended
Dec. 31, 2007 | |
Dividends declared, per share | 1.02 | 0.925 | 0.825 |
Significant Accounting Policies
Significant Accounting Policies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | Note1. Significant Accounting Policies Basis of Presentation.The consolidated financial statements reflect the accounts of Goodrich Corporation and its majority-owned subsidiaries (the Company or Goodrich). Investments in 20 to 50percent-owned affiliates are accounted for using the equity method. Equity in earnings (losses) from these businesses is included in other income (expense) net. Intercompany accounts and transactions are eliminated. As discussed in Note6, Discontinued Operations, Goodrich Aviation Technical Services, Inc. (ATS) has been accounted for as a discontinued operation. Unless otherwise noted, disclosures herein pertain to the Companys continuing operations. Cash Equivalents.Cash equivalents consist of highly liquid investments with a maturity of three months or less at the time of purchase. Allowance for Doubtful Accounts.The Company evaluates the collectibility of trade receivables based on a combination of factors. The Company regularly analyzes significant customer accounts and, when the Company becomes aware of a specific customers inability to meet its financial obligations to the Company, which may occur in the case of bankruptcy filings or deterioration in the customers operating results or financial position, the Company records a specific reserve for bad debt to reduce the related receivable to the amount the Company reasonably believes is collectible. The Company also records reserves for bad debts for all other customers based on a variety of factors including the length of time the receivables are past due, the financial health of the customer, macroeconomic considerations and historical experience. If circumstances related to specific customers change, the Companys estimates of the recoverability of receivables could be further adjusted. See Note16, Supplemental Balance Sheet Information. Inventories.Inventories are stated at the lower of cost or market. Certain U.S.inventories are valued by the last-in, first-out (LIFO) cost method. Inventories not valued by the LIFO method are valued principally by the average cost method. See Note10, Inventories. Inventoried costs on long-term contracts include certain pre-production costs, consisting primarily of tooling and engineering design and production costs, including applicable overhead. The costs attributed to units delivered under long-term commercial contracts are based on the estimated average cost of all units expected to be produced and are determined under the learning curve concept, which anticipates a predictable decrease in unit costs as tasks and production techniques become more efficient through repetition. This usually results in an increase in inventory (referred to as excess-over average) during the early years of a contract. If in-process inventory plus estimated costs to complete a specific contract exceed the anticipated remaining sales value of such contract, the excess is charged to cost of sales in the period identified. In accordance with industry practice, costs in inventory include amounts relating to contracts with long production cycles, some of which are not expected to be realized within on |
New Accounting Standards
New Accounting Standards | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
New Accounting Standards [Abstract] | |
New Accounting Standards | Note2. New Accounting Standards New Accounting Standards Adopted in 2009 Accounting Standards Codification The Accounting Standards Codification (ASC) has become the source of authoritative UnitedStates generally accepted accounting principles (U.S.GAAP). ASC changed the referencing of financial accounting standards and did not change or alter existing U.S.GAAP. Fair Value Measurements The Company adopted a new accounting standard included in ASC 820, Fair Value Measurements and Disclosures, which delayed the effective date for disclosing 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 Note9, Fair Value Measurements. The Company adopted a new accounting standard included in ASC 715, Compensation-Retirement Benefits, which requires additional disclosures about assets held in an employers defined benefit pension or other postretirement plan. This standard requires annual disclosures about the Companys pension and other postretirement plan assets. The adoption of this standard did not affect the Companys financial condition or results of operations. See Note14, Pensions and Postretirement Benefits. Two-classMethod of Computing Earnings Per Share The Company adopted a new accounting standard included in ASC 260, Earnings Per Share, whereby unvested share-based payment awards that contain rights to receive nonforfeitable dividends or dividend equivalents (whether paid or unpaid) are considered participating securities, and thus, should be included in the two-class method of computing earnings per share (EPS). The adoption of this standard did not have a material impact on the Companys disclosure of EPS. See Note8, Earnings Per Share. Disclosures about Derivative Instruments and Hedging Activities The Company adopted a new accounting standard included in ASC 815, Derivatives and Hedging requiring the Company to provide greater transparency through additional disclosures about (1)how and why the Company uses derivative instruments, (2)how derivative instruments and related hedged items are accounted for under U.S.GAAP, and (3)how derivative instruments and related hedged items affect the Companys financial position, results of operations and cash flows. See Note18, Derivatives and Hedging Activities. Business Combinations and Noncontrolling Interests The Company adopted a new accounting standard included in ASC 810, Consolidation, and changed the presentation of its noncontrolling (minority) interests. The Companys noncontrolling interests in its consolidated subsidiaries are presented separately within equity in the Consolidated Balance Sheet and within net income attributable to noncontrolling interests in the Consolidated Statement of Income. The Company adopted a new accounting standard included in ASC 805, Business Combinations which significantly changed the accounting for and reporting of business combination transactions. This standard was |
Business Segment Information
Business Segment Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Business Segment Information [Abstract] | |
Business Segment Information | Note3. 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 consolidated financial statements. Year Ended December31, 2009 2008 2007 (Dollars in millions) Sales Actuation and Landing Systems $ 2,524.3 $ 2,614.9 $ 2,400.6 Nacelles and Interior Systems 2,322.6 2,485.6 2,169.0 Electronic Systems 1,838.7 1,961.2 1,822.6 TOTAL SALES $ 6,685.6 $ 7,061.7 $ 6,392.2 Intersegment Sales Actuation and Landing Systems $ 26.3 $ 34.7 $ 29.6 Nacelles and Interior Systems 8.4 13.8 19.1 Electronic Systems 29.9 25.7 28.9 TOTAL INTERSEGMENT SALES $ 64.6 $ 74.2 $ 77.6 Operating Income Actuation and Landing Systems $ 266.9 $ 300.0 $ 247.8 Nacelles and Interior Systems 515.3 647.5 531.0 Electronic Systems 276.4 268.8 247.8 1,058.6 1,216.3 1,026.6 Corporate General and Administrative Expenses (111.2 ) (96.1 ) (129.1 ) ERP Implementation Costs (18.2 ) (19.3 ) (16.2 ) TOTAL OPERATING INCOME $ 929.2 $ 1,100.9 $ 881.3 |
Restructuring
Restructuring | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Restructuring [Abstract] | |
Restructuring | Note4. Restructuring The Company incurred $21.6million, $2.1 million and $1 million of restructuring costs for 2009, 2008 and 2007, respectively. The restructuring actions were primarily related to severance costs and the goal of these programs was to reduce operating costs. Restructuring costs by segment and by income statement category were as follows: Year Ended December31, 2009 2008 2007 (Dollars in millions) Segment Actuation and Landing Systems $ 5.2 $ $ Nacelles and Interior Systems 13.0 2.1 0.5 Electronic Systems 3.4 0.5 $ 21.6 $ 2.1 $ 1.0 Income Statement Category Cost of sales $ 12.3 $ 1.7 $ 0.2 Selling and administrative costs 9.3 0.4 0.8 $ 21.6 $ 2.1 $ 1.0 |
Other Income
Other Income (Expense) - Net | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Other Income (Expense) - Net [Abstract] | |
Other Income (Expense) - Net | Note5. Other Income (Expense) Net Other Income (Expense) Net consisted of the following: Year Ended December31, 2009 2008 2007 (Dollars in millions) Retiree health care expenses related to previously owned businesses $ (12.3 ) $ (17.0 ) $ (18.4 ) Expenses related to previously owned businesses (9.1 ) (9.0 ) (7.7 ) Equity in affiliated companies (3.5 ) 2.7 (3.8 ) Net gain recognized in the formation of a joint venture 12.8 Other net (0.3 ) 0.9 1.7 Other income (expense) net $ (25.2 ) $ (9.6 ) $ (28.2 ) Expenses related to previously owned businesses primarily relates to environmental litigation costs, net of settlements, and costs to remediate environmental issues. On December 31, 2008, the Company formed Rolls-Royce Goodrich Engine Control Systems Limited, a joint venture with Rolls-Royce Group plc (R-R), operating as Aero Engine Controls (JV). The Company recognized a net gain upon formation of the JV for the modification of arrangements with R-R and a pension curtailment gain net of transaction costs. |
Discontinued Operations
Discontinued Operations | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Discontinued Operations [Abstract] | |
Discontinued Operations | Note6. Discontinued Operations The following summarizes the results of discontinued operations: Year Ended December31, 2009 2008 2007 (Dollars in millions) Sales ATS $ $ $ 143.6 Operations ATS net of income tax expense of $1.6 in 2007 $ $ $ 2.8 Loss on the sale of ATS net of income tax benefit of $37.8 in 2007 (15.4 ) Previously discontinued operations net of tax expense of $20.8 and $0.7 in 2009 and 2008, respectively and net of tax benefit of $0.6 in 2007 34.5 7.6 (0.8 ) Income (loss) from discontinued operations net of income taxes $ 34.5 $ 7.6 $ (13.4 ) During 2009, the income from discontinued operations related primarily to the resolution of litigation for an environmental matter at a divested business that had been previously reported as a discontinued operation and favorable resolution of other divestiture liabilities. See Note17, Contingencies for a discussion of this matter. During 2008, the Company sold a previously discontinued business for a gain of $6.1million. During 2007, the Company completed the sale of ATS for $55.3 million in cash, net of expenses, for a loss on the sale of $15.4million after tax. All periods have been reclassified to reflect ATS as a discontinued operation. The costs and revenues, assets and liabilities, and cash flows of ATS have been reported as a discontinued operation in the Companys consolidated financial statements. |
Share-Based Compensation
Share-Based Compensation | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | Note7. Share-Based Compensation The compensation cost recorded for share-based compensation plans during 2009, 2008 and 2007 is presented below: Year Ended December31, 2009 2008 2007 (Dollars in millions, except per share amount) Compensation cost $ 66.7 $ 36.4 $ 70.0 Compensation cost net of tax benefit $ 43.2 $ 23.9 $ 43.4 Compensation cost per diluted share net of tax benefit $ 0.35 $ 0.19 $ 0.34 The increase of $30.3million from 2008 to 2009 and the decrease of $33.6million from 2007 to 2008 was primarily due to changes in the Companys share price for the Performance Units and Outside Director Phantom Share plans. The total income tax benefit recognized in the income statement for share-based compensation awards was $23.5million, $12.5million and $26.6million for 2009, 2008 and 2007, respectively. There was no share-based compensation cost capitalized as part of inventory and fixed assets. As of December31, 2009, total compensation cost related to nonvested share-based compensation awards not yet recognized was $44.7million, which is expected to be recognized over a weighted-average period of 2.1years. The Company administers the Goodrich Equity Compensation Plan (the Plan) as part of its long-term incentive compensation program. The Plan, as approved by the Companys shareholders, permits the Company to issue stock options, performance shares, restricted stock awards, restricted stock units and other equity-based compensation awards. Currently, the Plan which expires on April17, 2011, unless renewed, makes 14,500,000shares of common stock of the Company available for grant, together with shares of common stock available as of April17, 2001 for future awards under the Companys 1999 Stock Option Plan, and any shares of common stock representing outstanding 1999 Stock Option Plan awards as of April17, 2001 that are not issued or otherwise are returned to the Company after that date. Historically, the Company has issued shares upon exercise of options or vesting of other share-based compensation awards. During 2009, the Company repurchased shares under the plan to the extent required to meet the minimum statutory tax withholding requirements. Stock Options Generally, options granted on or after January1, 2004 are exercisable at the rate of 331/3% after one year, 662/3% after two years and 100% after three years. Prior to the 2008 grant, the expense related to options granted to retirement eligible individuals was recorded on the date the grants were approved since no future substantive service was required. Beginning with the 2008 grant, a one-year service period was required, whereby individuals who are retirement eligible and retire during the grant year will have their awards prorated based on their length of service during the year. Therefore, expense is recorded ratably over the grant year. Options granted to employees who will become retirement eligible prior to the end of the vesting term are expensed over the period thr |
Earnings Per Share
Earnings Per Share | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Earning Per Share [Abstract] | |
Earnings Per Share | Note8. Earnings Per Share The computation of basic and diluted EPS for income from continuing operations is as follows: 2009 2008 2007 (In millions, except per share amounts) Numerator Numerator for basic and diluted EPS income from continuing operations attributable to Goodrich $ 562.8 $ 673.6 $ 496.0 Percentage allocated to common shareholders(1) 98.6 % 98.6 % 98.6 % Numerator for basic and diluted EPS $ 555.0 $ 664.3 $ 489.1 Denominator Denominator for basic EPS weighted-average shares 124.1 124.4 125.1 Effect of dilutive securities: Stock options, employee stock purchase plan and other deferred compensation shares 1.1 1.1 1.7 Denominator for diluted EPS adjusted weighted-average shares and assumed conversion 125.2 125.5 126.8 Per common share income from continuing operations Basic $ 4.47 $ 5.34 $ 3.91 Diluted $ 4.43 $ 5.29 $ 3.86 (1) Basic weighted-average common shares outstanding 124.1 124.4 125.1 Basic weighted-average common shares outstanding and unvested restricted share units expected to vest 125.8 126.2 126.8 Percentage allocated to common shareholders 98.6 % 98.6 % 98.6 % The Companys unvested restricted share units contain rights to receive nonforfeitable dividend equivalents, and thus, are participating securities requiring the two-class method of computing EPS. The calculation of EPS 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 December31, 2009, 2008 and 2007, the Company had 4.6million, 4.5million and 4.2million respectively, of outstanding stock options. Stock options are included in the diluted EPS calculation using the treasury stock method, unless the effect of including the stock options would be anti-dilutive. At December31, 2009 and 2008, 0.9million and 3million anti-dilutive stock options, respectively, were excluded from the diluted EPS calculation. No stock options were excluded from the diluted EPS calculation at December31, 2007. |
Fair Value Measurements
Fair Value Measurements | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note9. Fair Value Measurements The Company 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. The following three levels of inputs are 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 December31, December31, 2009 Level 1 Level 2 Level 3 2008 Level 1 Level 2 Level 3 (Dollars in millions) Cash Equivalents(1) $ 470.1 $ 470.1 $ $ $ 291.5 $ 291.5 $ $ Derivative Financial Instruments(2) Cash Flow Hedges 54.2 54.2 (156.1 ) (156.1 ) Other Forward Contracts (2.5 ) (2.5 ) Rabbi TrustAssets(3) 45.0 45.0 41.9 41.9 Long-term debt(4) (2,144.0 ) (2,144.0 ) (1,418.5 ) (1,418.5 ) (1) Because of their short maturities, the carrying value of these assets approximates fair value. (2) See Note18, 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 was $2,001.9million and $1,404.3million at December31, 2009 and 2008, respectively. The fair value of long-term debt is based on quoted market prices or on rates available to the Company for debt with similar terms and maturities. |
Inventories
Inventories | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Inventories [Abstract] | |
Inventories | Note10. Inventories Inventories consist of the following: December31, 2009 2008 (Dollars in millions) Average or actual cost (which approximates current costs): Finished products $ 225.6 $ 225.2 In-process 1,485.6 1,253.6 Raw materials and supplies 667.6 595.7 2,378.8 2,074.5 Less: Reserve to reduce certain inventories to LIFO basis (51.5 ) (56.2 ) Progress payments and advances (36.9 ) (43.6 ) Total $ 2,290.4 $ 1,974.7 Approximately 6% and 9% of the inventory was valued under the LIFO method of accounting at December31, 2009 and 2008, respectively. All other inventory is valued under the FIFO method of accounting. LIFO reserve adjustments, recorded as costs of sales, were a $5million gain, $7million loss and $1million loss for 2009, 2008 and 2007, respectively. The Company uses the 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. At December31, 2009 and 2008, the amount of inventory consigned to customers and suppliers was approximately $70million and $72million, respectively. In-process inventory includes $827.7million and $633.1million as of December31, 2009 and 2008, respectively, for the following: (1)pre-production and excess-over-average inventory accounted for under long-term contract accounting; and (2)engineering costs recoverable under long-term contractual arrangements. The December31, 2009 balance of $827.7million included $454.6million related to the Boeing 787 contract and $139.8million related to the Airbus A350 XWB contract. In-process inventories which include deferred costs, are summarized by platform as follows (dollars in millions, except quantities which are number of aircraft or number of engines if the engine is used on multiple aircraft platforms): December31, 2009 In-Process Inventory Aircraft Order Status(1) Company Order Status Pre- (Unaudited) (Unaudited) Production Delivered Contract Firm and Excess- to Unfilled Unfilled Quantity Unfilled Year Over- Airlines Orders Options (2) Delivered Orders(3) Complete(4) Production Average Total Aircraft Platforms number of aircraft 787 851 226 1,861 26 2023 183.2 454.6 637.8 A350 XWB |
Goodwill and Identifiable Intan
Goodwill and Identifiable Intangible Assets | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Goodwill and Identifiable Intangible Assets [Abstract] | |
Goodwill and Identifiable Intangible Assets | Note11. Goodwill and Identifiable Intangible Assets The changes in goodwill by segment are as follows: Balance Foreign Balance December31, Business Currency December31, 2008 Combinations Translation 2009 (Dollars in millions) Actuation and Landing Systems $ 289.6 $ $ 13.0 $ 302.6 Nacelles and Interior Systems 439.8 1.4 441.2 Electronic Systems 660.8 179.1 (1) 3.3 843.2 $ 1,390.2 $ 179.1 $ 17.7 $ 1,587.0 (1) On May 1, 2009, the Company acquired Cloud Cap Technology, Inc. (Cloud Cap) for $29.2 million in cash, net of cash acquired. Based upon an independent valuation, identifiable intangibles were $13.6 million and will be amortized over a weighted-average useful life of 11years. On December 21, 2009, the Company acquired AIS Global Holdings LLC (AIS), for $362.2million in cash, net of cash acquired. Based on the Companys preliminary purchase price allocation, $228.2 million was identifiable intangible assets, $165 million was goodwill and $76.8 million was net deferred tax liabilities primarily related to the intangible assets. The fair value of the intangible assets was based upon an independent valuation and will be amortized over a weighted-average useful life of 19years. The ultimate purchase price allocation will be based on information that provides a better estimate of the fair value of assets acquired and liabilities assumed. Goodwill and identifiable intangible assets are tested for impairment annually or when an event occurs or circumstances change such that it is reasonably possible that an impairment may exist. This testing requires comparison of carrying values to fair values, and when appropriate, the carrying value of impaired assets is reduced to fair value. There was no impairment of goodwill or identifiable intangible assets in 2009, 2008 or 2007. Identifiable intangible assets as of December31, 2009 consisted of: Gross Accumulated Amount Amortization Net (Dollars in millions) Patents, trademarks and licenses $ 171.8 $ (108.3 ) $ 63.5 Customer relationships 469.8 (75.2 ) 394.6 Technology 194.6 (20.0 ) 174.6 Non-compete agreements 1.7 (1.2 ) 0.5 $ 837.9 $ (204.7 ) $ 633.2 Identifiable intangible assets as of December31, 2008 consisted of: Gross Accumulated Amount Amortization Net (Dollars in millions) Patents, trademarks and licenses $ 173.4 $ (103.2 ) |
Financing Arrangements
Financing Arrangements | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Financing Arrangements [Abstract] | |
Financing Arrangements | Note12. Financing Arrangements The Company has a $500million committed global syndicated revolving credit facility, which expires in May 2012. 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 December31, 2009, there were no borrowings and $68million 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, $1,772.5million of income retained in the business and additional paid-in capital was free from such limitations at December31, 2009. At December31, 2009, the Company had borrowing capacity under this facility of $432million, after reductions for borrowings and letters of credit outstanding under the facility. At December31, 2009, the Company had letters of credit and bank guarantees of $95.8million, inclusive of $68million in letters of credit outstanding under the Companys syndicated revolving credit facility, as discussed above. At December31, 2009, the Company also maintained $75million of uncommitted U.S.money market facilities and $161.8million of uncommitted and committed foreign working capital facilities with various banks to meet short-term borrowing requirements. At December31, 2009 and 2008, there were $3.1million 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 February 2009, the Company issued $300million principal amount of 6.125%senior notes due 2019, which were issued below par at $297.7million. The Company deferred approximately $2million of transaction costs. The discount and transaction costs will be amortized over the life of the senior notes. In December 2009, the Company issued $300million principal amount of 4.875%senior notes due 2020, which were issued below par at $299.3million. The Company deferred approximately $2.7million of transaction costs. The discount and transaction costs will be amortized over the life of the senior notes. Long-term Debt At December31, 2009 and 2008, long-term debt and capital lease obligations, excluding the current maturities, consisted of: December31, 2009 2008 |
Lease Commitments
Lease Commitments | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Lease Commitments [Abstract] | |
Lease Commitments | Note13. Lease Commitments The Company leases certain of its office and manufacturing facilities, machinery and equipment and corporate aircraft under various committed lease arrangements provided by financial institutions. One of these arrangements allows the Company, rather than the lessor, to claim a deduction for tax depreciation on the asset and allows the Company to lease a corporate aircraft with a total commitment amount of $43.8million. For accounting purposes, the Company was deemed to be the owner of the aircraft during the construction period and recorded an asset with an offsetting lease obligation of approximately $32million. This lease will qualify for sales-leaseback treatment upon lease commencement in 2011 and will be priced at a spread over LIBOR. The future minimum lease payments from continuing operations, by year and in the aggregate, under capital leases and under noncancelable operating leases with initial or remaining noncancelable lease terms in excess of one year, consisted of the following at December31, 2009: Noncancelable Capital Operating Leases Leases (Dollars in millions) 2010 $ 1.1 $ 38.6 2011 0.9 30.5 2012 0.8 21.7 2013 0.8 18.3 2014 0.8 13.8 Thereafter 6.1 52.0 Total minimum payments 10.5 $ 174.9 Amounts representing interest (3.8 ) Present value of net minimum lease payments 6.7 Current portion of capital lease obligations (0.5 ) Long-term portion of capital lease obligations $ 6.2 Net rent expense from continuing operations for 2009, 2008 and 2007 was $46.2million, $48.8million and $49.3million, respectively. These amounts are net of immaterial amounts of sublease rental income. |
Pensions and Postretirement Ben
Pensions and Postretirement Benefits | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Pensions and Postretirement Benefits [Abstract] | |
Pensions and Postretirement Benefits | Note14. Pensions and Postretirement Benefits The Company has several defined benefit pension plans covering eligible employees. U.S.plans covering salaried and non-union hourly employees generally provide benefit payments using a formula that is based on an employees compensation and length of service. Plans covering union employees generally provide benefit payments of stated amounts for each year of service. Plans outside of the U.S.generally provide benefit payments to eligible employees that relate to an employees compensation and length of service. The Company also sponsors several unfunded defined benefit postretirement plans that provide certain health care and life insurance benefits to eligible employees in the U.S.and Canada. The health care plans are both contributory, with retiree contributions adjusted periodically, and non-contributory and can contain other cost-sharing features, such as deductibles and coinsurance. The life insurance plans are generally noncontributory. Amortization of prior service cost is recognized on a straight-line basis over the average remaining service period of active employees. Amortization of actuarial gains and losses is recognized using the corridor approach, which is the minimum amortization required. Under the corridor approach, actuarial net gain or loss in excess of 10% of the greater of the projected benefit obligation or the market-related value of the assets is amortized on a straight-line basis over the average remaining service period of the active employees. Pension plans, defined contribution plans and postretirement benefits other than pensions include amounts related to divested and discontinued operations. Amounts Recognized in Accumulated Other Comprehensive Income (Loss) Following are the amounts included in accumulated other comprehensive income (loss) as of December31, 2009 and 2008 and the amounts arising during 2009 and 2008. There are no transition obligations. Net Prior Total Actuarial Loss Service Cost Before Tax Tax After Tax (Dollars in millions) AMOUNTS RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS): Unrecognized (loss) at December31, 2007 $ (706.2 ) $ (12.2 ) $ (718.4 ) $ 285.6 $ (432.8 ) Amount recognized in net periodic benefit cost 52.2 4.4 56.6 Amount due to January1, 2008 valuation (15.8 ) (15.8 ) Amount due to plan changes (12.2 ) (12.2 ) Amount due to mid-year remeasurement 1.1 1.1 Amount due to curtailment 11.2 (3.4 ) 7.8 Amount due to settlement (0.6 ) (0.6 ) Foreign currency gain/(loss) 3.6 (3.0 |
Income Taxes
Income Taxes | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Income Taxes [Abstract] | |
Income Taxes | Note15. Income Taxes Income from continuing operations before income taxes as shown in the consolidated statement of income consists of the following: Year Ended December31, 2009 2008 2007 (Dollars in millions) Domestic $ 552.2 $ 738.4 $ 524.4 Foreign 231.9 246.2 213.0 TOTAL $ 784.1 $ 984.6 $ 737.4 A summary of income tax (expense) benefit from continuing operations in the consolidated statement of income is as follows: Year Ended December31, 2009 2008 2007 (Dollars in millions) Current Federal $ (43.9 ) $ (118.4 ) $ (62.0 ) Foreign (18.4 ) (4.1 ) 9.7 State (6.8 ) (18.8 ) (13.7 ) (69.1 ) (141.3 ) (66.0 ) Deferred Federal (128.9 ) (141.6 ) (109.5 ) Foreign (7.4 ) (22.9 ) (35.2 ) State (2.4 ) 12.8 (10.2 ) (138.7 ) (151.7 ) (154.9 ) TOTAL $ (207.8 ) $ (293.0 ) $ (220.9 ) Significant components of deferred income tax assets and liabilities at December31, 2009 and 2008 are as follows: 2009 2008 (Dollars in millions) Deferred income tax assets Pensions $ 309.7 $ 313.2 Tax credit and net operating loss carryovers 100.1 112.8 Postretirement benefits other than pensions 137.8 142.1 Inventories 49.6 55.8 Other nondeductible accruals 156.1 145.6 Foreign currency hedges 65.8 Employee benefits plans 56.4 54.1 Other 8.6 1.9 Deferred income tax assets 818.3 891.3 Less: valuation allowance (54.9 ) (50.7 ) Total deferred income tax assets 763.4 840.6 Deferred income tax liabilities Tax over book depreciation (125.3 ) (114.3 ) Intangible assets (367.3 ) (272.1 ) Foreign currency hedges (9.8 ) Pre-production and contract accounting (327.4 ) (259.7 ) Other (32.7 ) (36.3 ) Total deferred income tax liabilities (862.5 ) (682.4 ) Net deferred income tax as |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | Note16. Supplemental Balance Sheet Information Allowance for Doubtful Accounts The changes in accounts receivable allowances for doubtful accounts were as follows: Foreign Balance Charged Currency Write-Off Balance Beginning to Translation of Doubtful at end of Year Expense and Other Accounts of Year (Dollars in millions) Short-Term $ 14.3 $ 8.1 $ (1.9 ) $ (3.3 ) $ 17.2 Long-Term(1) 28.9 (28.9 ) Year ended December31, 2008 $ 43.2 $ 8.1 $ (1.9 ) $ (32.2 ) $ 17.2 Year ended December31, 2009 $ 17.2 $ 2.9 $ 0.2 $ (2.3 ) $ 18.0 (1) Long-term allowance is related to the Companys notes receivable in other assets from a receivable obligor. This note receivable was written off in 2008. Property, Plant and Equipment-net Property, plant and equipment and accumulated depreciation were as follows: December31, 2009 2008 (Dollars in millions) Land $ 77.1 $ 75.8 Buildings and improvements 773.7 743.3 Machinery and equipment 2,187.8 1,969.5 Construction in progress 133.8 175.3 3,172.4 2,963.9 Less accumulated depreciation (1,721.2 ) (1,572.5 ) TOTAL $ 1,451.2 $ 1,391.4 Property included assets acquired under capital leases, principally buildings, machinery and equipment of $18.5million at December31, 2009 and 2008. Related accumulated depreciation was $8.3million and $7.9million at December31, 2009 and 2008, respectively. Depreciation expense was $179.2million, $183.4million and $179.4million during 2009, 2008 and 2007, respectively. Interest costs capitalized during 2009, 2008 and 2007 from continuing operations was $1.8million, $4.5million and $4.7million, respectively. Other Assets Other assets consisted of the following: December31, 2009 2008 (Dollars in millions) Rotable assets net of accumulated amortization of $131.5million and $116.2million at December31, 2009 and 2008, respectively $ 133.0 $ 125.1 Participation payments net of accumulated amortization of $15.0million and $12.4million at December31, 2009 and 2008, respectively 117.4 118.0 Rabbi trust assets, including cash surrender value of life insurance contracts 104.9 101.8 Foreign currency hedges 69.3 6.2 Sales |
Contingencies
Contingencies | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Contingencies [Abstract] | |
Contingencies | Note17. 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 |
Derivatives and Hedging Activit
Derivatives and Hedging Activities | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Derivatives and Hedging Activities [Abstract] | |
Derivatives and Hedging Activities | Note18. 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 primarily 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 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 December31, 2009 and 2008 was $1,827.4million and $1,897.2million, respectively. As of December31, 2009 and 2008, the total fair value before taxes of the Companys forward contracts and the accounts in the consolidated balance sheet in which the fair value amounts are included are shown below: 2009 2008 (Dollars in millions) Prepaid expenses and other assets $ 24.5 $ 9.8 Other assets 69.3 6.2 Accrued expenses 22.6 70.0 Other non-current liabilities 17.0 102.1 The amounts recognized in OCI and reclassified from AOCI into earnings are shown below: Year Ended December31, 2009 2008 2007 (Dollars in millions) Amount of gain/(loss) recognized in OCI, net of tax for 2009, 2008 and 2007 of $(76.4), $119.2 and $(23.3), respectively $ 148.5 $ (221.8 ) $ 43.2 Amount of gain/(loss) reclassified from AOCI into earnings $ (51.1 ) $ 38.4 $ 75.6 As of December31, 2009, the fair value of the Companys forward contracts of a $54.2million net asset and $17.5million of losses on previously matured hedges of intercompany sales and gains from forward contracts terminated prior to the original maturity dates, totaling $36.7million (net of deferred taxes of $12.1million), is recorded in AOCI and will be reflected in income as earnings are affected by the hedged items. As of December31, 2009, the portion of the $54.2million 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 gain of $1.9million. These forward contracts mature on a monthly basis with maturity dates that range from January 2010 to December 2014. There was a de minimis amount of both i |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Note19. Supplemental Cash Flow Information The following table sets forth other cash flow information including acquisitions. For the Year Ended December31, 2009 2008 2007 (Dollars in millions) Estimated fair value of tangible assets acquired $ 115.1 $ 47.8 $ Goodwill and identifiable intangible assets acquired 420.9 109.0 Cash paid, net of cash acquired (392.1 ) (131.8 ) Liabilities assumed, including deferred tax liabilities $ 143.9 $ 25.0 $ Interest paid, net of amount capitalized $ 114.8 $ 119.7 $ 129.0 Income taxes paid, net of refunds received $ 38.9 $ 111.7 $ 115.9 Interest and income taxes paid include amounts related to discontinued operations. |
Preferred Stock
Preferred Stock | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Preferred Stock [Abstract] | |
Preferred Stock | Note20. Preferred Stock There are 10,000,000 authorized shares of SeriesPreferred Stock $1par value. Shares of SeriesPreferred Stock that have been redeemed are deemed retired and extinguished and may not be reissued. As of December31, 2009, 2,401,673shares of SeriesPreferred Stock have been redeemed, and no shares of SeriesPreferred Stock were outstanding. The Board of Directors establishes and designates the series and fixes the number of shares and the relative rights, preferences and limitations of the respective series of the SeriesPreferred Stock. Cumulative Participating Preferred Stock SeriesF The Company has 200,000shares of Junior Participating Preferred Stock SeriesF $1par value SeriesF Stock authorized at December31, 2009. SeriesF Stock has preferential voting, dividend and liquidation rights over the Companys common stock. At December31, 2009, no SeriesF Stock was issued or outstanding. |
Common Stock
Common Stock | |
12 Months Ended
Dec. 31, 2009 USD / shares | |
Common Stock [Abstract] | |
Common Stock | Note21. Common Stock During 2009, 2008 and 2007, 1.6million, 1.2million, and 3.3million shares, respectively, of authorized but unissued shares of common stock were issued under the 2001 Equity Compensation Plan and other employee share-based compensation plans. As of December31, 2009, there were 12.8million shares of common stock reserved for issuance under outstanding and future awards pursuant to the 2001 Equity Compensation Plan and other employee share-based compensation plans. During 2008, the Company registered 6.5million shares of common stock reserved for issuance for future awards pursuant to the 2001 Equity Compensation Plan and the Goodrich 2008 Global Employee Stock Purchase Plan. The Company acquired 0.4million, 2.6million and 3.7million shares of treasury stock in 2009, 2008 and 2007, respectively. Included in these amounts are shares the Company repurchased under its share repurchase program described below. A share repurchase program was initially approved by the Companys Board of Directors on October24, 2006 and increased on February19, 2008, for $600million in total. The primary purpose of the program is to reduce dilution to existing shareholders from the Companys share-based compensation plans. No time limit was set for completion of the program. Repurchases under the program, which could aggregate to approximately 6% of the Companys outstanding common stock, may be made through open market or privately negotiated transactions at times and in such amounts as management deems appropriate, subject to market conditions, regulatory requirements and other factors. The program does not obligate the Company to repurchase any particular amount of common stock, and may be suspended or discontinued at any time without notice. The Company repurchased 0.3million, 2.5million and 3.5million shares of the Companys common stock for approximately $16million, $127million and $209million in 2009, 2008 and 2007, respectively, under the program. |