Year-to-Date: AM&M net sales for the 2012 year-to-date period increased by $29 million, or 2%, compared to the 2011 year-to-date period. Platform systems sales increased by $78 million, which was partially offset by a decline of $49 million for logistic support services. The platform systems increase was due primarily to volume on new contracts, including the Australia C-27J and international head-of-state aircraft modification contracts, and increased scope on the EC-130 aircraft for the USAF. These increases were partially offset by lower JCA volume for the USAF. Logistics support services decreased due primarily to the loss of a task order for U.S. Army contract field team support services in Southwest Asia, partially offset by increased demand for field maintenance and sustainment services on a U.S. Army rotary wing aircraft contract that was competitively won in September 2011 and for U.S. Army C-12 aircraft.AM&M operating income for the 2012 year-to-date period decreased by $2 million, or 0.9%, compared to the 2011 year-to-date period. Operating margin decreased by 30 basis points to 9.6%. The decrease in operating margin was due to a $6 million, or 30 basis points, net favorable adjustment in the 2011 year-to-date period, comprised of a favorable price adjustment for an international modification contract, partially offset by start-up costs for the U.S. Army C-12 aircraft maintenance contract. Pension expense increased by $5 million, which reduced operating margin by 30 basis points. These decreases were partially offset by 30 basis points primarily due to lower costs related to JCA.
|Third Quarter Ended||Year-to-Date Ended|
|($ in millions)||Sept. 28, 2012||Sept. 30,2011||Decrease||Sept. 28, 2012||Sept. 30,2011||Decrease|
|Operating margin||4.1||%||7.8||%||(370) bpts||5.4||%||6.1||%||(70) bpts|