Subsequent Events

9 Months Ended

Aug. 01, 2014

Subsequent Event [Line Items]

Subsequent Events

Note 14 – Subsequent Events

On September 3, 2014, the Company approved a plan to sell certain non-core business units including Eclipse, a manufacturer of embedded communication intercept receivers for signal intelligence applications, Wallop Defence Systems, Ltd. (Wallop), a manufacturer of flare countermeasure devices, Pacific Aerospace and Electronics Inc. (PA&E), a manufacturer of hermetically sealed electrical connectors, and an immaterial distribution business.  These businesses were not separate reporting units as defined under U.S. GAAP and no indicator of impairment existed at August 1, 2014, requiring an impairment test of their corresponding reporting units’ goodwill or these businesses’ long-lived assets.  Due to the Company’s plan to sell these businesses, during the fourth fiscal quarter of 2014, the assets will be valued at fair value and goodwill of the reporting unit will be allocated to each business based upon the relative fair value of the business units and the reporting unit.  Eclipse and the distribution business are included in the Avionics & Controls segment, Wallop is included in the Advanced Materials segment, and PA&E is included in the Sensors & Systems segment. Beginning in the fourth fiscal quarter of 2014, these businesses will be reported as discontinued operations. Based upon a range of projected fair values, management expects to incur an estimated after-tax loss between $55 million and $75 million in the fourth fiscal quarter of 2014 on the assets to be held for sale in discontinued operations.