Question-and-Answer Session
Operator
(Operator Instructions) Our first question today is going to come from Howard Rubel of Jefferies. Please go ahead.
Howard Rubel - Jefferies
Thank you very much. I have one ops question and one balance sheet question. On the ops question Bob, could you put a little bit more meat on the buns in terms of a couple of examples of where you put some performance systems initiatives to work, I mean obviously we see some of it in the bottom line, but maybe you could talk about a couple of business units that are really standout or the one of those awards you’ve referred to?
Robert Cremin
If you look at what we’ve done in China, we’ve had relationships there for 10 plus years, we are well situated on regional jet. While we have been able to open doors for our recent acquisition, Darchem, we are able to purchase supply through China at pretty advantages prices compared to what they had before, another thing that we are doing, our Leach operations or relay operations have a rather large operation down in Mexico and we are making it easier for one of our elastomer companies and our sensor companies to expand that. Basically, the way we do that is Esterline goes, arranges the building, and arranges for the people, we put in all the equipment and we basically rent space to these people and they take it from them. We try to make business easier for them. It works both ways, our U.S. based elastomer companies are also finding it easier to sell more into Europe thanks to the U.K. based operation Darchem. I can give you a lot’s of examples like that, we setup an operation into loops and I called a rental a desk operation, any -- Esterline owns the operation and you can basically put your applications, engineers there and we’ll walk you right into Airbus and make things easier for you. So, we are advancing things on lower cost, we are trying to push the revenues up by making it easier for people to sell, as part of the Esterline Performance System. I can give you a lot more of examples on?
Howard Rubel - Jefferies
No, I want go crazy, I understand and then the follow-up is on the balance sheet, you have for short-term investments. It looks like you’ve generated what I’ll call discretionary cash of around $15 or $16 million in the quarter. Could you, I mean at this rate it looks like you’re going to, you going to have fairly healthy free cash flow for the year. I mean two parts of this, one is, the short-term investments is just taking advantage of rates and is there anything else that you might want to talk to in terms of on what’s you are seeing in terms of improving working capital terms?
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