PART I [Item 1. Business](index=4&type=section&id=Item%201.%20Business%2E) Curtiss-Wright provides engineered products and solutions primarily to aerospace & defense, and commercial power, process, and industrial markets - Curtiss-Wright Corporation is a global integrated business providing highly engineered products, solutions, and services primarily to aerospace & defense markets, as well as critical technologies in demanding commercial power, process, and industrial markets[17](index=17&type=chunk) - The company operates through three reportable segments: Aerospace & Industrial, Defense Electronics, and Naval & Power[20](index=20&type=chunk) [Business Segments](index=4&type=section&id=Business%20Segments) The company operates through three segments: Aerospace & Industrial, Defense Electronics, and Naval & Power, each serving distinct markets - Aerospace & Industrial segment primarily serves general industrial and commercial aerospace markets, offering products like electronic throttle controls, joysticks, sensors, and surface technology services[23](index=23&type=chunk) - Defense Electronics segment primarily serves defense markets, providing COTS embedded computing, data acquisition, flight test instrumentation, integrated subsystems, and tactical communications solutions[24](index=24&type=chunk) - Naval & Power segment primarily serves naval defense and power & process markets, offering naval propulsion and auxiliary equipment, commercial nuclear power plant products, and severe-service valve technologies[25](index=25&type=chunk) [Other Information](index=5&type=section&id=OTHER%20INFORMATION) This section details foreign operations, government sales, customer diversification, intellectual property, and human capital strategies Foreign Operations as Percentage of Pre-Tax Earnings | Year | Percentage of Pre-Tax Earnings | | :--- | :----------------------------: | | 2021 | 27% | | 2020 | 28% | | 2019 | 31% | Government Sales as Percentage of Total Net Sales | Year | Percentage of Total Net Sales | | :--- | :----------------------------: | | 2021 | 55% | | 2020 | 53% | | 2019 | 43% | U.S. Government Sales by Segment (In thousands) | Segment | 2021 | 2020 | 2019 | | :--------------------- | :------------ | :------------ | :------------ | | Aerospace & Industrial | $155,276 | $156,981 | $142,666 | | Defense Electronics | $600,085 | $470,949 | $367,923 | | Naval & Power | $499,486 | $491,388 | $426,116 |\ | **Total** | **$1,254,847**| **$1,119,318**| **$936,705** | - No single commercial customer accounted for more than **10% of total net sales** during 2021, 2020, or 2019, indicating customer diversification[32](index=32&type=chunk) - The company's intellectual property strategy relies on a portfolio of patents, trade secrets, and unpatented R&D, but no single patent or group of patents is considered materially dependent for business success[34](index=34&type=chunk) - The company had approximately **7,800 employees** in over 20 countries at the end of 2021, with **7% represented by labor unions**[39](index=39&type=chunk) - Key human capital strategies include competitive compensation and benefits (401(k) matching, ESPP, health insurance, tuition reimbursement), diversity and inclusion initiatives, and a strong focus on employee health and safety, with a Total Recordable Rate (TRR) of **1.49** and Days Away, Restriction and Transfer Rate (DART) of **0.99** in 2021[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) [Item 1A. Risk Factors](index=9&type=section&id=Item%201A.%20Risk%20Factors%2E) Curtiss-Wright faces material risks from COVID-19, cybersecurity, product liability, market dependence on government spending, and financial factors - The COVID-19 pandemic continues to pose risks to the business, impacting supply chains, production levels, and employee health and safety, with unpredictable duration and extent of impacts[47](index=47&type=chunk)[49](index=49&type=chunk)[52](index=52&type=chunk) - Operational risks include potential system intrusions (cybersecurity), product liability, warranty obligations, and the failure to satisfy contractual obligations, which could damage reputation and financial performance[54](index=54&type=chunk)[55](index=55&type=chunk)[58](index=58&type=chunk)[59](index=59&type=chunk) - Strategic risks involve challenges in implementing acquisition strategies, developing new technologies in rapidly changing markets, and intense competition from companies with greater resources[65](index=65&type=chunk)[71](index=71&type=chunk)[73](index=73&type=chunk) - Market risks include substantial reliance on U.S. Government defense spending (**50% of net sales in 2021**), potential downturns in the aircraft market, and the susceptibility of backlog to reduction or cancellation[77](index=77&type=chunk)[83](index=83&type=chunk)[85](index=85&type=chunk) - Financial risks encompass political and economic changes in foreign markets (including currency fluctuations), unanticipated changes in tax provisions, reliance on estimates for long-term contracts, potential asset impairment charges (goodwill and intangibles were **~49% of total assets in 2021**), and increasing costs of employee and retiree benefits[108](index=108&type=chunk)[110](index=110&type=chunk)[112](index=112&type=chunk)[114](index=114&type=chunk)[120](index=120&type=chunk) [Item 1B. Unresolved Staff Comments](index=21&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments%2E) There are no unresolved staff comments to report - No unresolved staff comments[133](index=133&type=chunk) [Item 2. Properties](index=21&type=section&id=Item%202.%20Properties%2E) The company operates 154 facilities globally, primarily for manufacturing and engineering, with headquarters leased in North Carolina - Corporate headquarters is a leased facility in Davidson, North Carolina[134](index=134&type=chunk) - As of December 31, 2021, the company had **154 facilities worldwide**[134](index=134&type=chunk) - Approximately **80% of facilities** are for manufacturing, engineering, metal treatment, or aerospace overhaul, and **20%** for selling and administrative offices[134](index=134&type=chunk) Number of Facilities by Segment and Location (as of Dec 31, 2021) | Location | Aerospace & Industrial | Defense Electronics | Naval & Power | Total | | :------------ | :--------------------- | :------------------ | :------------ | :---- | | **Owned** | | | | | | North America | 8 | 1 | 9 | 18 |\ | Europe | 9 | — | 1 | 10 |\ | Total Owned | 17 | 1 | 10 | 28 |\ | **Leased** | | | | |\ | North America | 42 | 17 | 24 | 83 |\ | Europe | 18 | 5 | 3 | 26 |\ | Asia | 10 | 1 | 2 | 13 |\ | Total Leased | 70 | 23 | 29 | 122 | [Item 3. Legal Proceedings](index=22&type=section&id=Item%203.%20Legal%20Proceedings%2E) The company is involved in various legal proceedings, including asbestos and environmental claims, but anticipates no material adverse effects - The company is involved in legal proceedings related to asbestos, environmental exposures, intellectual property, personal injury, employment, government contracts, and commercial disputes[136](index=136&type=chunk) - Management believes the disposition of these matters will not have a material adverse effect on consolidated financial condition, results of operations, and cash flows, due to minimal asbestos use and adequate insurance coverage[136](index=136&type=chunk)[137](index=137&type=chunk) [Item 4. Mine Safety Disclosures](index=22&type=section&id=Item%204.%20Mine%20Safety%20Disclosures%2E) This item is not applicable to Curtiss-Wright Corporation - Not applicable[138](index=138&type=chunk) PART II [Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=23&type=section&id=Item%205.%20Market%20for%20the%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities%2E) Common stock trades on NYSE (CW), with quarterly dividends and active share repurchase programs - Common stock is listed and traded on the New York Stock Exchange (NYSE) under the symbol CW[141](index=141&type=chunk) Quarterly Dividends Paid (USD per share) | Quarter | 2021 | 2020 | | :------------ | :---- | :---- | | First Quarter | $0.17 | $0.17 | | Second Quarter| $0.18 | $0.17 | | Third Quarter | $0.18 | $0.17 | | Fourth Quarter| $0.18 | $0.17 | Equity Compensation Plan Information (as of Dec 31, 2021) | Plan Category | Number of Securities to be Issued | Weighted-Average Fair Value | Number of Securities Remaining Available for Future Issuance | | :------------------------------------------------ | :------------------------------: | :-------------------------: | :----------------------------------------------------------: | | Equity compensation plans approved by security holders | 421,066 | $111.54 | 1,942,123 | Issuer Purchases of Equity Securities (Q4 2021) | Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of a Publicly Announced Program | Maximum Dollar Amount of Shares That May Yet Be Purchased Under the Program | | :---------------------------- | :------------------------------: | :--------------------------: | :--------------------------------------------------------------------: | :-----------------------------------------------------------------------: | | October 1 – October 31 | 1,233,989 | $131.17 | 1,882,840 | $359,177,280 |\ | November 1 – November 30 | 185,346 | $132.54 | 2,068,186 | $334,611,359 |\ | December 1 – December 31 | 584,582 | $132.75 | 2,652,768 | $257,008,939 |\ | **For the quarter ended Dec 31**| **2,003,917** | **$131.76** | **2,652,768** | **$257,008,939** | - In December 2021, the Corporation adopted two trading plans for its share repurchase program, with approximately **$250 million remaining available** for repurchase out of a **$550 million authorization**[147](index=147&type=chunk) [Item 6. Selected Financial Data](index=25&type=section&id=Item%206.%20Selected%20Financial%20Data%2E) This item is reserved and contains no information - This item is reserved[153](index=153&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations%2E) This section analyzes 2021 financial results, market trends, liquidity, and critical accounting estimates, showing sales growth and increased operating income - Curtiss-Wright is a global integrated business providing highly engineered products, solutions, and services mainly to aerospace & defense markets, as well as critical technologies in demanding commercial power, process, and industrial markets[154](index=154&type=chunk) - The company's commercial businesses are largely driven by global economic growth, with the U.S. GDP rebounding sharply by **5.7% in 2021**, the fastest pace since 1984[159](index=159&type=chunk)[160](index=160&type=chunk) - Defense spending is a key driver, with the FY22 National Defense Authorization Act (NDAA) authorizing a **$25 billion increase** over the President's budget proposal, reflecting strong bipartisan support for programs like Ford class aircraft carriers and Columbia/Virginia class submarines[163](index=163&type=chunk)[166](index=166&type=chunk) - Commercial aerospace market growth is tied to aircraft production rates, with air travel demand expected to modestly recover in 2022 and fully by 2025 after the COVID-19 pandemic's impact[169](index=169&type=chunk)[170](index=170&type=chunk) - Power & Process market opportunities are driven by plant aging, life extensions, and new plant construction globally, with a focus on Generation III+ Westinghouse AP1000 reactors and next-generation advanced/small modular reactors[173](index=173&type=chunk)[176](index=176&type=chunk) - General Industrial market growth is aligned with U.S. and global economies, with a focus on electronification and electrification for industrial vehicles, medical mobility, and specialty vehicles, and surface treatment services[178](index=178&type=chunk)[179](index=179&type=chunk)[181](index=181&type=chunk) [Results of Operations](index=29&type=section&id=RESULTS%20OF%20OPERATIONS) Total sales increased 5% to **$2.5 billion** and operating income rose 32% to **$383 million** in 2021, driven by defense and power segments Consolidated Financial Performance (2021 vs. 2020, In thousands) | Metric | 2021 | 2020 | Percent Change | | :--------------------- | :---------- | :---------- | :------------- | | Total Sales | $2,505,931 | $2,391,336 | 5% | | Total Operating Income | $382,683 | $288,848 | 32% | | Net Earnings | $267,159 | $201,392 | 33% | | New Orders | $2,579,881 | $2,321,481 | 11% | | Backlog | $2,228,924 | $2,163,750 | 3% | Components of Sales and Operating Income Growth (2021 vs. 2020) | Component | Sales Growth | Operating Income Growth | | :----------------------------- | :----------- | :---------------------- | | Organic | (1)% | 11% | | Acquisitions | 5% | 5% | | Impairment of assets held for sale | —% | 5% | | Restructuring | —% | 14% | | Foreign currency | 1% | (3)% | | **Total** | **5%** | **32%** | - Operating margin increased **320 basis points** in 2021 compared to 2020, driven by restructuring savings and operational excellence initiatives[186](index=186&type=chunk) - Interest expense increased **13% to $40 million**, primarily due to the issuance of **$300 million Senior Notes** in August 2020[187](index=187&type=chunk) - The effective tax rate increased to **24.6% in 2021** from **23.4% in 2020**, mainly due to higher non-deductible impairment losses related to the German industrial valves business held for sale[189](index=189&type=chunk) [Results by Business Segment](index=31&type=section&id=RESULTS%20BY%20BUSINESS%20SEGMENT) Aerospace & Industrial sales decreased, while Defense Electronics and Naval & Power segments showed strong sales and operating income growth Aerospace & Industrial Segment Performance (2021 vs. 2020, In thousands) | Metric | 2021 | 2020 | Percent Change | | :--------------- | :--------- | :--------- | :------------- | | Sales | $786,334 | $805,673 | (2)% | | Operating Income | $121,817 | $99,714 | 22% | | Operating Margin | 15.5% | 12.4% | 310 bps | | New Orders | $853,077 | $651,187 | 31% | | Backlog | $338,581 | $277,031 | 22% | - Aerospace & Industrial sales decreased primarily due to the exit of a build-to-print product line in commercial aerospace, partially offset by higher demand in the general industrial market[196](index=196&type=chunk) Defense Electronics Segment Performance (2021 vs. 2020, In thousands) | Metric | 2021 | 2020 | Percent Change | | :--------------- | :--------- | :--------- | :------------- | | Sales | $724,326 | $608,757 | 19% | | Operating Income | $159,089 | $118,748 | 34% | | Operating Margin | 22.0% | 19.5% | 250 bps | | New Orders | $743,199 | $704,989 | 5% | | Backlog | $667,510 | $652,957 | 2% | - Defense Electronics sales and operating income increased significantly due to the incremental impact of the PacStar acquisition and operational excellence initiatives[202](index=202&type=chunk) Naval & Power Segment Performance (2021 vs. 2020, In thousands) | Metric | 2021 | 2020 | Percent Change | | :--------------- | :--------- | :--------- | :------------- | | Sales | $995,271 | $976,906 | 2% | | Operating Income | $141,660 | $108,151 | 31% | | Operating Margin | 14.2% | 11.1% | 310 bps | | New Orders | $983,605 | $965,305 | 2% | | Backlog | $1,222,833 | $1,233,762 | (1)% | - Naval & Power sales increased due to higher production on the CVN-81 aircraft carrier program and foreign military sales, while operating income benefited from restructuring savings and lower impairment losses on assets held for sale[208](index=208&type=chunk) [Supplementary Information](index=33&type=section&id=SUPPLEMENTARY%20INFORMATION) Net sales disaggregation shows a 4% increase in Aerospace & Defense markets and a 6% increase in Commercial markets Net Sales by End Market and Customer Type (2021 vs. 2020, In thousands) | End Market and Customer Type | 2021 | 2020 | Percent Change | | :--------------------------- | :---------- | :---------- | :------------- | | **Aerospace & Defense markets:** | | | | | Aerospace Defense | $452,661 | $463,690 | (2)% | | Ground Defense | $220,290 | $107,448 | 105% | | Naval Defense | $710,688 | $692,152 | 3% | | Commercial Aerospace | $267,722 | $325,518 | (18)% | | **Total Aerospace & Defense**| **$1,651,361**| **$1,588,808**| **4%** | | **Commercial markets:** | | | | | Power & Process | $473,489 | $474,842 | —% | | General Industrial | $381,081 | $327,686 | 16% | | **Total Commercial** | **$854,570**| **$802,528**| **6%** | | **Total Curtiss-Wright** | **$2,505,931**| **$2,391,336**| **5%** | - Ground defense market sales increased **105%** due to the PacStar acquisition, contributing **$115 million** in incremental sales[213](index=213&type=chunk) - General industrial market sales increased by **$50 million** due to higher demand for industrial vehicle products[214](index=214&type=chunk) [Liquidity and Capital Resources](index=34&type=section&id=Liquidity%20and%20Capital%20Resources) Operating cash flow increased to **$388 million**, with debt repayments and share repurchases impacting cash and capital resources Consolidated Statement of Cash Flows (In thousands) | Cash Flow Activity | 2021 | 2020 | | :------------------------------------------------ | :---------- | :---------- | | Net cash provided by operating activities | $387,668 | $261,180 | | Net cash used in investing activities | $(42,403) | $(532,530) | | Net cash provided by (used for) financing activities | $(369,129) | $82,081 | | Net increase (decrease) in cash and cash equivalents | $(27,244) | $(192,785) | - Cash provided by operating activities increased **$126 million to $388 million**, mainly due to a prior year voluntary pension contribution of **$150 million** and timing of cash receipts[218](index=218&type=chunk) - Capital expenditures decreased to **$41 million in 2021** from **$47 million in 2020**, with anticipated capital expenditures of **$50 million to $60 million for 2022**[219](index=219&type=chunk)[231](index=231&type=chunk) - The company repaid **$100 million of 2011 Notes** in 2021 and repurchased approximately **2.7 million shares of common stock for $343 million**[223](index=223&type=chunk)[225](index=225&type=chunk) Cash and Cash Equivalents by Jurisdiction (In thousands) | Location | 2021 | 2020 | | :------------------------ | :---------- | :---------- | | United States of America | $37,361 | $55,391 | | United Kingdom | $69,732 | $49,258 | | European Union | $12,154 | $21,156 | | Canada | $24,019 | $34,795 | | China | $13,403 | $20,692 | | Other foreign countries | $14,335 | $16,956 | | **Total** | **$171,004**| **$198,248**| - As of December 31, 2021, the company was in compliance with all debt agreements and credit facility covenants, with the ability to incur **$1.6 billion** in additional indebtedness[230](index=230&type=chunk) Future Contractual Obligations and Commercial Commitments (as of Dec 31, 2021, In thousands) | Obligation Type | Total | 2022 | 2023 | 2024 | 2025 | 2026 | Thereafter | | :------------------------------ | :------------ | :-------- | :-------- | :-------- | :-------- | :-------- | :--------- | | Debt Principal Repayments | $1,043,900 | $— | $296,400 | $— | $90,000 | $200,000 | $457,500 | | Operating Leases | $186,596 | $31,698 | $29,037 | $26,166 | $19,811 | $16,161 | $63,723 | | Interest Payments on Fixed Rate Debt | $200,621 | $35,320 | $32,698 | $27,828 | $26,615 | $23,821 | $54,339 | | **Total** | **$1,431,117**| **$67,018**| **$358,135**| **$53,994**| **$136,426**| **$239,982**| **$575,562**| [Critical Accounting Estimates and Policies](index=37&type=section&id=Critical%20Accounting%20Estimates%20and%20Policies) Critical accounting estimates include revenue recognition, pension benefits, goodwill impairment, and intangible asset amortization, requiring significant judgment - Revenue recognition is split approximately **50% over-time** and **50% at a point-in-time** for the year ended December 31, 2021[237](index=237&type=chunk)[238](index=238&type=chunk)[312](index=312&type=chunk) - Long-term contract accounting requires significant judgment in estimating total revenues and costs, with changes recognized using the cumulative catch-up method[112](index=112&type=chunk)[113](index=113&type=chunk)[237](index=237&type=chunk) - Pension and other postretirement benefit calculations rely on actuarial assumptions, with the discount rate for the CW Pension Plan increasing from **2.53% to 2.87% in 2021**, and the expected long-term rate of return on plan assets decreasing to **5.8% for 2022**[243](index=243&type=chunk)[244](index=244&type=chunk)[246](index=246&type=chunk) - Goodwill amounted to **$1.5 billion** as of December 31, 2021, representing approximately **49% of total assets**, and annual impairment testing in Q4 2021 concluded no impairment[115](index=115&type=chunk)[250](index=250&type=chunk)[253](index=253&type=chunk) - Other intangible assets, primarily from acquisitions, are amortized over **1 to 20 years**, with amortization expense of **$60 million in 2021**[290](index=290&type=chunk)[344](index=344&type=chunk) [Item 7A. Quantitative and Qualitative Disclosures about Market Risk](index=39&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk%2E) The company manages market risks from interest rates and foreign currency fluctuations, with a 10% FX change potentially impacting net earnings by **$11 million** - The company is exposed to market risks from changes in interest rates and foreign currency exchange rates[257](index=257&type=chunk) - Fixed rate interest exposure was **91%** as of December 31, 2021, and a **1% change in interest rates** would not materially impact consolidated interest expense[258](index=258&type=chunk) - A **10% collective weakening or strengthening** of foreign exchange rates against the U.S. dollar would decrease or increase net earnings by approximately **$11 million**[259](index=259&type=chunk) - Foreign currency risk is primarily related to the British Pound, Canadian dollar, and Euro[259](index=259&type=chunk) [Item 8. Financial Statements and Supplementary Data](index=41&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data%2E) This section provides consolidated financial statements and extensive notes detailing accounting policies, financial position, and performance Consolidated Statements of Earnings (In thousands, except per share data) | Metric | 2021 | 2020 | 2019 | | :-------------------------- | :---------- | :---------- | :---------- | | Total Net Sales | $2,505,931 | $2,391,336 | $2,487,961 | | Gross Profit | $933,356 | $841,227 | $898,745 | | Operating Income | $382,683 | $288,848 | $403,953 | | Earnings Before Income Taxes| $354,510 | $263,051 | $396,462 | | Net Earnings | $267,159 | $201,392 | $307,583 | | Basic Earnings Per Share | $6.61 | $4.83 | $7.20 | | Diluted Earnings Per Share | $6.58 | $4.80 | $7.15 | | Dividends Per Share | $0.71 | $0.68 | $0.66 | Consolidated Statements of Comprehensive Income (In thousands) | Metric | 2021 | 2020 | 2019 | | :------------------------------------------ | :---------- | :---------- | :---------- | | Net Earnings | $267,159 | $201,392 | $307,583 | | Foreign currency translation, net of tax | $(10,829) | $41,282 | $18,447 | | Pension and postretirement adjustments, net of tax | $131,220 | $(26,864) | $(29,017) | | Other comprehensive income (loss), net of tax | $120,391 | $14,418 | $(10,570) | | Comprehensive Income | $387,550 | $215,810 | $297,013 | Consolidated Balance Sheets (In thousands) | Asset/Liability/Equity Category | 2021 | 2020 | | :------------------------------------------ | :------------ | :------------ | | **ASSETS** | | | | Total Current Assets | $1,307,808 | $1,300,824 | | Property, Plant, and Equipment, net | $360,031 | $378,200 | | Goodwill | $1,463,026 | $1,455,137 | | Other Intangible Assets, net | $538,077 | $609,630 | | Prepaid Pension Asset | $256,422 | $92,531 | | **Total Assets** | **$4,103,545**| **$4,021,334**| | **LIABILITIES** | | | | Total Current Liabilities | $734,867 | $810,377 | | Long-Term Debt | $1,050,610 | $958,292 | | Deferred Tax Liabilities | $147,349 | $115,007 | | Accrued Pension and Other Postretirement Benefit Costs | $91,329 | $98,345 | | **Total Liabilities** | **$2,277,055**| **$2,233,760**| | **STOCKHOLDERS' EQUITY** | | | | Total Stockholders' Equity | $1,826,490 | $1,787,574 | Consolidated Statements of Cash Flows (In thousands) | Cash Flow Activity | 2021 | 2020 | 2019 | | :------------------------------------------------ | :---------- | :---------- | :---------- | | Net cash provided by operating activities | $387,668 | $261,180 | $421,404 | | Net cash used for investing activities | $(42,403) | $(532,530) | $(240,040) | | Net cash provided by (used for) financing activities | $(369,129) | $82,081 | $(68,145) | | Net increase (decrease) in cash and cash equivalents | $(27,244) | $(192,785) | $114,967 | | Cash and cash equivalents at end of year | $171,004 | $198,248 | $391,033 | Consolidated Statements of Stockholders' Equity (In thousands) | Metric | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | | :-------------------------------------- | :----------- | :----------- | :----------- | | Common Stock | $49,187 | $49,187 | $49,187 | | Additional Paid-in Capital | $127,104 | $122,535 | $116,070 | | Retained Earnings | $2,908,827 | $2,670,328 | $2,497,111 | | Accumulated Other Comprehensive Loss | $(190,465) | $(310,856) | $(325,274) | | Common Treasury Stock, at cost | $(1,068,163) | $(743,620) | $(562,722) | | **Total Stockholders' Equity** | **$1,826,490**| **$1,787,574**| **$1,774,382**| Report of the Corporation Management affirms GAAP compliance and effective internal controls, with Deloitte & Touche LLP issuing an unqualified audit opinion - Consolidated Financial Statements are prepared in conformity with U.S. GAAP, based on management's best estimates and judgments[466](index=466&type=chunk) - Management maintains effective accounting systems, procedures, and internal accounting controls to safeguard assets and ensure proper transaction recording[467](index=467&type=chunk) - Deloitte & Touche LLP performed an integrated audit of the financial statements and internal controls, expressing an unqualified opinion[468](index=468&type=chunk) Report of Independent Registered Public Accounting Firm [Opinion on the Financial Statements](index=79&type=section&id=Opinion%20on%20the%20Financial%20Statements) Deloitte & Touche LLP issued an unqualified opinion on the fair presentation of consolidated financial statements in accordance with U.S. GAAP - Deloitte & Touche LLP expressed an unqualified opinion on the consolidated financial statements for the period ended December 31, 2021, confirming fair presentation in accordance with U.S. GAAP[471](index=471&type=chunk) [Opinion on Internal Control over Financial Reporting](index=79&type=section&id=Opinion%20on%20Internal%20Control%20over%20Financial%20Reporting) Deloitte & Touche LLP issued an unqualified opinion on the effectiveness of internal control over financial reporting - Deloitte & Touche LLP expressed an unqualified opinion on the effectiveness of the company's internal control over financial reporting as of December 31, 2021[472](index=472&type=chunk)[483](index=483&type=chunk) [Critical Audit Matter](index=79&type=section&id=Critical%20Audit%20Matter) Revenue recognition on over-time contracts, especially with limited historical data, was a critical audit matter requiring extensive judgment - The critical audit matter relates to revenue recognition on an over-time basis, especially for highly engineered industrial products in commercial and defense applications, where **50% of 2021 revenue** was recognized over-time[476](index=476&type=chunk)[477](index=477&type=chunk) - Auditing management's estimates of total costs for contracts with limited historical data required extensive audit effort and judgment[480](index=480&type=chunk) - Audit procedures included evaluating management's methods and assumptions for future cost estimates, corroborating inquiries with project managers and engineers, testing cost accuracy, and analyzing changes in cost estimates[481](index=481&type=chunk) PART III [Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure](index=83&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosure%2E) There are no changes in or disagreements with accountants on accounting and financial disclosure to report - No changes in or disagreements with accountants on accounting and financial disclosure[490](index=490&type=chunk) [Item 9A. Controls and Procedures](index=83&type=section&id=Item%209A.%20Controls%20and%20Procedures%2E) Management concluded disclosure controls and internal control over financial reporting were effective, with no material changes - The Corporation's disclosure controls and procedures were deemed effective as of December 31, 2021[492](index=492&type=chunk) - Management assessed and believes the Corporation's internal control over financial reporting is effective as of December 31, 2021, based on the COSO framework[495](index=495&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended December 31, 2021[497](index=497&type=chunk) [Item 9B. Other Information](index=83&type=section&id=Item%209B.%20Other%20Information%2E) There is no other information to report under this item - No other information to report[498](index=498&type=chunk) PART IV [Item 15. Exhibits, Financial Statement Schedule](index=83&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedule%2E) This section lists financial statements, supplementary data, and a comprehensive array of exhibits and schedules - Includes Consolidated Statements of Earnings, Comprehensive Income, Balance Sheets, Cash Flows, Stockholders' Equity, and Notes to Consolidated Financial Statements[504](index=504&type=chunk) - Schedule II – Valuation and Qualifying Accounts is provided for the years ended December 31, 2021, 2020, and 2019[504](index=504&type=chunk)[519](index=519&type=chunk) - A comprehensive list of exhibits, including organizational documents, incentive plans, debt agreements, and certifications, is provided[505](index=505&type=chunk)[507](index=507&type=chunk)[508](index=508&type=chunk)[509](index=509&type=chunk)[510](index=510&type=chunk)[511](index=511&type=chunk)[512](index=512&type=chunk)[514](index=514&type=chunk)[516](index=516&type=chunk)

Financial Data and Key Metrics Changes - The company experienced a strong 12% increase in overall sales, with 4% being organic growth [7] - Adjusted operating income improved by 12%, with adjusted operating margins at 17.5% [9] - Adjusted diluted EPS was $1.88, slightly above expectations, and free cash flow increased by 76% compared to the prior year [10] Business Line Data and Key Metrics Changes - Aerospace & Industrial segment sales increased by 14%, driven by strong demand in commercial aerospace and general industrial markets [16] - Defense Electronics segment revenues rose by 22%, primarily due to the PacStar acquisition, although organic sales were impacted by timing issues [18] - Naval & Power segment revenues increased by 3%, with higher sales in naval nuclear propulsion equipment [20] Market Data and Key Metrics Changes - A&D market orders grew by 7%, while commercial market orders saw robust growth of 25% [11] - The company reported a book-to-bill ratio exceeding one, indicating strong order activity [33] Company Strategy and Development Direction - The company is focused on strategic investments, including a $12 million increase in R&D spending to support future growth initiatives [9][30] - Share repurchase authorization was increased from $150 million to $550 million, with plans to repurchase at least $250 million in 2021 [14] - The company remains committed to acquisitions as a priority for growth, with a full pipeline of opportunities [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing supply chain disruptions but noted that these have not materially impacted full-year results [12] - The company expects to achieve strong results in 2021, with adjusted EPS guidance raised to a range of $7.20 to $7.35 [15][29] - Management expressed confidence in the defense budget's bipartisan support and its alignment with the company's priorities [45] Other Important Information - The company is on track to achieve its ninth consecutive year of over 100% free cash flow conversion [31] - The company is managing supply chain challenges through dual sourcing and strategic relationships [39] Q&A Session Summary Question: Supply chain risk management - Management discussed efforts to mitigate supply chain risks, including dual sourcing and addressing electronic component shortages [36][39] Question: Impact of continuing resolution on defense portfolio - Management noted that while continuing resolutions are disappointing, they are somewhat insulated due to selling primarily to primes [42][43] Question: Performance of acquisitions in the defense sector - Management reported positive performance from acquisitions, with no significant challenges noted beyond general supply chain delays [50] Question: Outlook for the CAP1000 program - Management indicated they are managing capacity effectively as the CAP1000 program winds down, with potential future opportunities in nuclear projects [52][53] Question: Share repurchase strategy - Management confirmed that share repurchases are part of a broader capital allocation strategy, with acquisitions remaining a top priority [55][60] Question: Budget markups and their implications - Management highlighted positive budget markups for naval programs, which are expected to benefit the company [61]

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, 2021 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) Delaware 13-0612970 (State or oth ...

Q2 2021 Performance Highlights - Adjusted Net Sales increased 14% overall, with A&D markets up 11% and Commercial markets up 21%[5] - Adjusted Operating Income increased 24%, and Adjusted Operating Margin increased 120 bps to 156%[5] - Adjusted Diluted EPS was $156, up 22%[5] - New orders reached $679 million, up 11%, driven by a strong 11x book-to-bill in Commercial markets[5] FY 2021 Adjusted Guidance - The company raised full-year guidance for Sales, Operating Income, Operating Margin, and EPS[6] - Overall sales growth is expected to be 7% - 9%, with solid growth in both A&D and Commercial end markets[6] - Operating income growth is projected to be 9% - 12%, outpacing sales growth, driving margin expansion of 40 - 50 bps to 167% - 168%[6] - Adjusted diluted EPS increased by $005 to a new range of $715 - $735, up 9% - 12%[6] - Free Cash Flow (FCF) guidance is maintained in the range of $330 - $360 million, with Adjusted FCF conversion >110%[6] Segment Performance (Q2 2021) - Aerospace & Industrial sales increased 17% to $194 million, with a margin of 157%, up 800 bps, driven by strong growth in industrial vehicle sales (>40%)[8] - Defense Electronics sales increased 17% to $163 million, with a margin of 189%, down 510 bps, reflecting increased R&D ($4 million) and unfavorable mix and FX ($2 million)[8] - Naval & Power sales increased 11% to $252 million, with a margin of 172%, up 30 bps, driven by strong growth in naval defense[8] 2021E End Market Sales Growth (Guidance) - Total Curtiss-Wright sales are expected to grow by 7% - 9%[9] - Aerospace Defense is projected to grow by 2% - 4%, representing 19% of sales[9] - Ground Defense is projected to grow by 100% - 105%, representing 9% of sales[9] - Naval Defense is projected to grow by 0% - 2%, representing 28% of sales[9] - Commercial Aero is projected to remain flat, representing 10% of sales[9] - Power & Process is projected to grow by 1% - 3%, representing 18% of sales[9] - General Industrial is projected to grow by 15% - 17%, representing 15% of sales[9]

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 June 30, 2021 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) Delaware 13-0612970 (State or other ju ...

Curtiss-Wright Corporation (NYSE:CW) Q2 2021 Earnings Conference Call August 4, 2021 10:00 AM ET Company Participants Jim Ryan – Senior Director of Investor Relations Lynn Bamford – President and Chief Executive Officer Chris Farkas – Vice President and Chief Financial Officer Conference Call Participants Nathan Jones – Stifel Myles Walton – UBS Michael Ciarmoli – Truist Securities Peter Arment – Baird Operator Thank you for standing by, and welcome to the Curtiss-Wright Second Quarter 2021 Financial Result ...

Curtiss-Wright Corporation (NYSE:CW) Q1 2021 Earnings Conference Call May 6, 2021 10:00 AM ET Company Participants Jim Ryan - Senior Director, IR Lynn Bamford - CEO, President Chris Farkas - CFO, VP Conference Call Participants Mike Ciarmoli - Truist Peter Arment - Baird Myles Walton - UBS Operator Good day, and thank you for standing by. Welcome to the Curtiss-Wright First Quarter 2021 Financial Results Conference Call. [Operator Instructions] I would now like to hand the conference over to your speaker to ...

PART I [Financial Statements (Unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements) Unaudited Q1 2021 financial statements report increased net earnings and operating income, with total assets of **$3.98 billion** and significantly improved operating cash flow Financial Metric | Financial Metric | Q1 2021 (In thousands) | Q1 2020 (In thousands) | YoY Change | | :--- | :--- | :--- | :--- | | Total Net Sales | $597,059 | $601,231 | -0.7% | | Gross Profit | $209,757 | $200,579 | +4.6% | | Operating Income | $85,066 | $72,446 | +17.4% | | Net Earnings | $59,469 | $51,761 | +14.9% | | Diluted EPS | $1.45 | $1.21 | +19.8% | Balance Sheet Item | Balance Sheet Item | March 31, 2021 (In thousands) | December 31, 2020 (In thousands) | | :--- | :--- | :--- | | Total Current Assets | $1,286,739 | $1,300,824 | | Total Assets | $3,981,050 | $4,021,334 | | Total Current Liabilities | $734,802 | $810,377 | | Total Liabilities | $2,142,886 | $2,233,760 | | Total Stockholders' Equity | $1,838,164 | $1,787,574 | Cash Flow Activity | Cash Flow Activity | Q1 2021 (In thousands) | Q1 2020 (In thousands) | | :--- | :--- | :--- | | Net cash used for operating activities | $(26,603) | $(192,576) | | Net cash used for investing activities | $(12,855) | $(67,674) | | Net cash (used for) provided by financing activities | $(7,107) | $39,268 | | Net decrease in cash | $(51,179) | $(233,276) | - Effective January 1, 2021, the Corporation reorganized its reportable segments into three new categories: Aerospace & Industrial, Defense Electronics, and Naval & Power to better align product sales with its end market structure; previously reported amounts were recast, but this did not impact consolidated financial statements[31](index=31&type=chunk) - Total backlog as of March 31, 2021, was approximately **$2.1 billion**, with the company expecting to recognize about **88%** of this backlog as net sales over the next 36 months[37](index=37&type=chunk) [Management's Discussion and Analysis (MD&A)](index=19&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A details Q1 2021 performance, showing a 1% sales decrease to **$597 million**, a 17% operating income rise to **$85 million**, and improved operating margin and liquidity [Results of Operations](index=23&type=section&id=RESULTS%20OF%20OPERATIONS) Q1 2021 results show total sales decreased 1% to **$597 million**, operating income increased 17% to **$85 million**, and operating margin expanded to **14.2%** Performance Component | Performance Component | Sales Change | Operating Income Change | | :--- | :--- | :--- | | Organic | (8%) | 15% | | Acquisitions | 6% | 5% | | Foreign currency | 1% | (3%) | | **Total** | **(1%)** | **17%** | - Operating income growth was driven by favorable overhead absorption and mix in Defense Electronics, and restructuring savings and favorable mix in Naval & Power, partially offset by unfavorable absorption on lower sales in the Aerospace & Industrial segment[114](index=114&type=chunk) - Interest expense increased by **33%** to **$10 million**, primarily due to the issuance of **$300 million** in Senior Notes in August 2020[115](index=115&type=chunk) [Results by Business Segment](index=25&type=section&id=RESULTS%20BY%20BUSINESS%20SEGMENT) Q1 2021 segment performance shows Aerospace & Industrial sales down **20%**, Defense Electronics sales up **30%**, and Naval & Power sales remaining flat Segment Performance | Segment | Q1 2021 Sales (Millions) | YoY Change | Q1 2021 Op. Income (Millions) | YoY Change | Q1 2021 Op. Margin | | :--- | :--- | :--- | :--- | :--- | :--- | | Aerospace & Industrial | $180.3 | (20%) | $19.0 | (41%) | 10.6% | | Defense Electronics | $181.2 | 30% | $36.6 | 52% | 20.2% | | Naval & Power | $235.5 | 0% | $38.1 | 35% | 16.2% | - The Aerospace & Industrial segment's **$46 million** sales decline was primarily due to the ongoing impact of the COVID-19 pandemic on the commercial aerospace market, leading to lower sales of actuation, sensors, and surface treatment services[123](index=123&type=chunk) - The Defense Electronics segment's **$42 million** sales growth was driven by the incremental impact of the PacStar acquisition and higher demand for embedded computing equipment on helicopter and UAV platforms[130](index=130&type=chunk) - The Naval & Power segment's flat sales resulted from an **$18 million** increase in naval defense (Virginia-class submarine and CVN-81 aircraft carrier programs) being offset by a **$17 million** decrease in the power & process market[134](index=134&type=chunk) [Liquidity and Capital Resources](index=28&type=section&id=LIQUIDITY%20AND%20CAPITAL%20RESOURCES) Liquidity remains strong, with net cash used in operating activities significantly decreasing to **$26.6 million** due to a prior-year pension contribution, and **$480 million** available under its credit facility - Net cash used for operating activities improved by **$166 million** from the prior year, primarily because Q1 2020 included a **$150 million** voluntary pension contribution[147](index=147&type=chunk) - Net cash used in investing activities decreased by **$55 million**, mainly due to a **$60 million** acquisition in the prior-year period and lower capital expenditures in the current period (**$9 million** vs. **$19 million**)[148](index=148&type=chunk) - The company repurchased approximately **0.1 million** shares for **$12 million** in Q1 2021, a significant reduction from the **1.1 million** shares repurchased for **$112 million** in Q1 2020[151](index=151&type=chunk) - As of March 31, 2021, the company had no outstanding borrowings under its credit facility, with **$480 million** of unused credit available[150](index=150&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=29&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) No material changes in market risk were reported during Q1 2021, with detailed disclosures referenced in the 2020 Annual Report on Form 10-K - The company reported no material changes in its market risk during the three months ended March 31, 2021[161](index=161&type=chunk) [Controls and Procedures](index=29&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2021, with no material changes to internal control over financial reporting during the quarter - Based on an evaluation as of March 31, 2021, the CEO and CFO concluded that the company's disclosure controls and procedures are effective[162](index=162&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[163](index=163&type=chunk) PART II – OTHER INFORMATION [Legal Proceedings](index=30&type=section&id=Item%201.%20Legal%20Proceedings) The company faces various legal proceedings, including asbestos-related lawsuits, but anticipates no material adverse effect due to adequate insurance and indemnification - The company is named in asbestos-related lawsuits but has not paid any material sums and believes it is unlikely to face material liability due to minimal asbestos use in its past operations and adequate insurance coverage[167](index=167&type=chunk)[88](index=88&type=chunk) [Risk Factors](index=30&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the company's risk factors were reported during Q1 2021, with detailed discussion available in the 2020 Annual Report on Form 10-K - There have been no material changes in the company's Risk Factors during the three months ended March 31, 2021[168](index=168&type=chunk) [Share Repurchases and Use of Proceeds](index=30&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Q1 2021 saw the company repurchase **102,135** shares for **$11.8 million** at **$115.53** per share, with **$188.3 million** remaining authorized for future repurchases Share Repurchase Activity | Period | Total Shares Purchased | Average Price Paid per Share | Remaining Authorization (in millions) | | :--- | :--- | :--- | :--- | | Jan 2021 | 29,471 | $115.36 | $196.7 | | Feb 2021 | 33,590 | $113.13 | $192.9 | | Mar 2021 | 39,074 | $117.71 | $188.3 | | **Q1 Total** | **102,135** | **$115.53** | **$188.3** | - In October 2020, the Board of Directors authorized an additional **$200 million** for share repurchases, with plans to repurchase at least **$50 million** of its common stock during the 2021 calendar year[170](index=170&type=chunk) [Other Information (Items 3, 4, 5, 6)](index=30&type=section&id=Other%20Items) This section confirms no defaults on senior securities, notes mine safety disclosures are not applicable, no material changes to director nomination procedures, and lists the report's exhibits - The company reported no defaults upon senior securities for the period[171](index=171&type=chunk) - The report lists required certifications from the CEO and CFO, as well as XBRL data files, as exhibits[175](index=175&type=chunk)[176](index=176&type=chunk)[178](index=178&type=chunk)

Curtiss-Wright Corporation (NYSE:CW) Q4 2020 Earnings Conference Call February 25, 2021 10:00 AM ET Company Participants Jim Ryan - Senior Director of Investor Relations Dave Adams - Executive Chairman Lynn Bamford - President and Chief Executive Officer Chris Farkas - Vice President and Chief Financial Officer Conference Call Participants Michael Ciarmoli - Truist Securities Nathan Jones - Stifel Peter Arment - Baird Myles Walton - UBS Operator Ladies and gentlemen, thank you for standing by, and welcome t ...

Listen-Only dial-in numbers: (844) 220-4970 (domestic) (262) 558-6349 (international) Conference ID: 6585187 Q4 and FY 2020 Earnings Conference Call February 25, 2021 NYSE: CW 1 | February 25, 2021 | © 2021 Curtiss-Wright Safe Harbor Statement Please note that the information provided in this presentation is accurate as of the date of the original presentation. The presentation will remain posted on this website from one to twelve months following the initial presentation, but content will not be updated to ...