Segment Information

9 Months Ended

Jun. 30, 2016

Segment Information

Segment Information

Note 12 — Segment Information

Business segment financial data is as follows (in millions):

	Nine Months Ended				Three Months Ended
	June 30,				June 30,
	2016		2015		2016		2015
Sales:
Cubic Transportation Systems	$	430.5	$	411.5	$	156.0	$	133.3
Cubic Global Defense Systems		331.3		295.2		119.0		102.6
Cubic Global Defense Services		293.3		298.4		100.2		111.9
Total sales	$	1,055.1	$	1,005.1	$	375.2	$	347.8
Operating income (loss):
Cubic Transportation Systems	$	43.9	$	50.8	$	20.5	$	11.7
Cubic Global Defense Systems		(23.7)		2.8		0.9		3.2
Cubic Global Defense Services		9.3		4.2		4.8		3.1
Unallocated corporate expenses and other		(32.8)		(17.1)		(12.3)		(7.7)
Total operating income (loss)	$	(3.3)	$	40.7	$	13.9	$	10.3
Depreciation and amortization:
Cubic Transportation Systems	$	5.4	$	8.4	$	1.2	$	2.8
Cubic Global Defense Systems		19.7		13.3		8.7		3.9
Cubic Global Defense Services		4.8		6.2		1.8		1.9
Corporate and other		2.0		0.8		1.3		0.1
Total depreciation and amortization	$	31.9	$	28.7	$	13.0	$	8.7

Unallocated corporate expenses include expense related to the development of our ERP system for costs that did not meet the requirements for capitalization of $5.1 million and $17.1 million for the three and nine months ended June 30, 2016, respectively compared to $4.7 million and $6.6 million for the three and nine months ended June 30, 2015, respectively.

Changes in estimates on contracts for which revenue is recognized using the cost-to-cost-percentage-of-completion method increased operating income by $0.2 million and decreased operating income by $3.1 million for the three and nine months ended June 30, 2016, respectively, and had no impact on operating income for the three months ended June 30, 2015 and decreased operating income by $13.8 million for the nine months ended June 30, 2015. These adjustments increased net income by $0.1 million (no impact to diluted shares) and decreased net income by $1.8 million ($0.07 per share) for the three and nine months ended June 30, 2016, and increased net income by $0.3 million ($0.01 per share) for the three months ended June 30, 2015 and decreased net income by $10.7 million ($0.40 per share) for the nine months ended June 30, 2015, respectively.