Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
(Address of principal executive offices) | (Zip Code) |
☒ | Accelerated Filer | ☐ | ||||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||
Emerging Growth Company | ||||||||||||||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||
Title of each class: | Trading Symbol: | Name of each exchange on which registered: | ||||||||||||
Page | |||||||||||||||||
PART I | FINANCIAL INFORMATION | ||||||||||||||||
ITEM 1 | Financial Statements | ||||||||||||||||
Condensed Consolidated Balance Sheets – December 30, 2023 and September 30, 2023 | |||||||||||||||||
Condensed Consolidated Statements of Income – Thirteen Week Periods Ended December 30, 2023 and December 31, 2022 | |||||||||||||||||
Condensed Consolidated Statements of Comprehensive Income – Thirteen Week Periods Ended December 30, 2023 and December 31, 2022 | |||||||||||||||||
Condensed Consolidated Statements of Changes in Stockholders’ Deficit – Thirteen Week Periods Ended December 30, 2023 and December 31, 2022 | |||||||||||||||||
Condensed Consolidated Statements of Cash Flows – Thirteen Week Periods Ended December 30, 2023 and December 31, 2022 | |||||||||||||||||
Notes to Condensed Consolidated Financial Statements | |||||||||||||||||
ITEM 2 | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||||||||||||||||
ITEM 3 | Quantitative and Qualitative Disclosure About Market Risk | ||||||||||||||||
ITEM 4 | Controls and Procedures | ||||||||||||||||
PART II | OTHER INFORMATION | ||||||||||||||||
ITEM 1 | Legal Proceedings | ||||||||||||||||
ITEM 1A | Risk Factors | ||||||||||||||||
ITEM 2 | Unregistered Sales of Equity Securities and Use of Proceeds: Purchases of Equity Securities by the Issuer | ||||||||||||||||
ITEM 5 | Other Information | ||||||||||||||||
ITEM 6 | Exhibits | ||||||||||||||||
SIGNATURES |
December 30, 2023 | September 30, 2023 | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade accounts receivable—Net | |||||||||||
Inventories—Net | |||||||||||
Prepaid expenses and other | |||||||||||
Total current assets | |||||||||||
PROPERTY, PLANT AND EQUIPMENT—NET | |||||||||||
GOODWILL | |||||||||||
OTHER INTANGIBLE ASSETS—NET | |||||||||||
OTHER NON-CURRENT ASSETS | |||||||||||
TOTAL ASSETS | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Current portion of long-term debt | $ | $ | |||||||||
Short-term borrowings—trade receivable securitization facility | |||||||||||
Accounts payable | |||||||||||
Accrued and other current liabilities | |||||||||||
Total current liabilities | |||||||||||
LONG-TERM DEBT | |||||||||||
DEFERRED INCOME TAXES | |||||||||||
OTHER NON-CURRENT LIABILITIES | |||||||||||
Total liabilities | |||||||||||
TD GROUP STOCKHOLDERS’ DEFICIT: | |||||||||||
Common stock - $ | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock, at cost; | ( | ( | |||||||||
Total TD Group stockholders’ deficit | ( | ( | |||||||||
NONCONTROLLING INTERESTS | |||||||||||
Total stockholders’ deficit | ( | ( | |||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | $ |
Thirteen Week Periods Ended | |||||||||||
December 30, 2023 | December 31, 2022 | ||||||||||
NET SALES | $ | $ | |||||||||
COST OF SALES | |||||||||||
GROSS PROFIT | |||||||||||
SELLING AND ADMINISTRATIVE EXPENSES | |||||||||||
AMORTIZATION OF INTANGIBLE ASSETS | |||||||||||
INCOME FROM OPERATIONS | |||||||||||
INTEREST EXPENSE—NET | |||||||||||
REFINANCING COSTS | |||||||||||
OTHER INCOME | ( | ( | |||||||||
INCOME FROM OPERATIONS BEFORE INCOME TAXES | |||||||||||
INCOME TAX PROVISION | |||||||||||
NET INCOME | |||||||||||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | ( | ||||||||||
NET INCOME ATTRIBUTABLE TO TD GROUP | $ | $ | |||||||||
NET INCOME APPLICABLE TO TD GROUP COMMON STOCKHOLDERS | $ | $ | |||||||||
Earnings per share attributable to TD Group common stockholders: | |||||||||||
Basic and diluted | $ | $ | |||||||||
Cash dividends paid per common share | $ | $ | |||||||||
Weighted-average shares outstanding: | |||||||||||
Basic and diluted |
Thirteen Week Periods Ended | |||||||||||
December 30, 2023 | December 31, 2022 | ||||||||||
Net income | $ | $ | |||||||||
Less: Net income attributable to noncontrolling interests | ( | ||||||||||
Net income attributable to TD Group | $ | $ | |||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustment | |||||||||||
Unrealized (losses) gains on derivatives | ( | ||||||||||
Pension and post-retirement benefit plans adjustment | |||||||||||
Other comprehensive income, net of tax, attributable to TD Group | |||||||||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO TD GROUP | $ | $ |
TD Group Stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Par Value | Number of Shares | Value | Noncontrolling Interests | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—September 30, 2022 | $ | $ | $ | ( | $ | ( | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||||||||
Changes in noncontrolling interest of consolidated subsidiaries, net | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Accrued unvested dividend equivalents and other | — | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Compensation expense recognized for employee stock options | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Exercise of employee stock options | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to TD Group | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on derivatives, net of tax | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Pension and postretirement benefit plans adjustment, net of tax | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—December 31, 2022 | $ | $ | $ | ( | $ | ( | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||||||||
TD Group Stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Par Value | Number of Shares | Value | Noncontrolling Interests | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—September 30, 2023 | $ | $ | $ | ( | $ | ( | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||||||||
Changes in noncontrolling interest of consolidated subsidiaries, net | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Special dividends ($35 per share) and dividend equivalents | — | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Accrued unvested dividend equivalents and other | — | — | — | ( | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Compensation expense recognized for employee stock options | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Exercise of employee stock options | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to TD Group | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustment, net of tax | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on derivatives, net of tax | — | — | — | — | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||
Pension and postretirement benefit plans adjustment, net of tax | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—December 30, 2023 | $ | $ | $ | ( | $ | ( | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||||||||
Thirteen Week Periods Ended | |||||||||||
December 30, 2023 | December 31, 2022 | ||||||||||
OPERATING ACTIVITIES: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization of intangible assets and product certification costs | |||||||||||
Amortization of debt issuance costs, original issue discount and premium | |||||||||||
Amortization of inventory step-up | |||||||||||
Amortization of loss contract reserves | ( | ( | |||||||||
Refinancing costs | |||||||||||
Non-cash stock and deferred compensation expense | |||||||||||
Foreign currency exchange losses | |||||||||||
Changes in assets/liabilities, net of effects from acquisitions and sales of businesses: | |||||||||||
Trade accounts receivable | |||||||||||
Inventories | ( | ( | |||||||||
Income taxes payable | |||||||||||
Other assets | ( | ||||||||||
Accounts payable | ( | ( | |||||||||
Accrued interest | |||||||||||
Accrued and other liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
INVESTING ACTIVITIES: | |||||||||||
Capital expenditures | ( | ( | |||||||||
Acquisition of businesses, net of cash acquired | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
FINANCING ACTIVITIES: | |||||||||||
Proceeds from exercise of stock options | |||||||||||
Dividends and dividend equivalent payments | ( | ( | |||||||||
Proceeds from issuance of senior secured notes, net | |||||||||||
Proceeds from term loans, net | |||||||||||
Proceeds from trade receivable securitization facility, net | |||||||||||
Repayment on term loans | ( | ( | |||||||||
Financing costs and other, net | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | |||||||||||
NET INCREASE IN CASH AND CASH EQUIVALENTS | |||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | |||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | $ | |||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||||||
Cash paid during the period for interest, net | $ | $ | |||||||||
Cash paid (refunded) during the period for income taxes, net of refunds | $ | $ | ( |
Preliminary | Measurement Period | Adjusted Preliminary | |||||||||||||||||||||
Allocation | Adjustments (2) | Allocation | |||||||||||||||||||||
Assets acquired (excluding cash): | |||||||||||||||||||||||
Trade accounts receivable | $ | $ | $ | ||||||||||||||||||||
Inventories | |||||||||||||||||||||||
Prepaid expenses and other | |||||||||||||||||||||||
Property, plant and equipment | |||||||||||||||||||||||
Goodwill | ( | (1) | |||||||||||||||||||||
Other intangible assets | ( | (1) | |||||||||||||||||||||
Other non-current assets | |||||||||||||||||||||||
Total assets acquired (excluding cash) | |||||||||||||||||||||||
Liabilities assumed: | |||||||||||||||||||||||
Accounts payable | ( | ||||||||||||||||||||||
Accrued and other current liabilities | |||||||||||||||||||||||
Deferred income taxes | |||||||||||||||||||||||
Other non-current liabilities | |||||||||||||||||||||||
Total liabilities assumed | |||||||||||||||||||||||
Net assets acquired | $ | $ | $ |
December 30, 2023 | September 30, 2023 | ||||||||||
Contract assets, current (1) | $ | $ | |||||||||
Contract assets, non-current (2) | |||||||||||
Total contract assets | |||||||||||
Contract liabilities, current (3) | |||||||||||
Contract liabilities, non-current (4) | |||||||||||
Total contract liabilities | |||||||||||
Net contract assets | $ | $ |
Thirteen Week Periods Ended | |||||||||||
December 30, 2023 | December 31, 2022 | ||||||||||
Numerator for earnings per share: | |||||||||||
Net income | $ | $ | |||||||||
Less: Net income attributable to noncontrolling interests | ( | ||||||||||
Net income attributable to TD Group | |||||||||||
Less: Dividends paid on participating securities (1) | ( | ( | |||||||||
Net income applicable to TD Group common stockholders—basic and diluted | $ | $ | |||||||||
Denominator for basic and diluted earnings per share under the two-class method: | |||||||||||
Weighted-average common shares outstanding | |||||||||||
Vested options deemed participating securities | |||||||||||
Total shares for basic and diluted earnings per share | |||||||||||
Earnings per share—basic and diluted | $ | $ |
December 30, 2023 | September 30, 2023 | ||||||||||
Raw materials and purchased component parts | $ | $ | |||||||||
Work-in-progress | |||||||||||
Finished goods | |||||||||||
Total | |||||||||||
Reserves for excess and obsolete inventory | ( | ( | |||||||||
Inventories—Net | $ | $ |
December 30, 2023 | September 30, 2023 | ||||||||||||||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
Trademarks and trade names | $ | $ | — | $ | $ | $ | — | $ | |||||||||||||||||||||||||||
Technology | |||||||||||||||||||||||||||||||||||
Order backlog | |||||||||||||||||||||||||||||||||||
Customer relationships | |||||||||||||||||||||||||||||||||||
Other | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Gross Amount | Amortization Period | ||||||||||
Intangible assets not subject to amortization: | |||||||||||
Goodwill | $ | ||||||||||
Intangible assets subject to amortization: | |||||||||||
Technology | |||||||||||
Customer relationships | |||||||||||
Total | $ |
Power & Control | Airframe | Non-aviation | Total | ||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | $ | |||||||||||||||||||
Goodwill acquired during the period (Note 2) | |||||||||||||||||||||||
Purchase price allocation adjustments (1) | |||||||||||||||||||||||
Currency translation adjustments and other | |||||||||||||||||||||||
Balance at December 30, 2023 | $ | $ | $ | $ |
December 30, 2023 | |||||||||||||||||||||||
Gross Amount | Debt Issuance Costs | Original Issue (Discount) or Premium | Net Amount | ||||||||||||||||||||
Short-term borrowings—trade receivable securitization facility | $ | $ | ( | $ | $ | ||||||||||||||||||
Term loans | $ | $ | ( | $ | ( | $ | |||||||||||||||||
( | |||||||||||||||||||||||
( | |||||||||||||||||||||||
( | |||||||||||||||||||||||
( | ( | ||||||||||||||||||||||
( | |||||||||||||||||||||||
( | |||||||||||||||||||||||
( | |||||||||||||||||||||||
( | ( | ||||||||||||||||||||||
Government refundable advances | |||||||||||||||||||||||
Finance lease obligations | |||||||||||||||||||||||
( | ( | ||||||||||||||||||||||
Less: current portion | |||||||||||||||||||||||
Long-term debt | $ | $ | ( | $ | ( | $ |
September 30, 2023 | |||||||||||||||||||||||
Gross Amount | Debt Issuance Costs | Original Issue (Discount) or Premium | Net Amount | ||||||||||||||||||||
Short-term borrowings—trade receivable securitization facility | $ | $ | ( | $ | $ | ||||||||||||||||||
Term loans | $ | $ | ( | $ | ( | $ | |||||||||||||||||
2026 Secured Notes | ( | ||||||||||||||||||||||
( | |||||||||||||||||||||||
( | |||||||||||||||||||||||
2028 Secured Notes | ( | ( | |||||||||||||||||||||
( | |||||||||||||||||||||||
( | |||||||||||||||||||||||
2030 Secured Notes | ( | ||||||||||||||||||||||
Government refundable advances | |||||||||||||||||||||||
Finance lease obligations | |||||||||||||||||||||||
( | ( | ||||||||||||||||||||||
Less: current portion | |||||||||||||||||||||||
Long-term debt | $ | $ | ( | $ | ( | $ |
December 30, 2023 | September 30, 2023 | ||||||||||||||||||||||||||||
Level | Carrying Amount | Fair Value | Carrying Amount | Fair Value | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | $ | $ | $ | ||||||||||||||||||||||||
Interest rate swap agreements (1) | 2 | ||||||||||||||||||||||||||||
Interest rate swap agreements (2) | 2 | ||||||||||||||||||||||||||||
Interest rate cap agreements (2) | 2 | ||||||||||||||||||||||||||||
Interest rate collar agreements (2) | 2 | ||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Foreign currency forward exchange contracts (3) | 2 | ||||||||||||||||||||||||||||
Interest rate swap agreements (4) | 2 | ||||||||||||||||||||||||||||
Interest rate cap agreements (4) | 2 | ||||||||||||||||||||||||||||
Short-term borrowings - trade receivable securitization facility (5) | 2 | ||||||||||||||||||||||||||||
Long-term debt, including current portion: | |||||||||||||||||||||||||||||
Term loans (5) | 2 | ||||||||||||||||||||||||||||
2026 Secured Notes (5) | 1 | ||||||||||||||||||||||||||||
7.50% 2027 Notes (5) | 1 | ||||||||||||||||||||||||||||
5.50% 2027 Notes (5) | 1 | ||||||||||||||||||||||||||||
2028 Secured Notes (5) | 1 | ||||||||||||||||||||||||||||
4.625% 2029 Notes (5) | 1 | ||||||||||||||||||||||||||||
4.875% 2029 Notes (5) | 1 | ||||||||||||||||||||||||||||
2030 Secured Notes (5) | 1 | ||||||||||||||||||||||||||||
2031 Secured Notes (5) | 1 | ||||||||||||||||||||||||||||
Government refundable advances | 2 | ||||||||||||||||||||||||||||
Finance lease obligations | 2 |
Aggregate Notional Amount (in millions) | Effective Date | Maturity Date | Conversion of Related Variable Rate Debt subject to Term SOFR to Fixed Rate of: | |||||||||||||||||
$ | 3/31/2023 | 6/28/2024 | ||||||||||||||||||
$ | 3/31/2023 | 6/28/2024 | ||||||||||||||||||
$ | 3/31/2023 | 3/31/2025 | ||||||||||||||||||
$ | 3/31/2023 | 3/31/2025 | ||||||||||||||||||
$ | 3/31/2023 | 9/30/2025 |
Aggregate Notional Amount (in millions) | Effective Date | Maturity Date | Offsets Variable Rate Debt Attributable to Fluctuations Above: | |||||||||||||||||
$ | 3/31/2023 | 9/30/2025 | Three-month Term SOFR rate of |
Aggregate Notional Amount (in millions) | Effective Date | Maturity Date | Offsets Variable Rate Debt Attributable to Fluctuations Below and Above: | |||||||||||||||||
$ | 3/31/2025 | 9/30/2026 | Three-month Term SOFR rate of | |||||||||||||||||
$ | 9/30/2025 | 9/30/2026 | Three-month Term SOFR rate of |
December 30, 2023 | September 30, 2023 | |||||||||||||||||||||||||
Asset | Liability | Asset | Liability | |||||||||||||||||||||||
Interest rate cap agreement | $ | $ | $ | $ | ||||||||||||||||||||||
Interest rate collar agreements | ||||||||||||||||||||||||||
Interest rate swap agreements | ||||||||||||||||||||||||||
Net derivatives as classified in the condensed consolidated balance sheets (1) | $ | $ | $ | $ |
Thirteen Week Periods Ended | |||||||||||
December 30, 2023 | December 31, 2022 | ||||||||||
Net sales to external customers | |||||||||||
Power & Control | |||||||||||
Commercial and non-aerospace OEM | $ | $ | |||||||||
Commercial and non-aerospace aftermarket | |||||||||||
Defense | |||||||||||
Total Power & Control | |||||||||||
Airframe | |||||||||||
Commercial and non-aerospace OEM | |||||||||||
Commercial and non-aerospace aftermarket | |||||||||||
Defense | |||||||||||
Total Airframe | |||||||||||
Total Non-aviation | |||||||||||
Net Sales | $ | $ |
Thirteen Week Periods Ended | |||||||||||
December 30, 2023 | December 31, 2022 | ||||||||||
EBITDA As Defined | |||||||||||
Power & Control | $ | $ | |||||||||
Airframe | |||||||||||
Non-aviation | |||||||||||
Total segment EBITDA As Defined | |||||||||||
Less: Unallocated corporate EBITDA As Defined | |||||||||||
Total Company EBITDA As Defined | |||||||||||
Depreciation and amortization expense | |||||||||||
Interest expense-net | |||||||||||
Acquisition and divestiture transaction-related expenses | |||||||||||
Non-cash stock and deferred compensation expense | |||||||||||
Refinancing costs | |||||||||||
Other, net | |||||||||||
Income from operations before income taxes | $ | $ |
December 30, 2023 | September 30, 2023 | ||||||||||
Total assets | |||||||||||
Power & Control | $ | $ | |||||||||
Airframe | |||||||||||
Non-aviation | |||||||||||
Corporate | |||||||||||
$ | $ |
Unrealized (losses) gains on derivatives (1) | Pension and post-retirement benefit plans adjustment (2) | Foreign currency translation adjustment (3) | Total | ||||||||||||||||||||
Balance at September 30, 2023 | $ | $ | $ | ( | $ | ( | |||||||||||||||||
Net current-period other comprehensive (loss) income (4) | ( | ||||||||||||||||||||||
Balance at December 30, 2023 | $ | $ | $ | ( | $ | ( | |||||||||||||||||
Balance at September 30, 2022 | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Net current-period other comprehensive income (4) | |||||||||||||||||||||||
Balance at December 31, 2022 | $ | $ | ( | $ | ( | $ | ( |
Thirteen Week Periods Ended | |||||||||||||||||
Classification | December 30, 2023 | December 31, 2022 | |||||||||||||||
Operating lease cost | Cost of sales or selling and administrative expenses | $ | $ | ||||||||||||||
Finance lease cost: | |||||||||||||||||
Amortization of leased assets | Cost of sales | ||||||||||||||||
Interest on lease liabilities | Interest expense-net | ||||||||||||||||
Total lease cost | $ | $ |
Thirteen Week Periods Ended | ||||||||||||||
December 30, 2023 | December 31, 2022 | |||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||||||||
Operating cash outflows from operating leases | $ | $ | ||||||||||||
Operating cash outflows from finance leases | ||||||||||||||
Financing cash outflows from finance leases | ||||||||||||||
Lease assets obtained in exchange for new lease obligations: | ||||||||||||||
Operating leases | $ | $ | ||||||||||||
Financing leases |
Classification | December 30, 2023 | September 30, 2023 | |||||||||||||||
Operating Leases | |||||||||||||||||
Operating lease right-of-use assets | $ | $ | |||||||||||||||
Current operating lease liabilities | |||||||||||||||||
Long-term operating lease liabilities | |||||||||||||||||
Total operating lease liabilities | $ | $ | |||||||||||||||
Finance Leases | |||||||||||||||||
Finance lease right-of-use assets, net | $ | $ | |||||||||||||||
Current finance lease liabilities | |||||||||||||||||
Long-term finance lease liabilities | |||||||||||||||||
Total finance lease liabilities | $ | $ |
Weighted-average remaining lease term | |||||
Operating leases | |||||
Finance leases | |||||
Weighted-average discount rate | |||||
Operating leases | |||||
Finance leases |
Operating Leases | Finance Leases | ||||||||||
2024 | $ | $ | |||||||||
2025 | |||||||||||
2026 | |||||||||||
2027 | |||||||||||
2028 | |||||||||||
Thereafter | |||||||||||
Total future minimum lease payments | |||||||||||
Less: imputed interest | |||||||||||
Present value of lease liabilities reported | $ | $ |
Thirteen Week Periods Ended | |||||||||||||||||||||||
December 30, 2023 | % of Net Sales | December 31, 2022 | % of Net Sales | ||||||||||||||||||||
Net sales | $ | 1,789 | 100.0 | % | $ | 1,397 | 100.0 | % | |||||||||||||||
Cost of sales | 747 | 41.8 | % | 604 | 43.2 | % | |||||||||||||||||
Selling and administrative expenses | 220 | 12.3 | % | 169 | 12.1 | % | |||||||||||||||||
Amortization of intangible assets | 35 | 2.0 | % | 34 | 2.4 | % | |||||||||||||||||
Income from operations | 787 | 44.0 | % | 590 | 42.2 | % | |||||||||||||||||
Interest expense-net | 300 | 16.8 | % | 286 | 20.5 | % | |||||||||||||||||
Refinancing costs | — | — | % | 4 | 0.3 | % | |||||||||||||||||
Other income | (1) | (0.1) | % | (1) | (0.1) | % | |||||||||||||||||
Income tax provision | 106 | 5.9 | % | 72 | 5.2 | % | |||||||||||||||||
Income from operations | 382 | 21.4 | % | 229 | 16.4 | % | |||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | % | (1) | (0.1) | % | |||||||||||||||||
Net income attributable to TD Group | $ | 382 | 21.4 | % | $ | 228 | 16.3 | % | |||||||||||||||
Net income applicable to TD Group common stockholders | $ | 281 | (1) | 15.7 | % | $ | 190 | (1) | 13.6 | % | |||||||||||||
Earnings per share attributable to TD Group common stockholders: | |||||||||||||||||||||||
Basic and diluted | $ | 4.87 | (2) | $ | 3.33 | (2) | |||||||||||||||||
Cash dividends paid per common share | $ | 35.00 | $ | — | |||||||||||||||||||
Weighted-average shares outstanding—basic and diluted | 57.7 | 57.1 | |||||||||||||||||||||
Other Data: | |||||||||||||||||||||||
EBITDA | $ | 859 | (3) | $ | 650 | (3) | |||||||||||||||||
EBITDA As Defined | $ | 912 | (3) | 51.0 | % | $ | 699 | (3) | 50.0 | % |
Thirteen Week Periods Ended | % Change Net Sales | ||||||||||||||||||||||
December 30, 2023 | December 31, 2022 | Change | |||||||||||||||||||||
Organic sales | $ | 1,725 | $ | 1,397 | $ | 328 | 23.5 | % | |||||||||||||||
Acquisition sales | 64 | — | 64 | 4.6 | % | ||||||||||||||||||
Net sales | $ | 1,789 | $ | 1,397 | $ | 392 | 28.1 | % |
Thirteen Week Periods Ended | |||||||||||||||||||||||
December 30, 2023 | December 31, 2022 | Change | % Change | ||||||||||||||||||||
Cost of sales - excluding costs below | $ | 732 | $ | 592 | $ | 140 | 23.6 | % | |||||||||||||||
% of net sales | 40.9 | % | 42.4 | % | |||||||||||||||||||
Foreign currency losses | 14 | 18 | (4) | (22.2) | % | ||||||||||||||||||
% of net sales | 0.8 | % | 1.3 | % | |||||||||||||||||||
Non-cash stock and deferred compensation expense | 5 | 4 | 1 | 25.0 | % | ||||||||||||||||||
% of net sales | 0.3 | % | 0.3 | % | |||||||||||||||||||
Inventory acquisition accounting adjustments | 1 | 2 | (1) | (50.0) | % | ||||||||||||||||||
% of net sales | 0.1 | % | 0.1 | % | |||||||||||||||||||
Loss contract amortization | (5) | (12) | 7 | 58.3 | % | ||||||||||||||||||
% of net sales | (0.3) | % | (0.9) | % | |||||||||||||||||||
Total cost of sales | $ | 747 | $ | 604 | $ | 143 | 23.7 | % | |||||||||||||||
% of net sales | 41.8 | % | 43.2 | % | |||||||||||||||||||
Gross profit (Net sales less Total cost of sales) | $ | 1,042 | $ | 793 | $ | 249 | 31.4 | % | |||||||||||||||
Gross profit percentage (Gross profit / Net sales) | 58.2 | % | 56.8 | % | |||||||||||||||||||
Thirteen Week Periods Ended | |||||||||||||||||||||||
December 30, 2023 | December 31, 2022 | Change | % Change | ||||||||||||||||||||
Selling and administrative expenses - excluding costs below | $ | 175 | $ | 138 | $ | 37 | 26.8 | % | |||||||||||||||
% of net sales | 9.8 | % | 9.9 | % | |||||||||||||||||||
Non-cash stock and deferred compensation expense | 45 | 31 | 14 | 45.2 | % | ||||||||||||||||||
% of net sales | 2.5 | % | 2.2 | % | |||||||||||||||||||
Total selling and administrative expenses | $ | 220 | $ | 169 | $ | 51 | 30.2 | % | |||||||||||||||
% of net sales | 12.3 | % | 12.1 | % | |||||||||||||||||||
Thirteen Week Periods Ended | |||||||||||||||||||||||||||||||||||
December 30, 2023 | % of Net Sales | December 31, 2022 | % of Net Sales | Change | % Change | ||||||||||||||||||||||||||||||
Power & Control | $ | 885 | 49.5 | % | $ | 725 | 51.9 | % | $ | 160 | 22.1 | % | |||||||||||||||||||||||
Airframe | 862 | 48.2 | % | 637 | 45.6 | % | 225 | 35.3 | % | ||||||||||||||||||||||||||
Non-aviation | 42 | 2.3 | % | 35 | 2.5 | % | 7 | 20.0 | % | ||||||||||||||||||||||||||
Net sales | $ | 1,789 | 100.0 | % | $ | 1,397 | 100.0 | % | $ | 392 | 28.1 | % |
Thirteen Week Periods Ended | |||||||||||||||||||||||||||||||||||
December 30, 2023 | % of Segment Net Sales | December 31, 2022 | % of Segment Net Sales | Change | % Change | ||||||||||||||||||||||||||||||
Power & Control | $ | 509 | 57.5 | % | $ | 401 | 55.3 | % | $ | 108 | 26.9 | % | |||||||||||||||||||||||
Airframe | 431 | 50.0 | % | 312 | 49.0 | % | 119 | 38.1 | % | ||||||||||||||||||||||||||
Non-aviation | 17 | 40.5 | % | 14 | 40.0 | % | 3 | 21.4 | % | ||||||||||||||||||||||||||
Total segment EBITDA As Defined | 957 | 53.5 | % | 727 | 52.0 | % | 230 | 31.6 | % | ||||||||||||||||||||||||||
Less: Unallocated corporate EBITDA As Defined | 45 | 2.5 | % | (1) | 28 | 2.0 | % | (1) | 17 | 60.7 | % | ||||||||||||||||||||||||
Total Company EBITDA As Defined | $ | 912 | 51.0 | % | (1) | $ | 699 | 50.0 | % | (1) | $ | 213 | 30.5 | % |
December 30, 2023 | September 30, 2023 | ||||||||||
Selected Balance Sheet Data: | |||||||||||
Cash and cash equivalents | $ | 4,135 | $ | 3,472 | |||||||
Working capital (Total current assets less total current liabilities) | 5,578 | 5,159 | |||||||||
Total assets | 20,685 | 19,970 | |||||||||
Total debt (1) | 21,876 | 19,750 | |||||||||
TD Group stockholders’ deficit | (3,513) | (1,984) |
Thirteen Week Periods Ended | |||||||||||
December 30, 2023 | December 31, 2022 | ||||||||||
Selected Cash Flow and Other Financial Data: | |||||||||||
Cash flows provided by (used in): | |||||||||||
Operating activities | $ | 636 | $ | 377 | |||||||
Investing activities | (50) | (41) | |||||||||
Financing activities | 67 | (65) | |||||||||
Capital expenditures | 36 | 31 | |||||||||
Ratio of earnings to fixed charges (1) | 2.6x | 2.0x |
As of December 30, 2023 | |||||
Cash and cash equivalents | $ | 4,135 | |||
Availability on revolving credit facility | 756 | ||||
Cash liquidity | $ | 4,891 |
Term Loans Facility | Aggregate Principal | Maturity Date | Interest Rate | |||||||||||||||||
Tranche H | $1,708 million | February 22, 2027 | Term SOFR plus 3.25% | |||||||||||||||||
Tranche I | $4,525 million | August 24, 2028 | Term SOFR plus 3.25% | |||||||||||||||||
Tranche J | $1,000 million | February 28, 2031 | Term SOFR plus 3.25% |
Description | Aggregate Principal | Maturity Date | Interest Rate | |||||||||||||||||
2026 Secured Notes | $4,400 million | March 15, 2026 | 6.25% | |||||||||||||||||
7.50% 2027 Notes | $550 million | March 15, 2027 | 7.50% | |||||||||||||||||
5.50% 2027 Notes | $2,650 million | November 15, 2027 | 5.50% | |||||||||||||||||
2028 Secured Notes | $2,100 million | August 15, 2028 | 6.75% | |||||||||||||||||
4.625% 2029 Notes | $1,200 million | January 15, 2029 | 4.625% | |||||||||||||||||
4.875% 2029 Notes | $750 million | May 1, 2029 | 4.875% | |||||||||||||||||
2030 Secured Notes | $1,450 million | December 15, 2030 | 6.875% | |||||||||||||||||
2031 Secured Notes | $1,000 million | December 1, 2031 | 7.125% |
(in millions) | December 30, 2023 | ||||
Current assets | $ | 5,230 | |||
Goodwill | 7,114 | ||||
Other non-current assets | 3,230 | ||||
Current liabilities | 974 | ||||
Non-current liabilities | 22,037 | ||||
Amounts (from) due to subsidiaries that are non-issuers and non-guarantors-net | (1,438) |
Thirteen Week Period Ended | |||||
(in millions) | December 30, 2023 | ||||
Net sales | $ | 1,425 | |||
Sales to subsidiaries that are non-issuers and non-guarantors | 8 | ||||
Cost of sales | 561 | ||||
Expense from subsidiaries that are non-issuers and non-guarantors-net | 7 | ||||
Income from operations | 292 | ||||
Net income attributable to TD Group | 292 |
Thirteen Week Periods Ended | |||||||||||
December 30, 2023 | December 31, 2022 | ||||||||||
Net Income | $ | 382 | $ | 229 | |||||||
Adjustments: | |||||||||||
Depreciation and amortization expense | 71 | 63 | |||||||||
Interest expense-net | 300 | 286 | |||||||||
Income tax provision | 106 | 72 | |||||||||
EBITDA | 859 | 650 | |||||||||
Adjustments: | |||||||||||
Acquisition and divestiture transaction-related expenses and adjustments (1) | 2 | 3 | |||||||||
Non-cash stock and deferred compensation expense (2) | 51 | 35 | |||||||||
Refinancing costs (3) | — | 4 | |||||||||
Other, net (4) | — | 7 | |||||||||
EBITDA As Defined | $ | 912 | $ | 699 |
(1) | Represents accounting adjustments to inventory associated with acquisitions of businesses and product lines that were charged to cost of sales when inventory was sold; costs incurred to integrate acquired businesses and product lines into TD Group’s operations, facility relocation costs and other acquisition-related costs; transaction-related costs for both acquisitions and divestitures comprising deal fees, legal, financial and tax due diligence expenses, and valuation costs that are required to be expensed as incurred. | |||||||
(2) | Represents the compensation expense recognized by TD Group under our stock incentive plans and deferred compensation plans. | |||||||
(3) | Represents costs expensed related to debt financing activities, including new issuances, extinguishments, refinancings and amendments to existing agreements. | |||||||
(4) | Primarily represents foreign currency transaction (gains) or losses, payroll withholding taxes related to dividend equivalent payments and stock option exercises, non-service related pension costs and deferred compensation payments. |
Thirteen Week Periods Ended | |||||||||||
December 30, 2023 | December 31, 2022 | ||||||||||
Net cash provided by operating activities | $ | 636 | $ | 377 | |||||||
Adjustments: | |||||||||||
Changes in assets and liabilities, net of effects from acquisitions and sales of businesses | (126) | (49) | |||||||||
Interest expense-net (1) | 289 | 277 | |||||||||
Income tax provision-current | 106 | 72 | |||||||||
Loss contract amortization | 5 | 12 | |||||||||
Non-cash stock and deferred compensation expense (2) | (51) | (35) | |||||||||
Refinancing costs (3) | — | (4) | |||||||||
EBITDA | 859 | 650 | |||||||||
Adjustments: | |||||||||||
Acquisition and divestiture transaction-related expenses and adjustments (4) | 2 | 3 | |||||||||
Non-cash stock and deferred compensation expense (2) | 51 | 35 | |||||||||
Refinancing costs (3) | — | 4 | |||||||||
Other, net (5) | — | 7 | |||||||||
EBITDA As Defined | $ | 912 | $ | 699 |
(1) | Represents interest expense, net of interest income, excluding the amortization of debt issuance costs and premium and discount on debt. | |||||||
(2) | Represents the compensation expense recognized by TD Group under our stock incentive plans and deferred compensation plans. | |||||||
(3) | Represents costs expensed related to debt financing activities, including new issuances, extinguishments, refinancings and amendments to existing agreements. | |||||||
(4) | Represents accounting adjustments to inventory associated with acquisitions of businesses and product lines that were charged to cost of sales when inventory was sold; costs incurred to integrate acquired businesses and product lines into TD Group’s operations, facility relocation costs and other acquisition-related costs; transaction-related costs for both acquisitions and divestitures comprising deal fees, legal, financial and tax due diligence expenses, and valuation costs that are required to be expensed as incurred. | |||||||
(5) | Primarily represents foreign currency transaction (gains) or losses, payroll withholding taxes related to dividend equivalent payments and stock option exercises, non-service related pension costs and deferred compensation payments. |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Amendment to Second Amended and Restated Employment Agreement, dated February 6, 2024, between TransDigm Group Incorporated and Kevin Stein* | ||||||||||||||
Listing of Subsidiary Guarantors | ||||||||||||||
Certification by Principal Executive Officer of TransDigm Group Incorporated pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||||||||
Certification by Principal Financial Officer of TransDigm Group Incorporated pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||||||||
Certification by Principal Executive Officer of TransDigm Group Incorporated pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||||||||
Certification by Principal Financial Officer of TransDigm Group Incorporated pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||||||||
101.INS | Inline XBRL Instance Document: The XBRL Instance Document does not appear in the Inveractive Data File because its XBRL tags are embedded within the Inline XBRL document | Filed Herewith | ||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema | Filed Herewith | ||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase | Filed Herewith | ||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase | Filed Herewith | ||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase | Filed Herewith | ||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase | Filed Herewith | ||||||||||||
104 | Cover Page Interactive Data File: the cover page XBRL tags are embedded within the Inline XBRL document and are contained within Exhibit 101 | Filed Herewith |
* | Indicates management contract or compensatory plan contract or arrangement. |
SIGNATURE | TITLE | DATE | ||||||||||||||||||
/s/ Kevin Stein | President, Chief Executive Officer and Director (Principal Executive Officer) | February 8, 2024 | ||||||||||||||||||
Kevin Stein | ||||||||||||||||||||
/s/ Sarah Wynne | Chief Financial Officer (Principal Financial Officer) | February 8, 2024 | ||||||||||||||||||
Sarah Wynne |
TRANSDIGM GROUP INCORPORATED | ||||||||
By: | /s/ Jessica L. Warren | |||||||
Name: | Jessica L. Warren | |||||||
Title: | General Counsel, Chief Compliance Officer & Secretary | |||||||
EXECUTIVE | ||||||||
/s/ Kevin Stein | ||||||||
Kevin Stein |
Description | |||||
6.25% senior secured notes due 2026 (“2026 Secured Notes”) | |||||
7.50% senior subordinated notes due 2027 (“7.50% 2027 Notes”) | |||||
5.50% senior subordinated notes due 2027 (“5.50% 2027 Notes”) | |||||
6.75% senior secured notes due 2028 (“2028 Secured Notes”) | |||||
4.625% senior subordinated notes due 2029 (“4.625% 2029 Notes”) | |||||
4.875% senior subordinated notes due 2029 (“4.875% 2029 Notes”) | |||||
6.875% senior secured notes due 2030 (“2030 Secured Notes”) | |||||
7.125% senior secured notes due 2031 ("2031 Secured Notes") |
Subsidiary Guarantors | Jurisdiction of Incorporation or Organization | ||||||||||
703 City Center Boulevard, LLC | Virginia | ||||||||||
4455 Genesee Properties, LLC | Delaware | ||||||||||
4455 Genesee Street, LLC | Delaware | ||||||||||
17111 Waterview Pkwy LLC | Delaware | ||||||||||
Acme Aerospace, Inc. | Delaware | ||||||||||
Adams Rite Aerospace, Inc. | California | ||||||||||
AeroControlex Group, Inc. | Delaware | ||||||||||
Aerosonic LLC | Delaware | ||||||||||
Airborne Acquisition, Inc. | Delaware | ||||||||||
Airborne Global, Inc. | Delaware | ||||||||||
Airborne Holdings, Inc. | Delaware | ||||||||||
Airborne Systems NA Inc. | Delaware | ||||||||||
Airborne Systems North America Inc. | Delaware | ||||||||||
Airborne Systems North America of CA Inc. | Delaware | ||||||||||
Airborne Systems North America of NJ Inc. | New Jersey | ||||||||||
AmSafe Global Holdings, Inc. | Delaware | ||||||||||
AmSafe, Inc. | Delaware | ||||||||||
Angus Electronics Co. | Delaware | ||||||||||
Apical Industries, Inc. | California | ||||||||||
Arkwin Industries, Inc. | New York | ||||||||||
Armtec Countermeasures Co. | Delaware | ||||||||||
Armtec Countermeasures TNO Co. | Delaware | ||||||||||
Armtec Defense Products Co. | Delaware | ||||||||||
Ashford Properties, LLC | Delaware | ||||||||||
Auxitrol Weston USA, Inc. | Delaware | ||||||||||
Aviation Technologies, Inc. | Delaware | ||||||||||
Avionic Instruments LLC | Delaware | ||||||||||
Avionics Specialties, Inc. | Virginia | ||||||||||
AvtechTyee, Inc. | Washington | ||||||||||
Beta Transformer Technology LLC | Delaware |
Subsidiary Guarantors | Jurisdiction of Incorporation or Organization | ||||||||||
Breeze-Eastern LLC | Delaware | ||||||||||
Bridport Erie Aviation, Inc. | Delaware | ||||||||||
Bridport Holdings, Inc. | Delaware | ||||||||||
Bridport-Air Carrier, Inc. | Washington | ||||||||||
Bruce Aerospace Inc. | Delaware | ||||||||||
Calspan Aero Systems Engineering, Inc. | Minnesota | ||||||||||
Calspan Air Facilities, LLC | New York | ||||||||||
Calspan Air Services, LLC | New York | ||||||||||
Calspan ASE Portugal, Inc. | Minnesota | ||||||||||
Calspan Holdings, LLC | New York | ||||||||||
Calspan Systems, LLC | Virginia | ||||||||||
Calspan Technology Acquisition Corporation | Delaware | ||||||||||
Calspan, LLC | New York | ||||||||||
CDA InterCorp LLC | Florida | ||||||||||
CEF Industries, LLC | Delaware | ||||||||||
Champion Aerospace LLC | Delaware | ||||||||||
Chelton Avionics Holdings, Inc. | Delaware | ||||||||||
Chelton Avionics, Inc. | Delaware | ||||||||||
Chelton Defense Products, Inc. | Delaware | ||||||||||
CMC Electronics Aurora LLC | Delaware | ||||||||||
CTHC LLC | New York | ||||||||||
Dart Aerospace USA, Inc. | Washington | ||||||||||
Dart Buyer, Inc. | Delaware | ||||||||||
Dart Helicopter Services, Inc. | Delaware | ||||||||||
Dart Intermediate, Inc. | Delaware | ||||||||||
Dart TopCo, Inc. | Delaware | ||||||||||
Data Device Corporation | Delaware | ||||||||||
Dukes Aerospace, Inc. | Delaware | ||||||||||
Electromech Technologies LLC | Delaware | ||||||||||
Esterline Europe Company LLC | Delaware | ||||||||||
Esterline International Company | Delaware | ||||||||||
Esterline Technologies Corporation | Delaware | ||||||||||
Esterline Technologies SGIP LLC | Delaware | ||||||||||
Genesee Holdings II, LLC | New York | ||||||||||
Genesee Holdings III, LLC | New York | ||||||||||
Genesee Holdings, LLC | New York | ||||||||||
HarcoSemco LLC | Connecticut | ||||||||||
Hartwell Corporation | California | ||||||||||
Heli Tech, Inc. | Oregon | ||||||||||
Hytek Finishes Co. | Delaware | ||||||||||
ILC Holdings, Inc. | Delaware | ||||||||||
Janco Corporation | California | ||||||||||
Johnson Liverpool LLC | Delaware | ||||||||||
Kirkhill Inc. | Delaware |
Subsidiary Guarantors | Jurisdiction of Incorporation or Organization | ||||||||||
Korry Electronics Co. | Delaware | ||||||||||
Leach Holding Corporation | Delaware | ||||||||||
Leach International Corporation | Delaware | ||||||||||
Leach Mexico Holding LLC | Delaware | ||||||||||
Leach Technology Group, Inc. | Delaware | ||||||||||
MarathonNorco Aerospace, Inc. | Delaware | ||||||||||
Mason Electric Co. | Delaware | ||||||||||
McKechnie Aerospace DE, Inc. | Delaware | ||||||||||
McKechnie Aerospace Holdings, Inc. | Delaware | ||||||||||
McKechnie Aerospace US LLC | Delaware | ||||||||||
NAT Seattle Inc. | Delaware | ||||||||||
NMC Group, Inc. | California | ||||||||||
Nordisk Aviation Products LLC | Delaware | ||||||||||
North Hills Signal Processing Corp. | Delaware | ||||||||||
North Hills Signal Processing Overseas LLC | Delaware | ||||||||||
Norwich Aero Products Inc. | New York | ||||||||||
Offshore Helicopter Support Services, Inc. | Louisiana | ||||||||||
Palomar Products, Inc. | Delaware | ||||||||||
Paravion Technology, Inc. | Colorado | ||||||||||
Pexco Aerospace, Inc. | Delaware | ||||||||||
PneuDraulics, Inc. | California | ||||||||||
Power Device Corporation | New York | ||||||||||
Schneller LLC | Delaware | ||||||||||
Semco Instruments, Inc. | Delaware | ||||||||||
Shield Restraint Systems, Inc. | Delaware | ||||||||||
Simplex Manufacturing Co. | Oregon | ||||||||||
Skandia, Inc. | Illinois | ||||||||||
Skurka Aerospace Inc. | Delaware | ||||||||||
Symetrics Industries, LLC | Florida | ||||||||||
TA Aerospace Co. | California | ||||||||||
Tactair Fluid Controls, Inc. | New York | ||||||||||
TDG ESL Holdings Inc. | Delaware | ||||||||||
TEAC Aerospace Technologies, Inc. | Delaware | ||||||||||
Telair US LLC | Delaware | ||||||||||
Texas Rotronics, Inc. | Texas | ||||||||||
TransDigm UK Holdings Limited | United Kingdom | ||||||||||
Transicoil LLC | Delaware | ||||||||||
Whippany Actuation Systems, LLC | Delaware | ||||||||||
Young & Franklin Inc. | New York |
/s/ Kevin Stein | ||
Name: Kevin Stein | ||
Title: President, Chief Executive Officer and Director | ||
(Principal Executive Officer) |
/s/ Sarah Wynne | ||
Name: Sarah Wynne | ||
Title: Chief Financial Officer | ||
(Principal Financial Officer) |
/s/ Kevin Stein | ||
Name: Kevin Stein | ||
Title: President, Chief Executive Officer and Director | ||
(Principal Executive Officer) |
/s/ Sarah Wynne | ||
Name: Sarah Wynne | ||
Title: Chief Financial Officer | ||
(Principal Financial Officer) |
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares |
Dec. 30, 2023 |
Sep. 30, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 224,400,000 | 224,400,000 |
Common stock, shares issued (in shares) | 61,211,663 | 60,995,513 |
Treasury stock, shares outstanding (in shares) | 5,688,639 | 5,688,639 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Dec. 30, 2023 |
Dec. 31, 2022 |
|||
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 382 | $ 229 | ||
Less: Net income attributable to noncontrolling interests | 0 | (1) | ||
NET INCOME ATTRIBUTABLE TO TD GROUP | 382 | 228 | ||
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | 91 | 137 | ||
Unrealized (losses) gains on derivatives | (53) | 22 | ||
Pension and post-retirement benefit plans adjustment | 0 | 0 | ||
Other comprehensive income, net of tax, attributable to TD Group | [1] | 38 | 159 | |
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO TD GROUP | $ 420 | $ 387 | ||
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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Millions |
3 Months Ended | |
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Dec. 30, 2023 |
Dec. 31, 2022 |
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OPERATING ACTIVITIES: | ||
NET INCOME | $ 382 | $ 229 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 36 | 29 |
Amortization of intangible assets and product certification costs | 35 | 34 |
Amortization of debt issuance costs, original issue discount and premium | 11 | 9 |
Amortization of inventory step-up | 1 | 2 |
Amortization of loss contract reserves | (5) | (12) |
Refinancing costs | 0 | 4 |
Non-cash stock and deferred compensation expense | 51 | 35 |
Foreign currency exchange losses | 14 | 18 |
Changes in assets/liabilities, net of effects from acquisitions and sales of businesses: | ||
Trade accounts receivable | 94 | 121 |
Inventories | (78) | (89) |
Income taxes payable | 94 | 77 |
Other assets | 3 | (2) |
Accounts payable | (21) | (13) |
Accrued interest | 82 | 3 |
Accrued and other liabilities | (63) | (68) |
Net cash provided by operating activities | 636 | 377 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (36) | (31) |
Acquisition of businesses, net of cash acquired | (14) | (10) |
Net cash used in investing activities | (50) | (41) |
FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 52 | 27 |
Dividends and dividend equivalent payments | (2,038) | (38) |
Proceeds from issuance of senior secured notes, net | 983 | 0 |
Proceeds from term loans, net | 988 | 1,690 |
Proceeds from trade receivable securitization facility, net | 100 | 0 |
Repayment on term loans | (16) | (1,739) |
Financing costs and other, net | (2) | (5) |
Net cash provided by (used in) financing activities | 67 | (65) |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 10 | 16 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 663 | 287 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 3,472 | 3,001 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 4,135 | 3,288 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid during the period for interest, net | 205 | 272 |
Cash paid (refunded) during the period for income taxes, net of refunds | $ 11 | $ (2) |
BASIS OF PRESENTATION |
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Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION As used in this Quarterly Report on Form 10-Q, unless the context otherwise requires, the terms “Company”, “TD Group”, “TransDigm”, “we” or “us” refer to TransDigm Group Incorporated and its subsidiaries. Principles of Consolidation The financial information included herein is unaudited; however, the information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s condensed consolidated financial statements for the interim periods presented. These financial statements and notes should be read in conjunction with the financial statements and related notes for the fiscal year ended September 30, 2023 included in TD Group’s Annual Report on Form 10-K filed on November 9, 2023. As disclosed therein, the Company’s annual consolidated financial statements were prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”). The September 30, 2023 condensed consolidated balance sheet was derived from TD Group’s audited financial statements. The results of operations for the thirteen week period ended December 30, 2023 are not necessarily indicative of the results to be expected for the full year. Reclassifications Certain reclassifications have been made to the prior year amounts to conform to the current year presentation, none of which are material. New Accounting Pronouncements Issued In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative,” to amend certain disclosure and presentation requirements for a variety of topics within the ASC. These amendments align the requirements in the ASC to the removal of certain disclosure requirements set out in Regulation S-X and Regulation S-K, announced by the SEC. The effective date for each amended topic in the ASC is either the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, or on June 30, 2027, if the SEC has not removed the requirements by that date. Early adoption is prohibited. The Company does not expect that the application of this standard will have an impact on our condensed consolidated financial statements and disclosures. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” ASU 2023-07 expands disclosures about a public business entity's reportable segments and provides for more detailed information about a reportable segment's expenses. Additionally, ASU 2023-07 requires all segment profit or loss and assets disclosures to be provided on an annual and interim basis. This standard is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning one year later. Early adoption is permitted. The Company is currently evaluating this standard to determine its impact on our disclosures. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires a public business entity to disclose specific categories in its annual effective tax rate reconciliation and disaggregated information about significant reconciling items by jurisdiction and by nature. The ASU also requires entities to disclose their income tax payments (net of refunds) to international, federal, and state and local jurisdictions. The standard makes several other changes to income tax disclosure requirements. This standard is effective for annual periods beginning after December 15, 2024, and requires prospective application with the option to apply it retrospectively. Early adoption is permitted. The Company is currently evaluating this standard to determine its impact on our disclosures.
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ACQUISITIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS | ACQUISITIONS CPI Electron Device Business – On November 9, 2023, the Company entered into a definitive agreement to acquire the Electron Device Business of Communications & Power Industries (“CPI”), a portfolio company of TJC, L.P., for approximately $1,385 million in cash. CPI’s Electron Device Business is a leading global manufacturer of electronic components and subsystems primarily serving the aerospace and defense market. Its products are highly engineered, proprietary components with significant aftermarket content and a strong presence across major aerospace and defense platforms. The acquisition is expected to close in fiscal 2024, subject to regulatory approvals in the United States (“U.S.”) and United Kingdom and customary closing conditions. The acquisition is expected to be financed through existing cash on hand, inclusive of a portion of the cash proceeds from the new long-term debt issued in the first quarter of fiscal 2024. Refer to Note 7, “Debt,” for further disclosure of the aforementioned debt issuances. Calspan Corporation – On March 14, 2023, the Company entered into a definitive agreement to acquire all the outstanding stock of Calspan Corporation (“Calspan”) for a total purchase price of $730 million, which includes a $1 million working capital settlement paid in the first quarter of fiscal 2024. The acquisition was completed on May 8, 2023 and financed through existing cash on hand. Calspan operates from seven primary facilities within the U.S. and is a leading independent provider of proprietary highly engineered testing and technology development services and systems primarily for the aerospace and defense industry. Calspan’s state of the art transonic wind tunnel is used across a range of important aftermarket-focused development activities for both the commercial and defense aerospace end markets. The services and systems are primarily proprietary with significant aftermarket content. Calspan's operating results are included within TransDigm's Airframe segment as of the May 8, 2023 acquisition date. As of December 30, 2023, the measurement period (not to exceed one year) is open; therefore, the assets acquired and liabilities assumed related to the Calspan acquisition are subject to adjustment until the end of the respective measurement period. The Company is in the process of finalizing a third-party valuation of property, plant and equipment and certain intangible assets of Calspan. The allocation of the purchase price is preliminary and will likely change in future periods, perhaps materially, as fair value estimates of the assets acquired and liabilities assumed are finalized, including those related to deferred taxes and income taxes. We utilized both the cost and market approaches to value property, plant and equipment, which consider external transactions and other comparable transactions, estimated replacement and reproduction costs, and estimated useful lives and consideration for physical, functional and economic obsolescence. The fair values of acquired intangibles are determined based on an income approach, using estimates and assumptions that are deemed reasonable by the Company. Significant assumptions include the discount rates and certain assumptions that form the basis of the forecasted results of the acquired business including revenue, earnings before interest, taxes, depreciation and amortization (“EBITDA”), growth rates, royalty rates and technology obsolescence rates. These assumptions are forward looking and could differ from future economic and market conditions. Pro forma net sales and results of operations for the Calspan acquisition had it occurred at the beginning of the thirteen week period ended December 31, 2022 are not material and, accordingly, are not provided. The allocation of the estimated fair value of assets acquired and liabilities assumed in the Calspan acquisition as of the May 8, 2023 acquisition date, as well as measurement period adjustments recorded within the permissible one year measurement period, are summarized in the table below (in millions):
(1)Of the approximately $245 million of goodwill recognized for the acquisition, the Company expects that approximately $218 million will be deductible for tax purposes. Of the approximately $92 million of other intangible assets recognized for the acquisition, the Company expects that approximately $86 million will be deductible for tax purposes. The goodwill and intangible assets are expected to be deductible over 15 years. (2)Measurement period adjustments primarily related to the adjustments in the fair values of the acquired property, plant and equipment and other intangible assets from the third-party valuation. A substantial portion of the measurement period adjustments to property, plant and equipment relates to the fair value of the transonic wind tunnel. The offset to the measurement period adjustments was to goodwill. Extant Aerospace Acquisitions – For the thirteen week period ended December 30, 2023, the Company's Extant Aerospace subsidiary, which is included within TransDigm’s Power & Control segment, completed an acquisition of substantially all of the assets and technical data rights of a certain product line, which met the definition of a business, for a total purchase price of $13 million. The allocation of the purchase price remains preliminary and will likely change, though not materially, in future periods up to the expiration of the respective one year measurement period as fair value estimates of the assets acquired and liabilities assumed are finalized. The Company expects that all of the approximately $6 million of goodwill and $3 million of other intangible assets recognized for the acquisition will be deductible for tax purposes over 15 years. For the fiscal year ended September 30, 2023, the Company's Extant Aerospace subsidiary, completed a series of acquisitions of substantially all of the assets and technical data rights of certain product lines, each meeting the definition of a business, for a total purchase price of $24 million. The allocation of the purchase price remains preliminary and will likely change, though not materially, in future periods up to the expiration of the respective one year measurement period as fair value estimates of the assets acquired and liabilities assumed are finalized. The Company expects that all of the approximately $12 million of goodwill and $6 million of other intangible assets recognized for the acquisitions will be deductible for tax purposes over 15 years. Pro forma net sales and results of operations for the Extant Aerospace product line acquisitions, had they occurred at the beginning of the thirteen week periods ended December 30, 2023 or December 31, 2022 are not material and, accordingly, are not provided. The acquisitions completed by the Company strengthen and expand the Company’s position to design, produce and supply highly engineered proprietary aerospace components in niche markets with significant aftermarket content and provide opportunities to create value through the application of our three core value-driven operating strategy (obtaining profitable new business, continually improving our cost structure, and providing highly engineered value-added products to customers). The purchase prices paid reflect the current EBITDA and cash flows, as well as the future EBITDA and cash flows expected to be generated by the businesses, which are driven in most cases by the recurring aftermarket consumption over the life of a particular aircraft, estimated to be approximately 25 to 30 years.
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REVENUE RECOGNITION |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE RECOGNITION | REVENUE RECOGNITION TransDigm's sales are concentrated in the aerospace and defense industry. The Company’s customers include: distributors of aerospace components, commercial airlines, large commercial transport and regional and business aircraft original equipment manufacturers (“OEMs”), various armed forces of the U.S. and friendly foreign governments, defense OEMs, system suppliers, and various other industrial customers. The Company recognizes revenue from contracts with customers using the five step model prescribed in ASC 606. A substantial portion of the Company's revenue is recorded at a point in time basis. Revenue is recognized from the sale of products or services when obligations under the terms of the contract are satisfied and control of promised goods or services have transferred to the customer. Control is transferred when the customer has the ability to direct the use of and obtain benefits from the goods or services. Revenue is measured at the amount of consideration the Company expects to be paid in exchange for goods or services. In certain contracts, control transfers to the customer over time, primarily in contracts where the customer is required to pay for the cost of both the finished and unfinished goods at the time of cancellation plus a reasonable profit relative to the work performed for products that were customized for the customer. Therefore, we recognize revenue over time for those agreements that have a right to margin and where the products being produced have no alternative use. Based on our production cycle, it is generally expected that goods related to the revenue will be shipped and billed within twelve months. For revenue recognized over time, we estimate the amount of revenue attributable to a contract earned at a given point during the production cycle based on certain costs, such as materials and labor incurred to date, plus the expected profit, which is a cost-to-cost input method. We consider the contractual consideration payable by the customer and assess variable consideration that may affect the total transaction price. Variable consideration is included in the estimated transaction price when there is a basis to reasonably estimate the amount, including whether the estimate should be constrained in order to avoid a significant reversal of revenue in a future period. These estimates are based on historical experience, anticipated performance under the terms of the contract and our best judgment at the time. When contracts are modified to account for changes in contract specifications and requirements, the Company considers whether the modification either creates new or changes the existing enforceable rights and obligations. Contract modifications that are for goods or services that are not distinct from the existing contract, due to the significant integration with the original good or service provided, are accounted for as if they were part of that existing contract. The effect of a contract modification to an existing contract on the transaction price and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue on a cumulative catch-up basis. When the modifications include additional performance obligations that are distinct and at relative stand-alone selling price, they are accounted for as a new contract and performance obligation, which are recognized prospectively. The Company’s payment terms vary by the type and location of the customer and the products or services offered. The Company does not offer any payment terms that would meet the requirements for consideration as a significant financing component. Shipping and handling fees and costs incurred in connection with products sold are recorded in cost of sales in the consolidated statements of income, and are not considered a performance obligation to our customers. The Company pays sales commissions that relate to contracts for products or services that are satisfied at a point in time or over a period of one year or less and are expensed as incurred. These costs are reported as a component of selling and administrative expenses in the condensed consolidated statements of income. Contract Assets and Liabilities – Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing or reimbursable costs related to a specific contract. Contract liabilities (Deferred revenue) relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. The following table summarizes our contract assets and liabilities balances (in millions):
(1)Included in prepaid expenses and other on the condensed consolidated balance sheets. (2)Included in other non-current assets on the condensed consolidated balance sheets. (3)Included in accrued and other current liabilities on the condensed consolidated balance sheets. (4)Included in other non-current liabilities on the condensed consolidated balance sheets. The increase in the Company's total contract assets at December 30, 2023 compared to September 30, 2023 is primarily due to the timing and status of work in process and/or milestones of certain contracts. The increase in the Company's total contract liabilities at December 30, 2023 compared to September 30, 2023 is primarily due to the receipt of advance payments. For the thirteen week period ended December 30, 2023, the revenue recognized that was previously included in contract liabilities was approximately $9 million. Refer to Note 11, “Segments,” for disclosures related to the disaggregation of revenue. Allowance for Credit Losses – The Company's allowance for credit losses is the allowance for uncollectible accounts. The allowance for uncollectible accounts reduces the trade accounts receivable balance to the estimated net realizable value equal to the amount that is expected to be collected. The Company’s method for developing its allowance for credit losses is based on historical write-off experience, the aging of receivables, an assessment of the creditworthiness of customers, economic conditions and other external market information and supportable forward-looking information. The allowance also incorporates a provision for the estimated impact of disputes with customers. All provisions for allowances for uncollectible accounts are included in selling and administrative expenses. The determination of the amount of the allowance for uncollectible accounts is subject to judgment and estimation by management. If circumstances change or economic conditions deteriorate or improve, the allowance for uncollectible accounts could increase or decrease. As of December 30, 2023 and September 30, 2023, the allowance for uncollectible accounts was $33 million and $31 million, respectively. The allowance for uncollectible accounts is assessed individually at each operating unit by the operating unit’s management team.
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EARNINGS PER SHARE |
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EARNINGS PER SHARE (TWO-CLASS METHOD) | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data) using the two-class method:
(1)Represents dividend equivalent payments in the first quarter of fiscal 2024 and 2023 of approximately $101 million, of which $18 million was accrued as of September 30, 2023 and the remaining $83 million was associated with the November 2023 $35.00 dividend declaration, and $38 million, respectively.
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INVENTORIES |
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INVENTORIES | INVENTORIES Inventories are stated at the lower of cost or net realizable value. Cost of inventories is generally determined by the average cost and the first–in, first–out (“FIFO”) methods and includes material, labor and overhead related to the manufacturing process. Inventories consist of the following (in millions):
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INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS | INTANGIBLE ASSETS Other intangible assets–net in the condensed consolidated balance sheets consist of the following (in millions):
The aggregate amortization expense on identifiable intangible assets is approximately $35 million and $34 million for the thirteen week periods ended December 30, 2023 and December 31, 2022, respectively. As disclosed in Note 2, “Acquisitions,” the estimated fair value of the net identifiable tangible and intangible assets acquired is based on the acquisition method of accounting. The fair value of the net identifiable tangible and intangible assets acquired will be finalized within the measurement period (not to exceed one year). Intangible assets acquired during the thirteen week period ended December 30, 2023 are summarized in the table below (in millions):
The following is a summary of changes in the carrying value of goodwill by segment from September 30, 2023 through December 30, 2023 (in millions):
(1)Related to the opening balance sheet adjustments recorded from the acquisition of Calspan completed during fiscal year 2023, up to the expiration of the measurement period (not to exceed one year). Refer to Note 2, “Acquisitions,” for further information. The Company performs its annual impairment test for goodwill and other intangible assets as of the first day of the fourth fiscal quarter of each year, or more frequently, if events or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. We have assessed the changes in events and circumstances through the first quarter of fiscal 2024 and concluded that no triggering events occurred that required interim quantitative testing.
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DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT The Company’s debt consists of the following (in millions):
Amendment No. 13 and Incremental Term Loan Assumption Agreement – On November 28, 2023, the Company entered into Amendment No. 13 and Incremental Term Loan Assumption Agreement (herein, “Amendment No. 13”) to the Second Amended and Restated Credit Agreement dated as of June 4, 2014 (the “Credit Agreement”). Under the terms of Amendment No. 13, the Company, among other things, issued $1,000 million in Tranche J term loans maturing February 28, 2031. The Tranche J term loans bear interest at a rate of adjusted Term Secured Overnight Financing Rate (“Term SOFR”) plus an applicable margin of 3.25%. The Tranche J term loans were issued at a discount of 0.25%, or approximately $3 million. The Tranche J term loans were fully drawn on November 28, 2023 and the other terms and conditions that apply to the Tranche J term loans are substantially the same as the terms and conditions that apply to the term loans immediately prior to Amendment No. 13. Principal payments commence on March 31, 2024, in which $3 million will be paid on a quarterly basis up to the maturity date. The Company capitalized $10 million in debt issuance costs associated with the Tranche J term loans during the thirteen week period ended December 30, 2023. Issuance of $1,000 million Senior Secured Notes due 2031 – On November 28, 2023, the Company entered into a purchase agreement in connection with a private offering of $1,000 million in aggregate principal amount of 7.125% senior secured notes due 2031 (the “2031 Secured Notes”) at an issue price of 99.25% of the principal amount, which represents an approximately $8 million discount. The 2031 Secured Notes were issued pursuant to an indenture, dated as of November 28, 2023, amongst TransDigm Inc., as issuer, TransDigm Group and the other subsidiaries of TransDigm Inc. named therein, as guarantors. The 2031 Secured Notes are guaranteed, on a senior secured basis, by TransDigm Group and each of TransDigm Inc.’s direct and indirect restricted subsidiaries that is a borrower or guarantor under TransDigm’s senior secured credit facilities or that issues or guarantees any capital markets indebtedness of TransDigm or any of the guarantors in an aggregate principal amount of at least $200 million. The 2031 Secured Notes and guarantees rank equally in right of payment with all of TransDigm’s and the guarantors’ existing and future senior indebtedness, senior in right of payment to any of TransDigm’s and the guarantors’ existing and future indebtedness that is, by its terms, expressly subordinated in right of payment to the 2031 Secured Notes and guarantees, and structurally subordinated to all of the liabilities of TransDigm’s non-guarantor subsidiaries. The 2031 Secured Notes bear interest at a rate of 7.125% per annum, which accrues from November 28, 2023 and is payable in arrears on June 1 and December 1 of each year, commencing on June 1, 2024. The 2031 Secured Notes mature on December 1, 2031, unless earlier redeemed or repurchased, and are subject to the terms and conditions set forth in the indenture. The Company capitalized $10 million in debt issuance costs associated with the 2031 Secured Notes during the thirteen week period ended December 30, 2023. Trade Receivable Securitization Facility – The Company’s trade receivable securitization facility (the “Securitization Facility”) effectively increases the Company’s borrowing capacity depending on the amount of the domestic operations’ trade accounts receivable. The Securitization Facility includes the right for the Company to exercise annual one year extensions as long as there have been no termination events as defined by the agreement. The Company uses the proceeds from the Securitization Facility as an alternative to other forms of debt, effectively reducing borrowing costs. On July 25, 2023, the Company amended the Securitization Facility to, among other things, increase the borrowing capacity from $350 million to $450 million and extend the maturity date to July 25, 2024. During the first quarter of fiscal 2024, the Company drew the remaining $100 million available under the Securitization Facility. As of December 30, 2023, the Company has borrowed $450 million under the Securitization Facility, which is fully drawn, and bears interest at a rate of 1.6% plus Term SOFR. At December 30, 2023, the applicable interest rate was 6.99%. The Securitization Facility is collateralized by substantially all of the Company’s domestic operations’ trade accounts receivable. Government Refundable Advances – Government refundable advances consist of payments received from the Canadian government to assist in research and development related to commercial aviation. The requirement to repay this advance is based on year-over-year commercial aviation revenue growth for certain product lines at CMC Electronics, which is a wholly-owned subsidiary of TransDigm. As of December 30, 2023 and September 30, 2023, the outstanding balance of these advances was $21 million. Obligations under Finance Leases – The Company leases certain buildings and equipment under finance leases. The present value of the minimum finance lease payments, net of the current portion, represents a balance of $254 million and $193 million at December 30, 2023 and September 30, 2023, respectively. The increase in the current fiscal year is attributable to certain new leases of facilities and amendments to previous agreements qualifying as lease modifications resulting in a change in classification from an operating lease to a finance lease. Refer to Note 13, “Leases,” for further disclosure of the Company's lease obligations.
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INCOME TAXES |
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Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES At the end of each reporting period, TD Group makes an estimate of its annual effective income tax rate. The estimate used in the year-to-date period may change in subsequent periods. During the thirteen week periods ended December 30, 2023 and December 31, 2022, the effective income tax rate was 21.7% and 23.9%, respectively. The Company’s lower effective income tax rate for the thirteen week period ended December 30, 2023, was primarily due to a more significant discrete impact of excess tax benefits associated with share-based payments. The Company's effective income tax rate for the thirteen week period ended December 30, 2023 was slightly higher than the federal statutory tax rate of 21% primarily due to an increase in the valuation allowance applicable to the Company's net interest deduction limitation carryforward, offset by the discrete impact of excess tax benefits associated with share-based payments. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state, local and foreign jurisdictions. The Company is no longer subject to U.S. federal examinations for years before fiscal 2018. The Company is currently under examination for its federal income taxes in Canada for fiscal years 2013 through 2019, in France for fiscal years 2020 through 2022, and in Germany for fiscal years 2014 through 2019. In addition, the Company is subject to state income tax examinations for fiscal years 2015 and later. Unrecognized tax benefits at December 30, 2023 and September 30, 2023, the recognition of which would have an impact on the effective tax rate for each fiscal year, amounted to $17 million. The Company classifies all income tax-related interest and penalties as income tax expense, which were not significant for the thirteen week periods ended December 30, 2023 and December 31, 2022. As of December 30, 2023 and September 30, 2023, the Company accrued $6 million for the potential payment of interest and penalties. Within the next twelve months, it is reasonably possible that unrecognized tax benefits could be reduced by approximately $6 million resulting from the resolution or closure of tax examinations. Any increase in the amount of unrecognized tax benefits within the next
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FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following summarizes the carrying amounts and fair values of financial instruments (in millions):
(1)Included in prepaid expenses and other on the condensed consolidated balance sheets. (2)Included in other non-current assets on the condensed consolidated balance sheets. (3)Included in accrued and other current liabilities on the condensed consolidated balance sheets. (4)Included in other non-current liabilities on the condensed consolidated balance sheets. (5)The carrying amount of the debt instrument is presented net of debt issuance costs, premium and discount. Refer to Note 7, “Debt,” for gross carrying amounts. The Company values its financial instruments using an industry standard market approach, in which prices and other relevant information are generated by market transactions involving identical or comparable assets or liabilities. No financial instruments were recognized or disclosed using unobservable inputs (i.e., Level 3). The Company’s derivatives consist of interest rate swap, cap and collar agreements and foreign currency exchange contracts. The fair values of the interest rate swap, cap and collar agreements were derived by taking the net present value of the expected cash flows using observable market inputs (Level 2) such as SOFR rate curves, futures, volatilities and basis spreads (when applicable). The fair values of the foreign currency exchange contracts were derived by using Level 2 inputs based on observable spot and forward exchange rates in active markets. There has not been any impact to the fair value of derivative liabilities due to the Company's own credit risk. Similarly, there has not been any material impact to the fair value of derivative assets based on the Company's evaluation of counterparties' credit risks. The estimated fair value of the Company’s term loans was based on information provided by the agent under the Company’s Credit Agreement. The estimated fair values of the Company’s notes were based upon quoted market prices. The fair value of cash and cash equivalents, trade accounts receivable-net and accounts payable approximated carrying value due to the short-term nature of these instruments at December 30, 2023 and September 30, 2023.
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DERIVATIVES AND HEDGING ACTIVITIES |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES AND HEDGING ACTIVITIES | DERIVATIVES AND HEDGING ACTIVITIES The Company is exposed to, among other things, the impact of changes in foreign currency exchange rates and interest rates in the normal course of business. The Company’s risk management program is designed to manage the exposure and volatility arising from these risks, and utilizes derivative financial instruments to offset a portion of these risks. The Company uses derivative financial instruments only to the extent necessary to hedge identified business risks and does not enter into such transactions for trading purposes. The Company generally does not require collateral or other security with counterparties to these financial instruments and is therefore subject to credit risk in the event of nonperformance; however, the Company monitors credit risk and currently does not anticipate nonperformance by other parties. These derivative financial instruments do not subject the Company to undue risk, as gains and losses on these instruments generally offset gains and losses on the underlying assets, liabilities, or anticipated transactions that are being hedged. The Company has agreements with each of its swap, cap and collar counterparties that contain a provision whereby if the Company defaults on the Credit Agreement, the Company could also be declared in default on its swaps, cap and collars resulting in an acceleration of payment under the swaps, cap and collars. All derivative financial instruments are recorded at fair value in the condensed consolidated balance sheets. For a derivative that has not been designated as an accounting hedge, the change in the fair value is recognized immediately through earnings. For a derivative that has been designated as an accounting hedge of an existing asset or liability (a fair value hedge), the change in the fair value of both the derivative and underlying asset or liability is recognized immediately through earnings. For a derivative designated as an accounting hedge of an anticipated transaction (a cash flow hedge), the change in the fair value is recorded on the condensed consolidated balance sheets in accumulated other comprehensive loss to the extent the derivative is effective in mitigating the exposure related to the anticipated transaction. The change in the fair value related to the ineffective portion of the hedge, if any, is immediately recognized in earnings. The amount recorded within accumulated other comprehensive loss is reclassified into earnings in the same period during which the underlying hedged transaction affects earnings. Interest Rate Swap, Cap and Collar Agreements – Interest rate swap, cap and collar agreements are used to manage interest rate risk associated with floating rate borrowings under our Credit Agreement. These agreements involve the receipt of floating rate amounts in exchange for fixed rate interest payments over the term of the agreements without an exchange of the underlying principal amount. The agreements utilized by the Company effectively modify the Company’s exposure to interest rate risk by converting a portion of the Company’s floating rate debt to a fixed rate basis from the effective date through the maturity date of the respective interest rate swap, cap and collar agreements, thereby reducing the impact of interest rate movements on future interest expense. During the second quarter of fiscal 2023, we entered into LIBOR to Term SOFR basis interest rate swap and cap transactions to effectively convert our existing swaps and cap from LIBOR-based to Term SOFR-based. The basis swaps and cap offset the LIBOR exposure of the existing swaps and cap and effectively fix the Term SOFR rate for the notional amount. We also entered into forward starting interest rate collar agreements during the second quarter of fiscal 2023. The interest rate collar agreements establish a range where we will pay the counterparties if the three-month Term SOFR rate falls below the established floor rate of 2.0%, and the counterparties will pay us if the three-month Term SOFR rate exceeds the ceiling rate of 3.5%. The collar will settle quarterly from the effective date through the maturity date. No payments or receipts will be exchanged on the interest rate collar contracts unless interest rates rise above or fall below the contracted ceiling or floor rates. The tables below summarize the key terms of the swaps, cap and collars as of December 30, 2023 (aggregated by effective date). Interest rate swap agreements:
Interest rate cap agreement:
Interest rate collar agreements:
These derivative instruments qualify as effective cash flow hedges under U.S. GAAP. For the LIBOR to Term SOFR basis interest rate swap and cap agreements referenced above, we applied the practical expedients permissible under ASC 848 to continue hedge accounting for our existing swaps and cap as effective cash flow hedges. For our cash flow hedges, the effective portion of the gain or loss from the financial instruments is initially reported as a component of accumulated other comprehensive loss in stockholders’ deficit and subsequently reclassified into earnings in the same line as the hedged item in the same period or periods during which the hedged item affects earnings. As the interest rate swap, cap and collar agreements are used to manage interest rate risk, any gains or losses from the derivative instruments that are reclassified into earnings are recognized in interest expense-net in the condensed consolidated statements of income. Cash flows related to the derivative contracts are included in cash flows from operating activities on the condensed consolidated statements of cash flows. Certain derivative asset and liability balances are offset where master netting agreements provide for the legal right of setoff. For classification purposes, we record the net fair value of each type of derivative position that is expected to settle in less than one year with each counterparty as a net current asset or liability and each type of long-term position as a net non-current asset or liability. The amounts shown in the table below represent the gross amounts of recognized assets and liabilities, the amounts offset in the condensed consolidated balance sheets and the net amounts of assets and liabilities presented therein (in millions):
(1)Refer to Note 9, “Fair Value Measurements,” for the condensed consolidated balance sheets classification of the Company's interest rate swap, cap and collar agreements. Based on the fair value amounts determined as of December 30, 2023, the estimated net amount of existing (gains) losses and caplet amortization expected to be reclassified into interest expense-net within the next twelve months is approximately ($71) million. Foreign Currency Forward Exchange Contracts – The Company transacts business in various foreign currencies, which subjects the Company’s cash flows and earnings to exposure related to changes in foreign currency exchange rates. These exposures arise primarily from purchases or sales of products and services from third parties. Foreign currency forward exchange contracts provide for the purchase or sale of foreign currencies at specified future dates at specified exchange rates, and are used to offset changes in the fair value of certain assets or liabilities or forecasted cash flows resulting from transactions denominated in foreign currencies. At December 30, 2023, the Company has outstanding foreign currency forward exchange contracts to sell U.S. dollars with notional amounts of $124 million. The maximum duration of the Company’s foreign currency cash flow hedge contracts at December 30, 2023 is nine months. These notional values consist of contracts for the Canadian dollar and the euro and are stated in U.S. dollar equivalents at spot exchange rates at the respective trade dates. Amounts related to foreign currency forward exchange contracts included in accumulated other comprehensive loss in stockholders' deficit are reclassified into net sales when the hedged transaction settles. During the thirteen week period ended December 30, 2023, the losses reclassified on settlements of foreign currency forward exchange contracts designated as cash flow hedges into net sales was approximately $1 million. The losses were previously recorded as a component of accumulated other comprehensive loss in stockholders' deficit. As of December 30, 2023, the Company expects to record a net loss of less than $1 million on foreign currency forward exchange contracts designated as cash flow hedges to net sales over the next twelve months.
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SEGMENTS |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENTS | SEGMENTS The Company’s businesses are organized and managed in three reporting segments: Power & Control, Airframe and Non-aviation. The Power & Control segment includes operations that primarily develop, produce and market systems and components that predominately provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies. Major product offerings include mechanical/electromechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, databus and power controls, advanced sensor products, switches and relay panels, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems. Primary customers of this segment are engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies and repair depots. Products are sold in the original equipment and aftermarket market channels. The Airframe segment includes operations that primarily develop, produce and market systems and components that are used in non-power airframe applications utilizing airframe and cabin structure technologies. Major product offerings include engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, specialized and advanced cockpit displays, engineered audio, radio and antenna systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, thermal protection and insulation, lighting and control technology, parachutes and specialized flight, wind tunnel and jet engine testing services and equipment. Primary customers of this segment are airframe manufacturers and cabin system suppliers and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies and repair depots. Products are sold in the original equipment and aftermarket market channels. The Non-aviation segment includes operations that primarily develop, produce and market products for non-aviation markets. Major product offerings include seat belts and safety restraints for ground transportation applications, mechanical/electromechanical actuators and controls for space applications, hydraulic/electromechanical actuators and fuel valves for land-based gas turbines, and refueling systems for heavy equipment used in mining, construction and other industries and turbine controls for the energy and oil and gas markets. Primary customers of this segment are off-road vehicle suppliers and subsystem suppliers, child restraint system suppliers, satellite and space system suppliers, manufacturers of heavy equipment used in mining, construction and other industries and turbine original equipment manufacturers, gas pipeline builders and electric utilities. The primary measurement used by management to review and assess the operating performance of each segment is EBITDA As Defined. The Company defines EBITDA As Defined as earnings before interest, taxes, depreciation and amortization plus certain non-operating items recorded as corporate expenses including non-cash compensation charges incurred in connection with the Company’s stock incentive or deferred compensation plans, foreign currency gains and losses, acquisition-integration costs, acquisition and divestiture transaction-related expenses, and refinancing costs. Acquisition and divestiture-related costs represent accounting adjustments to inventory associated with acquisitions of businesses and product lines that were charged to cost of sales when the inventory was sold; costs incurred to integrate acquired businesses and product lines into the Company’s operations, facility relocation costs and other acquisition-related costs; transaction-related costs for both acquisitions and divestitures comprising deal fees; legal, financial and tax diligence expenses and valuation costs that are required to be expensed as incurred and other acquisition accounting adjustments. EBITDA As Defined is not a measurement of financial performance under U.S. GAAP. Although the Company uses EBITDA As Defined to assess the performance of its business and for various other purposes, the use of this non-GAAP financial measure as an analytical tool has limitations, and it should not be considered in isolation or as a substitute for analysis of the Company’s results of operations as reported in accordance with U.S. GAAP. The Company’s segments are reported on the same basis used internally for evaluating performance and for allocating resources. The accounting policies for each segment are the same as those described in the summary of significant accounting policies in the Company’s consolidated financial statements. Intersegment sales and transfers are recorded at values based on market prices, which creates intercompany profit on intersegment sales or transfers that is eliminated in consolidation. Intersegment sales were immaterial for the periods presented below. Corporate consists of our corporate offices. Corporate expenses consist primarily of compensation, benefits, professional services and other administrative costs incurred by the corporate offices. Corporate assets consist primarily of cash and cash equivalents. Corporate expenses and assets reconcile reportable segment data to the consolidated totals. An immaterial amount of corporate expenses is allocated to the operating segments. The following table presents net sales by reportable segment (in millions):
The following table reconciles EBITDA As Defined by segment to consolidated income from operations before income taxes (in millions):
The following table presents total assets by segment (in millions):
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ACCUMULATED OTHER COMPREHENSIVE LOSS |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the total changes by component in accumulated other comprehensive loss (“AOCI”), net of taxes, for the thirteen week periods ended December 30, 2023 and December 31, 2022 (in millions):
(1)Represents unrealized (losses) gains on derivatives designated and qualifying as cash flow hedges, net of taxes, of ($18) million and $7 million for the thirteen week periods ended December 30, 2023 and December 31, 2022, respectively. (2)There were no material pension liability adjustments, net of taxes, related to activity on the defined pension plan and postretirement benefit plan for the thirteen week periods ended December 30, 2023 and December 31, 2022. (3)Represents gains (losses) resulting from foreign currency translation of financial statements, including gains (losses) from certain intercompany transactions, into U.S. dollars at the rates of exchange in effect at the balance sheet dates. (4)Presented net of reclassifications out of AOCI into earnings, specifically net sales and interest expense-net, for realized (losses) gains on derivatives designated and qualifying as cash flow hedges of ($1) million (net of taxes of less than ($1) million) and $28 million (net of taxes of $9 million), respectively, for the thirteen week period ended December 30, 2023 and ($1) million (net of taxes of less than ($1) million) and $6 million (net of taxes of $2 million), respectively, for the thirteen week period ended December 31, 2022.
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LEASES |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LEASES The Company leases certain manufacturing facilities, offices, land, equipment and vehicles. Such leases, some of which are noncancellable and, in many cases, include renewals, expire at various dates. Such options to renew are included in the lease term when it is reasonably certain that the option will be exercised. The Company’s lease agreements typically do not contain any significant residual value guarantees or restrictive covenants, and payments within certain lease agreements are adjusted periodically for changes in an index or rate. The Company determines if an arrangement is a lease at inception. Operating lease assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The discount rate implicit within our leases is generally not determinable and therefore we determine the discount rate based on our incremental borrowing rate. The incremental borrowing rate for our leases is determined based on the lease term and the currency in which lease payments are made. The length of a lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of twelve months or less. Additionally, when accounting for leases, the Company combines payments for leased assets, related services and other components of a lease. The components of lease expense are as follows (in millions):
Supplemental cash flow information related to leases is as follows (in millions):
Supplemental balance sheet information related to leases is as follows (in millions):
As of December 30, 2023, the Company has the following remaining lease term and weighted average discount rates:
Maturities of lease liabilities at December 30, 2023 are as follows (in millions):
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Leases | LEASES The Company leases certain manufacturing facilities, offices, land, equipment and vehicles. Such leases, some of which are noncancellable and, in many cases, include renewals, expire at various dates. Such options to renew are included in the lease term when it is reasonably certain that the option will be exercised. The Company’s lease agreements typically do not contain any significant residual value guarantees or restrictive covenants, and payments within certain lease agreements are adjusted periodically for changes in an index or rate. The Company determines if an arrangement is a lease at inception. Operating lease assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The discount rate implicit within our leases is generally not determinable and therefore we determine the discount rate based on our incremental borrowing rate. The incremental borrowing rate for our leases is determined based on the lease term and the currency in which lease payments are made. The length of a lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of twelve months or less. Additionally, when accounting for leases, the Company combines payments for leased assets, related services and other components of a lease. The components of lease expense are as follows (in millions):
Supplemental cash flow information related to leases is as follows (in millions):
Supplemental balance sheet information related to leases is as follows (in millions):
As of December 30, 2023, the Company has the following remaining lease term and weighted average discount rates:
Maturities of lease liabilities at December 30, 2023 are as follows (in millions):
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COMMITMENTS AND CONTINGENCIES |
3 Months Ended |
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Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES During the ordinary course of business, the Company is from time to time threatened with, or may become a party to, legal actions and other proceedings. While the Company is currently involved in certain legal proceedings, it believes the results of these proceedings will not have a material adverse effect on its financial condition, results of operations, or cash flows. DOD OIG Audit – TransDigm’s subsidiaries are periodically subject to pricing reviews and government buying agencies that purchase some of our subsidiaries’ products are periodically subject to audits by the Department of Defense (“DOD”) Office of Inspector General (“OIG”) with respect to prices paid for such products. In 2019, the DOD OIG received a congressional letter requesting a comprehensive review of TransDigm’s contracts with the DOD from January 2017 through June 2019 to identify whether TransDigm earned excess profits. This subsequently resulted in an audit by the DOD OIG in which the objective was to determine whether TransDigm’s business model impacted the DOD’s ability to pay fair and reasonable prices for spare parts. In December 2021, the OIG completed the audit and issued the related audit report. Despite the audit report making clear there was no wrongdoing by TransDigm, its businesses, or the DOD, the report recommended that TransDigm voluntarily refund at least $21 million in excess profit on 150 contracts subject to the audit. TransDigm disagrees with many of the implications contained in the report, and objects to the use of arbitrary standards and analysis which render many areas of the report inaccurate and misleading. These include: (1) The report expressly acknowledges that it used arbitrary standards that are not applicable to the audited contracts and warns that its arbitrary standards should not be used in the future. The use of inapplicable standards results in flawed analysis and is misleading; (2) The report ignores significant real costs incurred by the business and contrary to law reports these costs as excess profit; (3) Despite data demonstrating that the DOD paid lower prices compared to the commercial prices for similar parts, the report did not conduct a price analysis and instead implies that the DOD negotiated prices were too high. No loss contingency related to the voluntary refund request has been recorded as of December 30, 2023 as the Company has concluded that based on the current facts and circumstances, it's uncertain as to whether or not the requested voluntary refund will be made.
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Pay vs Performance Disclosure - USD ($) $ in Millions |
3 Months Ended | |
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Dec. 30, 2023 |
Dec. 31, 2022 |
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Pay vs Performance Disclosure | ||
NET INCOME ATTRIBUTABLE TO TD GROUP | $ 382 | $ 228 |
Insider Trading Arrangements |
3 Months Ended |
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Dec. 30, 2023
shares
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Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | true |
Non-Rule 10b5-1 Arrangement Adopted | false |
Adoption Date | December 11, 2023 |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Kevin Stein [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On December 11, 2023, Kevin Stein, the Company’s President, Chief Executive Officer and Director, entered into a new “Rule 10b5-1 trading arrangement” (as defined in Item 408 of Regulation S-K) for the sale of 60,000 shares of common stock issuable upon the exercise of vested options intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Exchange Act, which Rule 10b5-1 trading arrangement is scheduled to begin on March 12, 2024 and terminate no later than December 31, 2024.
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Name | Kevin Stein |
Title | President, Chief Executive Officer and Director |
Arrangement Duration | 294 days |
Aggregate Available | 60,000 |
BASIS OF PRESENTATION (Policies) |
3 Months Ended |
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Dec. 30, 2023 | |
Quarterly Financial Information Disclosure [Abstract] | |
Principles of Consolidation | Principles of Consolidation The financial information included herein is unaudited; however, the information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s condensed consolidated financial statements for the interim periods presented. These financial statements and notes should be read in conjunction with the financial statements and related notes for the fiscal year ended September 30, 2023 included in TD Group’s Annual Report on Form 10-K filed on November 9, 2023. As disclosed therein, the Company’s annual consolidated financial statements were prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”). The September 30, 2023 condensed consolidated balance sheet was derived from TD Group’s audited financial statements. The results of operations for the thirteen week period ended December 30, 2023 are not necessarily indicative of the results to be expected for the full year.
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Reclassifications | Reclassifications Certain reclassifications have been made to the prior year amounts to conform to the current year presentation, none of which are material.
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New Accounting Pronouncements Issued | New Accounting Pronouncements Issued In October 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-06, “Disclosure Improvements: Codification Amendments in Response to the SEC’s Disclosure Update and Simplification Initiative,” to amend certain disclosure and presentation requirements for a variety of topics within the ASC. These amendments align the requirements in the ASC to the removal of certain disclosure requirements set out in Regulation S-X and Regulation S-K, announced by the SEC. The effective date for each amended topic in the ASC is either the date on which the SEC’s removal of the related disclosure requirement from Regulation S-X or Regulation S-K becomes effective, or on June 30, 2027, if the SEC has not removed the requirements by that date. Early adoption is prohibited. The Company does not expect that the application of this standard will have an impact on our condensed consolidated financial statements and disclosures. In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.” ASU 2023-07 expands disclosures about a public business entity's reportable segments and provides for more detailed information about a reportable segment's expenses. Additionally, ASU 2023-07 requires all segment profit or loss and assets disclosures to be provided on an annual and interim basis. This standard is effective for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning one year later. Early adoption is permitted. The Company is currently evaluating this standard to determine its impact on our disclosures. In December 2023, the FASB issued ASU 2023-09, “Income Taxes (Topic 740): Improvements to Income Tax Disclosures,” which requires a public business entity to disclose specific categories in its annual effective tax rate reconciliation and disaggregated information about significant reconciling items by jurisdiction and by nature. The ASU also requires entities to disclose their income tax payments (net of refunds) to international, federal, and state and local jurisdictions. The standard makes several other changes to income tax disclosure requirements. This standard is effective for annual periods beginning after December 15, 2024, and requires prospective application with the option to apply it retrospectively. Early adoption is permitted. The Company is currently evaluating this standard to determine its impact on our disclosures.
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ACQUISITIONS (Tables) |
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Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The allocation of the estimated fair value of assets acquired and liabilities assumed in the Calspan acquisition as of the May 8, 2023 acquisition date, as well as measurement period adjustments recorded within the permissible one year measurement period, are summarized in the table below (in millions):
(1)Of the approximately $245 million of goodwill recognized for the acquisition, the Company expects that approximately $218 million will be deductible for tax purposes. Of the approximately $92 million of other intangible assets recognized for the acquisition, the Company expects that approximately $86 million will be deductible for tax purposes. The goodwill and intangible assets are expected to be deductible over 15 years. (2)Measurement period adjustments primarily related to the adjustments in the fair values of the acquired property, plant and equipment and other intangible assets from the third-party valuation. A substantial portion of the measurement period adjustments to property, plant and equipment relates to the fair value of the transonic wind tunnel. The offset to the measurement period adjustments was to goodwill.
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REVENUE RECOGNITION (Tables) |
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Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract with Customer, Asset and Liability [Table Text Block] |
(1)Included in prepaid expenses and other on the condensed consolidated balance sheets. (2)Included in other non-current assets on the condensed consolidated balance sheets. (3)Included in accrued and other current liabilities on the condensed consolidated balance sheets. (4)Included in other non-current liabilities on the condensed consolidated balance sheets.
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EARNINGS PER SHARE (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (in millions, except per share data) using the two-class method:
(1)Represents dividend equivalent payments in the first quarter of fiscal 2024 and 2023 of approximately $101 million, of which $18 million was accrued as of September 30, 2023 and the remaining $83 million was associated with the November 2023 $35.00 dividend declaration, and $38 million, respectively.
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INVENTORIES (Tables) |
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Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consist of the following (in millions):
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INTANGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets Subject to Amortization | Other intangible assets–net in the condensed consolidated balance sheets consist of the following (in millions):
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Summary of Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | Intangible assets acquired during the thirteen week period ended December 30, 2023 are summarized in the table below (in millions):
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Summary of Changes in Carrying Value of Goodwill | The following is a summary of changes in the carrying value of goodwill by segment from September 30, 2023 through December 30, 2023 (in millions):
(1)Related to the opening balance sheet adjustments recorded from the acquisition of Calspan completed during fiscal year 2023, up to the expiration of the measurement period (not to exceed one year). Refer to Note 2, “Acquisitions,” for further information.
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DEBT (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The Company’s debt consists of the following (in millions):
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FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amounts and Fair Values of Financial Instruments |
(1)Included in prepaid expenses and other on the condensed consolidated balance sheets. (2)Included in other non-current assets on the condensed consolidated balance sheets. (3)Included in accrued and other current liabilities on the condensed consolidated balance sheets. (4)Included in other non-current liabilities on the condensed consolidated balance sheets. (5)The carrying amount of the debt instrument is presented net of debt issuance costs, premium and discount. Refer to Note 7, “Debt,” for gross carrying amounts.
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DERIVATIVES AND HEDGING ACTIVITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | Interest rate swap agreements:
Interest rate cap agreement:
Interest rate collar agreements:
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Schedule of Interest Rate Derivatives |
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SEGMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales by Reportable Segments |
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EBITDA Defined by Segment to Consolidated Income Before Taxes | The following table reconciles EBITDA As Defined by segment to consolidated income from operations before income taxes (in millions):
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Total Assets by Segment | The following table presents total assets by segment (in millions):
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Reclassifications out of Accumulated Other Comprehensive Loss | The following table presents the total changes by component in accumulated other comprehensive loss (“AOCI”), net of taxes, for the thirteen week periods ended December 30, 2023 and December 31, 2022 (in millions):
(1)Represents unrealized (losses) gains on derivatives designated and qualifying as cash flow hedges, net of taxes, of ($18) million and $7 million for the thirteen week periods ended December 30, 2023 and December 31, 2022, respectively. (2)There were no material pension liability adjustments, net of taxes, related to activity on the defined pension plan and postretirement benefit plan for the thirteen week periods ended December 30, 2023 and December 31, 2022. (3)Represents gains (losses) resulting from foreign currency translation of financial statements, including gains (losses) from certain intercompany transactions, into U.S. dollars at the rates of exchange in effect at the balance sheet dates. (4)Presented net of reclassifications out of AOCI into earnings, specifically net sales and interest expense-net, for realized (losses) gains on derivatives designated and qualifying as cash flow hedges of ($1) million (net of taxes of less than ($1) million) and $28 million (net of taxes of $9 million), respectively, for the thirteen week period ended December 30, 2023 and ($1) million (net of taxes of less than ($1) million) and $6 million (net of taxes of $2 million), respectively, for the thirteen week period ended December 31, 2022.
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LEASES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost | The components of lease expense are as follows (in millions):
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Schedule of Cash Flow, Supplemental Disclosures | Supplemental cash flow information related to leases is as follows (in millions):
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Leases, Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases is as follows (in millions):
As of December 30, 2023, the Company has the following remaining lease term and weighted average discount rates:
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Lessee, Operating Lease, Liability, Maturity | Maturities of lease liabilities at December 30, 2023 are as follows (in millions):
|
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Finance Lease, Liability, Maturity | Maturities of lease liabilities at December 30, 2023 are as follows (in millions):
|
ACQUISITIONS - CPI Electron Device Business (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Nov. 09, 2023 |
Dec. 30, 2023 |
Dec. 31, 2022 |
|
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 14 | $ 10 | |
CPI Electron Device Business | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 1,385 |
ACQUISITIONS - Calspan Corporation (Details) - USD ($) $ in Millions |
3 Months Ended | 5 Months Ended | ||
---|---|---|---|---|
May 08, 2023 |
Dec. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2023 |
|
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 14 | $ 10 | ||
Assets acquired (excluding cash): | ||||
GOODWILL | 9,036 | $ 8,988 | ||
Goodwill, Purchase Accounting Adjustments | 1 | |||
Calspan Corporation | ||||
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 730 | |||
Business Combination, Working Capital Settlement | 1 | |||
Assets acquired (excluding cash): | ||||
Trade accounts receivable | 39 | 39 | ||
BusinessCombinationProvisionalInformationInitialAccountingIncompleteAdjustmentCurrentAssets,Receivable | 0 | |||
Inventories | 2 | 2 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory | 0 | |||
Prepaid expenses and other | 40 | 40 | ||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Current Assets, Prepaid Expenses and Other | 0 | |||
Property, plant and equipment | 105 | 383 | ||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Property, Plant, and Equipment | 278 | |||
GOODWILL | 367 | 245 | ||
Goodwill, Purchase Accounting Adjustments | (122) | |||
Other intangible assets | 243 | 92 | ||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | (151) | |||
Other non-current assets | 7 | 7 | ||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Other Assets | 0 | |||
Total assets acquired (excluding cash) | 803 | 808 | ||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Total Assets Acquired | 5 | |||
Liabilities assumed: | ||||
Accounts payable | 10 | 9 | ||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment accounts payable | (1) | |||
Accrued and other current liabilities | 50 | 50 | ||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Accrued and Other Current Liabilities | 0 | |||
Deferred income taxes | 8 | 13 | ||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Accounts Payable | 5 | |||
Other non-current liabilities | 6 | 6 | ||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Other Non-Current Liabilities | 0 | |||
Total liabilities assumed | 74 | 78 | ||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Total Liabilities Assumed | 4 | |||
Net assets acquired | $ 729 | 730 | ||
Business Combination Provisional Information Initial Accounting Incomplete Adjustment Net Assets Acquired | $ 1 | |||
Amount of goodwill expected to be tax deductible | 218 | |||
Business Acquisition, Intangible Assets, Expected Tax Deductible Amount | $ 86 | |||
Business Acquisition, Goodwill and Intangible Assets, Expected Tax Deductible Amount, Period of Deduction | 15 years |
ACQUISITIONS - Extant Aerospace Acquisitions (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2023 |
|
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 14 | $ 10 | |
Minimum | |||
Business Acquisition [Line Items] | |||
Air Transportation Equipment Estimated Useful Life | 25 years | ||
Maximum | |||
Business Acquisition [Line Items] | |||
Air Transportation Equipment Estimated Useful Life | 30 years | ||
Extant Aerospace | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 13 | $ 24 | |
Amount of goodwill expected to be tax deductible | 6 | 12 | |
Business Acquisition, Intangible Assets, Expected Tax Deductible Amount | $ 3 | $ 6 | |
Goodwill and Intangible Assets, Deductible For Tax Purposes, Term | 15 years | 15 years |
REVENUE RECOGNITION - Contract Assets and Liabilities (Details) - USD ($) $ in Millions |
3 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 |
Sep. 30, 2023 |
|||||||||
Schedule of Contract Assets and Liabilities [Line Items] | ||||||||||
Contract with Customer, Asset, after Allowance for Credit Loss | $ 196 | $ 192 | ||||||||
Contract with Customer, Liability | 99 | 87 | ||||||||
Net Contract Asset | 97 | 105 | ||||||||
ContractWithCustomer Liability, Revenue Recognized, Excluding Opening Balance | 9 | |||||||||
Prepaid Expenses and Other Current Assets | ||||||||||
Schedule of Contract Assets and Liabilities [Line Items] | ||||||||||
Contract with Customer, Asset, Net, Current | [1] | 196 | 191 | |||||||
Other Noncurrent Assets | ||||||||||
Schedule of Contract Assets and Liabilities [Line Items] | ||||||||||
Contract with Customer, Asset, Net, Noncurrent | [2] | 0 | 1 | |||||||
Accrued and Other Current Liabilities | ||||||||||
Schedule of Contract Assets and Liabilities [Line Items] | ||||||||||
Contract with Customer, Liability, Current | [3] | 92 | 79 | |||||||
Other Noncurrent Liabilities | ||||||||||
Schedule of Contract Assets and Liabilities [Line Items] | ||||||||||
Contract with Customer, Liability, Noncurrent | [4] | $ 7 | $ 8 | |||||||
|
REVENUE RECOGNITION - Allowance for Credit Losses (Details) - USD ($) $ in Millions |
Dec. 30, 2023 |
Sep. 30, 2023 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ (33) | $ (31) |
EARNINGS PER SHARE - Computation of Basic and Diluted EPS (two-class method) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2023 |
|
Numerator for earnings per share: | |||
Net income | $ 382 | $ 229 | |
Less: Net income attributable to noncontrolling interests | 0 | 1 | |
Net income attributable to TD Group | 382 | 228 | |
Less: Dividends paid on participating securities (1) | (101) | (38) | |
Net income applicable to TD Group common stockholders—basic and diluted | $ 281 | $ 190 | |
Denominator for basic and diluted earnings per share under the two-class method: | |||
Weighted-average common shares outstanding - basic (in shares) | 55.4 | 54.4 | |
Weighted-average common shares outstanding - diluted (in shares) | 55.4 | 54.4 | |
Vested options deemed participating securities | 2.3 | 2.7 | |
Weighted-average shares outstanding - basic (in shares) | 57.7 | 57.1 | |
Weighted-average shares outstanding - diluted (in shares) | 57.7 | 57.1 | |
Earnings per share - basic (in usd per share) | $ 4.87 | $ 3.33 | |
Earnings per share - diluted (in usd per share) | $ 4.87 | $ 3.33 | |
Total Payments Of Dividend Equivalents | $ 101 | $ 38 | |
Dividend equivalent payments | $ 83 | $ 18 | |
Dividend declared (in usd per share) | $ 35.00 |
INVENTORIES - Schedule of Inventories (Details) - USD ($) $ in Millions |
Dec. 30, 2023 |
Sep. 30, 2023 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials and purchased component parts | $ 1,208 | $ 1,144 |
Work-in-progress | 480 | 455 |
Finished goods | 235 | 226 |
Total | 1,923 | 1,825 |
Reserves for excess and obsolete inventory | (215) | (209) |
Inventories—Net | $ 1,708 | $ 1,616 |
INTANGIBLE ASSETS - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Millions |
Dec. 30, 2023 |
Sep. 30, 2023 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | $ 3,803 | $ 3,782 |
Intangible Assets, Accumulated Amortization | 1,070 | 1,035 |
Total | 2,733 | 2,747 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,138 | 2,124 |
Accumulated Amortization | 917 | 888 |
Net | 1,221 | 1,236 |
Order backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2 | 7 |
Accumulated Amortization | 2 | 6 |
Net | 0 | 1 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 631 | 623 |
Accumulated Amortization | 146 | 136 |
Net | 485 | 487 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 10 | 9 |
Accumulated Amortization | 5 | 5 |
Net | 5 | 4 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross | 1,022 | 1,019 |
Intangible Assets (Excluding Goodwill), Net | $ 1,022 | $ 1,019 |
INTANGIBLE ASSETS - Finite and Indefinite-Lived Intangible Assets (Details) $ in Millions |
3 Months Ended |
---|---|
Dec. 30, 2023
USD ($)
| |
Finite-Lived Intangible Assets [Line Items] | |
Indefinite-lived Intangible Assets Acquired | $ 6 |
Finite-lived Intangible Assets Acquired | 3 |
Intangible Assets Acquired | 9 |
Technology | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 2 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 20 years |
Customer relationships | |
Finite-Lived Intangible Assets [Line Items] | |
Finite-lived Intangible Assets Acquired | $ 1 |
Finite-Lived Intangible Assets, Remaining Amortization Period | 20 years |
Goodwill | |
Finite-Lived Intangible Assets [Line Items] | |
Indefinite-lived Intangible Assets Acquired | $ 6 |
INTANGIBLE ASSETS - Aggregate Amortization Expense on Identifiable Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 30, 2023 |
Dec. 31, 2022 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
AMORTIZATION OF INTANGIBLE ASSETS | $ 35 | $ 34 |
INTANGIBLE ASSETS - Summary of Changes in Carrying Value of Goodwill (by Segment) (Details) |
3 Months Ended |
---|---|
Dec. 30, 2023
USD ($)
| |
Goodwill [Roll Forward] | |
Balance at September 30, 2023 | $ 8,988,000,000 |
Goodwill acquired during the period | 6,000,000 |
Purchase price allocation adjustments | 1,000,000 |
Currency translation adjustments and other | 41,000,000 |
Balance at December 30, 2023 | 9,036,000,000 |
Power & Control | |
Goodwill [Roll Forward] | |
Balance at September 30, 2023 | 4,194,000,000 |
Goodwill acquired during the period | 6,000,000 |
Purchase price allocation adjustments | 0 |
Currency translation adjustments and other | 22,000,000 |
Balance at December 30, 2023 | 4,222,000,000 |
Airframe | |
Goodwill [Roll Forward] | |
Balance at September 30, 2023 | 4,701,000,000 |
Goodwill acquired during the period | 0 |
Purchase price allocation adjustments | 1,000,000 |
Currency translation adjustments and other | 19,000,000 |
Balance at December 30, 2023 | 4,721,000,000 |
Non-aviation | |
Goodwill [Roll Forward] | |
Balance at September 30, 2023 | 93,000,000 |
Goodwill acquired during the period | 0 |
Purchase price allocation adjustments | 0 |
Currency translation adjustments and other | 0 |
Balance at December 30, 2023 | $ 93,000,000 |
DEBT - Schedule of Debt (Details) - USD ($) |
Dec. 30, 2023 |
Sep. 30, 2023 |
||
---|---|---|---|---|
Debt Instrument [Line Items] | ||||
Gross Amount | $ 21,608,000,000 | $ 19,563,000,000 | ||
Debt Issuance Costs | (120,000,000) | (106,000,000) | ||
Original Issue (Discount) or Premium | (61,000,000) | (56,000,000) | ||
Short-term borrowings—trade receivable securitization facility | 449,000,000 | 349,000,000 | ||
Long-term Debt | 21,427,000,000 | 19,401,000,000 | ||
Finance lease obligations | 254,000,000 | 193,000,000 | ||
Current portion of long-term debt | 81,000,000 | 71,000,000 | ||
Long-term Debt, Gross and Lease Obligation | 21,527,000,000 | 19,492,000,000 | ||
Deferred Finance Costs, Excluding Current Maturities | (120,000,000) | (106,000,000) | ||
Debt Instrument, Unamortized Discount, Excluding Current Maturities | (61,000,000) | (56,000,000) | ||
LONG-TERM DEBT | 21,346,000,000 | 19,330,000,000 | ||
Term loans | ||||
Debt Instrument [Line Items] | ||||
Gross Amount | 7,233,000,000 | 6,249,000,000 | ||
Debt Issuance Costs | (29,000,000) | (22,000,000) | ||
Original Issue (Discount) or Premium | (47,000,000) | (48,000,000) | ||
Long-term Debt | [1] | $ 7,157,000,000 | $ 6,179,000,000 | |
Senior Subordinated Notes | Senior Subordinated Notes $550M Due 2027 7.50% | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 7.50% | 7.50% | ||
Gross Amount | $ 550,000,000 | $ 550,000,000 | ||
Debt Issuance Costs | (2,000,000) | (2,000,000) | ||
Original Issue (Discount) or Premium | 0 | 0 | ||
Long-term Debt | [1] | $ 548,000,000 | $ 548,000,000 | |
Senior Subordinated Notes | Senior Subordinated Notes $2650M Due 2027 5.50% | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 5.50% | 5.50% | ||
Gross Amount | $ 2,650,000,000 | $ 2,650,000,000 | ||
Debt Issuance Costs | (12,000,000) | (12,000,000) | ||
Original Issue (Discount) or Premium | 0 | 0 | ||
Long-term Debt | [1] | $ 2,638,000,000 | $ 2,638,000,000 | |
Senior Subordinated Notes | Senior Subordinated Notes $1200M Due 2029 4.625% | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.625% | 4.625% | ||
Gross Amount | $ 1,200,000,000 | $ 1,200,000,000 | ||
Debt Issuance Costs | (7,000,000) | (7,000,000) | ||
Original Issue (Discount) or Premium | 0 | 0 | ||
Long-term Debt | [1] | $ 1,193,000,000 | $ 1,193,000,000 | |
Senior Subordinated Notes | Senior Subordinated Notes $750M due 2029 4.875% | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 4.875% | 4.875% | ||
Gross Amount | $ 750,000,000 | $ 750,000,000 | ||
Debt Issuance Costs | (5,000,000) | (5,000,000) | ||
Original Issue (Discount) or Premium | 0 | 0 | ||
Long-term Debt | [1] | $ 745,000,000 | 745,000,000 | |
Secured Debt | Senior Secured Notes $4.4B Due 2026 6.25% | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.25% | |||
Gross Amount | $ 4,400,000,000 | 4,400,000,000 | ||
Debt Issuance Costs | (23,000,000) | (25,000,000) | ||
Original Issue (Discount) or Premium | 2,000,000 | 2,000,000 | ||
Long-term Debt | [1] | $ 4,379,000,000 | 4,377,000,000 | |
Secured Debt | Senior Secured Notes $2,100M due 2028 6.75% | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.75% | |||
Gross Amount | $ 2,100,000,000 | |||
Debt Issuance Costs | (18,000,000) | |||
Original Issue (Discount) or Premium | (9,000,000) | |||
Long-term Debt | [1] | $ 2,073,000,000 | 2,071,000,000 | |
Secured Debt | Senior Secured Notes $1,450M due 2030 6.875% | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 6.875% | |||
Gross Amount | $ 1,450,000,000 | |||
Debt Issuance Costs | (14,000,000) | |||
Original Issue (Discount) or Premium | 0 | |||
Long-term Debt | $ 1,436,000,000 | |||
Secured Debt | Senior Secured Notes $1,000M due 2031 7.125% | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 7.125% | |||
Gross Amount | $ 1,000,000,000 | |||
Debt Issuance Costs | (10,000,000) | |||
Original Issue (Discount) or Premium | (7,000,000) | |||
Long-term Debt | [1] | 983,000,000 | 0 | |
Secured Debt | Senior Secured Notes $2,100M due 2028 | ||||
Debt Instrument [Line Items] | ||||
Gross Amount | 2,100,000,000 | |||
Debt Issuance Costs | (19,000,000) | |||
Original Issue (Discount) or Premium | (10,000,000) | |||
Long-term Debt | 2,071,000,000 | |||
Secured Debt | Senior Secured Notes $1,450M due 2030 | ||||
Debt Instrument [Line Items] | ||||
Gross Amount | 1,450,000,000 | |||
Debt Issuance Costs | (14,000,000) | |||
Original Issue (Discount) or Premium | 0 | |||
Long-term Debt | [1] | 1,436,000,000 | 1,436,000,000 | |
Government refundable advances | ||||
Debt Instrument [Line Items] | ||||
Debt Issuance Costs | 0 | 0 | ||
Original Issue (Discount) or Premium | 0 | 0 | ||
Long-term Debt | 21,000,000 | 21,000,000 | ||
Government refundable advances | 21,000,000 | 21,000,000 | ||
Finance Lease Obligations | ||||
Debt Instrument [Line Items] | ||||
Debt Issuance Costs | 0 | 0 | ||
Original Issue (Discount) or Premium | 0 | 0 | ||
Long-term Debt | 254,000,000 | 193,000,000 | ||
Finance lease obligations | 254,000,000 | 193,000,000 | ||
Less: current portion | ||||
Debt Instrument [Line Items] | ||||
Debt Issuance Costs | 0 | 0 | ||
Original Issue (Discount) or Premium | 0 | 0 | ||
Long-term Debt, Current Maturities, Gross | 81,000,000 | 71,000,000 | ||
Current portion of long-term debt | 81,000,000 | 71,000,000 | ||
Asset-backed Securities | ||||
Debt Instrument [Line Items] | ||||
Debt Issuance Costs | (1,000,000) | (1,000,000) | ||
Original Issue (Discount) or Premium | 0 | 0 | ||
Short-term borrowings—trade receivable securitization facility, Gross | 450,000,000 | 350,000,000 | ||
Short-term borrowings—trade receivable securitization facility | [1] | $ 449,000,000 | $ 349,000,000 | |
|
DEBT - Additional Debt Instruments (Details) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Nov. 28, 2023 |
Dec. 30, 2023 |
Sep. 30, 2023 |
Jul. 25, 2023 |
|
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount (Premium), Net | $ 61 | $ 56 | ||
Long Term Debt, Principal Amount, Guaranteed | 200 | |||
Finance lease obligations | 254 | 193 | ||
Asset-backed Securities | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount (Premium), Net | $ 0 | 0 | ||
Debt Instrument, Term | 1 year | |||
Tranche J Term Loans | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,000 | |||
Original Issue Discount Rate | 0.25% | |||
Debt Instrument, Unamortized Discount (Premium), Net | $ 3 | |||
Debt Instrument, Periodic Payment, Principal | $ 3 | |||
Debt Issuance Costs, Gross | $ 10 | |||
Tranche J Term Loans | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 3.25% | |||
Senior Secured Notes $1,000M due 2031 7.125% | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,000 | |||
Interest rate | 7.125% | |||
Debt Issuance Costs, Gross | 10 | |||
Debt Instrument, Redemption Price, Percentage | 99.25% | |||
Debt Instrument, Unamortized Discount | $ 8 | |||
Securitization Facility | ||||
Debt Instrument [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 350 | $ 450 | ||
Long-Term Line of Credit | $ 100 | |||
Debt, Weighted Average Interest Rate | 6.99% | |||
Securitization Facility | Secured Overnight Financing Rate (SOFR) | ||||
Debt Instrument [Line Items] | ||||
Interest rate | 1.60% | |||
Government refundable advances | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount (Premium), Net | $ 0 | 0 | ||
Government refundable advances | 21 | 21 | ||
Finance Lease Obligations | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Unamortized Discount (Premium), Net | 0 | 0 | ||
Finance lease obligations | $ 254 | $ 193 |
INCOME TAXES - Narratives (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 30, 2023 |
Dec. 31, 2022 |
|
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 21.70% | 23.90% |
Tax rate effect | $ 17.0 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 6.0 |
FAIR VALUE MEASUREMENTS - Carrying Amounts and Fair Values of Financial Instruments (Details) - USD ($) $ in Millions |
Dec. 30, 2023 |
Sep. 30, 2023 |
Dec. 31, 2022 |
Sep. 30, 2022 |
||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Cash and cash equivalents | $ 4,135 | $ 3,472 | $ 3,288 | $ 3,001 | ||||||||||
Short-term borrowings—trade receivable securitization facility | 449 | 349 | ||||||||||||
Long-term Debt | 21,427 | 19,401 | ||||||||||||
Other Current Assets | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Interest Rate Swap Assets | [1] | 75 | 103 | |||||||||||
Other Noncurrent Assets | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Interest Rate Swap Assets | [2] | 20 | 41 | |||||||||||
Interest Rate Cap Agreements | [2] | 39 | 53 | |||||||||||
Interest Rate Collar Assets | [2] | 4 | 17 | |||||||||||
Accrued Liabilities | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Foreign Currency Contract, Liability | [3] | 0 | 5 | |||||||||||
Other Noncurrent Liabilities | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Interest Rate Cap Liabilities Carrying Amount | [4] | 1 | 1 | |||||||||||
Interest rate swap agreements | [4] | 3 | 3 | |||||||||||
Term loans | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term Debt | [5] | 7,157 | 6,179 | |||||||||||
Government refundable advances | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term Debt | 21 | 21 | ||||||||||||
Finance Lease Obligations | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term Debt | 254 | 193 | ||||||||||||
Level 1 | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Cash and cash equivalents, Fair Value | 4,135 | 3,472 | ||||||||||||
Level 2 | Other Current Assets | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Interest Rate Swap Assets | [1] | 75 | 103 | |||||||||||
Level 2 | Other Noncurrent Assets | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Interest Rate Swap Assets | [2] | 20 | 41 | |||||||||||
Interest Rate Cap Agreements | [2] | 39 | 53 | |||||||||||
Interest Rate Collar Assets | [2] | 4 | 17 | |||||||||||
Level 2 | Accrued Liabilities | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Foreign Currency Contract, Liability | [3] | 0 | 5 | |||||||||||
Level 2 | Other Noncurrent Liabilities | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Interest Rate Cap Liabilities Carrying Amount | [4] | 1 | 1 | |||||||||||
Interest rate swap agreements | [4] | 3 | 3 | |||||||||||
Level 2 | Term loans | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term debt, including current portion, Fair Value | [5] | 7,216 | 6,212 | |||||||||||
Level 2 | Government refundable advances | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term debt, including current portion, Fair Value | 21 | 21 | ||||||||||||
Level 2 | Finance Lease Obligations | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term debt, including current portion, Fair Value | 254 | 193 | ||||||||||||
Senior Secured Notes $4.4B Due 2026 6.25% | Secured Debt | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term Debt | [5] | 4,379 | 4,377 | |||||||||||
Senior Secured Notes $4.4B Due 2026 6.25% | Level 1 | Secured Debt | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term debt, including current portion, Fair Value | [5] | 4,378 | 4,329 | |||||||||||
Senior Subordinated Notes $550M Due 2027 7.50% | Senior Subordinated Notes | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term Debt | [5] | 548 | 548 | |||||||||||
Senior Subordinated Notes $550M Due 2027 7.50% | Level 1 | Senior Subordinated Notes | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term debt, including current portion, Fair Value | [5] | 552 | 549 | |||||||||||
Senior Subordinated Notes $2650M Due 2027 5.50% | Senior Subordinated Notes | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term Debt | [5] | 2,638 | 2,638 | |||||||||||
Senior Subordinated Notes $2650M Due 2027 5.50% | Level 1 | Senior Subordinated Notes | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term debt, including current portion, Fair Value | [5] | 2,607 | 2,484 | |||||||||||
Senior Secured Notes $2,100M due 2028 6.75% | Secured Debt | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term Debt | [5] | 2,073 | 2,071 | |||||||||||
Senior Secured Notes $2,100M due 2028 6.75% | Level 1 | Secured Debt | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term debt, including current portion, Fair Value | [5] | 2,137 | 2,069 | |||||||||||
Senior Subordinated Notes $1200M Due 2029 4.625% | Senior Subordinated Notes | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term Debt | [5] | 1,193 | 1,193 | |||||||||||
Senior Subordinated Notes $1200M Due 2029 4.625% | Level 1 | Senior Subordinated Notes | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term debt, including current portion, Fair Value | [5] | 1,116 | 1,047 | |||||||||||
Senior Subordinated Notes $750M due 2029 4.875% | Senior Subordinated Notes | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term Debt | [5] | 745 | 745 | |||||||||||
Senior Subordinated Notes $750M due 2029 4.875% | Level 1 | Senior Subordinated Notes | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term debt, including current portion, Fair Value | [5] | 698 | 654 | |||||||||||
Senior Secured Notes $1,450M due 2030 | Secured Debt | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term Debt | [5] | 1,436 | 1,436 | |||||||||||
Senior Secured Notes $1,450M due 2030 | Level 1 | Secured Debt | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term debt, including current portion, Fair Value | [5] | 1,494 | 1,423 | |||||||||||
Senior Secured Notes $1,000M due 2031 7.125% | Secured Debt | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term Debt | [5] | 983 | 0 | |||||||||||
Senior Secured Notes $1,000M due 2031 7.125% | Level 1 | Secured Debt | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Long-term debt, including current portion, Fair Value | [5] | 1,051 | 0 | |||||||||||
Asset-backed Securities | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Short-term borrowings—trade receivable securitization facility | [5] | 449 | 349 | |||||||||||
Asset-backed Securities | Level 2 | ||||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||||||||||
Short-term borrowings - trade receivable securitization facility, Fair Value | [5] | $ 449 | $ 349 | |||||||||||
|
DERIVATIVES AND HEDGING ACTIVITIES - Summary of Outstanding Interest Rate Swap, Cap and Collar Agreements (Details) $ in Millions |
Dec. 30, 2023
USD ($)
|
---|---|
6.25% Interest rate swap, effective March 31, 2023 and maturing June 28, 2024 | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 400 |
Derivative, Fixed Interest Rate | 6.25% |
Derivative, Variable Interest Rate | 3.00% |
Derivative, Basis Spread on Variable Rate | 3.25% |
6.35% Interest rate swap, effective March 31, 2023 and maturing June 28, 2024 | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 900 |
Derivative, Fixed Interest Rate | 6.35% |
Derivative, Variable Interest Rate | 3.10% |
Derivative, Basis Spread on Variable Rate | 3.25% |
6.25% Interest rate swap, effective March 31, 2023 and maturing March 31, 2025 | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 500 |
Derivative, Fixed Interest Rate | 6.25% |
Derivative, Variable Interest Rate | 3.00% |
Derivative, Basis Spread on Variable Rate | 3.25% |
6.35% Interest rate swap, effective March 31, 2023 and maturing March 31, 2025 | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 1,500 |
Derivative, Fixed Interest Rate | 6.35% |
Derivative, Variable Interest Rate | 3.10% |
Derivative, Basis Spread on Variable Rate | 3.25% |
4.55% Interest rate swap, effective March 31, 2023 and maturing September 30, 2025 | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 700 |
Derivative, Fixed Interest Rate | 4.55% |
Derivative, Variable Interest Rate | 1.30% |
Derivative, Basis Spread on Variable Rate | 3.25% |
1.25% Interest rate cap, effective March 31, 2023 and maturing September 30, 2025 | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 700 |
Derivative, Cap Interest Rate | 1.25% |
2.00-3.50% Interest rate collar, effective March 31, 2025 and maturing September 30, 2026 | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 1,100 |
Derivative, Cap Interest Rate | 3.50% |
Derivative, Floor Interest Rate | 2.00% |
2.00-3.50% Interest rate collar, effective September 30, 2025 and maturing September 30, 2026 | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 500 |
Derivative, Cap Interest Rate | 3.50% |
Derivative, Floor Interest Rate | 2.00% |
DERIVATIVES AND HEDGING ACTIVITIES - Summary of Balance Sheet Presentation of Derivative Assets and Liabilities (Details) - USD ($) $ in Millions |
Dec. 30, 2023 |
Sep. 30, 2023 |
||
---|---|---|---|---|
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | [1] | $ 138 | $ 214 | |
Derivative Liability, Fair Value, Gross Liability | [1] | 4 | 4 | |
Interest Rate Cap | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 39 | 53 | ||
Derivative Liability, Fair Value, Gross Liability | 1 | 1 | ||
Interest Rate Collar | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 4 | 17 | ||
Derivative Liability, Fair Value, Gross Liability | 0 | 0 | ||
Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative Asset, Fair Value, Gross Asset | 95 | 144 | ||
Derivative Liability, Fair Value, Gross Liability | $ 3 | $ 3 | ||
|
DERIVATIVES AND HEDGING ACTIVITIES - Narratives (Details) $ in Millions |
3 Months Ended |
---|---|
Dec. 30, 2023
USD ($)
| |
Derivative [Line Items] | |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months |
Losses reclassified from cash flow hedges into net sales | $ 1.0 |
Interest Rate Swap and Cap Agreements | |
Derivative [Line Items] | |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | (71.0) |
Foreign Exchange Forward Exchange Contracts | |
Derivative [Line Items] | |
Derivative, Notional Amount | 124.0 |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Earnings, net of Tax, Next 12 months (Estimated) | $ (1.0) |
Interest rate collar beginning March 31, 2025 and Maturing September 30, 2026 | Minimum | Secured Overnight Financing Rate (SOFR) | |
Derivative [Line Items] | |
Derivative, Variable Interest Rate | 2.00% |
Interest rate collar beginning March 31, 2025 and Maturing September 30, 2026 | Maximum | Secured Overnight Financing Rate (SOFR) | |
Derivative [Line Items] | |
Derivative, Variable Interest Rate | 3.50% |
SEGMENTS - Narratives (Details) |
3 Months Ended |
---|---|
Dec. 30, 2023
Segment
| |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
SEGMENTS - Schedule of Net Sales by Reportable Segment (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 30, 2023 |
Dec. 31, 2022 |
|
Segment Reporting Information [Line Items] | ||
NET SALES | $ 1,789 | $ 1,397 |
Operating Segments | Power & Control | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 885 | 725 |
Operating Segments | Airframe | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 862 | 637 |
Operating Segments | Non-aviation | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 42 | 35 |
Commercial and non-aerospace OEM | Operating Segments | Power & Control | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 177 | 152 |
Commercial and non-aerospace OEM | Operating Segments | Airframe | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 272 | 201 |
Commercial and non-aerospace aftermarket | Operating Segments | Power & Control | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 296 | 242 |
Commercial and non-aerospace aftermarket | Operating Segments | Airframe | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 324 | 238 |
Defense | Operating Segments | Power & Control | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 412 | 331 |
Defense | Operating Segments | Airframe | ||
Segment Reporting Information [Line Items] | ||
NET SALES | $ 266 | $ 198 |
SEGMENTS - Reconciliation of EBITDA Defined by Segment to Consolidated Income from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 30, 2023 |
Dec. 31, 2022 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | $ 912 | $ 699 |
Interest expense-net | 300 | 286 |
Non-cash stock and deferred compensation expense | 51 | 35 |
Refinancing costs | 0 | 4 |
Other, net | (1) | (1) |
Income from operations before income taxes | 488 | 301 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | 957 | 727 |
Operating Segments | Power & Control | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | 509 | 401 |
Operating Segments | Airframe | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | 431 | 312 |
Operating Segments | Non-aviation | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | 17 | 14 |
Corporate, Non-Segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | 45 | 28 |
Segment Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Depreciation and amortization expense | 71 | 63 |
Interest expense-net | (300) | (286) |
Acquisition and divestiture transaction-related expenses | 2 | 3 |
Non-cash stock and deferred compensation expense | 51 | 35 |
Refinancing costs | 0 | 4 |
Other, net | $ 0 | $ 7 |
SEGMENTS - Schedule of Total Assets by Segment (Details) - USD ($) $ in Millions |
Dec. 30, 2023 |
Sep. 30, 2023 |
---|---|---|
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 20,685 | $ 19,970 |
Operating Segments | Power & Control | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 7,440 | 7,315 |
Operating Segments | Airframe | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 9,083 | 8,972 |
Operating Segments | Non-aviation | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 228 | 234 |
Corporate, Non-Segment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 3,934 | $ 3,449 |
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Loss, Net of Taxes (Details) - USD ($) $ in Millions |
3 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 |
Dec. 31, 2022 |
|||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||||
Balance at beginning of period | $ (98.0) | $ (267.0) | ||||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | (1.0) | |||||||||
Other Comprehensive Income (Loss), Net of Tax | [1] | 38.0 | 159.0 | |||||||
Balance at end of period | (60.0) | (108.0) | ||||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification, Tax | (18.0) | 7.0 | ||||||||
Cash Flow Hedging | Designated as Hedging Instrument | Net Sales | ||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | (1.0) | (1.0) | ||||||||
Derivative, Gain (Loss) on Derivative, Tax Expense (Benefit) | (1.0) | (1.0) | ||||||||
Cash Flow Hedging | Designated as Hedging Instrument | Interest Expense, Net | ||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||||
Derivative, Gain (Loss) on Derivative, Net | 28.0 | 6.0 | ||||||||
Derivative, Gain (Loss) on Derivative, Tax Expense (Benefit) | 9.0 | 2.0 | ||||||||
Unrealized (losses) gains on derivatives (1) | ||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||||
Balance at beginning of period | [2] | 143.0 | 123.0 | |||||||
Balance at end of period | [2] | 90.0 | 145.0 | |||||||
Pension and post-retirement benefit plans adjustment (2) | ||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||||
Balance at beginning of period | [3] | 2.0 | (10.0) | |||||||
Balance at end of period | [3] | 2.0 | (10.0) | |||||||
Foreign currency translation adjustment (3) | ||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||||
Balance at beginning of period | [4] | (243.0) | (380.0) | |||||||
Balance at end of period | [4] | (152.0) | (243.0) | |||||||
Accumulated Other Comprehensive Loss | ||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||||||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), after Reclassification and Tax | [1],[2] | (53.0) | 22.0 | |||||||
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | [1],[3] | 0.0 | 0.0 | |||||||
Foreign currency translation adjustment | [1],[4] | $ 91.0 | $ 137.0 | |||||||
|
LEASES - Components of Lease Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 30, 2023 |
Dec. 31, 2022 |
|
Lessee, Lease, Description [Line Items] | ||
Lease, Cost | $ 10 | $ 10 |
Cost of sales or selling and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Cost | 5 | 5 |
Cost of sales | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Right-of-Use Asset, Amortization | 3 | 2 |
Interest expense-net | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Interest Expense | $ 2 | $ 3 |
LEASES - Supplemental Cash Flow Information Related To Leases (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 30, 2023 |
Dec. 31, 2022 |
|
Leases [Abstract] | ||
Operating Lease, Payments | $ 5 | $ 5 |
Finance Lease, Interest Payment on Liability | 3 | 3 |
Finance Lease, Principal Payments | 1 | 1 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 1 | 0 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 59 | $ 48 |
LEASES - Supplemental Balance Sheet Information Related to Leases, Including the Remaining Lease Term and Weighted Average Discount Rates (Details) - USD ($) $ in Millions |
Dec. 30, 2023 |
Sep. 30, 2023 |
---|---|---|
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 59 | $ 64 |
Operating Lease, Liability, Current | 16 | 16 |
Operating Lease, Liability, Noncurrent | 45 | 51 |
Operating Lease, Liability | 61 | 67 |
Finance Lease, Right-of-Use Asset | 237 | 176 |
Finance Lease, Liability, Current | 5 | 5 |
Finance Lease, Liability, Noncurrent | 249 | 188 |
Finance Lease, Liability | $ 254 | $ 193 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | OTHER NON-CURRENT ASSETS | OTHER NON-CURRENT ASSETS |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued and other current liabilities | Accrued and other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | OTHER NON-CURRENT LIABILITIES | OTHER NON-CURRENT LIABILITIES |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | PROPERTY, PLANT AND EQUIPMENT—NET | PROPERTY, PLANT AND EQUIPMENT—NET |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Current portion of long-term debt | Current portion of long-term debt |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | LONG-TERM DEBT | LONG-TERM DEBT |
LEASES - Weighted-Average Term and Discount Rate Remaining (Details) |
Dec. 30, 2023 |
---|---|
Leases [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 5 years 6 months |
Finance Lease, Weighted Average Remaining Lease Term | 21 years 8 months 12 days |
Operating Lease, Weighted Average Discount Rate, Percent | 6.00% |
Finance Lease, Weighted Average Discount Rate, Percent | 7.00% |
LEASES - Maturities Schedule of Operating and Financing Leases (Details) - USD ($) $ in Millions |
Dec. 30, 2023 |
Sep. 30, 2023 |
---|---|---|
Leases [Abstract] | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 14 | |
Finance Leases, Future Minimum Payments Due, Next Twelve Months | 13 | |
Lessee, Operating Lease, Liability, to be Paid, Year One | 17 | |
Finance Lease, Liability, to be Paid, Year One | 20 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 12 | |
Finance Leases, Future Minimum Payments Due in Two Years | 20 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 10 | |
Finance Leases, Future Minimum Payments Due in Three Years | 21 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 5 | |
Finance Leases, Future Minimum Payments Due in Four Years | 22 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 14 | |
Finance Leases, Future Minimum Payments Due Thereafter | 444 | |
Operating Leases, Future Minimum Payments Due | 72 | |
Finance Leases, Future Minimum Payments Due | 540 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 11 | |
Finance Leases, Future Minimum Payments, Interest Included in Payments | 286 | |
Operating Lease, Liability | 61 | $ 67 |
Finance lease obligations | $ 254 | $ 193 |
COMMITMENTS AND CONTINGENCIES - Narratives (Details) $ in Millions |
Dec. 30, 2023
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Recommended Voluntary Refund | $ 21.0 |
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