What does aerospace and defense — goodwill impairment mean?

The write-down of the premium paid for past acquisitions specifically within the Aerospace and Defense segment.

How do you interpret aerospace and defense — goodwill impairment?

An increase suggests that the segment's long-term growth prospects have weakened, potentially signaling management's failure to realize expected synergies from past deals.

How does aerospace and defense — goodwill impairment compare across companies?

Comparable to goodwill impairment charges reported by other industrial and aerospace manufacturers following strategic portfolio reviews.

Timken TKR Aerospace And Defense — Goodwill Impairment

Discontinued — last reported Q3 '14

Similar metrics at other companies

TTMIAerospace And Defense — Goodwill Impaired Accumulated Impairment Loss

$0—

TTMIAerospace And Defense — Goodwill Gross

$256.2M0.0%

IRAerospace & Defense — Goodwill

$15.9M—

TTMIAerospace And Defense — Goodwill

$287.5M—

ESEAerospace And Defense — Goodwill Acquired

$5.1M—

HONAerospace Technologies — Impairment of goodwill

——

Other financials

Income statement

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Revenue$1.2B+8.0%

Gross profit$394.0M+9.8%

Operating income$168.6M+17.1%

Net income$98.2M+25.4%

EPS (diluted)$1.40+26.1%

Balance sheet

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Cash & equivalents$344.7M-8.3%

Total debt$2.2B-2.1%

Total equity$3.2B+9.9%

Total assets$6.9B+4.7%

Cash flow

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Operating cash flow$39.3M-32.9%

CapEx$38.8M+10.2%

Free cash flow$500.0K-97.9%

Valuation

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Market cap$9.89B+39.1%

Enterprise value$11.74B+28.3%

P/E32.1×+10.4×

P/S2.1×+0.5×

Profitability

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Gross margin30.6%-0.4pp

Operating margin12.1%-0.5pp

Net margin6.6%-0.6pp

FCF margin8.2%+1.0pp

Returns & leverage

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Return on equity10.1%-1.8pp

Debt / equity0.7×-0.1×

Current ratio2.9×-0.3×

Where this comes from

Reported directly by Timken in its filing.

Tagged under the XBRL concept us-gaap:GoodwillImpairmentLoss.

The official record: Timken’s 10-K, filed February 24, 2016, on SEC EDGAR. View the filing →

Questions, answered.

What does aerospace and defense — goodwill impairment mean?: The write-down of the premium paid for past acquisitions specifically within the Aerospace and Defense segment.
How do you interpret aerospace and defense — goodwill impairment?: An increase suggests that the segment's long-term growth prospects have weakened, potentially signaling management's failure to realize expected synergies from past deals.
How does aerospace and defense — goodwill impairment compare across companies?: Comparable to goodwill impairment charges reported by other industrial and aerospace manufacturers following strategic portfolio reviews.