A lookaheadPage 3 > Getting healthy while you work

Page 6 > Investing in your future

Page 12 > Finding the right people;finding the right fit

HorizonsA magazine for the employees and friends of Rockwell Collins, Inc. > Volume 12 Issue 1 > 2007

Page 8 > at FY’07

ur people represent a

wide variety of back-

grounds and experi-

ences. And, although we are all

different, my guess is that

everyone likes to be healthy.

After all, being as healthy as

possible will help each of us to be more active and

productive — at home and at work.

With that in mind — and as I mentioned in my

recent Business Update meetings at locations across

our company — Rockwell Collins will introduce a new

wellness initiative this year within our Flexible Benefit

Choices program to complement

our existing medical plans. This

program will offer you and your

spouse an opportunity to

assess your current health

status through a confiden-

tial personal health assessment. The results and

recommendations will allow you to maintain or

improve your health by accessing a range of

information and resources.

These resources are meant to help you “know your

numbers,” and ultimately offer programs designed

to promote healthy choices, such as losing weight and

lowering cholesterol or blood pressure.

New wellness initiative awin-win

Sometimes, though, we need some motivation to get

moving in the right direction. In this issue of Horizons,

Neil Durette, an employee in our Melbourne, Fla.,

facility, shares how a New Year’s resolution to lose

weight motivated his participation in an on-site

weight loss program.

Support is an important aspect of achieving a

health goal. By interacting with co-workers, family and

friends, you can receive

encouragement when you

need it, and also feel more

accountable for your goals.

Our wellness program also

offers options, so you can

tailor your health improvement goals to fit you and

your lifestyle.

Promoting good health also benefits our company,

since healthier employees have lower health care costs,

which helps us continue to offer affordable, quality

health care programs.

I encourage you and your family to get involved in

this program. Making positive changes today will help

you manage risk factors, and help to prevent many

health care costs from being incurred — a win-win for

both you and our company.

Clay Jones

Chairman, President and CEO

O

HorizonsVolume 12 > Issue 1 > 2007

6 > Investing in your futureLearn how two Rockwell Collins employees

are taking responsibility for their futurevia our company’s savings plan.

12 > Finding the right people; finding the right fitAbout 30 percent of the aerospace industry’s current population

will be eligible for retirement by 2008. How does this affectRockwell Collins, and what are we doing to fill those positions?

2 > Letters to the editor

3> Getting healthywhile youworkMeet one Rockwell Collins employee in Melbourne, Fla.,

who took advantage of an on-site weight loss programto improve his lifestyle.

8 > A look ahead at FY’07It’s been a year of remarkable earnings, recovering markets,

and key acquisitions. So what does FY’07 hold in storefor Rockwell Collins?

14 > Across our companyLearn about the activities across our company:

Beijing, China; Cedar Rapids, Iowa; Decorah, Iowa;Manchester, Iowa; Melbourne, Fla.

17 > Service anniversaries

On the cover > Matt Smith, senior director, cabin system programs,Tustin, Calif.; Angela Chang, senior engineering manager, Tustin, Calif. and

Paul Barnes, director, electromechanical systems business development, Irvine. Calif.,are a few of the many Rockwell Collins employees worldwide who work hard every

day to design, develop and manufacture the trusted solutions our customers havecome to rely on. Photo by Laurel Hungerford

Publisher: Tim Burris

Editorial director: Larry Riley

EDITORIAL TEAM:Managing editor:

Robert Fleener +1.319.295.8791

Editor:

Jill Wojciechowski +1.319.295.4998

Copy editor:

Ruth Anne Denker +1.319.295.0643

Staff writers

Kathy Hogan +1.319.295.3932

Anne Wiskerchen +1.319.295.7533

CONTRIBUTORS IN THIS ISSUE:Grace Du, Beijing, China

Robbi Horne, Melbourne, Fla.

Terry Graham, Richardson, Texas

Judith Kuboushek, Decorah, Iowa

Brenda Rodas, Manchester, Iowa

Cole Walters, Salt Lake City, Utah

Scott Zebuhr, Manchester, Iowa

How to contact us:E-mail:

jkwojcie@rockwellcollins.com

Mailing address:

Horizons

Rockwell Collins

400 Collins Road NE

Cedar Rapids, IA 52498-0001

Phone:

+1.319.295.4998

Fax:

+1.319.295.9374

Web address:

www.rockwellcollins.com/horizons

Horizons is published bimonthly by

Rockwell Collins Enterprise

Communications for our employees,

retirees, shareowners and customers.

We seek to inform and inspire our readers

by incorporating our company’s Vision,

business goals and other enterprise-wide

initiatives throughout our publication.

We also strive to spotlight issues and

concerns that impact our employees,

our company and our industry.

© 2007 Rockwell Collins, Inc. All rights reserved.

Realizing our strength and diversityI really like the redesign of Horizonsmagazine. The personal nature of the storiesresonates well with readers, and theenthusiasm and positive attitude of thoseinterviewed in each of the articles isobvious. I believe Rockwell Collins is a greatplace to work, and the passion, leadership,competence and willingness to help othersis part of our culture from top to bottom.An article does not have to be about work tomake one proud of our company. Hearingabout how our colleagues volunteer theirtime or spend their vacation — as told in thearticle, “Trekking Across England” — makesone realize the diversity and strength of ourcompany. Keep up the good work.

Steve CarnesiDecorah, Iowa

Introducing Horizons onlineWith a click of the mouse, you cannow access the new online version

of Horizons – anytime at your leisurewherever you are in the world.

Each new issue will feature Web extras,additional content and photos not availablein the print version.

In the kickoff edition of Horizons online –available now – youwill find additionalfeatures and timelyresources regarding:

• Your health –learn more about keeping your healthinformation confidential.

• Your wealth – plan for your future withlinks to savings, credit and financial topics.

You’ll also see our commitment to busi-ness integration in action as Midwesternfacilities find ways to help co-workers inneed.

In addition, look for extra features nowonline:

• 35-year and above service milestones.

• Service anniversaries recognizing 5, 10,15 and 20 years of service.

We’ll continue to mail the print version toyour home, unless we hearfrom you. If you want todiscontinue receiving your

print version ofHorizons, please

send an e-mail toempcomm@rock-

wellcollins.com.Please include your name and mailingaddress.

Enjoy this issue of Horizons, and weencourage you to visit Horizons online today,at www.rockwellcollins.com/horizons.

Horizonsletters to the editor

2 H O R I Z O N S > 2 0 0 7

Letters guidelinesHorizons provides its letters page for readers to state their opinions. The page is intendedto encourage an exchange of ideas and information that stimulates dialogue on issues orevents in our company. The opinions may not necessarily reflect those of Rockwell Collins.Letters must include name, organization and a telephone number for verification purposes.Letters may be edited for grammar, syntax and size.

onlineHorizons

Gettinghealthywhile youwork

Managing your health is important whetheryou’re at home or at work. Meet oneRockwell Collins employee in Melbourne,Fla., who took advantage of an on-siteweight loss program to improve his lifestyle.

Neil Durette made up his mind four years ago that hisweight would no longer control his life. A senior productintegrity specialist at Rockwell Collins in Melbourne, Fla.,

Durette made a New Year’s resolution in December 2003 to loseweight. And this time, he was sticking to it.Soon after he began the South Beach diet in January 2004,

Durette dropped 14 pounds. But the extra motivation heneeded came at work when an on-site weight loss programat our facility in Melbourne caught his attention.“I weighed 255 pounds and was on three blood pressure-

related medications,” recalled Durette. “It was obvioussomething needed to change, and I thought that joining myco-workers would provide the support I needed.”

After persuading one of his colleagues to begin the weightloss venture with him, Durette began abiding by several newtechniques learned during his weekly meetings.“The program I was involved in was designed to have partici-

pants talk about the challenges and issues they are facing,” hesaid. “But it also was nice to have someone I knew to sharestrategies with.”It didn’t take long for Durette to realize that his weight loss

journey was a lot like the Lean Electronics process at RockwellCollins. An initiative that works to reduce waste and increaseefficiency in processes and offices across our enterprise, LeanElectronics aims to remove steps and practices that don’t addvalue to the end product.Not only did Durette learn about healthy eating habits during

his weekly sessions, he also learned about the importance of

V O L U M E 1 2 > I S S U E 1 3

(continued on Page 4)

By AnneWiskerchen

Photo by Kristen Bartlett

exercise, and increased the miles he bikedto 10 - 15 miles, two to three times aweek.Within the first five months, Durette

lost 64 pounds and was living a leanlifestyle by all definitions of the word.“Soon, eating right and exercising more

became second nature,” he said.

Introducing wellness resourcesDurette found the motivation to adopt ahealthier lifestyle by taking advantage ofa weight loss program held at his office.However, finding a strategy that matchesyour life and work needs in today’s fast-paced world is no simple task.This year, Rockwell Collins will enhance

our Value Proposition for People philoso-phy to help you address life’s challengesthrough a comprehensive offering ofresources and services.Our new wellness program, an

enhancement to the “My HealthWhileWorking” component of Flexible BenefitChoices, will offer tools to manageexisting health issues and prevent futureillnesses.Starting in 2008, the development of

similar programs to meet the needs ofour international locations will begin.“Health has an effect on our

well-being, our productivity and ourlongevity,” said Chairman, President andChief Executive Officer Clay Jones. “Ourfocus on wellness will help minimizehealth risk factors and maximize healthyenjoyment of life.”The program also will help our

company and our employees managehealth care costs while enabling peopleto become healthier and more produc-tive. For example, annual health carecosts are 49 percent lower for people whodon’t smoke, who aren’t obese and who

exercise three times a week.Additionally, health issues like heart

disease, high blood pressure and diabetescan require additional monitoring andcost patients money to manage.

The Department of Health and HumanServices reports that as of 2005, theUnited States spent more on health percapita then any other country, and healthspending continues to rise rapidly.

4 H O R I Z O N S > 2 0 0 7

“Taking care of yourself andmanaging your health areamong the greatestresponsibilities you have.”— Neil Durette

“The goal is to help employees feelbetter, enjoy life and save money for thethings that are important to each of us,”said Jones. “If we aren’t spending moneyon health care, it’s going to be availableto us for other things, includingrecreation and retirement.”

A healthy futureFor Durette, there’s no going back. Now alifetime member of the weight-loss grouphe joined in January 2004, his decrease inweight has brought him energy andopportunities once beyond hisimagination.Outside of work, he serves as the

executive officer and training officer ofthe Courageous Division of U.S. Navy SeaCadet Corps, where he uses his newfoundenergy to keep up with active studentsranging in age from 11 to 18 years old.“We are active in swimming, scuba

diving and sailing activities,”Durette said.“I could never have participated in thoseactivities before I lost the weight.”He also tries to inspire his cadets by

giving advice on being healthy andkeeping active. Even his doctor wasamazed at his progress, taking him fromthree medications to one.“My doctor wished all his patients were

like me,”Durette said. “My cholesterolwas 190 when I started and now it’sdown to 140.”According to Durette, adopting a

healthier lifestyle has helped put extradollars in his pocket. After the first threemonths on only one medication, thesavings offset the cost of his membershipto the weight loss program and paid foryoga lessons.He also has amazed and inspired his

friends and coworkers. From January2004 until June 2005, the weight loss

group Durette took part in lost more than1,400 pounds. In June 2006, a newprogram began and the group hasalready lost more than 350 pounds.“Taking care of yourself and managing

your health are among the greatestresponsibilities you have,” said Durette,who advocates getting involved inwellness activities at work. “Today, I feellike there is no limit to what I can achieveor do. I am exploring new horizons andam leading a longer, much moresatisfying life.”

V O L U M E 1 2 > I S S U E 1 5

Photo by Kristen Bartlett

> Getting lean – Neil Durette, senior productintegrity specialist at Rockwell Collins in Melbourne,Fla., made a New Year’s resolution in December 2003to lose weight. Within the first five months, Durettelost 64 pounds and was living a lean lifestyle by alldefinitions of the word.

Web extra: Learn more aboutthe confidentiality of your health

information in Horizons online atwww.rockwellcollins.com/horizons.

<h>

Linda Engen dreams about the dayshe and her husband can vacation ata beach cottage of their own on the

central coast of California and enjoy theirretirement.Like many Baby Boomers who are

nearing retirement, she’s also concernedabout having enough money for herfuture, which is why she is planningahead.Yifei Wang has the same concerns. So,

this 25-year-old Rockwell Collins systemsengineer is already taking responsibilityfor her future and is participating in ourcompany’s savings plan.Whether your dreams are about

traveling the world, spending afternoonsin the garden or on the golf course, weare each responsible today for makingour retirement dreams a reality.“Many companies are moving away

from defined benefit plans and shiftingmore responsibility to employees,” saidEngen, manager of Payroll Operations,Benefits Insurance Administration, HRISand Lean at Rockwell Collins in Cypress,Calif. “To achieve my dream, I need touse all the resources available to me.”

Changing timesA 25-year company veteran, Engen beganparticipating in our company’s pensionand 401(k) plans from the start. But whatworked in 1981 is no longer an option.“Contributions to the savings plan are

automatically deducted from your pay-check, making it an easy way to save; andthe company match is like free money,”said Engen. “But times are changing, soit’s crucial that we each take an active

role in planning for our future.”The shift in responsibility was rein-

forced when Rockwell Collins announcedthe freeze of the pension plan effectiveSept. 30, 2006. In its place, all eligible U.S.Rockwell Collins employees beganreceiving a retirement contribution totheir savings plan account in October2006. This deposit is in addition toemployee contributions and anycompany match.Employees also can purchase Rockwell

Collins stock at a discounted rate throughthe employee stock purchase plan.Engen recently elected to make

additional catch-up contributions to her401(k) to ensure she was on track to

meet her financial goals. This catch-upcontribution allows employees age 50and older — or those who will turn 50 in2007— to save up to an extra $5,000 peryear on a pre-tax basis. That amount is inaddition to the maximum pre-tax contri-bution of $15,500 that all employees maymake each year.Although Engen still has several years

before she plans to retire, she under-

6 H O R I Z O N S > 2 0 0 7

Learn how two RockwellCollins employees are takingresponsibility for their futurevia our company’s savings plan.

“To achieve my dream, I needto use all the resourcesavailable to me.”— Linda Engen

Photo by Laurel Hungerford

Investing inyour future

By AnneWiskerchen

L

> Linda Engen, manager of Payroll Operations, Benefits Insurance Administration, HRIS and Lean atRockwell Collins in Cypress, Calif. , dreams about the day she and her husband can enjoy their retirement.

V O L U M E 1 2 > I S S U E 1 7

stands how important it is tostart earnestly planningtoday.“I also hired a financial

planner to help me evaluatemy plan every quarter,” shesaid. “He has helped memovesome of my assets from highrisk investments to more con-servative ones.”

Investing earlyForWang, retirement plan-ning is just beginning. Morethan a year ago, she enteredthe working world knowing itwas up to her to save for herfuture. She also understoodthe need to start saving nowand enrolled immediately inthe plan.“Since I’m further from

retirement, I can be moreaggressive in my investmentdecisions,” saidWang.Although she has already

started her financial planning,she recognizes the difficultiesmany young people facewhen deciding howmuch tosave and when to start plan-ning for retirement.“Coming out of college you

hear it is important to startsaving, which can be toughfor young people with stu-dent loans and credit cardbills,” saidWang. “It’s over-whelming at first. We are atan age where we tend not toplan more than a few daysahead, so it’s hard to get us tosit down and plan for a retire-ment that seems so far away.”To help employees save for their future,

Rockwell Collins automatically enrollsnew hires in our retirement savings planat a pre-tax deduction of 2 percent ofbase pay. However, any time before yourautomatic enrollment date, you have the

option to cancel your enrollment fromthe plan or change your contributionamount.Additional enhancements to the

“My Long Term Security” component ofFlexible Benefit Choices are expected tobe introduced in fiscal year 2008.

Wang also is aware of toolsand classes offered online tohelp investors make the rightchoices, and she enjoys testingthose ideas with people closeto her.“I use the FidelityWeb site

for information, planning andmaking changes to myaccount,” she said. “But I alsoask some of mymentors whatthey suggest for investing orapproaches they have used.”

Putting it all togetherEngen continues to looktoward her future, and is work-ing hard to reach her retire-ment goal. And while she issatisfied with the steps shehas taken along the way, shealso has one piece of advice forothers whether they’re at thebeginning or end of the retire-ment planning efforts — getinvolved.“We are all busy and we all

use the excuse that we don’thave time to attend to ourfinances,” she said. “But youreally need to get involvedbecause it’s so important andhas a big impact on yourfuture.”Wang couldn’t agree more.

“Young people are ambitiousand want to be millionaires,”she said. “But we have toremember it’s important tohave a back-up plan just incase that doesn’t work out.”

> Yifei Wang, systems engineer for Commercial Systems in Cedar Rapids, enteredthe working world a year ago and knew it was up to her to save for her future.

Photo by Paul Marlow, The Creative Gene

Web extra: Begin saving foryour future with resources

available in Horizons online atwww.rockwellcollins.com/horizons.

<h>

Commercial SystemsIn FY’06, original equipment manufactur-er (OEM) aircraft delivery rates increasedby double digits in both Air TransportSystems (ATS) and Business and RegionalSystems (BRS). At the same time, ourCommercial Systems employees werelaying the groundwork for the future,capturing key programwins in high-growth marketplaces such as China,India, and the Middle East.But what does the future hold in store?

According to Bryan Vester, vice presidentof Strategy Development for CommercialSystems, our future growth andcontinued success in the commercialaviation market segment is all aboutexecution.“Commercial Systems has been

extremely successful in capturing newbusiness,” said Vester. “Now, making surewe execute on our program commit-ments and meet our customers’ expecta-tions is crucial. Ultimately, doing so willhelp our customers decide whether tofurther expand their business withRockwell Collins.”For instance, successful follow-through

and delivery of flight-worthy hardwarefor the Boeing 787’s first flight in 2007,will further demonstrate to the worldthat Rockwell Collins can manage large-scale integration programs, said Vester.In addition, successful delivery of

Airshow 21 Cabin Electronic System fullfunctionality to Bombardier, a key cus-tomer for our Cabin Systems business,also will set the stage for future business.And, as always, Vester says we need tostay focused on achieving our customers’performance measures in areas such asquality, on-time delivery, reliability, andcustomer support.The Chinese ARJ21 program also opens

the door to future possibilities. RockwellCollins was selected to provide Pro Line21 technology and serve as systemsintegrator for the advanced regional jetin China, a country that is expected torealize phenomenal growth in comingyears.To ensure a successful program, the

Chinese established high performanceand reliability objectives, said DaveSampson, ARJ21 technical projectmanager. So when AVIC 1 Commercial

8 H O R I Z O N S > 2 0 0 7

> Dave Sampson, ARJ21 technical project manager, is supportingour growth by helping us become a systems integrator for theadvanced regional jet in China, a country that is expected to realizephenomenal growth.

By Jill BrimeyerPhoto by Paul Marlow, The Creative Gene

A lookahead atFY’07

t Rockwell Collins, goals are abig part of life. We continu-ally set them, align them,and we work hard to

attain them. We review what wentwell and we ponder what could bedone better.

There also are the “big picture”goals charted by our company aspart of our fiscal year incentive plan.But what, specifically, does eachbusiness unit — Commercial Systems,Government Systems and Services —need to accomplish to bring those“big picture” goals into focus?

For answers, we turn not only tothose leaders charged with providingstrategic direction, but to thepeople behind our products, thepeople who work hard every day todesign, develop and manufacturethe trusted solutions our customershave come to rely on.

A

FY’06 was a year of remarkable earnings,recovering markets, and key acquisitions.So what does FY’07 hold in store forRockwell Collins?

V O L U M E 1 2 > I S S U E 1 9

Aircraft Company (ACAC) sought avionicsthat could meet these challenges andthose of an increasingly demandingregional airline environment, thecompany looked to the global supplybase and, specifically, to us for avionics.The effort was so successful, addedSampson, that our teamwent on toreceive a Gold Supplier Award from theChinese firm for program performance.Ferli Fernandes, a technical project

manager with Rockwell CollinsElectromechanical Systems in Irvine,Calif., also is seeing some exciting inroadstoward new customers and marketsegments."We are capitalizing on our core com-

petencies and expanding our capabilitiesto become a Tier 1 supplier to Boeing toprovide equipment directly to them,”said Fernandes, who is managing thehardware build of pilot controls forBoeing and Gulfstream. “In the past,pilot controls were designed and built bythe customers themselves. Today, we aredelivering integrated solutions into thismarket segment. One of our majordevelopment programs is the Boeing787 program.”

Success was even sweeter whenBoeing pilots recently approved ourdesign for the 787 Dreamliner’s pilotcontrols.“It’s a significant step for Boeing and

the 787 program, and is confirmationthat we have done the right thing,” saidFernandes.

Government SystemsProducts such as the ARC-210 radio andour global positioning systems (GPS)units have held their own through warand peace, and periods of growing andwaning defense budgets. However, ourcompany will need to remain vigilant inFY’07 and beyond to ensure that thesemilitary mainstays remain vital in themarketplace as long as possible.“Sales of our legacy products will begin

to slow as new technologies — such asour Joint Tactical Radio System (JTRS) andour next generation GPS ModernizedUser Equipment (MUE) — are developed,”said Meg Thompson, vice president ofStrategy Development for GovernmentSystems. “The key will be for us tomaximize the life cycle of these legacyproducts.”According to Thompson, funding for

transformational programs including JTRSand the Army’s Future Combat Systems

(FCS) continues to be delayed due tobudget pressures brought about by thecontinuedWar on Terror. However, ourcompany is eyeing some key contractsin the coming years that could potentiallystrengthen our position in the market-place.One of these is the JTRS AMF (Airborne,

Maritime, Fixed Site) program, which“would not only enable our company tomaintain our position as a leading air-borne communications provider, but alsowould extend our reach into maritimecommunications,” said Thompson.Rockwell Collins also is posturing itself

for a win in the cockpit of the GermanCH-53, a heavy transport helicopter.Thompson said this would allow us tocapitalize on the German positionbrought about by the April 2005acquisition of TELDIX, now referred to asRockwell Collins-Deutschland.

What does each business unit— Commercial Systems,Government Systems andServices — need to accomplishto bring those “big picture”goals into focus?

> Ferli Fernandes, a technical project manager with Rockwell Collins Electromechanical Systems in Irvine, Calif.,is seeing some exciting inroads toward new customers and market segments.

Photo by Laurel Hungerford

(continued on Page 10)

10 H O R I Z O N S > 2 0 0 7

Another area Thompson says will havesignificant impact on our company isOpenEdge, a discipline based on reusingsoftware component technology. Theconcept already is being applied onprograms such as the AC-130 GunshipLink-16 Integration Program, FlightInformation Management System, and anew, lightweight low cost Link-16 systemcalled MAX.According to Michael Sprague,

chief architect, OpenEdge is an opensystems software technology for edgeapplications.“Edge refers to applications and

systems residing at the edge of the globalinformation grid,” said Sprague. “It isa technology that came out of thecommercial marketplace that is currentlybeing applied to next-generation Nokiaand Motorola cell phones … we think thisis a really big deal. The difference will bemore quickly deployed, lower costinformation capabilities.”

A key enabler of OpenEdge is softwarecreated by the former Anzus, Inc., thePoway, California-based softwaredeveloper acquired by our company inSeptember 2006. This high-speed tacticaldata link software will further propelOpenEdge as one of our future growthdrivers.“This is the year of OpenEdge,” said

Sprague. “We’re working on OpenEdgeproducts for many programs, so in thecoming year, we are busily making thishappen.”

Rockwell Collins ServicesThe programs our people are working ontoday are a result of groundwork that’sbeen laid for many months and years.Nowhere is this more evident than inRockwell Collins Services, where businessin our simulation and training, govern-ment and commercial market segmentsappears to have a very bright future.In the area of simulation and training,

Services will continue working in FY’07 to

complete the integration of RockwellCollins Simulation & Training SolutionsVisual Programs. Created when ourcompany acquired the simulation assetsof the former Evans & Sutherland in May2006, this business provides our companywith several future growth opportunities.According to Kent Statler, executive vice

president of Rockwell Collins Services, theformer Evans & Sutherland brought withit a number one position in the visualsystems marketplace, and strong cus-tomer affinity with airline and militarycustomers worldwide.“Their expertise in this area will

undoubtedly help us expand into newsimulation market segments,” saidStatler. “Traditionally, we have been a U.S.military simulator provider, but thisacquisition will help us grow into theglobal marketplace.”Scott Gunnufson, vice president of

marketing and strategy for RockwellCollins Services, agrees.“The technology, systems and market-

place presence that Evans & Sutherlandbrings to our company will definitelyprove beneficial,” said Gunnufson. “In thefuture, we will be able to provide ourcustomers around the world with morerobust solutions.”According to Visual Programs Director

Nick Gibbs, our simulation and trainingsolutions products can be found on abroad spectrum of platforms. From theBoeing 787 to the Joint Strike Fighter andthe Apache Longbow Crew Trainer, oursystems are making an impact in themarketplace. Visual Programs also isaddressing one of the most significantthreats to soldiers in Iraq, an effect called“brown out.”

>Michael Sprague is an advocate of OpenEdge,a discipline based on reusing softwarecomponent technology.

Photo by Paul Marlow, The Creative Gene

(continued from Page 9)

“As rotorcraft attempt to land in thedesert, they become enveloped in sandand they tend to lose their bearings,”explained Gibbs. “We’ve received favor-able feedback from our customers whoare training in simulated brown outconditions, so we knowwe’re headed inthe right direction.”In addition, Services continues to work

with Government Systems on opportuni-ties to move toward embedded trainingin the cockpit avionics we currentlyproduce. In fact, at the recentInterservice/Industry Training, Simulationand Education Conference (I/ITSEC) inOrlando, Fla., we showcased the first-everembedded training across the CommonAvionics Architecture System (CAAS)cockpit and received strong customerreviews, said Statler.In the government arena, Services is in

the process of completing a market studyaimed at identifying and prioritizing keymarket segments for entry and growth.According to Statler, this will likely meana shift frommore traditional parts andlabor service, to more supply chainmanagement, obsolescence manage-ment, field service engineering andintegrated logistics support.

“We need to become a full serviceprovider for the Department of Defense,and this market study is the first step inidentifying the most effective path to doso,” said Statler.In the area of commercial services,

Statler sees a promising future, despitethe fact that Services is still feeling thelagging effects of the 9/11 impact on theaerospace industry.“The aircraft sold in 2001 and 2002 are

just now coming off of warranty, and thatmeans our growth rate in revenue-generating work is relatively slim, despitethe latest headlines of new airplanedeliveries,” said Statler. “We’ll be reapingthe benefits of the current new airplanedelivery rates and outstanding ordercapture rate by Commercial Systems in

about four to five years.”Until then, Services will continue to

work with customers on their long-termcontracts, and focus on reliabilityimprovement, technology insertion andpreventative maintenance plans.Servicing our customers in the field willcontinue to be our top priority.“Our technology and expertise will get

us in the door, but good, old-fashionedservice is what will keep us there,” saidMarc Cronan, manager of CustomerSupport at Rockwell Collins Simulation &Training Solutions in Sterling, Va. “Thebetter job we do, the more inclined peo-ple will be to come to us for service.”

— Jill Brimeyer is a freelance writer.

<h>

Photo by Cole Walters

> Nick Gibbs (right), visual programs director for Rockwell Collins Services, talks with Angie Pulley, PP&Canalyst. Visual Programs is addressing one of the most significant threats to soldiers in Iraq, an effect called“brown out.”

This article contains forward looking statements including statements about the company’santicipated growth and performance in FY’07. Actual results may differ materially from thoseprojected as a result of certain risks and uncertainties, including but not limited to thosedetailed from time to time in our earnings press releases and Securities and ExchangeCommission filings.

V O L U M E 1 2 > I S S U E 1 11

By Dana Engelbert

For Owais Hassan and AnwerMuhammad, referring friends andcolleagues to career opportunities at

Rockwell Collins is about finding the rightperson, and fitting into a culture thatallows individuals to meet and evenexceed their own expectations.“The people I refer to our company are

a reflection on me,” said Hassan, a seniorsystems engineer for CommercialSystems Display Applications at RockwellCollins in Cedar Rapids. “So, it’s importantthat they are the right people for theright job.”

Muhammad was one such individual.Referred by Hassan, this Pakistan nativealso is a senior systems engineer forCommercial Systems DisplayApplications. Before joining RockwellCollins in July 2006, Muhammad wasworking at a start-up company of about15 people in Phoenix, Ariz.“I was looking for a place with more

opportunities,” said Muhammad. “I havea lot of skills and I like being able to useall of them.”Hassan’s referral of Muhammad was

good for everyone involved. Muhammadgot a job in a place with more opportuni-ties, and Rockwell Collins secured another

talented engineer.In addition, Hassan earned a referral

bonus as part of the Rockwell CollinsEmployee Referral Program and won aflat panel television through a specialemployee referral promotion.

Attracting, retaining talentIn this ever-changing and highly competi-tive global economy, it’s nowmoreimportant than ever for our company toattract and retain diverse candidates —especially engineers. One of the ways ourcompany is doing so is through ourEmployee Referral Program.“We have about 18,000 people in our

12 H O R I Z O N S > 2 0 0 7

> Owais Hassan and Anwer Muhammad, seniorsystems engineers for Commercial Systems DisplayApplications in Cedar Rapids, Iowa.

Photos by Paul Marlow, The Creative Gene

About 30 percent of the aerospace industry’s current population will be eligible for retirementby 2008. How does this affect Rockwell Collins, and what are we doing to fill those positions?

Finding the right people; finding the right fit

workforce, and each one of them is outthere telling the story of RockwellCollins,” said Andy Day, director of TalentAcquisition. “Their personal testimonialsserve as very powerful recruiting tools,and that’s going to help our companyachieve future success.”Tracy Scieszinski agrees. In recent

months, the manager of ProfessionalStaffing at Rockwell Collins has seen sev-eral exceptionally talented and diversecandidates come to our company via ourEmployee Referral Program. In fact, about35 percent of new hires in the past yearjoined our company as the result of areferral.“When a referral comes from some-

body you know and trust, chances arethat you’ll be happy,” said Scieszinski.“That level of satisfaction also tends toinspire referred candidates to stay withour company longer, and it gives a senseof pride to the employee who does thereferring.”Day added that the number of referrals

our company has seen in the past yearactually exceeds average industry stan-dards, and it’s a leading source of candi-dates for open positions.“Our Employee Referral Program is sec-

ond only to our externalWeb site interms of producing potential job candi-dates,” said Day. “That speaks volumesabout the quality people we have here atRockwell Collins, and that they want toshare their work experience with others.”

Focus on engineeringThough all employees are encouraged torefer others for positions within our com-pany, the Employee Referral Program is

currently offering a unique promotionespecially designed to attract engineersand those with critical skills.Under this promotion— launched on

Oct. 1, 2006— our employees can earnincentives for referring engineeringemployees who are later hired. Thosewho refer candidates hired for engineer-ing positions from October 2006 toJanuary 2007 will be entered in a regionalmonthly drawing for a $1,000 Visa giftcard. In January, two names will be drawnfrom all the engineering referrals.Winners will each receive a flat paneltelevision.

According to Day, these prizes are inaddition to cash incentives alreadyoffered by our Employee ReferralProgram. Those incentives range from$1,000 for an entry-level engineer up to$3,500 for a senior or principal engineerthat is either a female or minority candi-date, or has a critical skill.Additional information about specific

job families and critical skills is availableto employees via the Enhanced EmployeeReferral ProgramWeb site, which is acces-

sible via the RWEB Spotlight on the RWEBHome page.At Rockwell Collins, hiring will continue

to be a top priority in the next coupleyears as we look to dramatically increaseour entire employee population. Inaddition, about 30 percent of the aero-space industry’s current population willbe eligible for retirement by 2008, andcurrent U.S. Bureau of Labor statisticsestimate a shortage of about 10 millionworkers by 2010.In the engineering pool, the U.S. is

currently graduating about one-fifth thenumber of engineers (60,000 to 70,000)

each year than are China and India(350,000), and these statistics make theneed to hire talented and motivatedpeople even more challenging.“The search for the best and brightest

talent is a tough battle,” continued Day.“Today, any company which hopes togrowmust be able to attract and retain ahighly skilled, diverse workforce, and webelieve our employee referral programwill help us do just that.”

V O L U M E 1 2 > I S S U E 1 13

“When a referral comes fromsomebody you know andtrust, chances are thatyou’ll be happy.”— Tracy Scieszinski

> Owais Hassan and Anwer Muhammad are senior systems engineers for Commercial Systems DisplayApplications in Cedar Rapids, Iowa. Hassan’s referral of Muhammad was good for everyone involved.Muhammad got a job in a place with more opportunities, and Rockwell Collins secured another talentedengineer.

<h>

—Dana Engelbert is a freelance writer.

14 H O R I Z O N S > 2 0 0 7

An awards ceremony for our 2006Rockwell Collins-China scholarshipwinners was held at the Civil

Aviation University of China (CAUC) onDec. 8, 2006. Six undergraduate studentsin the Department of Electronic andInformation Engineering received $600scholarships, an amount equivalent to hisor her tuition for one academic year.“As a long-term partner of China’s

aviation industry, we are committed tosupporting education in the country,”says Martin Lin, director, China BusinessDevelopment for Rockwell Collins-China,who awarded the scholarship to thestudents. “This program is an importantway to demonstrate our strong commit-ment to maintaining good corporatecitizenship in the Chinese aviationcommunity. We anticipate that ourrelationship with CAUC and other highereducation institutions will be strength-ened, as mutual benefits are furtherexpanded.”The scholarship program enhances our

cooperation with China’s leading aviationuniversity by providing financialassistance to students who have demon-strated excellent academic performancein the fields of avionics or informationtechnology and have financial needs.The partnership began in 2000 when

we awarded two scholarships. However,

based on the program’s success, bothparties have renewed the agreement andincreased the annual scholarship awards.In addition to Rockwell Collins, more

than 20 representatives from otherenterprises including the Civil AviationAdministration of China, domestic air-lines and multinational aviation grantedscholarships during the ceremony.CAUC is a renowned academic and

research institution supporting thecivil aviation industry in China. ManyRockwell Collins products, includingweather radar, VHF transceiver, Mode Stransponder and technical manuals are

used in teaching laboratories of CAUC.“We appreciate Rockwell Collins

sharing its experience and knowledgein supporting China’s education in thefield of aviation communication andnavigation,” said CAUC PrincipalWuTongshui. “Our students have beentrained and become familiar withRockwell Collins products. After theygraduate, their employment withChinese airlines would benefitRockwell Collins’ business in China.”Three of our customer service

engineers in China are graduates ofthe university.

>Winners of our 2006 Rockwell Collins-China Scholarship pose for a photo after receiving their award fromMartin Lin, director, China Business Development (center). The recipients are all currently pursuing degrees inthe Department of Electronic and Information Engineering at Civil Aviation University of China.

Rockwell Collins-China awards scholarship to six students

Across our company

Photo by Grace Du

Former Saudi Arabia Ambassador PrinceTurki Al-Faisal and his delegation touredour Cedar Rapids facility on Dec. 1, 2006,visiting our Advanced Flight Deck andSynthetic Vision labs.“The visit was a great success for our

company and our foreign relationsefforts,” said David Erusha, director ofData Link Solutions (DLS). “We had anopportunity to showcase our products

and talk with the ambassador and hisstaff on the host of offerings ourcompany can provide to their nation.“Since our meeting with the

Ambassador, DLS has been extended aninvitation to visit the Saudi ArabianEmbassy for a meeting with the SaudiArabian Defense Attaché to discussfurther data link opportunities for DLS inSaudi Arabia,” Erusha continued. “And,DLS received a $38 million award inJanuary for Fighter Data Link terminalsfor the Royal Saudi Air Force F-15S air-craft.”Prince Turki also spoke about the

Saudi Arabian economic growth explain-

ing similarities between Iowa and SaudiArabia and took questions from a groupof area business, political and religiousleaders at a Chamber of Commercedinner.In November 2006, DLS, a limited

liability company formed by RockwellCollins and BAE Systems to provide datalink products to the military, wasawarded a $16 million contract from theU.S. Air Force Electronic System Center toprovide Link 16 capability to the Kingdomof Saudi Arabia. Link 16 provides real-time data communications, situationalawareness and navigation, and in somecases digital voice, all in a jam-resistant,

Former Saudi ArabianAmbassador visitsCedar Rapids

V O L U M E 1 2 > I S S U E 1 15

Military lauds GPSreceiver as RockwellCollins hits 100,000 mark

The successful high-volume production ofa complex newmilitary GPS receiver byRockwell Collins recently won praise frommilitary Spokesmen. The delivery of100,000 Defense Advanced GPS Receivers,or DAGRs, was celebrated [Dec. 13] in aceremony including U.S. Sen. ChuckGrassley, R-Iowa, Cedar Rapids Mayor KayHalloran and representatives of the U.S.Army and NAVSTAR GPS Joint ProgramOffice.The handheld devices are used by U.S.

troops in Iraq and Afghanistan to tellthem their precise location, and areequipped on every new vehicle andweapons platform, U.S. Army GPSWingChief DavidWilliamson said.Williamson said the purchasing

programwas initially authorized at$500 million.He said $376 million has so far been

expended, and the government is in theprocess of expanding the purchaseauthorization to $900 million for theprogram.The announcement drew a big

‘‘hooah!’’ of support frommany of theRockwell Collins personnel present at theCedar Rapids Marriott. onWednesday.About 219 cross-functional Rockwell

Collins employees in Cedar Rapids andCoralville are involved in the DAGRprogram. Rockwell Collins was awardedits first contract to supply the DefenseAdvanced GPS Receiver to the Army fouryears ago,Williamson said.At one point, producing the DAGR

‘‘looked like a difficult science project,’’said Col. Wesley Ballenger, systemprogram director for the NAVSTAR GPSJoint Program Office.‘‘There were many folks who thought

we’d never see 10,000, let alone 100,000,’’Ballenger said. At about $1,700 per unit,the DAGR is about the same price ascommercially available GPS receivers with

the same GPS capabilities, Ballenger said.Ballenger said the DAGRs have saved livesby providing munitions with the ability tohit targets with pinpoint accuracy, avoid-ing non-combatants.The ceremony also marked production

of the 225,000th Selective AvailabilityAnti Spoofing Module by Rockwell Collins.The GPS-equipped devices are incorporat-ed in GPS receivers to prevent them frombeing fooled by false GPS signals, amongother things.

Story by Dave DeWitte,Cedar Rapids Gazette, Dec. 14, 2006

Reprinted with permission

Photo by John Thomas, fisheye

> Sgt. Maj Ray Lane of the U.S. Army speaks to Rockwell Collins employees. Rockwell Collins has delivered100,000 Defense Advanced GPS Receivers, or DAGRs, to the U.S. Armed Forces. The handheld devices are usedby U.S. troops to tell them their precise location, and are equipped on every new vehicle and weapons platform.Also pictured (from left): Greg Churchill, executive vice president and chief operating officer, GovernmentSystems; and Ron Hornish, vice president and general manager, Government Systems Sensor Systems.

crypto-secured package.The Prince was director of Foreign

Intelligence Service for the Kingdom ofSaudi Arabia from 1977-2001 andambassador to the United Kingdomfrom 2002-2005. He recently resigned hispost as Saudi Arabia’s ambassador to theUnited States.

Rockwell Collins Image

> Rockwell Collins Principal Systems EngineerKirschen Seah (right) shows Prince Turki Al-Faisa,Saudi Arabia's former ambassador to the U.S (left),our Reconfigurable Flight Deck Lab during his visitto our Cedar Rapids facility in December. The lab ismanaged by our Advanced Concepts Group and isused to research and evaluate flight deck displaysand controls both for current programs andadvanced concepts.

16 H O R I Z O N S > 2 0 0 7

Several Manchester employees participated in the Nov. 4 Bowl for Kids’ Sake that raised more than$750 to support the local Big Brothers/Big Sisters program. Pictured (from left) are: Dennis Jasper,Janine Ehrler, Wanda Linderwell, Lorene Zellner and Terry Rauch.

Photo courtesy of Brenda Rodas

Employees at our Melbourne, Fla., facility kicked offfiscal year 2007 with a Mexican fiesta on Nov. 6,2006. The event was a chance for managers to saythank you to all 1,300 of our employees for theiroutstanding business performance ending FY’06 andinto the beginning of FY’07. Melbourne Operationshas been performing at all-time record highs inmanufacturing production output and wanted therecognition to start 2007 off with a unique and funteaming event.“We wanted to find a fun, new way to recognize

our employees and make sure they knew howmuchwe appreciated their efforts – and the results ofthose efforts,” said Robbi Horne, manager of HumanResources in Melbourne. “The fiesta turned out to bea great opportunity for everyone to get to know oneanother a little better and take a break from our busyschedules.”Leaders donned sombreros and served up

enchiladas, taco salad, and rice and beans toemployees during the event.

> Rockwell Collins employees in Melbourne, Fla., kicked off fiscal year 2007 with a Mexicanfiesta on Nov. 6, 2006. During the event, managers also thanked the 1,300 employees for alltheir hard work during fiscal year 2006. Pictured are: (from left) Chuck Deyo, manager,Melbourne Process Center, and Dave Mager, senior engineering manager.

Photo courtesy of Robbi Horne

Melbourne employees kick off FY’07 with Mexican fiesta

Employees fromManchester worked tocreate a new layout for the Direct DryFilm process, to increase display capacityby 200 percent, as well as create acleaner environment for production. Therenovations included removing the ceil-ing and old clean booths, adding a wallto create two separate rooms, installinga new ceiling, moving in new booths,and creating space for future machines.Pictured are: (from left) David Felton,John Canny, and Heather Gatto, theengineers who created the new design.

Manchester renovatesLiquid Crystal DisplayClass 100 room

Photo by Scott Zebuhr

>Bowl for Kids’ Sake

40 YEARS

JanuaryBruce W. DennisMary L. GerardMarilyn J. Mc EnanyLouis S. OrtizKaren A. PierceRichard E. SklarJanice S. Wafer

FebruaryErwin E. EvansRuby T. GreenFrancis P. TopeJack C. WerlingDean A. Winterowd

35 YEARS

JanuaryJaniece M. Porter

FebruaryJohn J. MichaelKaren S. Simmons

30 YEARS

JanuaryJames L. ArnoldLarry D. BrickerStephen R. BrubakerWallace D. BussewitzCindy L. ChambersSandra K. EstillDavid M. EstremGlenn A. FlatenDennis D. FlynnTerry D. FreeseThomas C. GreenDebra K. HawesBruce S. KlosterYog R. KubbaLora J. LeggettJane A. Mc CubbinMarsha A. SchulteJeffrey L. SpicerMargaret R. WilhelmKatherine D. WoodDaniel J. Zylich

FebruaryGhislaine AlegreEmilienne AngeliniRobert L. AucuttDale A. HeimermanNancy J. LeclereJeff D. NickelsRonald E. NidifferHubert NougarolisRobert J. RedlingerDouglas R. RichardsJackson R. RichterKathy M. SedoreDana M. SerovyMark E. ShortJane A. SickelsCathy J. TimmermanGalen C. Wenger

25 YEARS

JanuaryLisa A. CarraraWilliam C. Chandler Jr.Maria L. DarioCarl K. HartmanKen R. Helpert

Michael L. LangheimRobert A. LorenzMark G. MoranCheryl A. RedingThomas M. RossDonna M. RueSteven A. StenersenMarsha A. SyversonRichard A. ThibaultMonica T. Weathers-FieldsJoseph C. WhitedPaul D. Williams

FebruaryGlenn A. BabinatGene G. Bianchi

David M. BrownRonald E. DayPamela M. FranklinKenneth R. FurutaAnn M. HanselSherman O. HarveyRita M. HastingsGary W. KentKeith L. KerleyScott W. LarsenRamon G. QuesadaWesley G. RoedigerJeffrey D. RussellEric W. SnyderTerri J. TomkinsSusan S. Wicks

Rockwell Collins Service Anniversaries

V O L U M E 1 2 > I S S U E 1 17

Horizons onlineRockwell Collins service

anniversaries of 20 years or lessare now available online atwww.rockwellcollins.com/horizons.

Decorah celebratesFY’06 with fun dayDecorah recently recognized employeeswith an end-of-the-year celebration.Activities included a pumpkin-decorating contest with a time limit ofone half hour for creative expression.The 20 decorated pumpkins weredonated to local nursing homes andschools. Other activities includedputting together puzzles created frompictures of past events, and givingaway Rockwell Collins merchandise. Itwrapped up with lunch. Each employeereceived two beverage holders withDecorah’s newmission statement,“Creating Trust Through ManufacturingExcellence,” along with a thank youfrom plant management.

Photo by Terry Graham

> Rockwell Collins employees in Decorah, Iowa, decorate a pumpkin during their end-of-the-year celebration.Pictured are members of the Very High Frequency team (from left): Pat Numedahl, DeeAnn Peterson,Bouthsakone McCain, and Kay Pecinovsky.

Rockwell Collins, Inc.400 Collins Road N.E.

Cedar Rapids, Iowa 52498-0001

PRSTD STDPOSTAGE AND FEES

PAIDPERMIT NO. 90

Cedar Rapids, IA

One of the fastest-growing employ-ment centers in the Dallas-FortWorth area, Richardson, Texas, is

known for its cultural diversification andlarge number of high-tech industries.Among those companies in this “TelecomCorridor” is Rockwell Collins GovernmentSystems, a facility whose employees haveadapted and excelled through enormouscorporate changes.

Situated on approximately 63 acres ofland, our Richardson facility once boastedmore than 1,000 employees. But in 1999— after an economic downturn caused adecrease in workforce — the three build-ings on its campus were consolidated intotwo.

“Our employee base went from 1,000 toa low of 400 in 2000,” said Kit Miller, oper-ations director in Richardson.

Today, thanks to the efforts of the peo-ple behind the Rockwell Collins products,workforce numbers are on the rise again.According to Miller, Richardson employeescould have allowed events to create a neg-ative influence. Instead, they joinedtogether to “control their own destiny” andnow support some of the U.S. military’smost important projects.

“We design, develop andmanufacture integratedground, air and watercommunication systemsand services for the UnitedStates government and itsagencies,” said Miller. “Ourcapabilities in the areas ofinformation management,signal intelligence process-ing and electronic warfareare our core competencies.”

Creating network-centricsolutionsAn important tool inresponding to customers’needs is the newPerformance and ArchitecturalCollaboration Environment (PACE) labora-tory. Through network-centric technolo-gies, which synchronize and integrate thecapabilities of different networks or sys-tems, this laboratory allows our employeesto simulate operational field scenarios todecrease project development time.

“As military and commercial systemsbecome more complex, the seamlessoperation of multiple systems becomes anecessity,” said Jackson Anderson, a seniorengineering manager and director of the

PACE lab. “This lab provides our customerswith significant benefits through earlydesign adaptations or modifications, whichreduce potential risks in the field.”

— Sue Nading is a freelance writer.

Richardson takes challenges in stride, continues to succeed

> Rockwell Collins Government Systems in Richardson, Texas.

<h>

Photo by Terry Graham

By Sue Nading

Web extra: Additional information about theRockwell Collins Service Center in Richardson,

Texas, is featured online in the Facility Spotlighton the RWEB Home Page and Horizons onlineat www.rockwellcollins.com/horizons.