I do believe we're market-weighted on this. I think we can get that down pretty well ratably with the volume assumptions, at least within the kind of ranges we're talking about now. Either Nick or Kevin, maybe just back on the OE, the down 25 to 40. Prior to this role, he managed the Air & Fuel Valves business unit at AeroFluid Products, a TransDigm operating company.
It's something we've talked to all of our teams about to make sure that they're looking for these opportunities or looking for inventory of their parts out there. The problem with defense is it's lumpy. Thank you, and welcome to TransDigm's Fiscal 2020 Earnings Conference Call. That's what we're using for our sizing assumption. It sounds like you have a process to stay there but just with a high degree of uncertainty relative to everything going. I'm not going to elaborate on the results for the quarter any further as you can see the details in the press release on sales, EBITDA As Defined and adjusted EPS growth. In total, we make less money on our defense business than we make on our commercial business. Robert Stallard -- Vertical Research -- Analyst. If your revenue drops x percent and you take x out of the cost, everything works as long as your mix stays the same. But certainly, on the aftermarket side, they performed well.
But that's not what is driving the assumption of positive free cash flow in the back half of our fiscal year. Transdigm Inc. is a Vermont Foreign Profit Corporation filed on July 24, 2020. In addition to safety, the two most important items we focused on immediately were: one, reduce our costs as quickly as possible; and two, assure substantial liquidity that things get worse than might be expected. I think that's a fair way to think about it. And then also if you'd even give us some direction on how much higher the margins are in that older bracket versus your average aerospace aftermarket.
Can you give us some sort of color on the pricing situation? It's not materially different for either business. That's right. In order to size the organization and our cost structure, we made certain assumptions regarding our major market segments. As has happened in last in previous downturns, we tend to come out of these things with a better cost structure than we went in because we tend to not put the cost back in the same rate the revenue covers. This will make holding the run rate EBITDA As Defined Margin in the mid-40s range tough.
And then, Nick, obviously, every quarter you come out, you talk about the beauty of the model, sole source proprietary, the two biggest moats, and realize the beauty is how to complement each other. [Operator Instructions]. We just need to keep watching.
This is a great company with outstanding products and market positions. And we've done the analysis with our auditors at EY, and we've got a pretty good cushion across the board here. As we have stated in the past, we will now no longer refer to any Esterline-specific metrics as these businesses have now become part of the fabric of TransDigm. Your next question comes from Michael Ciarmoli of SunTrust.
The best thing you can use to analyze the market is the order stream coming in, and that's what we need to follow closely and to ensure we're getting ahead of the cost side as well as where there's opportunity for additional sales, where there's opportunity both on the defense and in the commercial space. In the current situation, we had to move fast to adjust our cost while maintaining the other aspects of our value creation methodology.
Last quarter, we expressed concerns about both the durability of the commercial aerospace production cycle and the early signs of Pacific Rim air travel slowing. And there are no further questions at this time. Worn floor tiles and marked walls, those are esthetics, and those are part of our Schneller and Pexco businesses, lighting at some of our businesses, bathroom fixtures. I think on the cost reduction, all things being equal, in other words, if you kept a constant mix, and you took the revenue minus the EBITDA or EBITDA As Defined, you took that slug a cost.
Good morning.
Roughly half of our spending is related to materials, including production materials or subcontractor services that are production-related, including plating, painting, machining. And then the bigger question is, as you're entering the downturn of the end markets, how is Esterline performing, adapting? The amount, it's hard to speculate on because we don't know how much inventory is held at Boeing or Airbus, for instance. These actions are incremental to the cost mitigation efforts previously implemented in the second quarter of fiscal 2020, mainly, in response to the 737 MAX production rate changes, and brings our total workforce reduction since our last earnings call to approximately 22% to 25% versus planned head count levels. How does this normally go? Hey, good morning guys. We look at the EBITDA margins as kind of running in the mid-40s. You reached this page when attempting to access https://www.streetinsider.com/Corporate+News/TransDigm+Group+%28TDG%29+Names+Mike+Lisman+as+CFO/14448608.html from 167.99.196.172 on 2020-11-04 10:15:18 UTC.
And as you look at your aftermarket business, obviously, with crises like this, as we start to come through it, I'm sure you'll find some opportunities. I believe we've communicated prior that about $1,000 average sale price, at least a couple of years ago, it just puts our parts not in the USM available market, generally speaking. But right now, I don't know of any pieces our parachute business looks like it's well-aligned.
The integration continues to progress, and to date, the acquisition is exceeding our expectations for growth in this largest of TransDigm acquisitions.
And this quarter, we commented on APKWS, the system turning dumb bombs into smart bombs. Most of our parts, the lion's share of our parts fall well below that. I don't know what the 35% means, but I think the I'm not quite sure I follow that. I don't want to speculate on that.
Here, you got a headwind, which makes it harder. People need to start flying.
Jim most recently served as TransDigm's Interim Chief Financial Officer. The after-tax rates look better due to the interest deduction limit expansion included in the CARES Act. The speculation side of this is always hard for us to rationalize. As Nick said, once we have a better picture, we'll reinstitute guidance.
Hey everybody. Generally speaking, the way we have analyzed this and what we've heard from the market, $5,000 to $10,000 needs to be the average sale price. We did it based on number of weeks owned, and what we'll do in the 10-Q filing, you'll see the detail. Please contact us here http://www.streetinsider.com/signup_content.php. I don't think you mean proprietary and sole source.
Others, it's number of cycles. But less profitable than the aftermarket, for sure. In Q3, it will be a larger charge, something on the order of $40 million to $70 million of onetime costs, we think. And so is that more just the Esterline mix or sales dynamic maybe a little bit lower than the legacy TransDigm activity? Most of these actions are in place already. I don't know of anything that's nonrecurring, that the issue with defense is that it often can be nonrecurring. Nick, do you have a thought on that? Liza Sabol -- Director of Investor Relation. Please visit our website at transdigm.com to obtain a supplemental deck slide deck and call replay information. Is it similar to 70% more narrow-body than wide-body? We acquire businesses that fit with our strategy and we see a clear path to PE-like returns. No significant change. That's helpful. See insights on TransDigm including office locations, competitors, revenue, financials, executives, subsidiaries and more at Craft. Okay. They're sort of products that fit the same mold as the rest of TransDigm. Your next question comes from Hunter Keay of Wolfe Research. Good morning. I would my guess is it would be in the repair area is where we would see the first reloading as they're bringing planes that need to be serviced now to the service line. I wanted to ask about working capital. In some businesses, it's very concentrated. And then just to follow-up on Myles' question a little bit with Esterline.
The only thing I would say about older products is they're slightly more profitable. If you are interested in www.streetinsider.com content, APIs are available. It wouldn't surprise me that it could be a little sharper from the first month or so, but, hopefully, it wouldn't last six months. Did you guys kind of put your best assumptions in there?
That is assuming we own the same mix of businesses in both periods. Thank you. I think the best way to look at how this business starts to recover is, frankly, watch the number of flights. Pro forma for the new debt, our cash balance is $4.2 billion as of 3/28/20. Robert Spingarn -- Credit Suisse -- Analyst.
Yes. And I know you just commented on price, but it's you're hoping to get it positive, and you've had it positive in past downturns. We do not know how much. I'm not sure I'm answering your question. Hi, good morning and thank you everyone for the time.
I'm not sure I followed your question, but it's not 75% less than the capacity decline. JavaScript needs to be enabled to complete CAPTCHA. I think it depends on business. With respect to liquidity, liquidity appears to be fine. You mentioned the defense business. Yes. Can you say that one more time? Our process is pretty consistent.
It was de minimis this quarter in Q2. And operationally, we're managing our inventory. Now moving on to our commercial aftermarket business discussion. I'll address that a couple ways. Please note that this market analysis discussion includes the results of the former Esterline businesses. Does that contemplate obviously, for the next six months, I mean, presumably, it contemplates the rate reduction, some of the facility shutdowns.
I'm just going to sneak in one last one. See you at the top! As a result, we began to adjust our cost structure down in January and February of this year. TransDigm also announced the simultaneous appointment of Jim Skulina as Senior Vice President of Finance. Maybe up a little, maybe down a little. I'm sure there's still opportunities for productivity there across the board, but I think it's in line directionally. It's not a big difference.
So it's very diffused, and I can't give you any more clarity around that. We'll watch how the situation develops and react accordingly. We wide-bodies are important to us. I'd imagine an opportunity like this, you will, as things stabilize, there'll be some ways to maybe shift some areas to your advantage. The first half was good, but the second half will be pretty rocky. And if so, were those in the EBITDA as defined, or were they adjusted out? And the problem is the math of a very sharp aftermarket drop.
The one, I guess, just to follow up on the OEM discussion, aero OEM. Can you do you have much of a sense for the level of destocking or inventory in the channel?
We think a steady state with this mix of business is somewhere in the mid-40s. That's helpful. Kevin Stein, President and Chief Executive Officer of TransDigm Group Incorporated, stated, "Mike has a significant private equity background that fits well with our distinctive business strategy.
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