How TPC Works

By Michael K. Lowry
Source: Aviation Week & Space Technology

13. Radars/Sensors/Electronic Warfare/C4ISR

14. Space Systems

15. Subsystems/Subassemblies

Multiple A&D business segments nested in a single operating category and sourced from a single company are scored on a combined basis (presented in blue).

This year's TPC business segment universe includes stand-alone A&D operating units, multiple segments nested in a single operating category that have been scored on a combined basis and non-A&D units (presented as supplemental information in the company performance sheets).

Scoring Algorithms

Except for those operating units assigned to Information Technology Services (“IT”), scored results can be compared across the other 14 categories and TPC-defined peer groups. Three scoring algorithms were compiled for this study. Metrics for each were built from data extracted from parent company footnote disclosures.

Certain large U.S. companies with a high concentration of government contracts subject to federally mandated Cost Accounting Standards (CAS) report business segment footnote data on the more favorable CAS versus Generally Accepted Accounting Principles/International Accounting Standards (GAAP/IAS) accounting basis. Since the CAS benefit is currently disclosed in an aggregate amount not allocated to specific business units, calculations exclude any adjustments that would conform segment data to the parent company's GAAP/IAS-based operating results and financial position.

Where possible, business units with fiscal year-ends prior to Dec. 31 have been scored, using interim quarterly data, to the date corresponding to the parent company's TPC-scored result. Where applicable, prior year results have been restated.

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