Aircraft Controls. We design, manufacture and integrate primary and secondary flight controls for military and commercial aircraft and provide aftermarket support. Our systems are used on both development and production programs in large commercial transports, supersonic fighters, multi-role military aircraft, business jets and rotorcraft. We also supply ground-based navigation aids.

We are currently working on the KC-46 military air refueling tanker on the military side, and the COMAC C919 and the Embraer E-Jet E2 family on the commercial side. Typically development programs require concentrated periods of research and development by our engineering teams, while production programs are generally long-term manufacturing efforts that extend for as long as the aircraft builder receives new orders.

In the past few years, a number of significant programs have transitioned from the development phase to initial low-rate production, including the Lockheed Martin F-35 Joint Strike Fighter on the military side and the Boeing 787 and Airbus A350XWB on the commercial side. In terms of mature production programs, our large military programs include the F/A-18E/F Super Hornet, the V-22 Osprey tiltrotor and the Black Hawk UH-60/Seahawk SH-60 helicopter, while our large commercial production programs include the full line of Boeing 7-series aircraft, Airbus A320, A330 and A380 and a variety of business jets.

Aftermarket sales, which represented 27%, 29% and 27% of 2019, 2018 and 2017 sales, respectively, for this segment consist of the maintenance, repair, overhaul and parts supply for both military and commercial aircraft. Further, we sell spare parts and line replaceable units to both military and commercial customers that they store throughout the world in order to minimize down time.

We design, manufacture and integrate commercial and military satellite positioning controls. Propulsion components and systems accelerate the spacecraft for orbit-insertion, station keeping and attitude control. Mission specific actuation mechanisms control solar array panels and antennas. We also design, manufacture and integrate steering and propulsion controls for space launch vehicles, such as the Atlas, Delta and Ariane platforms. Additionally, we design and manufacture spaceflight electronics and software. We are also developing new control products and systems for a variety of programs related to manned spaceflight including NASA's new Space Launch System and Multi-Purpose Crew Vehicle.

In addition, we design controls for gun aiming, stabilization and automatic ammunition loading for armored combat vehicles for a variety of domestic and international customers. We are also developing a new reconfigurable turret system for several military vehicle programs. We also design controls for steering tactical and strategic missiles including: Lockheed Martin's Hellfire^®, the U.S. National Missile Defense Agency's Ballistic Missile Defense initiatives and Raytheon's TOW and Trident missiles. We also design, build and integrate weapons stores management systems for light attack aerial reconnaissance, ground and sea platforms, as well as build high power, quiet controls for naval surface ships and submarines such as the U.S. Virginia Class. Our sensor and surveillance products are used in both military and commercial applications such as electrical grid and other critical infrastructure protection applications.

Also, we design and manufacture a number of component products that serve both the space and defense segments, including slip rings, fiber optic rotary joints and motors. Slip rings and fiber optic rotary joints use sliding contacts and optical technology to allow unimpeded rotation while delivering power and data through a rotating interface. Slip rings, fiber optic rotary joints and motors are used in a broad range of solutions, including satellites, missiles, radar pedestals and gimbals.

Industrial Systems. We provide customized machine performance components and systems utilizing electrohydraulic, electromechanical and control technologies in applications involving motion control, fluid control and power and data management across a variety of markets.

In the industrial automation market, we design, manufacture and integrate components and systems for applications in injection and blow molding machinery, metal forming presses and heavy industry for steel and aluminum production. Our components and systems allow for precise controls of critical parameters in the industrial manufacturing processes, using both hydraulic and electric technologies. Other industrial automation applications we serve include material handling and paper mills.

In the simulation and test market, we supply electromechanical motion simulation bases for the flight simulation and training applications, as well as medical training simulators. We also supply custom test systems and controls for automotive, structural and fatigue testing.

In the energy market, we supply solutions for power generation applications which allow for precise control and greater safety of fuel metering and guide vane positioning on steam and gas turbines. We also design and manufacture high reliability systems and components for applications in oil and gas exploration and production, including downhole drilling, topside and subsea environments. We supply high-reliability components for wind turbine applications.

Slip rings and fiber optic rotary joints come in a range of sizes that allow them to be used in many applications, including diagnostic imaging CT scan medical equipment, remotely operated vehicles and floating platforms for offshore oil exploration, surveillance cameras and wind turbines.

Electric motors are used in an equally broad range of solutions, many of which are the same as for slip rings. We design and manufacture a series of fractional horsepower brushless motors that provide extremely low acoustic noise and reliable long life operation, with the largest program being sleep apnea equipment. Industrial customers use our motors for material handling and electric pumps. We supply ultra high-torque servomotors for servo press applications and high-power, multi-megawatt generators for dynamometer testing and hydropower.

Infusion therapy products include infusion pumps and associated administration sets. They offer IV, intra-arterial, subcutaneous or epidural flow of fluids and precise medicine delivery and can be applied to many applications, including hydration, nutrition, patient-controlled analgesia, local anesthesia, chemotherapy and antibiotics.

Enteral clinical nutrition products include a complete line of portable and stationary pumps along with disposable sets. They are designed for ease of use and mobility. Medical customers use our enteral feeding products in the delivery of enteral nutrition for patients in their own homes, hospitals and long-term care facilities.

Disaggregation of net sales by segment are as follows:



Market Type	2019		2018		2017
Net sales:
Military	$	622,126	$	571,886	$	522,110
Commercial	680,846		621,619		602,775
Aircraft Controls	1,302,972		1,193,505		1,124,885
Space	218,970		214,741		187,217
Defense	464,498		366,136		341,986
Space and Defense Controls	683,468		580,877		529,203
Energy	120,771		163,888		145,344
Industrial Automation	447,515		430,754		377,211
Simulation and Test	122,935		127,321		126,135
Medical	227,002		213,123		194,745
Industrial Systems	918,223		935,086		843,436
Net sales	$	2,904,663	$	2,709,468	$	2,497,524



Customer Type	2019		2018		2017
Net sales:
Commercial	$	680,846	$	621,619	$	602,775
U.S. Government (including OEM)	484,203		447,148		388,697
Other	137,923		124,738		133,413
Aircraft Controls	1,302,972		1,193,505		1,124,885
Commercial	124,445		116,984		170,212
U.S. Government (including OEM)	513,250		424,848		354,817
Other	45,773		39,045		4,174
Space and Defense Controls	683,468		580,877		529,203
Commercial	888,132		904,439		805,934
U.S. Government (including OEM)	20,452		25,886		28,226
Other	9,639		4,761		9,276
Industrial Systems	918,223		935,086		843,436
Commercial	1,693,423		1,643,042		1,578,921
U.S. Government (including OEM)	1,017,905		897,882		771,740
Other	193,335		168,544		146,863
Net sales	$	2,904,663	$	2,709,468	$	2,497,524

Operating profit is net sales less cost of sales and other operating expenses, excluding interest expense, equity-based compensation expense, non-service pension 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, manpower or profit. Operating profit by segment and reconciliations to consolidated amounts are as follows:



	2019		2018		2017
Operating profit:
Aircraft Controls	$	122,701	$	129,772	$	116,797
Space and Defense Controls	88,990		67,615		49,989
Industrial Systems	109,451		64,964		92,061
Total operating profit	321,142		262,351		258,847
Deductions from operating profit:
Interest expense	39,269		36,238		34,551
Equity-based compensation expense	6,464		5,804		4,582
Non-service pension expense	12,746		6,778		12,594
Corporate and other expenses, net	28,905		29,694		25,409
Earnings before income taxes	$	233,758	$	183,837	$	181,711
Depreciation and amortization:
Aircraft Controls	$	41,144	$	40,795	$	41,977
Space and Defense Controls	18,014		17,900		18,980
Industrial Systems	25,454		28,825		28,099
Corporate	648		1,052		1,111
Total depreciation and amortization	$	85,260	$	88,572	$	90,167
Identifiable assets:
Aircraft Controls	$	1,300,781	$	1,168,964	$	1,120,099
Space and Defense Controls	737,141		660,589		575,132
Industrial Systems	1,040,659		1,077,022		1,124,950
Corporate	35,656		57,473		270,411
Total assets	$	3,114,237	$	2,964,048	$	3,090,592
Capital expenditures:
Aircraft Controls	$	68,595	$	46,705	$	36,216
Space and Defense Controls	23,903		22,452		15,173
Industrial Systems	25,808		25,156		23,953
Corporate	116		204		456
Total capital expenditures	$	118,422	$	94,517	$	75,798

Sales, based on the customer’s location, and property, plant and equipment by geographic area are as follows:



	2019		2018		2017
Net sales:
United States	$	1,757,518	$	1,592,513	$	1,438,428
Germany	213,128		202,676		195,328
Japan	166,690		158,686		152,148
France	143,019		138,054		145,627
Other	624,308		617,539		565,993
Net sales	$	2,904,663	$	2,709,468	$	2,497,524
Property, plant and equipment, net:
United States	$	365,136	$	325,088	$	303,925
Philippines	61,910		63,870		64,260
United Kingdom	56,253		61,438		64,065
Other	103,468		102,469		90,741
Property, plant and equipment, net	$	586,767	$	552,865	$	522,991

Sales to Boeing were $370,306, $382,184 and $321,110, or 13%, 14% and 13% of sales, in 2019, 2018 and 2017, respectively, including sales to Boeing Commercial Airplanes of $264,805, $238,118 and $252,977 in 2019, 2018 and 2017, respectively. Sales arising from U.S. Government prime or sub-contracts, including military sales to Boeing, were $1,017,905, $897,882 and $775,271 in 2019, 2018 and 2017, respectively. Sales to Boeing and the U.S. Government and its prime- or sub-contractors are made primarily from our Aircraft Controls and Space and Defense Controls segments.