Company Quick10K Filing
Curtiss Wright
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 43 $5,278
10-Q 2019-10-31 Quarter: 2019-09-30
10-Q 2019-08-01 Quarter: 2019-06-30
10-Q 2019-05-09 Quarter: 2019-03-31
10-K 2019-02-27 Annual: 2018-12-31
10-Q 2018-10-31 Quarter: 2018-09-30
10-Q 2018-07-26 Quarter: 2018-06-30
10-Q 2018-05-03 Quarter: 2018-03-31
10-K 2018-02-22 Annual: 2017-12-31
10-Q 2017-10-26 Quarter: 2017-09-30
10-Q 2017-07-27 Quarter: 2017-06-30
10-Q 2017-05-04 Quarter: 2017-03-31
10-K 2017-02-21 Annual: 2016-12-31
10-Q 2016-10-27 Quarter: 2016-09-30
10-Q 2016-07-28 Quarter: 2016-06-30
10-Q 2016-05-05 Quarter: 2016-03-31
10-K 2016-02-25 Annual: 2015-12-31
10-Q 2015-10-29 Quarter: 2015-09-30
10-Q 2015-07-30 Quarter: 2015-06-30
10-Q 2015-04-30 Quarter: 2015-03-31
10-K 2015-02-19 Annual: 2014-12-31
10-Q 2014-10-30 Quarter: 2014-09-30
10-Q 2014-07-31 Quarter: 2014-06-30
10-Q 2014-05-01 Quarter: 2014-03-31
10-K 2014-02-21 Annual: 2013-12-31
10-Q 2013-11-01 Quarter: 2013-09-30
10-Q 2013-08-02 Quarter: 2013-06-30
10-Q 2013-05-02 Quarter: 2013-03-31
10-K 2013-02-21 Annual: 2012-12-31
10-Q 2012-11-09 Quarter: 2012-09-30
10-Q 2012-08-03 Quarter: 2012-06-30
10-Q 2012-05-07 Quarter: 2012-03-31
10-K 2012-02-24 Annual: 2011-12-31
10-Q 2011-11-04 Quarter: 2011-09-30
10-Q 2011-08-05 Quarter: 2011-06-30
10-Q 2011-05-06 Quarter: 2011-03-31
10-K 2011-02-25 Annual: 2010-12-31
10-Q 2010-11-04 Quarter: 2010-09-30
10-Q 2010-08-09 Quarter: 2010-06-30
10-Q 2010-05-06 Quarter: 2010-03-31
10-K 2010-02-24 Annual: 2009-12-31
8-K 2019-12-02 Other Events
8-K 2019-10-31 Earnings, Exhibits
8-K 2019-07-31 Earnings, Exhibits
8-K 2019-05-15 Other Events
8-K 2019-05-10 Shareholder Vote
8-K 2019-05-08 Earnings, Exhibits
8-K 2019-02-26 Earnings, Exhibits
8-K 2018-12-12 Other Events
8-K 2018-10-30 Earnings, Exhibits
8-K 2018-10-17 Enter Agreement, Exhibits
8-K 2018-07-25 Earnings, Exhibits
8-K 2018-05-18 Other Events
8-K 2018-05-10 Shareholder Vote
8-K 2018-05-02 Earnings, Exhibits
8-K 2018-02-21 Earnings, Exhibits
CW 2019-09-30
Part 1- Financial Information
Item 1. Financial Statements
Part I- Item 2
Part I - Item 2
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II - Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 exhibit31120190930.htm
EX-31.2 exhibit31220190930.htm
EX-32 exhibit3220190930.htm

Curtiss Wright Earnings 2019-09-30

CW 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
PNR 6,254 4,170 2,363 2,940 1,034 369 485 7,400 35% 15.3 9%
OC 6,254 10,183 5,778 7,127 1,624 515 1,275 9,564 23% 7.5 5%
AGCO 6,018 8,415 5,286 9,225 2,033 376 789 7,116 22% 9.0 4%
WSO 5,567 2,632 1,277 4,590 1,130 288 381 5,863 25% 15.4 11%
CW 5,278 3,427 1,774 2,461 890 293 507 5,853 36% 11.5 9%
LECO 5,159 2,394 2,119 3,017 1,030 315 488 5,680 34% 11.6 13%
BWXT 4,877 1,756 1,462 1,793 501 208 351 5,691 28% 16.2 12%
NVT 4,279 4,465 1,927 2,210 870 252 366 5,316 39% 14.5 6%
MKSI 4,199 3,382 1,436 1,885 851 215 394 4,759 45% 12.1 6%
MSM 3,971 2,324 870 3,359 1,438 295 499 4,463 43% 8.9 13%

Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

FORM 10-Q

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2019

or

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the transition period from _________ to _______

Commission File Number 1-134

CURTISS-WRIGHT CORPORATION
(Exact name of Registrant as specified in its charter)

Delaware13-0612970
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)

 130 Harbour Place Drive, Suite 300
Davidson,North Carolina28036
(Address of principal executive offices)(Zip Code)

(704) 869-4600
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockCWNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period of time that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes                          No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes                          No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.



Large accelerated filerAccelerated filer
Non-accelerated filer(Do not check if a smaller reporting company)Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes     No  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Common Stock, par value $1.00 per share: 42,689,253 shares (as of September 30, 2019).



CURTISS-WRIGHT CORPORATION and SUBSIDIARIES

TABLE of CONTENTS


PART I – FINANCIAL INFORMATIONPAGE
Item 1.
Item 2.
Item 3.
Item 4.
PART II – OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.



Page 3


PART 1- FINANCIAL INFORMATION
Item 1. Financial Statements

CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(UNAUDITED)
Three Months EndedNine Months Ended
September 30,September 30,
(In thousands, except per share data)2019201820192018
Net sales
Product sales$516,760  $495,197  $1,520,612  $1,451,560  
Service sales98,120  100,196  311,578  311,653  
Total net sales614,880  595,393  1,832,190  1,763,213  
Cost of sales
Cost of product sales331,793  312,702  986,475  936,197  
Cost of service sales57,011  60,173  192,722  196,807  
Total cost of sales388,804  372,875  1,179,197  1,133,004  
Gross profit226,076  222,518  652,993  630,209  
Research and development expenses18,362  14,239  54,503  45,234  
Selling expenses28,133  30,361  90,303  94,546  
General and administrative expenses74,012  80,871  224,888  226,808  
Operating income105,569  97,047  283,299  263,621  
Interest expense7,951  7,949  23,183  25,719  
Other income, net6,355  3,843  17,704  12,497  
Earnings before income taxes103,973  92,941  277,820  250,399  
Provision for income taxes(21,463) (18,458) (59,645) (57,485) 
Net earnings$82,510  $74,483  $218,175  $192,914  
Net earnings per share:
Basic earnings per share$1.93  $1.70  $5.10  $4.38  
Diluted earnings per share$1.92  $1.68  $5.07  $4.33  
Dividends per share0.17  0.15  0.49  0.45  
Weighted-average shares outstanding:
Basic42,709  43,892  42,755  44,060  
Diluted42,995  44,334  43,025  44,513  
See notes to condensed consolidated financial statements

Page 4


CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(UNAUDITED)
(In thousands)


Three Months EndedNine Months Ended
September 30,September 30,
2019201820192018
Net earnings$82,510  $74,483  $218,175  $192,914  
Other comprehensive income (loss)
Foreign currency translation adjustments, net of tax (1)
$(24,734) $(2,230) $(15,952) $(30,590) 
Pension and postretirement adjustments, net of tax (2)
1,311  3,458  4,743  9,142  
Other comprehensive income (loss), net of tax(23,423) 1,228  (11,209) (21,448) 
Comprehensive income$59,087  $75,711  $206,966  $171,466  

(1) The tax benefit included in other comprehensive loss for foreign currency translation adjustments for both the three and nine months ended September 30, 2019 was $0.6 million. The tax benefit included in other comprehensive loss for foreign currency translation adjustments for the three and nine months ended September 30, 2018 was $0.5 million and $1.7 million, respectively.

(2) The tax expense included in other comprehensive income for pension and postretirement adjustments for the three and nine months ended September 30, 2019 was $0.4 million and $1.5 million, respectively. The tax expense included in other comprehensive income for pension and postretirement adjustments for the three and nine months ended September 30, 2018 was $1.1 million and $2.9 million, respectively.

 
See notes to condensed consolidated financial statements
Page 5


CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(In thousands, except per share data)

September 30, 2019December 31, 2018
Assets
Current assets:
Cash and cash equivalents$297,712  $276,066  
Receivables, net644,150  593,755  
Inventories, net430,086  423,426  
Other current assets44,338  50,719  
Total current assets1,416,286  1,343,966  
Property, plant, and equipment, net373,718  374,660  
Goodwill1,104,796  1,088,032  
Other intangible assets, net420,458  429,567  
Operating lease right-of-use assets, net134,286    
Other assets32,765  19,160  
Total assets$3,482,309  $3,255,385  
Liabilities  
Current liabilities:
Current portion of long-term and short-term debt$80  $243  
Accounts payable169,413  232,983  
Accrued expenses140,589  166,954  
Income taxes payable8,347  5,811  
Deferred revenue256,327  236,508  
Other current liabilities73,349  44,829  
Total current liabilities648,105  687,328  
Long-term debt761,057  762,313  
Deferred tax liabilities, net48,809  47,121  
Accrued pension and other postretirement benefit costs94,629  101,227  
Long-term operating lease liability116,652    
Long-term portion of environmental reserves15,923  15,777  
Other liabilities95,994  110,838  
Total liabilities1,781,169  1,724,604  
Contingencies and commitments (Note 14)
Stockholders’ equity
Common stock, $1 par value,100,000,000 shares authorized as of September 30, 2019 and December 31, 2018; 49,187,378 shares issued as of September 30, 2019 and December 31, 2018; outstanding shares were 42,689,253 as of September 30, 2019 and 42,772,417 as of December 31, 201849,187  49,187  
Additional paid in capital120,219  118,234  
Retained earnings2,414,956  2,191,471  
Accumulated other comprehensive loss(325,913) (288,447) 
Common treasury stock, at cost (6,498,125 shares as of September 30, 2019 and 6,414,961 shares as of December 31, 2018)(557,309) (539,664) 
Total stockholders’ equity1,701,140  1,530,781  
Total liabilities and stockholders’ equity$3,482,309  $3,255,385  
See notes to condensed consolidated financial statements

Page 6


CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended
September 30,
(In thousands)20192018
Cash flows from operating activities:
Net earnings$218,175  $192,914  
Adjustments to reconcile net earnings to net cash provided by operating activities
Depreciation and amortization76,998  77,146  
Gain on divestitures  (2,149) 
Gain on fixed asset disposals(6,295) (531) 
Deferred income taxes652  4,942  
Share-based compensation11,262  11,846  
Change in operating assets and liabilities, net of businesses acquired and divested:
Receivables, net(44,788) (79,372) 
Inventories, net(8,587) (50,463) 
Progress payments(4,955) 764  
Accounts payable and accrued expenses(86,900) (32,389) 
Deferred revenue18,750  11,643  
Income taxes payable2,676  (7,620) 
Pension and postretirement liabilities, net(928) (46,320) 
Other current and long-term assets and liabilities(17,045) 18,564  
Net cash provided by operating activities159,015  98,975  
Cash flows from investing activities:
Proceeds from sales and disposals of long lived assets10,099  5,495  
Consideration from divestitures—  (268) 
Acquisition of intangible assets(157) (1,500) 
Additions to property, plant, and equipment(49,919) (30,287) 
Acquisition of businesses, net of cash acquired(50,075) (210,167) 
Additional consideration paid on prior year acquisitions—  (460) 
Net cash used for investing activities(90,052) (237,187) 
Cash flows from financing activities:
Borrowings under revolving credit facility35,387  370,595  
Payment of revolving credit facility(35,550) (369,721) 
Repurchases of common stock(37,864) (78,898) 
Proceeds from share-based compensation10,943  11,135  
Dividends paid(13,683) (13,223) 
Other(600) (557) 
Net cash used for financing activities(41,367) (80,669) 
Effect of exchange-rate changes on cash(5,950) (10,322) 
Net increase (decrease) in cash and cash equivalents21,646  (229,203) 
Cash and cash equivalents at beginning of period276,066  475,120  
Cash and cash equivalents at end of period$297,712  $245,917  
Supplemental disclosure of non-cash activities:  
Capital expenditures incurred but not yet paid$88  $684  
See notes to condensed consolidated financial statements

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(UNAUDITED)
(In thousands)

For the nine months ended September 30, 2019
Common StockAdditional Paid in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Treasury Stock
December 31, 2018$49,187  $118,234  $2,191,471  $(288,447) $(539,664) 
Cumulative effect from adoption of ASU 2018-02
—  —  26,257  (26,257) —  
Net earnings—  —  218,175  —  —  
Other comprehensive loss, net of tax—  —  —  (11,209) —  
Dividends declared—  —  (20,947) —  —  
Restricted stock—  (5,491) —  —  5,491  
Stock options exercised—  (2,720) —  —  13,662  
Share-based compensation—  10,857  —  —  405  
Repurchase of common stock—  —  —  —  (37,864) 
Other—  (661) —  —  661  
September 30, 2019$49,187  $120,219  $2,414,956  $(325,913) $(557,309) 

For the three months ended September 30, 2019
Common StockAdditional Paid in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Treasury Stock
June 30, 2019$49,187  $116,835  $2,339,703  $(302,490) $(550,939) 
Net earnings—  —  82,510  —  —  
Other comprehensive loss, net of tax—  —  —  (23,423) —  
Dividends declared—  —  (7,257) —  —  
Stock options exercised—  (898) —  —  6,429  
Share-based compensation—  4,282  —  —    
Repurchase of common stock—  —  —  —  (12,799) 
September 30, 2019$49,187  $120,219  $2,414,956  $(325,913) $(557,309) 

Page 8



CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(UNAUDITED)
(In thousands)

For the nine months ended September 30, 2018
Common StockAdditional Paid in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Treasury Stock
December 31, 2017$49,187  $120,609  $1,944,324  $(216,840) $(369,480) 
Cumulative effect from adoption of ASC 606—  —  (2,274) —  —  
Net earnings—  —  192,914  —  —  
Other comprehensive loss, net of tax—  —  —  (21,448) —  
Dividends declared—  —  (19,798) —  —  
Restricted stock—  (7,159) —  —  7,159  
Stock options exercised—  (1,163) —  —  12,298  
Share-based compensation—  11,631  —  —  215  
Repurchase of common stock—  —  —  —  (78,898) 
Other—  (725) —  —  725  
September 30, 2018$49,187  $123,193  $2,115,166  $(238,288) $(427,981) 

For the three months ended September 30, 2018
Common StockAdditional Paid in CapitalRetained EarningsAccumulated Other Comprehensive Income (Loss)Treasury Stock
June 30, 2018$49,187  $119,025  $2,047,250  $(239,516) $(399,850) 
Net earnings—  —  74,483  —  —  
Other comprehensive income, net of tax—  —  —  1,228  —  
Dividends declared—  —  (6,567) —  —  
Restricted stock—  (236) —  —  236  
Stock options exercised—  372  —  —  4,402  
Share-based compensation—  4,032  —  —  14  
Repurchase of common stock—  —  —  —  (32,783) 
September 30, 2018$49,187  $123,193  $2,115,166  $(238,288) $(427,981) 
See notes to condensed consolidated financial statements




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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)


1.           BASIS OF PRESENTATION

Curtiss-Wright Corporation and its subsidiaries (the "Corporation" or the "Company") is a global, diversified manufacturing and service company that designs, manufactures, and overhauls precision components and provides highly engineered products and services to the aerospace, defense, power generation, and general industrial markets.

The unaudited condensed consolidated financial statements include the accounts of Curtiss-Wright and its majority-owned subsidiaries. All intercompany transactions and accounts have been eliminated.

The unaudited condensed consolidated financial statements of the Corporation have been prepared pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (SEC). Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted as permitted by such rules and regulations. In the opinion of management, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary for a fair presentation of these financial statements.

Management is required to make estimates and judgments that affect the reported amount of assets, liabilities, revenue, and expenses and disclosure of contingent assets and liabilities in the accompanying financial statements. Actual results may differ from these estimates. The most significant of these estimates includes the estimate of costs to complete using the over-time revenue recognition accounting method, the estimate of useful lives for property, plant, and equipment, cash flow estimates used for testing the recoverability of assets, pension plan and postretirement obligation assumptions, estimates for inventory obsolescence, fair value estimates around assets and assumed liabilities from acquisitions, estimates for the valuation and useful lives of intangible assets, legal reserves, and the estimate of future environmental costs. Changes in estimates of contract sales, costs, and profits are recognized using the cumulative catch-up method of accounting. This method recognizes in the current period the cumulative effect of the changes on current and prior periods. Accordingly, the effect of the changes on future periods of contract performance is recognized as if the revised estimate had been the original estimate. During the three and nine months ended September 30, 2019 and 2018, there were no significant changes in estimated contract costs. In the opinion of management, all adjustments considered necessary for a fair presentation have been reflected in these financial statements.

The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Corporation’s 2018 Annual Report on Form 10-K. The results of operations for interim periods are not necessarily indicative of trends or of the operating results for a full year.

Recent accounting pronouncements adopted

ASU 2016-02 - Leases - On January 1, 2019, the Corporation adopted ASC 842, Leases, using the optional transition method of adoption which permits the entity to continue presenting all periods prior to January 1, 2019 under previous lease accounting guidance. In conjunction with the adoption, the Corporation elected the package of practical expedients which permits the entity to forgo reassessment of conclusions reached regarding lease existence and lease classification under previous guidance, as well as the practical expedient to not separate non-lease components. Further, the Corporation made an accounting policy election to account for short-term leases in a manner consistent with the methodology applied under previous guidance. The adoption of this standard resulted in an increase of approximately $151 million in both total assets and total liabilities in the Corporation’s Condensed Consolidated Balance Sheet as of January 1, 2019.

ASU 2018-02 - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income - On January 1, 2019, the Corporation adopted ASU 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which permits the reclassification of tax effects stranded in accumulated other comprehensive income to retained earnings as a result of the 2017 Tax Cuts and Jobs Act (the Tax Act). The adoption of this standard resulted in a reclassification of $26 million from accumulated other comprehensive loss to retained earnings in the Corporation’s Condensed Consolidated Balance Sheet as of January 1, 2019.

2.           REVENUE

The Corporation recognizes revenue when control of a promised good and/or service is transferred to a customer in an amount that reflects the consideration that the Corporation expects to be entitled to in exchange for that good and/or service.

Performance Obligations

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)


The Corporation identifies a performance obligation for each promise in a contract to transfer a distinct good or service to the customer. As part of its assessment, the Corporation considers all goods and/or services promised in the contract, regardless of whether they are explicitly stated or implied by customary business practices. The Corporation’s contracts may contain either a single performance obligation, including the promise to transfer individual goods or services that are not separately distinct within the context of the respective contracts, or multiple performance obligations. For contracts with multiple performance obligations, the Corporation allocates the overall transaction price to each performance obligation using standalone selling prices, where available, or utilizes estimates for each distinct good or service in the contract where standalone prices are not available.

The Corporation’s performance obligations are satisfied either at a point-in-time or on an over-time basis. Revenue recognized on an over-time basis for the three months and nine months ended September 30, 2019 accounted for approximately 47% and 48%, respectively, of total net sales. Revenue recognized on an over-time basis for the three months and nine months ended September 30, 2018 accounted for approximately 49% and 46%, respectively, of total net sales. Typically, over-time revenue recognition is based on the utilization of an input measure used to measure progress, such as costs incurred to date relative to total estimated costs. Revenue recognized at a point-in-time for the three months and nine months ended September 30, 2019 accounted for approximately 53% and 52%, respectively, of total net sales. Revenue recognized at a point-in-time for the three months and nine months ended September 30, 2018 accounted for approximately 51% and 54%, respectively, of total net sales. Revenue for these types of arrangements is recognized at the point in time in which control is transferred to the customer, typically based upon the terms of delivery.

Contract backlog represents the remaining performance obligations that have not yet been recognized as revenue. Backlog includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Total backlog was approximately $2.2 billion as of September 30, 2019, of which the Corporation expects to recognize approximately 92% as net sales over the next 12-36 months. The remainder will be recognized thereafter.

Disaggregation of Revenue

The following table presents the Corporation’s total net sales disaggregated by end market and customer type:

Total Net Sales by End Market and Customer TypeThree Months EndedNine Months Ended
September 30,September 30,
(In thousands)2019201820192018
Defense
Aerospace$110,742  $94,002  $293,955  $272,809  
Ground22,231  25,167  69,383  68,463  
Naval143,430  116,620  424,371  352,456  
Total Defense Customers$276,403  $235,789  $787,709  $693,728  
Commercial
Aerospace$109,015  $101,872  $320,237  $305,893  
Power Generation88,543  106,842  278,194  307,477  
General Industrial140,919  150,890  446,050  456,115  
Total Commercial Customers$338,477  $359,604  $1,044,481  $1,069,485  
Total$614,880  $595,393  $1,832,190  $1,763,213  
Note: Certain amounts in the prior year have been reclassed to conform to the current year presentation.

Contract Balances

Timing of revenue recognition and cash collection may result in billed receivables, unbilled receivables (contract assets), and deferred revenue (contract liabilities) on the Condensed Consolidated Balance Sheet. The Corporation’s contract assets primarily relate to its rights to consideration for work completed but not billed as of the reporting date. Contract assets are
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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)


transferred to billed receivables when the rights to consideration become unconditional. This is typical in situations where amounts are billed as work progresses in accordance with agreed-upon contractual terms or upon achievement of contractual milestones. The Corporation’s contract liabilities primarily consist of customer advances received prior to revenue being earned. Revenue recognized during the three and nine months ended September 30, 2019 and 2018 included in the contract liabilities balance at the beginning of the year was approximately $26 million and $159 million, respectively, and $30 million and $144 million, respectively. Contract assets and contract liabilities are reported in the "Receivables, net" and "Deferred revenue" lines, respectively, within the Condensed Consolidated Balance Sheet.

3.           ACQUISITIONS

The Corporation continually evaluates potential acquisitions that either strategically fit within the Corporation’s existing portfolio or expand the Corporation’s portfolio into new product lines or adjacent markets.  The Corporation has completed a number of acquisitions that have been accounted for as business combinations and have resulted in the recognition of goodwill in the Corporation's financial statements.  This goodwill arises because the acquisition purchase price reflects the future earnings and cash flow potential in excess of the earnings and cash flows attributable to the current product and customer set at the time of acquisition.  Thus, goodwill inherently includes the know-how of the assembled workforce, the ability of the workforce to further improve the technology and product offerings, and the expected cash flows resulting from these efforts. Goodwill may also include expected synergies resulting from the complementary strategic fit these businesses bring to existing operations.

The Corporation allocates the purchase price at the date of acquisition based upon its understanding of the fair value of the acquired assets and assumed liabilities. In the months after closing, as the Corporation obtains additional information about these assets and liabilities, including through tangible and intangible asset appraisals, and as the Corporation learns more about the newly acquired business, it is able to refine the estimates of fair value and more accurately allocate the purchase price. Only items identified as of the acquisition date are considered for subsequent adjustment.  The Corporation will make appropriate adjustments to the purchase price allocation prior to completion of the measurement period, as required.

During the nine months ended September 30, 2019, the Corporation acquired one business for an aggregate purchase price of $50 million, which is described in more detail below. During the nine months ended September 30, 2018, the Corporation acquired one business for an aggregate purchase price of $210 million, which is described in more detail below.

The Condensed Consolidated Statement of Earnings for the nine months ended September 30, 2019 includes $8 million of total net sales and immaterial net earnings from the Corporation's 2019 acquisition. The Condensed Consolidated Statement of Earnings for the nine months ended September 30, 2018 includes $41 million of total net sales and $2 million of net losses from the Corporation's 2018 acquisition.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the date of acquisition for all acquisitions consummated during the nine months ended September 30, 2019 and 2018.

(In thousands)20192018
Accounts receivable$2,300  $24,385  
Inventory322  31,875  
Property, plant, and equipment648  3,206  
Other current and non-current assets479  47  
Intangible assets26,000  146,100  
Operating lease right-of-use assets, net
1,393  —  
Current and non-current liabilities(3,252) (5,374) 
Net tangible and intangible assets27,890  200,239  
Purchase price, net of cash acquired50,075  210,167  
Goodwill$22,185  $9,928  
Goodwill deductible for tax purposes$22,635  $15,108  

2019 Acquisition

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CURTISS-WRIGHT CORPORATION and SUBSIDIARIES
NOTES to CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)


Tactical Communications Group (TCG)

On March 15, 2019, the Corporation acquired 100% of the membership interest of TCG for $50.1 million, net of cash acquired. The Purchase Agreement contains a purchase price adjustment mechanism and representations and warranties customary for a transaction of this type, including a portion of the purchase price deposited in escrow as security for potential indemnification claims against the seller. TCG is a designer and manufacturer of tactical data link software solutions for critical military communications systems. The acquired business operates within the Defense segment. The acquisition is subject to post-closing adjustments with the purchase price allocation not yet complete.

2018 Acquisition

Dresser-Rand Government Business (DRG)

On April 2, 2018, the Corporation acquired certain assets and assumed certain liabilities of DRG for $210.2 million in cash after giving effect to certain post-closing adjustments pursuant to the Asset Purchase Agreement. The Asset Purchase Agreement contains representations and warranties customary for a transaction of this type. DRG is a designer and manufacturer of mission-critical, high-speed rotating equipment solutions and also acts as the sole supplier of steam turbines and main engine guard valves on all aircraft carrier programs. The acquired business operates within the Corporation's Power segment.

4.           RECEIVABLES

Receivables primarily include amounts billed to customers, unbilled charges on long-term contracts consisting of amounts recognized as sales but not billed, and other receivables.  Substantially all amounts of unbilled receivables are expected to be billed and collected within one year. An immaterial amount of unbilled receivables are subject to retainage provisions. The amount of claims and unapproved change orders within our receivables balances are immaterial.

The composition of receivables is as follows:
(In thousands)September 30, 2019December 31, 2018
Billed receivables:
Trade and other receivables$415,681  $