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Commitments and Contingencies
12 Months Ended
Sep. 28, 2018
Commitments And Contingencies Disclosure [Abstract]  
Commitments and Contingencies

NOTE 12:  Commitments and Contingencies

Rental expense for operating leases for engineering, selling, administrative and manufacturing totaled $17.9 million, $17.7 million and $19.0 million in fiscal 2018, 2017, and 2016, respectively.

At September 28, 2018, the Company’s rental commitments for noncancelable operating leases with a duration in excess of one year were as follows:

 

In Thousands

 

 

 

 

 

 

 

 

 

 

 

Fiscal Year

 

 

 

 

 

2019

 

$

12,592

 

 

2020

 

 

9,127

 

 

2021

 

 

6,982

 

 

2022

 

 

4,491

 

 

2023

 

 

4,301

 

 

2024 and thereafter

 

 

3,982

 

 

Total

 

$

41,475

 

 

 

The Company is subject to purchase obligations for goods and services.  The purchase obligations include amounts under legally enforceable agreements for goods and services with defined terms as to quantity, price and timing of delivery.  As of September 28, 2018, the Company’s purchase obligations were as follows:

 

In Thousands

 

 

 

 

Less than

 

 

1‒3

 

 

4‒5

 

 

After 5

 

 

 

Total

 

 

1 year

 

 

years

 

 

years

 

 

years

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Purchase obligations

$

776,221

 

 

$

714,048

 

 

$

61,540

 

 

$

633

 

 

$

-

 

 

 

In March 2014 the Company entered into a Consent Agreement with the DTCC to resolve alleged ITAR civil violations.  Among other things, the Consent Agreement required the Company to pay a $20 million penalty, of which $10 million was suspended and eligible for offset credit.  In fiscal 2016, the DTCC approved costs the Company incurred to implement compliance measures to fully offset the $10 million suspended payment.  The Consent Agreement was closed in fiscal 2017.

 

In fiscal 2016 the Company received a $5 million insurance recovery due to an energetic incident at one of our countermeasure operations, which occurred in the third quarter of fiscal 2016.  The Company received a $7.8 million insurance recovery from this incident in fiscal 2017.

 

On August 6, 2018 an accidental release of hazardous material occurred at the Company’s Valencia, California plant.  The accident resulted in plant employees seeking medical treatment and a suspension of activities at the plant during remediation.  Facility cleanup costs totaled $2.5 million in the fourth quarter of fiscal 2018, net of insurance recoveries.  

The Company is a party to other various lawsuits and claims, both as plaintiff and defendant, and has contingent liabilities arising from the conduct of business, none of which, in the opinion of management, is expected to have a material effect on the Company’s financial position or results of operations.  The Company believes that it has made appropriate and adequate provisions for contingent liabilities.

Approximately 679 U.S.-based employees, or 17% of total U.S.-based employees, were represented by various labor unions.  The Company’s non-U.S. operations are subject to union and national trade union agreements and to local regulations governing employment.