-------------------------------------------------------------------------------- Revenues by geographic area (based on destination) for the three and six month periods ended
June 30, 2013and June 30, 2012, respectively, were as follows: THREE MONTHS ENDED SIX MONTHS ENDED June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012 % of % of % of % of Revenues Revenues Revenues Revenues Revenues Revenues Revenues Revenues United States $ 367.443.2 % $ 365.647.6 % $ 765.145.2 % $ 743.449.1 % Europe 208.1 24.5 189.0 24.6 416.2 24.6 385.2 25.4 Asia, Pacific Rim, Middle East and Other 274.8 32.3 213.5 27.8 511.2 30.2 386.8 25.5 Total revenues $ 850.3100.0 % $ 768.1100.0 % $ 1,692.5100.0 % $ 1,515.4100.0 % Revenues from our domestic and foreign operations for the three and six month periods ended June 30, 2013and June 30, 2012, respectively, were as follows: THREE MONTHS ENDED SIX MONTHS ENDED June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012Domestic $ 590.8 $ 557.6 $ 1,177.0 $ 1,098.5Foreign 259.5 210.5 515.5 416.9 Total revenues $ 850.3 $ 768.1 $ 1,692.5 $ 1,515.4New product development is a strategic initiative for us. Our customers regularly request that we engage in new product development and enhancement activities. We believe these activities protect and enhance our leadership position. We believe our investments in research and development over the past several years have been a driving force behind our ongoing market share gains and the growth of our record backlog. Research, development and engineering spending was approximately 6.0% of sales during the second quarter of 2013 and is expected to remain at a similar percentage of sales for the next several years. We also believe in providing our businesses with the tools required to remain competitive. In that regard, we have invested, and will continue to invest, in property and equipment that enhances our productivity. Taking into consideration recent program awards to deliver multi-year programs for various Boeing and Airbus aircraft, our targeted capacity utilization levels, recent acquisitions and current industry conditions, we expect that our capital expenditures will be approximately $150during 2013. Our revenue growth continues to be driven primarily by the robust new aircraft delivery cycle. Approximately 60% of second quarter revenues was driven by demand for products for new-buy aircraft, reflecting both increased new aircraft deliveries and continued softness in aftermarket revenue. As further demonstrated at the recent Parisair show, the aerospace up-cycle is in full swing, with continued global airline traffic growth, and an unprecedented period of airline profitability. As a result, demand for lift continues, driving new aircraft orders and higher production rates by the airframe original equipment manufacturers ("OEMs"). Global air travel continues to expand at a healthy rate. Traffic growth in May 2013was led by emerging markets. Compared to the year-ago period, May 2013global traffic rose 5.6%, while capacity climbed 5.2%. Year-to-date global traffic is up 4.3% with capacity up 3.4%. Airline profitability continues to be strong. In June 2013, the International Air Transport Association("IATA") made its fourth upward revision to its financial outlook for the global airline industry. For 2013, IATA now expects airlines globally to report very strong aggregate profits of $12.7 billion, up 67% over 2012 profits, and the fourth straight year of profitability. The 2013 IATA forecast is based on 2013 global passenger traffic growth of approximately 5.3%, up over its initial forecast of 4.5%, and capacity growth of about 4.3%. IATA expects load factors to average over 80% this year, which will be a record. Solid growth, controlled increases in capacity, plus strong ancillary revenues are expected to generate strong global profits for the airline industry.