Rockwell Collins discloses investigation into employee entertainment expenses before B/E Aerospace buyout
Rockwell Collins Inc. disclosed in a filing with the Securities and Exchange Commission that it had identified, and is investigating, circumstances surrounding an employee's submission of certain expense reports for customer entertainment and gifts that preceded the acquisition of B/E Aerospace. The stock inched up less than 0.1% in morning trade, as the defense contractor reported earlier fiscal second-quarter profit and sales that beat expectations. The company said the expenses being investigated "do not appear to have complied with applicable company policy," the defense contractor stated in the filing. The company said it notified the Department of Justice in March and the SEC's Division of Enforcement of the investigation. The stock has lost 2.0% year to date, while the S&P 500 is down less than 0.1%.
