3. Changes in Estimates

The Company has a Company-wide quarterly Estimate at Completion (EAC) process in which management assesses the progress and performance of the Company's contracts. This process requires management to review each program’s progress towards completion by evaluating the program schedule, changes to identified risks and opportunities, changes to estimated contract revenues and estimated contract costs over the current contract block and any outstanding contract matters. Risks and opportunities include management's judgment about the cost associated with a program’s ability to achieve the schedule, technical requirements (e.g., a newly-developed product versus a mature product) and any other contract requirements. The majority of the Company's fixed priced contracts are life of aircraft program contracts. Due to the span of years it may take to complete a contract block and the scope and nature of the work required to be performed on those contracts, the estimation of total revenue and costs at completion is complicated and subject to many variables and, accordingly, is subject to change. When adjustments in estimated total contract block revenue or estimated total cost are required, any changes from prior estimates for delivered units are recognized in the current period as a cumulative catch-up adjustment for the inception-to-date effect of such changes. Cumulative catch-up adjustments are driven by several factors including improved production efficiencies, assumed rate of production, the rate of overhead absorption, changes to scope of work and contract modifications. When estimates of total costs to be incurred on a contract block exceed estimates of total revenue to be earned, a provision for the entire loss on the contract block is recorded in the period in which the loss is determined. Changes in estimates are summarized below:



	For the Three Months Ended
Changes in Estimates	March 31, 2016		April 2, 2015
Favorable Cumulative Catch-up Adjustment by Segment
Fuselage	$	16.2	$	2.7
Propulsion	5.9		9.3
Wing	10.1		—
Total Favorable Cumulative Catch-up Adjustment	$	32.2	$	12.0

Changes in Estimates on Loss Programs
Fuselage
Boeing - All other platforms	$	3.1	$	2.9
Total Fuselage Change in Estimate on Loss Programs	$	3.1	$	2.9
Propulsion
Boeing - All other platforms	$	5.5	$	—
Rolls-Royce BR725	3.4		—
Total Propulsion Change in Estimate on Loss Programs	$	8.9	$	—
Wing
Boeing - All other platforms	$	3.0	$	—
Total Wing Change in Estimate on Loss Programs	$	3.0	$	—
Total Change in Estimate on Loss Programs	$	15.0	$	2.9

Total Change in Estimate	$	47.2	$	14.9
EPS Impact (diluted per share based upon statutory rates)	$	0.22	$	0.07

The Company is currently working on several maturing programs which are in various stages of production, including the B787, A350 XWB and BR725 programs. These programs carry risks associated with design responsibility, development of production tooling, production inefficiencies during the early phases of production, hiring and training of qualified personnel, increased capital and funding commitments, supplier performance, delivery schedules and unique customer requirements. The Company has previously recorded forward loss charges on these programs. If the risks related to these programs are not mitigated, then the Company could record additional forward loss charges.