Guarantors (Tables)

9 Months Ended

Jul. 26, 2013

Condensed Consolidating Balance Sheet

Condensed Consolidating Balance Sheet as of July 26, 2013.

(In thousands)
	Parent			Guarantor      Subsidiaries			Non- Guarantor      Subsidiaries		Eliminations			Total
Assets
Current Assets
Cash and cash equivalents	$	21,690		$	1,347		$	176,211	$	0		$	199,248
Cash in escrow		4,017			0			0		0			4,017
Accounts receivable, net		492			125,887			205,690		0			332,069
Inventories		0			177,073			268,717		0			445,790
Income tax refundable		0			9,084			0		0			9,084
Deferred income tax benefits		27,798			149			19,382		0			47,329
Prepaid expenses		47			5,104			16,373		0			21,524
Other current assets		112			119			3,543		0			3,774
Total Current Assets		54,156			318,763			689,916		0			1,062,835
Property, Plant & Equipment, Net		1,910			168,012			193,233		0			363,155
Goodwill		0			313,555			793,312		0			1,106,867
Intangibles, Net		0			116,843			467,642		0			584,485
Debt Issuance Costs, Net		5,589			0			1,048		0			6,637
Deferred Income Tax Benefits		33,374			(2	)		60,002		0			93,374
Other Assets		(69	)		1,535			6,092		0			7,558
Amounts Due From (To) Subsidiaries		0			564,986			0		(564,986	)		0
Investment in Subsidiaries		2,540,780			934,953			238,493		(3,714,226	)		0
Total Assets	$	2,635,740		$	2,418,645		$	2,449,738	$	(4,279,212	)	$	3,224,911

(In thousands)
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Total
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	2,393		$	27,967		$	86,681	$	0		$	117,041
Accrued liabilities		26,665			85,485			146,297		0			258,447
Credit facilities		0			0			109		0			109
Current maturities of long-term debt		8,750			173			13,016		0			21,939
Deferred income tax liabilities		(94	)		(9	)		1,318		0			1,215
Federal and foreign income taxes		(430	)		(22,441	)		24,825		0			1,954
Total Current Liabilities		37,284			91,175			272,246		0			400,705
Credit Facilities		170,000			0			0		0			170,000
Long-Term Debt, Net		414,063			55,627			92,754		0			562,444
Deferred Income Tax Liabilities		61,523			(6	)		137,292		0			198,809
Pension and Post- Retirement Obligations		19,860			41,464			64,349		0			125,673
Other Liabilities		10,183			194			22,239		0			32,616
Amounts Due To (From) Subsidiaries		188,163			0			415,444		(603,607	)		0
Shareholders’ Equity		1,734,664			2,230,191			1,445,414		(3,675,605	)		1,734,664
Total Liabilities and Shareholders’ Equity	$	2,635,740		$	2,418,645		$	2,449,738	$	(4,279,212	)	$	3,224,911

Condensed Consolidating Balance Sheet as of October 26, 2012.

(In thousands)
	Parent		Guarantor   Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Total
Assets
Current Assets
Cash and cash equivalents	$	16,770	$	1,324		$	142,581	$	0		$	160,675
Cash in escrow		5,016		0			0		0			5,016
Accounts receivable, net		181		140,631			242,550		0			383,362
Inventories		0		159,573			250,264		0			409,837
Income tax refundable		0		4,832			0		0			4,832
Deferred income tax benefits		22,874		105			23,021		0			46,000
Prepaid expenses		76		5,391			15,873		0			21,340
Other current assets		134		552			3,945		0			4,631
Total Current Assets		45,051		312,408			678,234		0			1,035,693
Property, Plant & Equipment, Net		2,811		161,998			191,592		0			356,401
Goodwill		0		314,641			784,321		0			1,098,962
Intangibles, Net		0		126,142			482,903		0			609,045
Debt Issuance Costs, Net		7,508		0			1,310		0			8,818
Deferred Income Tax Benefits		36,610		(283	)		61,625		0			97,952
Other Assets		8,082		1,561			10,603		0			20,246
Amounts Due From (To) Subsidiaries		0		491,143			0		(491,143	)		0
Investment in Subsidiaries		2,457,859		1,179,938			170,223		(3,808,020	)		0
Total Assets	$	2,557,921	$	2,587,548		$	2,380,811	$	(4,299,163	)	$	3,227,117

(In thousands)
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries		Eliminations			Total
Liabilities and Shareholders’ Equity
Current Liabilities
Accounts payable	$	1,944		$	26,351		$	80,394	$	0		$	108,689
Accrued liabilities		17,495			79,103			172,955		0			269,553
Credit facilities		0			0			0		0			0
Current maturities of  long-term debt		0			174			10,436		0			10,610
Deferred income tax  liabilities		213			(1	)		4,913		0			5,125
Federal and foreign  income taxes		(3,418	)		(23,822	)		29,609		0			2,369
Total Current Liabilities		16,234			81,805			298,307		0			396,346
Credit Facilities		240,000			0			0		0			240,000
Long-Term Debt, Net		429,152			44,107			124,801		0			598,060
Deferred Income Tax Liabilities		46,730			(7	)		158,475		0			205,198
Pension and Post-Retirement Obligations		20,507			54,886			56,681		0			132,074
Other Liabilities		5,189			4,194			25,521		0			34,904
Amounts Due To (From) Subsidiaries		179,574			0			369,962		(549,536	)		0
Shareholders’ Equity		1,620,535			2,402,563			1,347,064		(3,749,627	)		1,620,535
Total Liabilities and Shareholders’ Equity	$	2,557,921		$	2,587,548		$	2,380,811	$	(4,299,163	)	$	3,227,117

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three month period ended July 26, 2013.

(In thousands)
	Parent			Guarantor      Subsidiaries			Non- Guarantor      Subsidiaries			Eliminations			Total
Net Sales	$	0		$	216,949		$	262,068		$	(949	)	$	478,068
Cost of Sales		0			132,786			167,329			(949	)		299,166
		0			84,163			94,739			0			178,902
Expenses
Selling, general and administrative		0			38,045			63,777			0			101,822
Research, development and engineering		0			12,684			11,419			0			24,103
Gain on settlement of contingency		0			0			0			0			0
Goodwill impairment		0			0			3,454			0			3,454
Other income		0			0			0			0			0
Total Expenses		0			50,729			78,650			0			129,379
Operating Earnings from Continuing Operations		0			33,434			16,089			0			49,523
Interest Income		(4,028	)		(2,028	)		(13,198	)		19,122			(132	)
Interest Expense		6,489			7,052			14,631			(19,122	)		9,050
Loss on Extinguishment of Debt		0			0			0			0			0
Earnings (Loss) from Continuing Operations Before Income Taxes		(2,461	)		28,410			14,656			0			40,605
Income Tax Expense (Benefit)		(671	)		6,264			(4,442	)		0			1,151
Earnings (Loss) from Continuing Operations Including Noncontrolling Interests		(1,790	)		22,146			19,098			0			39,454
Earnings Attributable to Noncontrolling Interests		0			0			(241	)		0			(241	)
Earnings (Loss) from Continuing Operations Attributable to Esterline		(1,790	)		22,146			18,857			0			39,213
Loss from Discontinued Operations Attributable To Esterline, Net of Tax		(975	)		0			0			0			(975	)
Equity in Net Earnings of Consolidated Subsidiaries		41,003			294			50			(41,347	)		0
Net Earnings (Loss) Attributable to Esterline	$	38,238		$	22,440		$	18,907		$	(41,347	)	$	38,238
Comprehensive Income (Loss)	$	45,816		$	22,610		$	26,689		$	(49,914	)	$	45,201

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the nine month period ended July 26, 2013.

(In thousands)
	Parent			Guarantor      Subsidiaries			Non- Guarantor      Subsidiaries			Eliminations			Total
Net Sales	$	0		$	653,959		$	784,389		$	(2,756	)	$	1,435,592
Cost of Sales		0			405,830			511,895			(2,756	)		914,969
		0			248,129			272,494			0			520,623
Expenses
Selling, general and administrative		0			112,881			185,830			0			298,711
Research, development and engineering		0			37,448			35,389			0			72,837
Gain on settlement of contingency		0			0			0			0			0
Goodwill impairment		0			0			3,454			0			3,454
Other income		0			0			0			0			0
Total Expenses		0			150,329			224,673			0			375,002
Operating Earnings from Continuing Operations		0			97,800			47,821			0			145,621
Interest Income		(11,680	)		(5,723	)		(41,022	)		58,044			(381	)
Interest Expense		23,722			20,019			45,279			(58,044	)		30,976
Loss on Extinguishment of Debt		946			0			0			0			946
Earnings (Loss) from Continuing Operations
Before Income Taxes		(12,988	)		83,504			43,564			0			114,080
Income Tax Expense (Benefit)		(2,894	)		15,178			743			0			13,027
Earnings (Loss) from Continuing Operations Including Noncontrolling Interests		(10,094	)		68,326			42,821			0			101,053
Earnings Attributable to Noncontrolling Interests		0			0			(1,207	)		0			(1,207	)
Earnings (Loss) from Continuing Operations Attributable to Esterline		(10,094	)		68,326			41,614			0			99,846
Loss from Discontinued Operations Attributable To Esterline, Net of Tax		(975	)		0			0			0			(975	)
Equity in Net Earnings of Consolidated Subsidiaries		109,940			677			80			(110,697	)		0
Net Earnings (Loss) Attributable to Esterline	$	98,871		$	69,003		$	41,694		$	(110,697	)	$	98,871
Comprehensive Income (Loss)	$	87,090		$	68,102		$	35,100		$	(106,833	)	$	83,459

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three month period ended July 27, 2012.

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Net Sales	$	0		$	227,022		$	260,229		$	(1,302	)	$	485,949
Cost of Sales		0			144,787			170,368			(1,302	)		313,853
		0			82,235			89,861			0			172,096
Expenses
Selling, general and administrative		0			35,862			56,007			0			91,869
Research, development and engineering		0			13,062			14,136			0			27,198
Gain on settlement of contingency		0			0			0			0			0
Goodwill impairment		0			0			52,169			0			52,169
Other income		0			0			(1,263	)		0			(1,263	)
Total Expenses		0			48,924			121,049			0			169,973
Operating Earnings from
Continuing Operations		0			33,311			(31,188	)		0			2,123
Interest Income		(3,574	)		(5,090	)		(14,319	)		22,874			(109	)
Interest Expense		8,648			7,396			18,989			(22,874	)		12,159
Loss on Extinguishment of Debt		0			0			0			0			0
Earnings (Loss) from
Continuing Operations
Before Income Taxes		(5,074	)		31,005			(35,858	)		0			(9,927	)
Income Tax Expense
(Benefit)		(4,058	)		22,476			(11,455	)		0			6,963
Earnings (Loss) from
Continuing Operations
Including Noncontrolling
Interests		(1,016	)		8,529			(24,403	)		0			(16,890	)
Earnings Attributable to
Noncontrolling Interests		0			0			(214	)		0			(214	)
Earnings (Loss) from
Continuing Operations
Attributable to Esterline		(1,016	)		8,529			(24,617	)		0			(17,104	)
Loss from Discontinued
Operations Attributable
To Esterline, Net of Tax		0			0			0			0			0
Equity in Net Earnings of
Consolidated Subsidiaries		(16,088	)		2,080			(50	)		14,058			0
Net Earnings (Loss)
Attributable to Esterline	$	(17,104	)	$	10,609		$	(24,667	)	$	14,058		$	(17,104	)
Comprehensive Income
(Loss)	$	(76,776	)	$	10,140		$	(83,910	)	$	68,921		$	(81,625	)

Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the nine month period ended July 27, 2012.

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Net Sales	$	0		$	670,767		$	793,626		$	(2,731	)	$	1,461,662
Cost of Sales		0			419,969			529,724			(2,731	)		946,962
		0			250,798			263,902			0			514,700
Expenses
Selling, general and administrative		0			107,639			177,877			0			285,516
Research, development and engineering		0			38,080			45,058			0			83,138
Gain on settlement of contingency		0			0			(11,891	)		0			(11,891	)
Goodwill impairment		0			0			52,169			0			52,169
Other income		0			0			(1,263	)		0			(1,263	)
Total Expenses		0			145,719			261,950			0			407,669
Operating Earnings from Continuing Operations		0			105,079			1,952			0			107,031
Interest Income		(10,559	)		(12,468	)		(47,717	)		70,424			(320	)
Interest Expense		26,311			20,613			58,671			(70,424	)		35,171
Loss on Extinguishment of Debt		0			0			0			0			0
Earnings (Loss) from
Continuing Operations
Before Income Taxes		(15,752	)		96,934			(9,002	)		0			72,180
Income Tax Expense
(Benefit)		(6,087	)		32,840			(6,076	)		0			20,677
Earnings (Loss) from
Continuing Operations
Including Noncontrolling
Interests		(9,665	)		64,094			(2,926	)		0			51,503
Earnings Attributable to
Noncontrolling Interests		0			0			(628	)		0			(628	)
Earnings (Loss) from
Continuing Operations
Attributable to Esterline		(9,665	)		64,094			(3,554	)		0			50,875
Loss from Discontinued
Operations Attributable
To Esterline, Net of Tax		0			0			0			0			0
Equity in Net Earnings of
Consolidated Subsidiaries		60,540			10,791			(140	)		(71,191	)		0
Net Earnings (Loss)
Attributable to Esterline	$	50,875		$	74,885		$	(3,694	)	$	(71,191	)	$	50,875
Comprehensive Income
(Loss)	$	(42,128	)	$	74,733		$	(101,142	)	$	21,728		$	(46,809	)

Condensed Consolidating Statement of Cash Flows

Condensed Consolidating Statement of Cash Flows for the nine month period ended July 26, 2013.

(In thousands)
	Parent			Guarantor      Subsidiaries			Non- Guarantor      Subsidiaries			Eliminations			Total
Cash Flows Provided (Used) by Operating Activities
Net earnings (loss) including noncontrolling interests	$	100,078		$	69,003		$	41,694		$	(110,697	)	$	100,078
Depreciation & amortization		0			35,547			52,394			0			87,941
Deferred income taxes		11,252			(332	)		(23,158	)		0			(12,238	)
Share-based compensation		0			3,321			4,346			0			7,667
Gain on sale of capital assets		0			(322	)		(593	)		0			(915	)
Gain on settlement of contingency		0			0			0			0			0
Goodwill impairment		0			0			3,454			0			3,454
Working capital changes, net of effect of acquisitions:
Accounts receivable		(311	)		14,744			36,630			0			51,063
Inventories		0			(17,500	)		(15,274	)		0			(32,774	)
Prepaid expenses		29			287			(451	)		0			(135	)
Other current assets		22			433			(1,291	)		0			(836	)
Accounts payable		449			1,616			3,359			0			5,424
Accrued liabilities		9,740			7,382			(12,845	)		0			4,277
Federal & foreign income taxes		1,607			(3,706	)		(3,222	)		0			(5,321	)
Other liabilities		11,907			(13,422	)		(8,879	)		0			(10,394	)
Other, net		1,284			(675	)		(1,621	)		0			(1,012	)
		136,057			96,376			74,543			(110,697	)		196,279
Cash Flows Provided (Used) by Investing Activities
Purchases of capital assets		(105	)		(11,949	)		(25,711	)		0			(37,765	)
Proceeds from sale of capital assets		0			322			593			0			915
Acquisition of business, net of cash acquired		0			0			(40,689	)		0			(40,689	)
		(105	)		(11,627	)		(65,807	)		0			(77,539	)

(In thousands)
	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Total
Cash Flows Provided (Used) by Financing Activities
Proceeds provided by stock issuance under share-based compensation plans		20,450			0			0			0		20,450
Excess tax benefits from stock options exercised		2,237			0			0			0		2,237
Proceeds from long-term  credit facilities		175,000			0			0			0		175,000
Repayment of long-term debt		(177,187	)		(151	)		(32,203	)		0		(209,541	)
Repayment of credit facilities		(70,000	)		0			0			0		(70,000	)
Proceeds from government assistance		0			0			5,114			0		5,114
Dividends paid to non- controlling interests		0			0			(1,044	)		0		(1,044	)
Debt and other issuance costs		(453	)		0			0			0		(453	)
Net change in intercompany financing		(81,084	)		(84,563	)		54,950			110,697		0
		(131,037	)		(84,714	)		26,817			110,697		(78,237	)
Effect of foreign exchange rates on cash		5			(12	)		(1,923	)		0		(1,930	)
Net increase (decrease) in cash and cash equivalents		4,920			23			33,630			0		38,573
Cash and cash equivalents – beginning of year		16,770			1,324			142,581			0		160,675
Cash and cash equivalents – end of year	$	21,690		$	1,347		$	176,211		$	0	$	199,248

Condensed Consolidating Statement of Cash Flows for the nine month period ended July 27, 2012.

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations			Total
Cash Flows Provided (Used) by Operating Activities
Net earnings (loss) including noncontrolling interests	$	51,503		$	74,885		$	(3,694	)	$	(71,191	)	$	51,503
Depreciation & amortization		0			28,556			50,709			0			79,265
Deferred income taxes		19,199			(20,844	)		(17,991	)		0			(19,636	)
Share-based compensation		0			3,344			4,342			0			7,686
Gain on sale of capital assets		0			(464	)		(675	)		0			(1,139	)
Gain on settlement of contingency		0			0			(11,891	)		0			(11,891	)
Goodwill impairment		0			0			52,169			0			52,169
Working capital changes, net of effect of acquisitions:
Accounts receivable		12			16,088			4,875			0			20,975
Inventories		0			(17,107	)		(10,387	)		0			(27,494	)
Prepaid expenses		(36	)		(393	)		(4,994	)		0			(5,423	)
Other current assets		9			(95	)		274			0			188
Accounts payable		51			(409	)		(1,981	)		0			(2,339	)
Accrued liabilities		7,489			(2,201	)		11,635			0			16,923
Federal & foreign income taxes		8,148			(1,745	)		(4,252	)		0			2,151
Other liabilities		5,718			(17,698	)		(3,094	)		0			(15,074	)
Other, net		(83	)		958			2,635			0			3,510
		92,010			62,875			67,680			(71,191	)		151,374
Cash Flows Provided (Used) by Investing Activities
Purchases of capital assets		(1,466	)		(18,728	)		(19,262	)		0			(39,456	)
Proceeds from sale of capital assets		0			464			675			0			1,139
Acquisition of business, net of cash acquired		0			0			0			0			0
		(1,466	)		(18,264	)		(18,587	)		0			(38,317	)

(In thousands)

	Parent			Guarantor Subsidiaries			Non- Guarantor Subsidiaries			Eliminations		Total
Cash Flows Provided (Used) by Financing Activities
Proceeds provided by stock issuance under share-based compensation plans		7,331			0			0			0		7,331
Excess tax benefits from stock options exercised		221			0			0			0		221
Proceeds from long-term credit facilities		0			0			0			0		0
Repayment of long-term debt		0			(306	)		(43,825	)		0		(44,131	)
Repayment of credit facilities		(60,000	)		0			0			0		(60,000	)
Proceeds from government assistance		0			0			17,203			0		17,203
Dividends paid to non- controlling interests		0			0			0			0		0
Debt and other issuance costs		0			0			0			0		0
Net change in intercompany financing		(54,603	)		(46,752	)		30,164			71,191		0
		(107,051	)		(47,058	)		3,542			71,191		(79,376	)
Effect of foreign exchange rates on cash		(4	)		7			(5,646	)		0		(5,643	)
Net increase (decrease) in cash and cash equivalents		(16,511	)		(2,440	)		46,989			0		28,038
Cash and cash equivalents – beginning of year		49,837			13,450			121,748			0		185,035
Cash and cash equivalents – end of year	$	33,326		$	11,010		$	168,737		$	0	$	213,073