TDG
#Let's see.
Let me answer that in a couple of ways.
I could say in total, that's not to say it couldn't be account by account, but when you roll the thing up in total, the pricing dynamics and the pricing numbers have not changed substantively for a number of years.
It's still roughly we get the same answer.
Maybe one unit this year is a little better than another one, but they all tend to put and take and weight up to about the same number which is one we tracked very closely.
The other question was distributor versus direct.
In the military, we sell to distributors and brokers where they get the same price.
There is no difference there.
In the commercial, I don't ---+ I'm not sure of the answer to that.
I think it's pretty close.
I don't think there's a material difference.
I think we ---+ as you know, we sort of preemptively adjusted the headcount about a year ago.
I think we may have moved it down a little bit this quarter but not by ---+ <UNK>, is that right.
Down a little, but not on across the board, just units adjusted as it looked to them like they were a little softer or not a little softer.
I think right now this is mostly around the commercial transport cycle and when it might start to soften up.
I think right now we think we've made about what adjustments we think are appropriate, but we will keep watching it.
Our concern is how long does the commercial transport OEM cycle hold up, when does it start to soften and when it does, how is does that reflect back into this year.
So far we see no indication and we think, frankly, the numbers we use, which we think are still conservative.
Welcome.
That means essentially it's not consistent across deals.
I mean, it's essentially we get the margin improvement essentially three ways, some price adjustment, some cost adjustment and hopefully we have, if we bought into something that's growing, we get a little bit of an operating leverage by the business growing.
If not, the other way we can get it is by looking at the product lines and seeing if we want the profitable ones and the unprofitable ones.
But the vast majority of it typically comes from natural market growth, price adjustment and cost adjustment.
We will decide that.
The capital allocation is something we will decide based on how things look when it comes time to make that decision.
I'd say the bye through the quarter, frankly we would have bought more, but we were stuck with a 10b5 plan that it essentially you have to put it on automatic pilot and it was on automatic pilot when we made the buys and what amount we could buy.
If we had it to reset, we frankly would have put more ---+ we would have set more in it.
Ramp up and readiness spending is good.
I don't ---+ at this point, I'd be very cautious about predicting any significant change in this year.
They got to get the budget, they got to place the orders then it takes a while to ship it.
It is always hard to guess when the military starts to buy but I'd be reticent.
In the near term, which I define as this year, I'd be cautious about assuming any significant change, just because of the inertia and time lag.
I would think so.
Readiness is a ---+ typically, readiness means buy more repairs parts, buy more services, buy more repairs, all that sort of thing, which is generally good for us.
I can't ---+ obviously, I can't ---+ I don't know what somebody might do in the fullness of time.
I can say it's a long effort if it was to happen and we haven't seen it.
At least typically with the OEMs, our contracting basis still looks similar to what it has in the past, generally.
I just don't know what someone might do.
We have not seen it.
I don't think the math works.
I think it's unlikely, but I can't be certain of that.
I will say again, I don't see it and I have not seen any significant sign of it.
That is ---+ I can't answer that generically.
That is very fact and circumstance specific.
I think if you, and particularly as we get bigger this gets ---+ when you roll everything up, our overall prices are pretty consistently above inflation.
Not miles above, but above.
I think that is quite difficult.
We are decentralized.
We have 33 business units.
Where they get their sourced from is difficult to estimate at this point in time.
We haven't gotten that level of detail.
We're just taking this at a very high level.
We don't want to spend a ton of time analyzing something that certainly is going to be debated for a long period of time as they put the new law, if they ever change the tax law plays.
We haven't gotten to that level of the inputs but the exports are pretty significant to us.
I think, <UNK>, it is safe to say that when you did the calculation, you assumed a reasonable deduct for that.
Yes
If you take the $1.1 billion, what's the interest.
Is about $580 million.
Interest is about $580 million.
Last year it was under $500 million but this year ---+
Say it's $580 million.
If you take the $1.1 billion, I would also say, depending how they treat distributors, that could be higher.
You can deduct a fair amount from that and still be above $580 million.
That is correct
It's a good platform.
Top 15.
I don't want to answer that because I don't ---+ I mean it's ---+ I just, I haven't done the math; I don't know the answer.
I would expect that someday it would start to show up on our top 15 or 20 platforms, but it don't know when and I don't have the math on it.
We don't disclose the price.
We just don't disclose ---+
As I told you, the prices, the weighted-up prices are higher than inflation.
We think of inflation as 3%.
But it's not miles higher.
We all think of us as we're ---+ when you look at our aftermarket and the commercial aftermarket, which I presume is what you are mostly talking about, you can pretty well think of us as market weighted.
Different people have different definitions of legacy aircraft and what the retirement rates are, but you can almost think of us as the market.
That's about how are weighted.
So if you think 727s are going to run off at a certain rate, that is how we will run off.
Remember, we are interjecting new airplanes into the mix every year, too, so as that runs off, something else moves into that old window, as long as the ship set keeps going.
That is the best way to calibrate it.
Figure we are about market weighted.
I'm not sure I'm not sure what it is.
I'm not sure of your question.
We're trying to get a very specific ---+ the very specific thing we are communicating is, the incoming orders, or bookings, are 12% higher than they were for the same quarter the previous year.
That's one.
Number two is, coincidentally, the bookings in Q1 are also somewhere around 12% higher than the shipments, or the revenues in Q1.
I got mixed up in what the pro forma you were talking about was.
