Segment Information

Effective October 1, 2017, we made changes to our segment reporting structure that resulted in three reporting segments. Our former Components segment has been separated and merged into Space and Defense Controls and Industrial Systems. All amounts have been restated to reflect this change.

Below are sales and operating profit by segment for the three and nine months ended June 30, 2018 and July 1, 2017 and a reconciliation of segment operating profit to earnings before income taxes. Operating profit is net sales less cost of sales and other operating expenses, excluding interest expense, equity-based compensation expense and other corporate expenses. Cost of sales and other operating expenses are directly identifiable to the respective segment or allocated on the basis of sales, number of employees or profit.

Refer to Note 11, Restructuring, for the impact of amounts charged to expense that are reflected in the operating profit of the Industrial Systems segment.



	Three Months Ended				Nine Months Ended
	June 30, 2018		July 1, 2017		June 30, 2018		July 1, 2017
Net sales:
Aircraft Controls	$	299,605	$	282,555	$	889,578	$	840,666
Space and Defense Controls	149,815		128,049		426,735		389,473
Industrial Systems	242,598		215,579		692,289		618,117
Net sales	$	692,018	$	626,183	$	2,008,602	$	1,848,256
Operating profit:
Aircraft Controls	$	33,342	$	29,080	$	97,590	$	83,372
Space and Defense Controls	16,513		12,789		49,643		33,258
Industrial Systems	24,283		21,726		37,479		64,154
Total operating profit	74,138		63,595		184,712		180,784
Deductions from operating profit:
Interest expense	8,850		8,654		26,585		25,789
Equity-based compensation expense	894		997		4,394		4,151
Corporate and other expenses, net	9,439		5,671		25,275		17,880
Earnings before income taxes	$	54,955	$	48,273	$	128,458	$	132,964

The amounts reclassified for net sales and operating profit as a result of the revised segment reporting structure for the three and nine months ended July 1, 2017 are as follows:



	Three Months Ended		Nine Months Ended
Net sales:
Space and Defense Controls	$	33,531	$	96,177
Industrial Systems	93,089		267,797
Total	$	126,620	$	363,974



Operating profit:
Space and Defense Controls	$	2,784	$	5,669
Industrial Systems	9,255		28,664
Total	$	12,039	$	34,333

Segment assets for Space and Defense Controls and Industrial Systems are approximately $645,000 and $1,120,000, respectively, as of June 30, 2018, primarily as a result of the change to our segment reporting structure. Corporate assets not allocated to our reporting segments, have decreased from $270,411 as of September 30, 2017 to approximately $81,000 as of June 30, 2018, primarily as a result of the repayment of debt and defined benefit pension contributions.