Lou Taylor – Deutsche Bank
Just a quick question. The cash flow was very strong in the quarter. Anything in particular to drive that . It’s not usually the strongest quarter.
Greg Rufus – Chief Financial Officer, Executive Vice President, Secretary
You are right. In the first quarter first our quarter effectively ended December 25 & we didn’t have any principal & paid almost no income taxes so it was timing that’s why in my comments I said we still expect to get the same amount by the end of the year because we have little bit of outflow for those payments in the second quarter.
Lou Taylor – Deutsche Bank
I know it looked like working capital was a boost as well?
Greg Rufus – Chief Financial Officer, Executive Vice President, Secretary
Well, I don’t know what you mean when you say a boost. Can you expand on that?
Lou Taylor – Deutsche Bank
It was $65 million. Prior years it was more of a use of cash.
Greg Rufus – Chief Financial Officer, Executive Vice President, Secretary
Okay. Well, when I look at the working capital when I look at operating I look more at my [Inaudible] & my inventory turns & they were well behaved versus our expectations. Sometimes when you look at the gap numbers it can get distorted with some acquisition accounting.
Nick Howley – Chairman of the Board, Chief Executive Officer
The big numbers Greg are the timing
Greg Rufus – Chief Financial Officer, Executive Vice President, Secretary
The timing.
Nick Howley – Chairman of the Board, Chief Executive Officer
So you did not have an interest payment there.
Greg Rufus – Chief Financial Officer, Executive Vice President, Secretary
That’s right. There was a cut off of it.
Lou Taylor – Deutsche Bank
Perfect. Thank you.
Operator
Thank you. The next question comes from the line of Ken Herbert from Canaccord. Go ahead, Ken.
Ken Herbert – Canaccord
Hi. Good morning.
Nick Howley – Chairman of the Board, Chief Executive Officer
Good morning.
Ken Herbert – Canaccord
I wanted to first ask about airborne and EME. Its been over a year for airborne & almost a year for EME, are these following sort of a [Inaudible] in terms of margin improvement as you expected or is it maybe a little slower than expected considering still sort of a two point of gross margin impact we saw from acquisition? Did I get it? but how are these tracking relative to your expectations?
Nick Howley – Chairman of the Board, Chief Executive Officer
Let me deal with them in two pieces. airborne first. As you probably know for the first year of ownership Airborne was frankly the revenues & bookings were lower than we expected &concurrently the EBITA was little lower. However in 2015 it’s starting off well. Our present expectation is that for this year it will be at or above our expectations at the time we bought it. I remind you that both Airborne & EME as we said when we bought them, we sort of had to buy these right. These are not businesses that are going to get the typical TransDigm margins. They will move up & they are moving up, but they wont get to those kind of margins. We bought them at substantially below the margins we typically buy things but we saw plenty value there. EME is again moving up. We bought that at a [Inaudible] or significantly kind of EBITA margin i.e moving up reasonably nicely, again it will never get up to full year 50% but it’s moving up significantly. It’s a small business. So it never going to move the average much. Dollar wise it’s also going to be impacted by the exchange rate situation. It’s a Euro business so the actually dollars have been knocked down on the conversion though the margin is moving up reasonably well.
