B/E Aerospace (BEAV) 10-Q 28 Oct 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 25, 2016
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Entity Current Reporting Status	Yes
Entity Registrant Name	B/E AEROSPACE INC
Entity Central Index Key	861,361
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		101,603,153

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 125.8	$ 154.1
Accounts receivable	432.3	354.6
Inventories	1,252	1,091.9
Other current assets	60.4	57.8
Total current assets	1,870.5	1,658.4
Property and equipment, net of accumulated depreciation ($354.3 at September 30, 2016 and $320.0 at December 31, 2015)	392.3	391.2
Goodwill	813.9	813.2
Identifiable intangible assets	220.8	231.3
Other assets	51.7	46.8
Total assets	3,349.2	3,140.9
Current liabilities:
Accounts payable	335.9	300.5
Accrued liabilities	563.2	521.7
Total current liabilities	899.1	822.2
Long-term debt	2,035.8	2,034.1
Deferred income taxes	91.6	92.7
Other non-current liabilities	131.4	136.4
Stockholders' equity:
Common stock, $0.01 par value; 200.0 shares authorized, 107.6 shares issued as of September 30, 2016 and 107.4 shares issued as of December 31, 2015	1.1	1.1
Additional paid-in capital	(819.5)	(847.8)
Treasury stock: 6.0 shares at September 30, 2016 and 4.2 shares at December 31, 2015	(260.8)	(183.9)
Retained earnings	1,419.2	1,232.9
Accumulated other comprehensive loss	(148.7)	(146.8)
Total stockholders' equity	191.3	55.5
Total liabilities and equity	$ 3,349.2	$ 3,140.9

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (Parenthetical) - USD ($) shares in Millions, $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Statement Of Financial Position [Abstract]
Property and equipment, accumulated depreciation	$ 354.3	$ 320
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1	1
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200	200
Common stock, shares issued	107.6	107.4
Treasury stock	6	4.2

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS AND COMPREHENSIVE INCOME - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Income Statement [Abstract]
Revenues	$ 732.7	$ 679.8	$ 2,202.5	$ 2,070.4
Cost of sales	457.5	424.4	1,341.9	1,246.1
Selling, general and administrative	73.7	106.4	245.4	279.7
Research, development and engineering	69.5	73.8	217.2	216.4
Operating earnings	132	75.2	398	328.2
Interest expense, net	$ 22.4	$ 24	$ 68.2	72.4
Debt prepayment costs				$ 0.9
Operating earnings, as a percentage of revenues	18.00%	11.10%	18.10%	15.90%
Earnings before income taxes	$ 109.6	$ 51.2	$ 329.8	$ 255.8
Income tax expense	26.3	5.4	79.1	53.5
Net earnings	83.3	45.8	250.7	202.3
Other comprehensive income (loss):
Foreign currency translation adjust and other	2.2	(8.1)	(1.9)	(31.4)
Comprehensive income	$ 85.5	$ 37.7	$ 248.8	$ 170.9
Net earnings per common share:
Basic net earnings per share (in dollars per share)	$ 0.83	$ 0.44	$ 2.49	$ 1.94
Diluted net earnings per share (in dollars per share)	0.83	0.44	2.48	1.93
Dividends declared per share (in dollars per share)	$ 0.21	$ 0.19	$ 0.63	$ 0.57
Weighted average common shares:
Weighted average common shares - basic	100.1	104.3	100.5	104.4
Weighted average common shares - diluted	100.7	104.8	100.9	104.9

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings	$ 250.7	$ 202.3
Adjustments to reconcile net earnings to net cash flows provided by operating activities, net of effects from acquisitions:
Depreciation and amortization	62	63.1
Deferred income taxes	(2.6)	4.8
Non-cash compensation	25.8	22.1
Provision for doubtful accounts	0.8	6.7
(Gain)/Loss on disposal of property and equipment	1.3	4.6
Tax benefits realized from prior exercises of restricted stock	(0.6)	(4)
Debt prepayment costs		0.9
Changes in operating assets and liabilities:
Accounts receivable	(86.5)	(107.3)
Inventories	(174.3)	(171.6)
Other current and non-current assets	(5.8)	70.2
Accounts payable and accrued liabilities	102.4	98.6
Net cash flows provided by operating activities	173.2	190.4
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures	(57.4)	(63.3)
Acquisitions, net of cash acquired		4
Other	(1.7)	(5.5)
Net cash flows used in investing activities	(59.1)	(64.8)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from common stock issued	2.5	3.1
Purchase of treasury stock, including share repurhases	(76.8)	(60.8)
Tax benefits realized from prior exercises of restricted stock	0.6	4
Borrowings on line of credit	200
Repayments on line of credit	(200)
Principal payments on long-term debt		(136)
Dividends	(63.3)	(59.7)
Net cash flows used in financing activities	(137)	(249.4)
Effect of foreign exchange rate changes on cash and cash equivalents	(5.4)	(4.4)
Net decrease in cash and cash equivalents	(28.3)	(128.2)
Cash and cash equivalents, beginning of year	154.1	292.5
Cash and cash equivalents, end of year	125.8	164.3
Cash paid (refunded) during period for:
Interest	66	55.2
Income taxes, net of $23.6 payments in 2015	47.8	(20.3)
Supplemental schedule of non-cash activities:
Accrued property additions	$ 3.1	$ 4.7

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (Parenthetical) $ in Millions	12 Months Ended
	Dec. 31, 2015USD ($)
Supplemental disclosures of cash flow information:
Income taxes payments	$ 23.6

Basis of Presentation

Basis of Presentation	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Presentation	Note 1. Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. All adjustments which, in the opinion of management, are considered necessary for a fair presentation of the results of operations for the periods shown are of a normal recurring nature and have been reflected in the condensed consolidated financial statements. The results of operations for the periods presented are not necessarily indicative of the results expected for the full fiscal year or for any future period. The information included in these condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and accompanying notes included in the B/E Aerospace, Inc. (the “Company”) Annual Report on Form 10-K for the fiscal year ended December 31, 2015. The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts and related disclosures. Actual results could differ from those estimates.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
Accounting Changes And Error Corrections [Abstract]
Recent Accounting Pronouncements	Note 2. Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting , which amends ASC Topic 718, Compensation – Stock Compensation . ASU 2016-09 includes multiple provisions intended to simplify various aspects of the accounting for share-based payments. Earlier adoption is permitted. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those years. Accordingly, we plan to adopt ASU 2016-09 on January 1, 2017. The Company is currently evaluating the effect of this update on our consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases , which supersedes ASC Topic 840, Leases , and creates a new topic, ASC Topic 842, Leases . This update is effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Earlier adoption is permitted. ASU 2016-02 requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. ASU 2016-02 will be applied using a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The Company is currently evaluating the effect of this update on our consolidated financial statements. In May 2014, the FASB issued ASU 2014-09 , Revenue from Contracts with Customers , which supersedes the guidance in ASC Topic 605, Revenue Recognition . The new standard was originally effective for reporting periods beginning after December 15, 2016 and early adoption was not permitted. In August 2015, the FASB issued ASU 2015-14 which amended the effective date of this ASU to fiscal years beginning after December 15, 2017, and early adoption is permitted only for fiscal years beginning after December 15, 2016. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should identify the contract(s) with a customer, identify the performance obligations in the contract(s), determine the transaction price, allocate the transaction price to the performance obligations in the contract(s) and recognize revenue when (or as) the entity satisfies a performance obligation. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company is currently evaluating the impact this guidance will have on its consolidated financial condition, results of operations, cash flows, business processes, systems, internal controls and disclosures and is currently unable to estimate the impact of adopting this guidance.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventories	Note 3. Inventories Inventories are stated at the lower of cost or market. Cost is determined using FIFO or the weighted average cost method. Finished goods and work-in-process inventories include material, labor and manufacturing overhead costs. In accordance with industry practice, costs in inventory include amounts relating to long-term contracts with long production cycles and inventory items with long procurement cycles, some of which are not expected to be realized within one year. Work-in-process inventories include costs and estimated earnings in excess of billings on uncompleted contracts of $96.7 and $87.7 and capitalized development costs on long-term seller furnished equipment contracts of $507.0 and $438.1 as of September 30, 2016 and December 31, 2015, respectively. Inventories consist of the following: September 30, December 31, 2016 2015 Purchased materials and component parts $ $ Work-in-process Finished goods $ $

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Note 4. Goodwill and Intangible Assets The table below sets forth the intangible assets by major asset class, all of which were acquired through business purchase transactions: September 30, 2016 December 31, 2015 Useful Life Original Accumulated Net Book Original Accumulated Net Book (Years) Cost Amortization Value Cost Amortization Value Customer contracts and relationships 13 - 23 $ $ $ $ $ $ Acquired technologies and other 5 - 34 Trade names 5 - 20 Trademarks and patents 3 - 20 Covenants not to compete 3 - 5 $ $ $ $ $ $ Amortization expense of intangible assets was $4.4 and $4.4 for the three months ended September 30, 2016 and 2015, respectively, and $13.5 and $12.9 for the nine months ended September 30, 2016 and 2015, respectively. The Company currently expects to recognize amortization expense of approximately $17 in each of the next five fiscal years. The future amortization amounts are estimates. Actual future amortization expense may be different due to future acquisitions, impairments, changes in amortization periods or other factors such as changes in exchange rates for assets acquired outside the United States. The Company expenses costs to renew or extend the term of a recognized intangible asset . Goodwill increased $ 0.7 during the nine months ended September 30, 2016 due to foreign currency translations.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Sep. 30, 2016
Related Party Transactions [Abstract]
Related Party Transactions	Note 5. Related Party Transactions On December 16, 2014, we completed the spin-off of KLX Inc. (“KLX”) by means of the transfer of our Consumables Management Segment to KLX and the subsequent distribution to our stockholders of all the outstanding shares of KLX common stock (the “Spin-Off”). We retained our commercial aircraft and business jet segments. We entered into transitional services agreements with KLX prior to the Spin-Off pursuant to which we and KLX are providing various services to each other on an interim transitional basis. Transition services may be provided for up to 24 months, and for information technology services, KLX has an option for a one-year extension. This transitional support will enable KLX to establish its stand-alone processes for various activities that were previously provided by us and does not constitute significant continuing support of KLX’s operations. In addition, we entered into a Tax Sharing and Indemnification Agreement with KLX. Under this agreement, we generally assume liability for all federal and state income taxes for all tax periods ending on or prior to December 31, 2014. Sales and cost of sales to KLX for the three and nine months ended September 30, 2016 and 2015 were immaterial to the condensed consolidated financial statements. There were no material balances due to or due from KLX as of September 30, 2016 or December 31, 2015. Total purchases from KLX were approximately $7.6 and $4.7 for the three months ended September 30, 2016 and 2015, respectively, and $18.2 and $14.2 for the nine months ended September 30, 2016 and 2015, respectively.

Long-Term Debt

Long-Term Debt	9 Months Ended
	Sep. 30, 2016
Debt Disclosure [Abstract]
Long-Term Debt	Note 6. Long-Term Debt The Company entered into a credit agreement dated as of December 16, 2014 (as amended, the “Credit Agreement”) governing its senior secured bank credit facilities, consisting of (a) a five-year, $600.0 revolving credit facility (the “Revolving Credit Facility”) and (b) a seven-year, $2,200.0 term loan facility (the “Term Loan Facility”). The most recent amendment to the Credit Agreement on May 27, 2016 decreased the effective borrowing rate, increased the amount available for dividend and share repurchases and provided greater flexibility to securitize assets. Borrowings under the Revolving Credit Facility bear interest at an annual rate equal to the London interbank offered rate (“LIBOR”) plus 200 basis points or prime (as defined therein) plus 100 basis points. There were no amounts outstanding under the Revolving Credit Facility as of September 30, 2016 or December 31, 2015. Borrowings under the Term Loan Facility bear interest at an annual rate equal to LIBOR plus 300 basis points (LIBOR shall not be less than 75 basis points per annum) or ABR (as defined therein) plus 200 basis points (3.79% at September 30, 2016). As of September 30, 2016, long-term debt consisted of $2,064.0 outstanding under the Term Loan Facility, none of which was current. On a net basis, after taking into consideration unamortized original issue discount and debt issue costs for the Term Loan Facility, total debt was $2,035.8. Letters of credit outstanding under the Revolving Credit Facility aggregated $13.7 at September 30, 2016 ($7.7 at December 31, 2015). The Revolving Credit Facility contains an interest coverage ratio financial covenant (as defined therein) that must be maintained at a level greater than 3.0 to 1 and a total leverage ratio covenant (as defined therein) which limits gross debt to a 4.5 to 1 multiple of EBITDA (as defined therein). The Credit Agreement is collateralized by substantially all of the Company’s assets and contains customary affirmative covenants, negative covenants, restrictions on the payment of dividends and the repurchase of our stock, and conditions precedent for borrowings, all of which were met as of September 30, 2016.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Fair Value Disclosures [Abstract]
Fair Value Measurements	Note 7. Fair Value Measurements All short-term financial instruments are generally carried at amounts that approximate estimated fair value. The fair value is the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties. Assets measured at fair value are categorized based upon the lowest level of significant input to the valuations. Level 1 – quoted prices in active markets for identical assets and liabilities. Level 2 – quoted prices for identical assets and liabilities in markets that are not active, or observable inputs other than quoted prices in active markets for identical assets and liabilities. Level 3 – unobservable inputs in which there is little or no market data available, which require the reporting entity to develop its own assumptions. The carrying amounts of cash and cash equivalents (which the Company classifies as Level 1 assets), accounts receivable – trade and accounts payable represent their respective fair values due to their short- term nature. The carrying value of the Revolving Credit Facility and Term Loan Facility approximates fair value based upon observable market data (which the Company classifies as Level 2). The fair value information presented herein is based on pertinent information available to management at September 30, 2016 and December 31, 2015, respectively. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these condensed consolidated financial statements since those dates, and current estimates of fair value may differ significantly from the amounts presented herein.

Commitments, Contingencies and

Commitments, Contingencies and Off-Balance Sheet Arrangements	9 Months Ended
	Sep. 30, 2016
Commitments And Contingencies Disclosure [Abstract]
Commitments, Contingencies and Off-Balance Sheet Arrangements	Note 8. Commitments, Contingencies and Off-Balance Sheet Arrangements Lease Commitments – The Company finances its use of certain facilities and equipment under committed lease arrangements provided by various institutions. Since the terms of these arrangements meet the accounting definition of operating lease arrangements, the aggregate sum of future minimum lease payments is not reflected on the condensed consolidated balance sheets. At September 30, 2016, future minimum lease payments under these arrangements approximated $172.6, the majority of which related to long-term real estate leases. Litigation – The Company is a defendant in various legal actions arising in the normal course of business, the outcomes of which, in the opinion of management, neither individually nor in the aggregate, are likely to result in a material adverse effect on the Company’s condensed consolidated financial statements. Indemnities, Commitments and Guarantees – During its normal course of business, the Company has made certain indemnities, commitments and guarantees under which it may be required to make payments in relation to certain transactions. These indemnities include non-infringement of patents and intellectual property indemnities to the Company’s customers in connection with the design, manufacture, sale and delivery of its products, indemnities to various lessors in connection with facility leases for certain claims arising from such facility or lease, and indemnities to other parties to certain acquisition agreements. The duration of these indemnities, commitments and guarantees varies, and in certain cases is indefinite. Many of these indemnities, commitments and guarantees provide for limitations on the maximum potential future payments the Company could be obligated to make. However, the Company is unable to estimate the maximum amount of liability related to its indemnities, commitments and guarantees because such liabilities are contingent upon the occurrence of events that are not reasonably determinable. Management believes that any liability for these indemnities, commitments and guarantees would not be material to the accompanying condensed consolidated financial statements. Accordingly, no significant amounts have been accrued for indemnities, commitments and guarantees. Product Warranty Costs – Estimated costs related to product warranties are accrued at the time products are sold. In estimating its future warranty obligations, the Company considers various relevant factors, including the Company’s stated warranty policies and practices, the historical frequency of claims and the cost to replace or repair its products under warranty.

Accounting for Stock-Based Comp

Accounting for Stock-Based Compensation	9 Months Ended
	Sep. 30, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]
Accounting for Stock-Based Compensation	Note 9. Accounting for Stock-Based Compensation The Company has a Long-Term Incentive Plan (“LTIP”) under which the Company’s Compensation Committee has the authority to grant stock options, stock appreciation rights, restricted stock, restricted stock units or other forms of equity-based or equity-related awards. Compensation cost generally is recognized on a straight-line basis over the vesting period of the shares. Share-based compensation of $8.6 and $7.4 was recognized during the three months ended September 30, 2016 and 2015, respectively, and $24.7 and $20.9 was recognized during the nine months ended September 30, 2016 and 2015, respectively, related to the equity grants made pursuant to the LTIP. Unrecognized compensation expense related to equity grants, including the estimated impact of any future forfeitures, was $54.8 at September 30, 2016. The Company has established a qualified Employee Stock Purchase Plan which allows qualified employees (as defined therein) to purchase shares of the Company’s common stock at a price equal to 85% of the closing price at the end of each semi-annual stock purchase period. Compensation cost for this plan was not material to any of the periods presented.

Segment Reporting

Segment Reporting	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Segment Reporting	Note 10. Segment Reporting The Company is organized based on the products and services it offers. The Company’s reportable segments, which are also its operating segments, are comprised of commercial aircraft and business jet. Each segment regularly reports its results of operations and makes requests for capital expenditures and acquisition funding to the Company’s chief operational decision-making group. This group is comprised of the Executive Chairman of the Board of Directors, the President and Chief Executive Officer and the Vice President and Chief Financial Officer. Each operating segment has separate management teams and infrastructures dedicated to providing a full range of products and services to their commercial, business jet, military, maintenance, repair and overhaul providers, aircraft leasing and aircraft manufacturing customers. The Company has not included product line information due to the similarity of commercial aircraft segment product offerings. The following table presents revenues and operating earnings by reportable segment: Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Revenues: Commercial aircraft $ $ $ $ Business jet $ $ $ $ Operating earnings (1) Commercial aircraft $ $ $ $ Business jet Interest expense, net Earnings before income taxes $ $ $ $ (1) Operating earnings includes an allocation of corporate IT costs, employee benefits and general and administrative costs based on the proportion of each segment’s systems users, number of employees and sales, respectively. The following table presents capital expenditures (1) by reportable segment: Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Commercial aircraft $ $ $ $ Business jet $ $ $ $ (1) Corporate capital expenditures have been allocated to the above segments in a manner consistent with our corporate expense allocations. The following table presents goodwill and total assets (1) by reportable segment: September 30, 2016 December 31, 2015 Commercial Business Commercial Business Aircraft Jet Consolidated Aircraft Jet Consolidated Goodwill $ $ $ $ $ $ Total assets (1) Corporate assets (including cash and cash equivalents) of $291.1 and $322.2 at September 30, 2016 and December 31, 2015, respectively, have been allocated to the above segments in a manner consistent with our corporate expense allocations.

Net Earnings Per Common Share

Net Earnings Per Common Share	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Net Earnings Per Common Share	Note 11. Net Earnings Per Common Share Basic net earnings per common share is computed using the weighted average common shares outstanding during the period. Diluted net earnings per common share is computed by using the weighted average common shares outstanding including the dilutive effect of shares issued under the Employee Stock Purchase Plan and restricted shares based on an average share price during the period. For the three months ended September 30, 2016 and 2015, approximately 0.1 and 0.7 shares, respectively, and for the nine months ended September 30, 2016 and 2015, approximately 0.3 and 0.6 shares, respectively, of the Company’s common stock were excluded from the determination of diluted earnings per common share because their effect would have been anti-dilutive. The computations of basic and diluted earnings per share for the three and nine months ended September 30, 2016 and 2015, respectively, are as follows: Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Net earnings $ $ $ $ Basic weighted average common shares Effect of restricted shares issued Diluted weighted average common shares Basic net earnings per common share $ $ $ $ Diluted net earnings per common share $ $ $ $

Accounting for Uncertainty in I

Accounting for Uncertainty in Income Taxes	9 Months Ended
	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Accounting for Uncertainty in Income Taxes	Note 12. Accounting for Uncertainty in Income Taxes In accordance with ASC Topic 740, Income Taxes , the Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. As of September 30, 2016 and December 31, 2015, the Company had $81.1 and $89.0, respectively, of net unrecognized tax benefits. This liability, if recognized, would affect the Company’s effective tax rate. The Company is currently undergoing a U.S. federal income tax examination for the year 2013. The Company is currently open to audit by the tax authorities for the eight tax years ended December 31, 2015.

Restructuring and Other Charges

Restructuring and Other Charges	9 Months Ended
	Sep. 30, 2016
Restructuring and Other Charges
Restructuring and Other Charges	Note 13. Restructuring and Other Charges During 2015, the Company recognized charges totaling $49.0 in connection with its cost reduction program. The charges reflect costs associated with facilities consolidation, product rationalization, workforce reductions and program discontinuance. The charges are included in the amounts and descriptions below, as appropriate. The Company expects the cost reduction initiatives to offset inflationary pressures on wages, occupancy and infrastructure costs. The majority of the activities related to the cost reduction program are expected to be completed by the end of 2016 and future charges are not expected to be material. The following table presents the liability balance and activity related to restructuring and other charges: Disposals Balance at and Other Balance at December 31, 2015 Noncash Charges Cash Paid September 30, 2016 Facility Consolidations $ $ $ $ Employee Severance - $ $ $ $

Subsequent Events

Subsequent Events	9 Months Ended
	Sep. 30, 2016
Subsequent Events
Subsequent Events	Note 14. Subsequent Events On October 23, 2016, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Rockwell Collins, Inc., a Delaware corporation (“Rockwell Collins”), and Quarterback Merger Sub Corp. (“Merger Sub”), a Delaware corporation and a wholly owned subsidiary of Rockwell Collins. Upon the terms and subject to the conditions set forth in the Merger Agreement, at the closing, Merger Sub will merge with and into the Company, with the Company surviving (the “Surviving Corporation”) as a direct or indirect wholly owned subsidiary of Rockwell Collins (the “Merger” and, together with the other transactions contemplated by the Merger Agreement, the “Transactions”). At the effective time of the Merger (the “Effective Time”), each share of common stock, par value $0.01 per share, of the Company (“B/E Aerospace Common Stock”) issued and outstanding immediately prior to the Effective Time (other than shares of the Company’s Common Stock (i) held by the Company as treasury stock, (ii) held, directly or indirectly, by Rockwell Collins or Merger Sub immediately prior to the Effective Time or (iii) that are outstanding immediately prior to the Effective Time and that are held by any person who is entitled to demand, and properly demands, appraisal of such shares pursuant to, and who complies in all respects with, Section 262 of the Delaware General Corporation Law (the “DGCL”)), will be converted into the right to receive the merger consideration (the “Merger Consideration”) from Rockwell Collins, which will consist of (x) $34.10 per share in cash, without interest, and (y) a number of validly issued, fully paid and non-assessable shares of common stock, par value $0.01 per share, of Rockwell Collins (“Rockwell Collins Common Stock”) equal to $27.90, subject to a two-way 7.5% collar as described in the Merger Agreement. The respective boards of directors of the Company and Rockwell Collins have unanimously approved the Merger Agreement, and the Board of Directors of the Company has agreed to recommend that the Company’s stockholders adopt the Merger Agreement. In addition, the board of directors of Rockwell Collins has agreed to recommend that Rockwell Collins’s stockholders approve the issuance of the shares of Rockwell Collins Common Stock forming part of the Merger Consideration, as required by the listing standards of the New York Stock Exchange. The Company and Rockwell Collins each have agreed, subject to certain exceptions, not to directly or indirectly solicit competing alternative proposals and to terminate all existing discussions, negotiations and communications with any persons with respect to any alternative proposal. The completion of the Merger is subject to the satisfaction or waiver of customary closing conditions, including, among other things: (i) approval of the Merger Agreement by the Company’s stockholders, (ii) approval of the issuance of the Rockwell Collins Common Stock forming part of the Merger Consideration by Rockwell Collins’ stockholders and (iii) applicable regulatory approvals. The completion of the Merger is not conditioned on receipt of financing by Rockwell Collins. The Company and Rockwell Collins have made customary representations and warranties in the Merger Agreement. The Merger Agreement also contains customary covenants and agreements, including covenants and agreements relating to (a) the conduct of each of the Company’s and Rockwell Collins’ respective businesses between the date of the signing of the Merger Agreement and the consummation of the Merger, and (b) the efforts of the parties to cause the Merger to be completed. The Merger Agreement provides that Rockwell Collins may be required to pay the Company a termination fee equal to $300 million if the Merger Agreement is terminated by Rockwell Collins under certain circumstances described in the Merger Agreement. The Merger Agreement provides that the Company may be required to pay Rockwell Collins a termination fee equal to $200 million if the Merger Agreement is terminated by the Company under certain circumstances described in the Merger Agreement.

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2016
Inventory Disclosure [Abstract]
Inventories	September 30, December 31, 2016 2015 Purchased materials and component parts $ $ Work-in-process Finished goods $ $

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2016
Goodwill And Intangible Assets Disclosure [Abstract]
Intangible Assets by Major Asset Class	September 30, 2016 December 31, 2015 Useful Life Original Accumulated Net Book Original Accumulated Net Book (Years) Cost Amortization Value Cost Amortization Value Customer contracts and relationships 13 - 23 $ $ $ $ $ $ Acquired technologies and other 5 - 34 Trade names 5 - 20 Trademarks and patents 3 - 20 Covenants not to compete 3 - 5 $ $ $ $ $ $

Segment Reporting (Tables)

Segment Reporting (Tables)	9 Months Ended
	Sep. 30, 2016
Segment Reporting [Abstract]
Revenues and Operating Earnings by Reportable Segment	Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Revenues: Commercial aircraft $ $ $ $ Business jet $ $ $ $ Operating earnings (1) Commercial aircraft $ $ $ $ Business jet Interest expense, net Earnings before income taxes $ $ $ $
Capital Expenditures by Reportable Segment	Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Commercial aircraft $ $ $ $ Business jet $ $ $ $
Goodwill And Total Assets By Reportable Segment	September 30, 2016 December 31, 2015 Commercial Business Commercial Business Aircraft Jet Consolidated Aircraft Jet Consolidated Goodwill $ $ $ $ $ $ Total assets

Net Earnings Per Common Share (

Net Earnings Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2016
Earnings Per Share [Abstract]
Computations of Basic and Diluted Earnings Per Share	Three months ended Nine months ended September 30, September 30, 2016 2015 2016 2015 Net earnings $ $ $ $ Basic weighted average common shares Effect of restricted shares issued Diluted weighted average common shares Basic net earnings per common share $ $ $ $ Diluted net earnings per common share $ $ $ $

Restructuring and Other Charg25

Restructuring and Other Charges (Tables)	9 Months Ended
	Sep. 30, 2016
Restructuring and Other Charges
The summary of liability balance and activity related to restructuring and other charges	Disposals Balance at and Other Balance at December 31, 2015 Noncash Charges Cash Paid September 30, 2016 Facility Consolidations $ $ $ $ Employee Severance - $ $ $ $

Inventories - Costs (Details)

Inventories - Costs (Details) - Work-in-process inventories - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Inventory [Line Items]
Costs and estimated earnings in excess of billings on uncompleted contracts	$ 96.7	$ 87.7
Excess over average costs on long-term contracts	$ 507	$ 438.1

Inventories - Components of Inv

Inventories - Components of Inventory (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Inventory Disclosure [Abstract]
Purchased materials and component parts	$ 364.8	$ 322.7
Work-in-process	828.8	722.7
Finished goods	58.4	46.5
Inventories	$ 1,252	$ 1,091.9

Goodwill and Intangible Asset28

Goodwill and Intangible Assets - By Major Asset Class (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Goodwill and Intangible Assets Disclosure [Line Items]
Original Cost	$ 332.8	$ 338
Accumulated Amortization	112	106.7
Net Book Value	220.8	231.3
Customer contracts and relationships
Goodwill and Intangible Assets Disclosure [Line Items]
Original Cost	130.1	129.4
Accumulated Amortization	25.9	20.1
Net Book Value	$ 104.2	109.3
Customer contracts and relationships | Minimum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)	13 years
Customer contracts and relationships | Maximum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)	23 years
Acquired technologies and other
Goodwill and Intangible Assets Disclosure [Line Items]
Original Cost	$ 148.5	150
Accumulated Amortization	68.2	65.3
Net Book Value	$ 80.3	84.7
Acquired technologies and other | Minimum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)	5 years
Acquired technologies and other | Maximum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)	34 years
Trade names
Goodwill and Intangible Assets Disclosure [Line Items]
Original Cost	$ 28.7	29
Accumulated Amortization	5.4	4
Net Book Value	$ 23.3	25
Trade names | Minimum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)	5 years
Trade names | Maximum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)	20 years
Trademarks and patents
Goodwill and Intangible Assets Disclosure [Line Items]
Original Cost	$ 23.5	27.1
Accumulated Amortization	11.3	16.3
Net Book Value	$ 12.2	10.8
Trademarks and patents | Minimum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)	3 years
Trademarks and patents | Maximum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)	20 years
Covenants not to compete
Goodwill and Intangible Assets Disclosure [Line Items]
Original Cost	$ 2	2.5
Accumulated Amortization	1.2	1
Net Book Value	$ 0.8	$ 1.5
Covenants not to compete | Minimum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)	3 years
Covenants not to compete | Maximum
Goodwill and Intangible Assets Disclosure [Line Items]
Useful Life (years)	5 years

Goodwill and Intangible Asset29

Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Goodwill And Intangible Assets Disclosure [Abstract]
Amortization expense on identifiable intangible assets	$ 4.4	$ 4.4	$ 13.5	$ 12.9
Expected amortization expenses in year one	17		17
Expected amortization expenses in year two	17		17
Expected amortization expenses in year three	17		17
Expected amortization expenses in year four	17		17
Expected amortization expenses in year five	$ 17		17
Goodwill increase during period			$ 0.7

Related Party Transactions (Det

Related Party Transactions (Details) - KLX Inc [Member] - USD ($) $ in Millions	Dec. 16, 2014	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Related Party Transaction [Line Items]
Term of transition services maximum	24 months
Information technology services extension option term	1 year
Purchases from related party		$ 7.6	$ 4.7	$ 18.2	$ 14.2

Long-Term Debt - Components (De

Long-Term Debt - Components (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Debt Instrument [Line Items]
Long-term debt	$ 2,035.8
Long-term debt, net of current maturities	2,035.8	$ 2,034.1
Term Loan Facility
Debt Instrument [Line Items]
Outstanding long-term debt	$ 2,064

Long-Term Debt - Credit Agreeme

Long-Term Debt - Credit Agreement (Details) $ in Millions	Dec. 16, 2014USD ($)	Sep. 30, 2016USD ($)	Sep. 30, 2015USD ($)	Dec. 31, 2015USD ($)
Debt Instrument [Line Items]
Principal payments on long-term debt			$ 136
Loss on extinguishment of debt			$ (0.9)
Outstanding letter of credit amount		$ 13.7		$ 7.7
London Interbank Offered Rate (LIBOR) | Minimum
Debt Instrument [Line Items]
Debt, interest rate	0.75%
Revolving Credit Facility
Debt Instrument [Line Items]
Debt instrument term	5 years
Revolving credit facility	$ 600
Amount outstanding		$ 0
Revolving credit facility agreement	Borrowings under the Revolving Credit Facility bear interest at an annual rate equal to the London interbank offered rate ("LIBOR") plus 200 basis points or prime (as defined therein) plus 100 basis points
Revolving Credit Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread percentage	2.00%
Revolving Credit Facility | Prime Rate
Debt Instrument [Line Items]
Basis spread percentage	1.00%
Term Loan Facility
Debt Instrument [Line Items]
Debt instrument term	7 years
Revolving credit facility agreement		Borrowings under the Term Loan Facility bear interest at an annual rate equal to LIBOR plus 300 basis points (LIBOR shall not be less than 75 basis points per annum) or ABR (as defined therein) plus 200 basis points
Aggregate principal amount	$ 2,200
Term Loan Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread percentage	3.00%
Term Loan Facility | Prime Rate
Debt Instrument [Line Items]
Basis spread percentage	2.00%
Debt, interest rate		3.79%
Covenant Requirement | Minimum
Debt Instrument [Line Items]
Interest coverage ratio		3
Covenant Requirement | Maximum
Debt Instrument [Line Items]
Total leverage ratio		4.5

Commitments, Contingencies an33

Commitments, Contingencies and Off-Balance Arrangements - Lease Litigation Employment (Details) $ in Millions	Sep. 30, 2016USD ($)
Commitments And Contingencies Disclosure [Abstract]
Total	$ 172.6

Accounting for Stock-Based Co34

Accounting for Stock-Based Compensation (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentage of discounted closing price for Employee Stock Purchase Plan			85.00%
Long Term Incentive Plans
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share based compensation	$ 8.6	$ 7.4	$ 24.7	$ 20.9
Unrecognized compensation cost	$ 54.8		$ 54.8

Segment Reporting - Revenues an

Segment Reporting - Revenues and Operating Earnings by Reportable Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	$ 732.7	$ 679.8	$ 2,202.5	$ 2,070.4
Operating earnings	132	75.2	398	328.2
Interest expense, net	22.4	24	68.2	72.4
Earnings before income taxes	109.6	51.2	329.8	255.8
Commercial Aircraft
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	578.8	507.8	1,746.6	1,573.2
Operating earnings	108.9	66.9	328.2	265
Business Jet
Segment Reporting, Revenue Reconciling Item [Line Items]
Revenues	153.9	172	455.9	497.2
Operating earnings	$ 23.1	$ 8.3	$ 69.8	$ 63.2

Segment Reporting - Capital Exp

Segment Reporting - Capital Expenditures by Reportable Segment (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Property, Plant and Equipment [Line Items]
Capital expenditures	$ 21.3	$ 15.3	$ 57.4	$ 63.3
Commercial Aircraft
Property, Plant and Equipment [Line Items]
Capital expenditures	17.9	11.4	47.3	47.9
Business Jet
Property, Plant and Equipment [Line Items]
Capital expenditures	$ 3.4	$ 3.9	$ 10.1	$ 15.4

Segment Reporting - Goodwill an

Segment Reporting - Goodwill and Total Assets by Reportable Segment (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Goodwill [Line Items]
Goodwill	$ 813.9	$ 813.2
Total assets	3,349.2	3,140.9
Commercial Aircraft
Goodwill [Line Items]
Goodwill	372.6	372.6
Total assets	2,309.5	2,120.5
Business Jet
Goodwill [Line Items]
Goodwill	441.3	440.6
Total assets	$ 1,039.7	$ 1,020.4

Segment Reporting - Additional

Segment Reporting - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2016	Dec. 31, 2015
Segment Reporting Information [Line Items]
Total assets	$ 3,349.2	$ 3,140.9
Corporate, Non-Segment
Segment Reporting Information [Line Items]
Total assets	$ 291.1	$ 322.2

Net Earnings Per Common Share -

Net Earnings Per Common Share - Additional Information (Details) - shares shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from determination of diluted earnings per common share	0.1	0.7	0.3	0.6

Net Earnings Per Common Share40

Net Earnings Per Common Share - Computations of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Earnings Per Share [Abstract]
Net earnings	$ 83.3	$ 45.8	$ 250.7	$ 202.3
Weighted average common shares - basic	100.1	104.3	100.5	104.4
Effect of restricted shares issued	0.6	0.5	0.4	0.5
Diluted weighted average common shares	100.7	104.8	100.9	104.9
Net earnings per share from continuing operatings - basic (in dollars per share)	$ 0.83	$ 0.44	$ 2.49	$ 1.94
Net earnings per share - basic (in dollars per share)	0.83	0.44	2.49	1.94
Net earnings per share from continuing operations - diluted	0.83	0.44	2.48	1.93
Diluted net earnings per share (in dollars per share)	$ 0.83	$ 0.44	$ 2.48	$ 1.93

Accounting for Uncertainty in41

Accounting for Uncertainty in Income Taxes - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Liability for unrecognized tax benefits that would affect effective tax rate, if recognized	$ 89	$ 81.1
Number of tax years the company is currently open to audit by tax authorities	8 years

Restructuring and Other Charg42

Restructuring and Other Charges (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Restructuring Cost and Reserve [Line Items]
Restructuring Charges		$ 49
Liability balance and activity related charges:
Balance at Beginning of the period	$ 11.4
Disposals and Other Noncash charges	(2)
Cash Paid	(4.8)
Balance at End of the period	4.6	11.4
Facility Consolidations
Liability balance and activity related charges:
Balance at Beginning of the period	9.2
Disposals and Other Noncash charges	(1.1)
Cash Paid	(3.5)
Balance at End of the period	4.6	9.2
Other Employee Severance
Liability balance and activity related charges:
Balance at Beginning of the period	2.2
Disposals and Other Noncash charges	(0.9)
Cash Paid	$ (1.3)
Balance at End of the period		$ 2.2

Subsequent Events (Details)

Subsequent Events (Details) $ / shares in Units, $ in Millions	Oct. 23, 2016USD ($)$ / shares	Sep. 30, 2016$ / shares	Dec. 31, 2015$ / shares
Subsequent Events
Common stock, par value		$ 0.01	$ 0.01
Subsequent Event | Merger agreement
Subsequent Events
Common stock, par value	$ 0.01
Subsequent Event | Rockwell Collins, Inc., [Member] | Merger agreement
Subsequent Events
Common stock, par value	0.01
Consideration paid in cash (in dollars per share)	34.10
Consideration paid in stcok (in dollars)	$ 27.90
Two way collar rate (as a percent)	0.075
Subsequent Event | Rockwell Collins, Inc., [Member] | Termination of agreement by Rockwell Collins | Merger agreement
Subsequent Events
Merger Termination Fees | $	$ 300
Subsequent Event | Rockwell Collins, Inc., [Member] | Termination of agreement by Company | Merger agreement
Subsequent Events
Merger Termination Fees | $	$ 200