New York State | 16-0757636 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
East Aurora, New York | 14052-0018 |
(Address of principal executive offices) | (Zip Code) |
(716) 652-2000 | |
(Telephone number including area code) |
PAGE | ||||||
Three Months Ended | Six Months Ended | |||||||||||||||
(dollars in thousands, except share and per share data) | March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | ||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||
Cost of sales | ||||||||||||||||
Inventory write-down - restructuring | ||||||||||||||||
Gross profit | ||||||||||||||||
Research and development | ||||||||||||||||
Selling, general and administrative | ||||||||||||||||
Interest | ||||||||||||||||
Restructuring | ||||||||||||||||
Other | ||||||||||||||||
Earnings before income taxes | ||||||||||||||||
Income taxes | ||||||||||||||||
Net earnings | $ | $ | $ | $ | ||||||||||||
Net earnings per share | ||||||||||||||||
Basic | $ | $ | $ | $ | ||||||||||||
Diluted | $ | $ | $ | $ | ||||||||||||
Dividends declared per share | $ | $ | $ | $ | ||||||||||||
Average common shares outstanding | ||||||||||||||||
Basic | ||||||||||||||||
Diluted | ||||||||||||||||
See accompanying Notes to Consolidated Condensed Financial Statements. |
Three Months Ended | Six Months Ended | |||||||||||||||
(dollars in thousands) | March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | ||||||||||||
Net earnings | $ | $ | $ | $ | ||||||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Foreign currency translation adjustment | ( | ) | ||||||||||||||
Retirement liability adjustment | ||||||||||||||||
Change in accumulated income (loss) on derivatives | ( | ) | ( | ) | ||||||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||
Tax Cuts and Jobs Act, reclassification from AOCIL to retained earnings | ( | ) | ( | ) | ||||||||||||
Comprehensive income (loss) | $ | $ | ( | ) | $ | $ | ||||||||||
See accompanying Notes to Consolidated Condensed Financial Statements. |
(dollars in thousands) | March 30, 2019 | September 29, 2018 | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Receivables | ||||||||
Inventories | ||||||||
Prepaid expenses and other current assets | ||||||||
Total current assets | ||||||||
Property, plant and equipment, net of accumulated depreciation of $812,879 and $816,837, respectively | ||||||||
Goodwill | ||||||||
Intangible assets, net | ||||||||
Deferred income taxes | ||||||||
Other assets | ||||||||
Total assets | $ | $ | ||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Short-term borrowings | $ | $ | ||||||
Current installments of long-term debt | ||||||||
Accounts payable | ||||||||
Accrued compensation | ||||||||
Contract advances | ||||||||
Contract and contract-related loss reserves | ||||||||
Other accrued liabilities | ||||||||
Total current liabilities | ||||||||
Long-term debt, excluding current installments | ||||||||
Long-term pension and retirement obligations | ||||||||
Deferred income taxes | ||||||||
Other long-term liabilities | ||||||||
Total liabilities | ||||||||
Commitments and contingencies (Note 19) | ||||||||
Shareholders’ equity | ||||||||
Common stock - Class A | ||||||||
Common stock - Class B | ||||||||
Additional paid-in capital | ||||||||
Retained earnings | ||||||||
Treasury shares | ( | ) | ( | ) | ||||
Stock Employee Compensation Trust | ( | ) | ( | ) | ||||
Supplemental Retirement Plan Trust | ( | ) | ( | ) | ||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ||||
Total shareholders’ equity | ||||||||
Total liabilities and shareholders’ equity | $ | $ | ||||||
See accompanying Notes to Consolidated Condensed Financial Statements. |
Three Months Ended | Six Months Ended | |||||||||||||||
(dollars in thousands) | March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | ||||||||||||
COMMON STOCK | ||||||||||||||||
Beginning and end of period | $ | $ | $ | $ | ||||||||||||
ADDITIONAL PAID-IN CAPITAL | ||||||||||||||||
Beginning of period | ||||||||||||||||
Issuance of treasury shares | ( | ) | ( | ) | ( | ) | ||||||||||
Equity-based compensation expense | ||||||||||||||||
Adjustment to market - SECT, SERP and other | ( | ) | ( | ) | ||||||||||||
End of period | ||||||||||||||||
RETAINED EARNINGS | ||||||||||||||||
Beginning of period | ||||||||||||||||
Net earnings | ||||||||||||||||
Dividends | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Adoption of ASC 606 | ||||||||||||||||
Tax Cuts and Jobs Act, reclassification from AOCIL to retained earnings | ||||||||||||||||
End of period | ||||||||||||||||
TREASURY SHARES AT COST | ||||||||||||||||
Beginning of period | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Class A and B shares issued related to compensation | ||||||||||||||||
Class A and B shares purchased | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
End of period | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
STOCK EMPLOYEE COMPENSATION TRUST (SECT) | ||||||||||||||||
Beginning of period | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Issuance of shares | ||||||||||||||||
Purchase of shares | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Adjustment to market | ( | ) | ( | ) | ||||||||||||
End of period | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
SUPPLEMENTAL RETIREMENT PLAN (SERP) TRUST | ||||||||||||||||
Beginning of period | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Adjustment to market | ( | ) | ( | ) | ||||||||||||
End of period | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||||||
Beginning of period | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Other comprehensive income (loss) | ||||||||||||||||
Tax Cuts and Jobs Act, reclassification from AOCIL to retained earnings | ( | ) | ( | ) | ||||||||||||
End of period | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
TOTAL SHAREHOLDERS’ EQUITY | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||
(share data) | March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | ||||||||
COMMON STOCK - CLASS A | ||||||||||||
Beginning of period | ||||||||||||
Conversion of Class B to Class A | ||||||||||||
End of period | ||||||||||||
COMMON STOCK - CLASS B | ||||||||||||
Beginning of period | ||||||||||||
Conversion of Class B to Class A | ( | ) | ( | ) | ( | ) | ||||||
End of period | ||||||||||||
TREASURY SHARES - CLASS A COMMON STOCK | ||||||||||||
Beginning of period | ( | ) | ( | ) | ( | ) | ( | ) | ||||
Class A shares issued related to compensation | ||||||||||||
Class A shares purchased | ( | ) | ( | ) | ( | ) | ( | ) | ||||
End of period | ( | ) | ( | ) | ( | ) | ( | ) | ||||
TREASURY SHARES - CLASS B COMMON STOCK | ||||||||||||
Beginning of period | ( | ) | ( | ) | ( | ) | ( | ) | ||||
Class B shares issued related to compensation | ||||||||||||
Class B shares purchased | ( | ) | ( | ) | ( | ) | ( | ) | ||||
End of period | ( | ) | ( | ) | ( | ) | ( | ) | ||||
SECT - CLASS A COMMON STOCK | ||||||||||||
Beginning and end of period | ( | ) | ( | ) | ( | ) | ( | ) | ||||
SECT - CLASS B COMMON STOCK | ||||||||||||
Beginning of period | ( | ) | ( | ) | ( | ) | ( | ) | ||||
Issuance of shares | ||||||||||||
Purchase of shares | ( | ) | ( | ) | ( | ) | ( | ) | ||||
End of period | ( | ) | ( | ) | ( | ) | ( | ) | ||||
SERP - CLASS B COMMON STOCK | ||||||||||||
Beginning and end of period | ( | ) | ( | ) | ( | ) | ( | ) |
Six Months Ended | ||||||||
(dollars in thousands) | March 30, 2019 | March 31, 2018 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net earnings | $ | $ | ||||||
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | ||||||||
Depreciation | ||||||||
Amortization | ||||||||
Deferred income taxes | ||||||||
Equity-based compensation expense | ||||||||
Impairment of long-lived assets and inventory write-down associated with restructuring | ||||||||
Other | ||||||||
Changes in assets and liabilities providing (using) cash: | ||||||||
Receivables | ( | ) | ( | ) | ||||
Inventories | ( | ) | ( | ) | ||||
Accounts payable | ||||||||
Contract advances | ||||||||
Accrued expenses | ( | ) | ||||||
Accrued income taxes | ( | ) | ||||||
Net pension and post retirement liabilities | ( | ) | ||||||
Other assets and liabilities | ||||||||
Net cash provided by operating activities | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Acquisitions of businesses, net of cash acquired | ( | ) | ||||||
Purchase of property, plant and equipment | ( | ) | ( | ) | ||||
Other investing transactions | ( | ) | ||||||
Net cash (used) by investing activities | ( | ) | ( | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Net short-term repayments | ( | ) | ||||||
Proceeds from revolving lines of credit | ||||||||
Payments on revolving lines of credit | ( | ) | ( | ) | ||||
Proceeds from long-term debt | ||||||||
Payments on long-term debt | ( | ) | ( | ) | ||||
Payment of dividends | ( | ) | ||||||
Proceeds from sale of treasury stock | ||||||||
Purchase of outstanding shares for treasury | ( | ) | ( | ) | ||||
Proceeds from sale of stock held by SECT | ||||||||
Purchase of stock held by SECT | ( | ) | ( | ) | ||||
Net cash (used) by financing activities | ( | ) | ( | ) | ||||
Effect of exchange rate changes on cash | ( | ) | ||||||
Increase (decrease) in cash, cash equivalents and restricted cash | ( | ) | ( | ) | ||||
Cash, cash equivalents and restricted cash at beginning of period | ||||||||
Cash, cash equivalents and restricted cash at end of period | $ | $ | ||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
Treasury shares issued as compensation | $ | $ | ||||||
Equipment acquired through financing | ||||||||
See accompanying Notes to Consolidated Condensed Financial Statements. |
Standard | Description | Financial Statement Effect or Other Significant Matters | ||
ASU no. 2014-09 Revenue from Contracts with Customers (and all related ASUs) | The standard requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The provisions of the standard, as well as all subsequently issued clarifications to the standard, are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The standard can be adopted using either a full retrospective or modified retrospective approach. | We adopted this standard using the modified retrospective method, under which prior years' results are not restated, but supplemental information is provided in our disclosures to present 2019 results before effect of the standard. In addition, a cumulative adjustment was made to shareholders' equity at the beginning of 2019. Supplemental information is provided in our disclosures to present 2019 results before effect of the standard. | ||
Date adopted: Q1 2019 | ||||
ASU no. 2017-07 Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost | The standard amends existing guidance on the presentation of net periodic benefit cost in the income statement and what qualifies for capitalization on the balance sheet. The provisions of the standard are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted as of the beginning of an annual period. The amendment requires income statement presentation provisions to be applied retrospectively and capitalization in assets provisions to be applied prospectively. | We adopted this standard retrospectively for the presentation of the service cost component and the other components of net periodic pension cost and net periodic postretirement benefit cost in the Consolidated Condensed Statement of Earnings. Supplemental information is provided in our disclosures to present 2018 results before effect of the standard. | ||
Date adopted: Q1 2019 |
Standard | Description | Financial Statement Effect or Other Significant Matters | ||
ASU no. 2016-02 Leases (and all related ASUs) | The standard requires most lease arrangements to be recognized in the balance sheet as lease assets and lease liabilities. The standard also requires additional disclosures about the leasing arrangements. The provisions of the standard are effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. | We are currently evaluating the effect on our financial statements and related disclosures. | ||
Planned date of adoption: Q1 2020 | ||||
ASU no. 2017-12 Targeted Improvements to Accounting for Hedging Activities | The standard expands the hedging strategies eligible for hedge accounting, while simplifying presentation and disclosure by eliminating separate measurement and reporting of hedge ineffectiveness. The provisions of the standard are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. | We are currently evaluating the effect on our financial statements and related disclosures. | ||
Planned date of adoption: Q1 2020 | ||||
ASU no. 2018-15 Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract | The standard amends ASC 350 to include in its scope implementation costs of a Cloud Computing Arrangement (CCA) that is a service contract and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in a CCA that is considered a service contract. The ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. | We are currently evaluating the effect on our financial statements and related disclosures. | ||
Planned date of adoption: Q1 2021 |
September 29, 2018 | Adjustments due to adoption of ASC 606 | September 30, 2018 | ||||||||||
ASSETS | ||||||||||||
Receivables | $ | $ | $ | |||||||||
Inventories | ( | ) | ||||||||||
Deferred income taxes | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Contract advances | $ | $ | $ | |||||||||
Contract and contract-related loss reserves | ||||||||||||
Other accrued liabilities | ||||||||||||
Deferred income taxes | ||||||||||||
Retained earnings |
Three Months Ended | ||||||||||||
Under ASC 605 | Effect of ASC 606 | As Reported Under ASC 606 | ||||||||||
Net sales | $ | $ | $ | |||||||||
Cost of sales | ||||||||||||
Gross profit | ||||||||||||
Earnings before income taxes | ||||||||||||
Income taxes | ||||||||||||
Net earnings | $ | $ | $ |
Six Months Ended | ||||||||||||
Under ASC 605 | Effect of ASC 606 | As Reported Under ASC 606 | ||||||||||
Net sales | $ | $ | $ | |||||||||
Cost of sales | ||||||||||||
Gross profit | ||||||||||||
Earnings before income taxes | ||||||||||||
Income taxes | ||||||||||||
Net earnings | $ | $ | $ |
Under ASC 605 | Effect of ASC 606 | As Reported Under ASC 606 | ||||||||||
ASSETS | ||||||||||||
Current assets | ||||||||||||
Receivables | $ | $ | $ | |||||||||
Inventories | ( | ) | ||||||||||
Total current assets | ||||||||||||
Deferred income taxes | ( | ) | ||||||||||
Total assets | ||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
Current liabilities | ||||||||||||
Contract advances | $ | $ | $ | |||||||||
Contract and contract-related loss reserves | ||||||||||||
Other accrued liabilities | ||||||||||||
Total current liabilities | ||||||||||||
Deferred income taxes | ||||||||||||
Total liabilities | ||||||||||||
Shareholders’ equity | ||||||||||||
Retained earnings | ||||||||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | ||||||||
Total shareholders’ equity | ||||||||||||
Total liabilities and shareholders’ equity |
Three Months Ended | ||||||||||||
As Reported, March 31, 2018 | Impact of Adoption | As Adjusted, March 31, 2018 | ||||||||||
Cost of sales | $ | $ | ( | ) | $ | |||||||
Gross profit | ||||||||||||
Research and development | ( | ) | ||||||||||
Selling, general and administrative | ( | ) | ||||||||||
Other | ( | ) |
Six Months Ended | ||||||||||||
As Reported, March 31, 2018 | Impact of Adoption | As Adjusted, March 31, 2018 | ||||||||||
Cost of sales | $ | $ | ( | ) | $ | |||||||
Gross profit | ||||||||||||
Research and development | ( | ) | ||||||||||
Selling, general and administrative | ( | ) | ||||||||||
Other | ( | ) |
Three Months Ended | ||||||||||||
As Reported, March 31, 2018 | Impact of Adoption | As Adjusted, March 31, 2018 | ||||||||||
Operating profit (loss): | ||||||||||||
Aircraft Controls | $ | $ | $ | |||||||||
Space and Defense Controls | ||||||||||||
Industrial Systems | ( | ) | ( | ) | ||||||||
Total operating profit | $ | $ | $ | |||||||||
Deductions from operating profit: | ||||||||||||
Non-service pension expense | $ | $ | $ | |||||||||
Corporate and other expenses, net | $ | $ | ( | ) | $ |
Six Months Ended | ||||||||||||
As Reported, March 31, 2018 | Impact of Adoption | As Adjusted, March 31, 2018 | ||||||||||
Operating profit (loss): | ||||||||||||
Aircraft Controls | $ | $ | $ | |||||||||
Space and Defense Controls | ||||||||||||
Industrial Systems | ||||||||||||
Total operating profit | $ | $ | $ | |||||||||
Deductions from operating profit: | ||||||||||||
Non-service pension expense | $ | $ | $ | |||||||||
Corporate and other expenses, net | $ | $ | ( | ) | $ |
March 30, 2019 | September 30, 2018 | |||||||
Unbilled receivables | $ | $ | ||||||
Contract advances | ||||||||
Net contract assets | $ | $ |
March 30, 2019 | September 29, 2018 | |||||||
Accounts receivable | $ | $ | ||||||
Long-term contract receivables: | ||||||||
Billed receivables | ||||||||
Unbilled receivables | ||||||||
Total long-term contract receivables | ||||||||
Other | ||||||||
Less allowance for doubtful accounts | ( | ) | ( | ) | ||||
Receivables | $ | $ |
March 30, 2019 | September 29, 2018 | |||||||
Raw materials and purchased parts | $ | $ | ||||||
Work in progress | ||||||||
Finished goods | ||||||||
Inventories | $ | $ |
Aircraft Controls | Space and Defense Controls | Industrial Systems | Total | |||||||||
Balance at September 29, 2018 | $ | $ | $ | $ | ||||||||
Divestitures | ( | ) | ( | ) | ||||||||
Foreign currency translation | ( | ) | ( | ) | ( | ) | ( | ) | ||||
Balance at March 30, 2019 | $ | $ | $ | $ |
March 30, 2019 | September 29, 2018 | |||||||||||||||||
Weighted- Average Life (years) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||
Customer-related | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||||
Technology-related | ( | ) | ( | ) | ||||||||||||||
Program-related | ( | ) | ( | ) | ||||||||||||||
Marketing-related | ( | ) | ( | ) | ||||||||||||||
Other | ( | ) | ( | ) | ||||||||||||||
Intangible assets | $ | $ | ( | ) | $ | $ | ( | ) |
March 30, 2019 | September 29, 2018 | |||||||
U.S. revolving credit facility | $ | $ | ||||||
SECT revolving credit facility | ||||||||
Senior notes | ||||||||
Securitization program | ||||||||
Obligations under capital leases | ||||||||
Senior debt | ||||||||
Less deferred debt issuance cost | ( | ) | ( | ) | ||||
Less current installments | ( | ) | ( | ) | ||||
Long-term debt | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||
March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | |||||||||||||
Warranty accrual at beginning of period | $ | $ | $ | $ | ||||||||||||
Warranties issued during current period | ||||||||||||||||
Adjustments to pre-existing warranties | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Reductions for settling warranties | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Foreign currency translation | ( | ) | ||||||||||||||
Warranty accrual at end of period | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | ||||||||||||||||
March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | ||||||||||||||
Net gain (loss) | $ | $ | ( | ) | $ | $ | ( | ) |
March 30, 2019 | September 29, 2018 | ||||||||
Derivatives designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current assets | $ | $ | ||||||
Foreign currency contracts | Other assets | ||||||||
Interest rate swaps | Other current assets | ||||||||
Interest rate swaps | Other assets | ||||||||
Total asset derivatives | $ | $ | |||||||
Foreign currency contracts | Other accrued liabilities | $ | $ | ||||||
Foreign currency contracts | Other long-term liabilities | ||||||||
Total liability derivatives | $ | $ | |||||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current assets | $ | $ | ||||||
Foreign currency contracts | Other accrued liabilities | $ | $ |
Classification | March 30, 2019 | September 29, 2018 | ||||||||
Foreign currency contracts | Other current assets | $ | $ | |||||||
Foreign currency contracts | Other assets | |||||||||
Interest rate swaps | Other current assets | |||||||||
Interest rate swaps | Other assets | |||||||||
Total assets | $ | $ | ||||||||
Foreign currency contracts | Other accrued liabilities | $ | $ | |||||||
Foreign currency contracts | Other long-term liabilities | |||||||||
Total liabilities | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||
March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | |||||||||||||
U.S. Plans | ||||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||
Interest cost | ||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Amortization of prior service cost (credit) | ||||||||||||||||
Amortization of actuarial loss | ||||||||||||||||
Pension expense for U.S. defined benefit plans | $ | $ | $ | $ | ||||||||||||
Non-U.S. Plans | ||||||||||||||||
Service cost | $ | $ | $ | $ | ||||||||||||
Interest cost | ||||||||||||||||
Expected return on plan assets | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Amortization of prior service cost (credit) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Amortization of actuarial loss | ||||||||||||||||
Pension expense for non-U.S. defined benefit plans | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||
March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | |||||||||||||
U.S. defined contribution plans | $ | $ | $ | $ | ||||||||||||
Non-U.S. defined contribution plans | ||||||||||||||||
Total pension expense for defined contribution plans | $ | $ | $ | $ |
Aircraft Controls | Space and Defense Controls | Industrial Systems | Corporate | Total | |||||||||||
Balance at September 29, 2018 | $ | $ | $ | $ | $ | ||||||||||
Adjustments to provision | |||||||||||||||
Cash payments - 2016 plan | ( | ) | ( | ) | |||||||||||
Cash payments - 2018 plan | ( | ) | ( | ) | ( | ) | ( | ) | |||||||
Foreign currency translation | ( | ) | ( | ) | |||||||||||
Balance at March 30, 2019 | $ | $ | $ | $ | $ |
Accumulated foreign currency translation | Accumulated retirement liability | Accumulated gain (loss) on derivatives | Total | |||||||||||||
AOCIL at September 29, 2018 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
Other comprehensive income (loss) before reclassifications | ( | ) | ( | ) | ||||||||||||
Amounts reclassified from AOCIL | ( | ) | ||||||||||||||
Other comprehensive income (loss) | ( | ) | ||||||||||||||
AOCIL at March 30, 2019 | $ | ( | ) | $ | ( | ) | $ | $ | ( | ) |
Three Months Ended | Six Months Ended | |||||||||||||||||
Statement of earnings classification | March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | ||||||||||||||
Retirement liability: | ||||||||||||||||||
Prior service cost (credit) | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Actuarial losses | ||||||||||||||||||
Reclassification from AOCIL into earnings (1) | ||||||||||||||||||
Tax effect | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||||
Net reclassification from AOCIL into earnings | $ | $ | $ | $ | ||||||||||||||
Derivatives: | ||||||||||||||||||
Foreign currency contracts | Sales | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | |||||
Foreign currency contracts | Cost of sales | |||||||||||||||||
Interest rate swaps | Interest | ( | ) | ( | ) | ( | ) | ( | ) | |||||||||
Reclassification from AOCIL into earnings | ( | ) | ||||||||||||||||
Tax effect | ( | ) | ( | ) | ( | ) | ||||||||||||
Net reclassification from AOCIL into earnings | $ | ( | ) | $ | $ | $ |
Net deferral in AOCIL - effective portion | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | |||||||||||||
Foreign currency contracts | $ | $ | ( | ) | $ | $ | ( | ) | ||||||||
Interest rate swaps | ( | ) | ( | ) | ||||||||||||
Net gain (loss) | ( | ) | ||||||||||||||
Tax effect | ( | ) | ( | ) | ( | ) | ||||||||||
Net deferral in AOCIL of derivatives | $ | $ | ( | ) | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||
March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | |||||||||
Basic weighted-average shares outstanding | ||||||||||||
Dilutive effect of equity-based awards | ||||||||||||
Diluted weighted-average shares outstanding |
Three Months Ended | Six Months Ended | |||||||||||||||
March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | |||||||||||||
Net sales: | ||||||||||||||||
Military | $ | $ | $ | $ | ||||||||||||
Commercial | ||||||||||||||||
Aircraft Controls | ||||||||||||||||
Space | ||||||||||||||||
Defense | ||||||||||||||||
Space and Defense Controls | ||||||||||||||||
Energy | ||||||||||||||||
Industrial Automation | ||||||||||||||||
Simulation and Test | ||||||||||||||||
Medical | ||||||||||||||||
Industrial Systems | ||||||||||||||||
Net sales | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||
March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | |||||||||||||
Net sales: | ||||||||||||||||
Commercial | $ | $ | $ | $ | ||||||||||||
U.S. Government (including OEM) | ||||||||||||||||
Other | ||||||||||||||||
Aircraft Controls | ||||||||||||||||
Commercial | ||||||||||||||||
U.S. Government (including OEM) | ||||||||||||||||
Other | ||||||||||||||||
Space and Defense Controls | ||||||||||||||||
Commercial | ||||||||||||||||
U.S. Government (including OEM) | ||||||||||||||||
Other | ||||||||||||||||
Industrial Systems | ||||||||||||||||
Commercial | ||||||||||||||||
U.S. Government (including OEM) | ||||||||||||||||
Other | ||||||||||||||||
Net sales | $ | $ | $ | $ |
Three Months Ended | Six Months Ended | |||||||||||||||
March 30, 2019 | March 31, 2018 | March 30, 2019 | March 31, 2018 | |||||||||||||
Operating profit (loss): | ||||||||||||||||
Aircraft Controls | $ | $ | $ | $ | ||||||||||||
Space and Defense Controls | ||||||||||||||||
Industrial Systems | ( | ) | ||||||||||||||
Total operating profit | ||||||||||||||||
Deductions from operating profit: | ||||||||||||||||
Interest expense | ||||||||||||||||
Equity-based compensation expense | ||||||||||||||||
Non-service pension expense | ||||||||||||||||
Corporate and other expenses, net | ||||||||||||||||
Earnings before income taxes | $ | $ | $ | $ |
• | Defense market - primary and secondary flight controls for military aircraft, stabilization and automatic ammunition loading controls for armored combat vehicles, tactical and strategic missile steering controls and gun aiming controls. |
• | Commercial aircraft market - primary and secondary flight controls for commercial aircraft. |
• | Commercial space market - satellite positioning controls and thrust vector controls for space launch vehicles. |
• | Industrial automation market - injection molding, metal forming, heavy industry, material and automotive testing and pilot training simulators. |
• | Medical market - enteral clinical nutrition and infusion therapy pumps, ultrasonic sensors and surgical handpieces and CT scanners. |
• | Energy market - power generation and oil and gas exploration. |
• | a strong leadership team that has positioned the company for growth, |
• | utilizing our global capabilities and strong engineering heritage to innovate, |
• | maintaining our technological excellence by solving our customers’ most demanding technical problems in applications "When Performance Really Matters®," |
• | continuing to invest in talent development to strengthen employee performance, and |
• | maximizing customer value by implementing lean enterprise principles. |
CONSOLIDATED RESULTS OF OPERATIONS | |||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(dollars and shares in millions, except per share data) | March 30, 2019 | March 31, 2018 | $ Variance | % Variance | March 30, 2019 | March 31, 2018 | $ Variance | % Variance | |||||||||||||||
Net sales | $ | 719 | $ | 689 | $ | 30 | 4 | % | $ | 1,398 | $ | 1,317 | $ | 82 | 6 | % | |||||||
Gross margin | 27.5 | % | 28.0 | % | 28.4 | % | 28.7 | % | |||||||||||||||
Research and development expenses | $ | 31 | $ | 34 | $ | (3 | ) | (8 | %) | $ | 63 | $ | 66 | $ | (3 | ) | (5 | %) | |||||
Selling, general and administrative expenses as a percentage of sales | 13.9 | % | 14.3 | % | 14.0 | % | 14.7 | % | |||||||||||||||
Interest expense | $ | 10 | $ | 9 | $ | 1 | 9 | % | $ | 20 | $ | 18 | $ | 2 | 11 | % | |||||||
Restructuring expense | $ | — | $ | 24 | $ | (24 | ) | (100 | %) | $ | — | $ | 24 | $ | (24 | ) | (100 | %) | |||||
Other | $ | 1 | $ | 1 | $ | (1 | ) | (56 | %) | $ | 4 | $ | 2 | $ | 2 | 69 | % | ||||||
Effective tax rate | 23.8 | % | 45.6 | % | 24.1 | % | 79.2 | % | |||||||||||||||
Net earnings | $ | 42 | $ | 14 | $ | 28 | n/a | $ | 86 | $ | 15 | $ | 71 | n/a | |||||||||
Diluted earnings per share | $ | 1.20 | $ | 0.39 | $ | 0.81 | n/a | $ | 2.46 | $ | 0.42 | $ | 2.04 | n/a | |||||||||
Total backlog | $ | 2,230 | n/a | n/a | n/a | ||||||||||||||||||
Twelve month backlog | $ | 1,636 | $ | 1,295 | $ | 341 | 26 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(dollars in millions) | March 30, 2019 | March 31, 2018 | $ Variance | % Variance | March 30, 2019 | March 31, 2018 | $ Variance | % Variance | |||||||||||||||
Net sales - military aircraft | $ | 155 | $ | 156 | $ | (1 | ) | — | % | $ | 302 | $ | 280 | $ | 22 | 8 | % | ||||||
Net sales - commercial aircraft | 166 | 156 | 10 | 6 | % | 323 | 310 | 13 | 4 | % | |||||||||||||
$ | 321 | $ | 311 | $ | 9 | 3 | % | $ | 625 | $ | 590 | $ | 35 | 6 | % | ||||||||
Operating profit | $ | 27 | $ | 34 | $ | (7 | ) | (20 | %) | $ | 60 | $ | 65 | $ | (5 | ) | (7 | %) | |||||
Operating margin | 8.5 | % | 10.9 | % | 9.7 | % | 11.0 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(dollars in millions) | March 30, 2019 | March 31, 2018 | $ Variance | % Variance | March 30, 2019 | March 31, 2018 | $ Variance | % Variance | |||||||||||||||
Net sales | $ | 165 | $ | 144 | $ | 21 | 15 | % | $ | 321 | $ | 277 | $ | 44 | 16 | % | |||||||
Operating profit | $ | 21 | $ | 17 | $ | 3 | 20 | % | $ | 39 | $ | 34 | $ | 5 | 16 | % | |||||||
Operating margin | 12.4 | % | 11.9 | % | 12.1 | % | 12.1 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(dollars in millions) | March 30, 2019 | March 31, 2018 | $ Variance | % Variance | March 30, 2019 | March 31, 2018 | $ Variance | % Variance | |||||||||||||||
Net sales | $ | 233 | $ | 234 | $ | (1 | ) | — | % | $ | 453 | $ | 450 | $ | 3 | 1 | % | ||||||
Operating profit (loss) | $ | 30 | $ | (5 | ) | $ | 36 | n/a | $ | 58 | $ | 14 | $ | 43 | n/a | ||||||||
Operating margin | 13.0 | % | (2.3 | )% | 12.8 | % | 3.2 | % |
CONSOLIDATED AND SEGMENT OUTLOOK | ||||||||||||||
2019 vs. 2018 | ||||||||||||||
(dollars in millions, except per share data ) | 2019 Outlook | 2018 | $ Variance | % Variance | ||||||||||
Net sales: | ||||||||||||||
Aircraft Controls | $ | 1,265 | $ | 1,194 | $ | 71 | 6 | % | ||||||
Space and Defense Controls | 681 | 581 | 100 | 17 | % | |||||||||
Industrial Systems | 931 | 935 | (4 | ) | — | % | ||||||||
$ | 2,877 | $ | 2,709 | $ | 167 | 6 | % | |||||||
Operating profit: | ||||||||||||||
Aircraft Controls | $ | 134 | $ | 130 | $ | 5 | 3 | % | ||||||
Space and Defense Controls | 81 | 68 | 13 | 19 | % | |||||||||
Industrial Systems | 112 | 65 | 47 | 72 | % | |||||||||
$ | 327 | $ | 262 | $ | 64 | 24 | % | |||||||
Operating margin: | ||||||||||||||
Aircraft Controls | 10.6 | % | 10.9 | % | ||||||||||
Space and Defense Controls | 11.8 | % | 11.6 | % | ||||||||||
Industrial Systems | 12.0 | % | 6.9 | % | ||||||||||
11.4 | % | 9.7 | % | |||||||||||
Net earnings | $ | 178 | $ | 97 | $ | 82 | 84 | % | ||||||
Diluted earnings per share | $4.85 - $5.25 | $ | 2.68 | $ | 2.37 | 88 | % |
Six Months Ended | |||||||||||
(dollars in millions) | March 30, 2019 | March 31, 2018 | $ Variance | % Variance | |||||||
Net cash provided (used) by: | |||||||||||
Operating activities | $ | 109 | $ | 45 | $ | 64 | 141 | % | |||
Investing activities | (58 | ) | (90 | ) | 32 | (36 | %) | ||||
Financing activities | (67 | ) | (79 | ) | 12 | (16 | %) |
• | the markets we serve are cyclical and sensitive to domestic and foreign economic conditions and events, which may cause our operating results to fluctuate; |
• | we operate in highly competitive markets with competitors who may have greater resources than we possess; |
• | we depend heavily on government contracts that may not be fully funded or may be terminated, and the failure to receive funding or the termination of one or more of these contracts could reduce our sales and increase our costs; |
• | we make estimates in accounting for over time contracts, and changes in these estimates may have significant impacts on our earnings; |
• | we enter into fixed-price contracts, which could subject us to losses if we have cost overruns; |
• | we may not realize the full amounts reflected in our backlog as revenue, which could adversely affect our future revenue and growth prospects; |
• | if our subcontractors or suppliers fail to perform their contractual obligations, our prime contract performance and our ability to obtain future business could be materially and adversely impacted; |
• | contracting on government programs is subject to significant regulation, including rules related to bidding, billing and accounting kickbacks and false claims, and any non-compliance could subject us to fines and penalties or possible debarment; |
• | the loss of The Boeing Company as a customer or a significant reduction in sales to The Boeing Company could adversely impact our operating results; |
• | our new product research and development efforts may not be successful which could reduce our sales and earnings; |
• | our inability to adequately enforce and protect our intellectual property or defend against assertions of infringement could prevent or restrict our ability to compete; |
• | our business operations may be adversely affected by information systems interruptions, intrusions or new software implementations; |
• | our indebtedness and restrictive covenants under our credit facilities could limit our operational and financial flexibility; |
• | significant changes in discount rates, rates of return on pension assets, mortality tables and other factors could adversely affect our earnings and equity and increase our pension funding requirements; |
• | a write-off of all or part of our goodwill or other intangible assets could adversely affect our operating results and net worth; |
• | our sales and earnings may be affected if we cannot identify, acquire or integrate strategic acquisitions, or if we engage in divesting activities; |
• | our operations in foreign countries expose us to political and currency risks and adverse changes in local legal and regulatory environments; |
• | unforeseen exposure to additional income tax liabilities may affect our operating results; |
• | government regulations could limit our ability to sell our products outside the United States and otherwise adversely affect our business; |
• | governmental regulations and customer demands related to conflict minerals may adversely impact our operating results; |
• | the failure or misuse of our products may damage our reputation, necessitate a product recall or result in claims against us that exceed our insurance coverage, thereby requiring us to pay significant damages; |
• | future terror attacks, war, natural disasters or other catastrophic events beyond our control could negatively impact our business; |
• | our operations are subject to environmental laws, and complying with those laws may cause us to incur significant costs; and |
• | we are involved in various legal proceedings, the outcome of which may be unfavorable to us. |
(a) | Disclosure Controls and Procedures. We carried out an evaluation, under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Exchange Act Rules 13a-15(e) and 15d-15(e). Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that these disclosure controls and procedures are effective as of the end of the period covered by this report, to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. |
(b) | Changes in Internal Control over Financial Reporting. There have been no changes during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. |
(c) | The following table summarizes our purchases of our common stock for the quarter ended March 30, 2019. |
Period | (a) Total Number of Shares Purchased (1)(2) | (b) Average Price Paid Per Share | (c) Total number of Shares Purchased as Part of Publicly Announced Plans or Programs (3) | (d) Maximum Number (or Approx. Dollar Value) of Shares that May Yet Be Purchased Under Plans or Programs (3) | |||||||||
December 30, 2018 - January 31, 2019 | 63,586 | $ | 77.02 | 18,001 | 3,290,130 | ||||||||
February 1, 2019 - February 28, 2019 | 61,121 | 92.08 | 186 | 3,289,944 | |||||||||
March 1, 2019 - March 30, 2019 | 7,487 | 90.38 | 40 | 3,289,904 | |||||||||
Total | 132,194 | $ | 84.74 | 18,227 | 3,289,904 |
(1) | Reflects purchases by the Moog Inc. Stock Employee Compensation Trust Agreement ("SECT") of shares of Class B common stock from the Moog Inc. Retirement Savings Plan ("RSP") at average prices as follows: 7,777 shares at $79.04 per share during January; 45,188 shares at $91.53 per share during February; and 7,447 shares at $90.41 per share during March. In connection with the issuance of shares to the Employee Stock Purchase Plan ("ESPP"), we purchased 37,069 Class B shares at $77.48 per share from the SECT. |
(2) | In connection with the exercise of equity-based compensation awards, we accept delivery of shares to pay for the exercise price and withhold shares for tax withholding obligations. In January, we accepted delivery of 739 shares at $83.88 per share, and in February, we accepted delivery of 15,747 shares at $93.66 per share, in connection with the exercise of equity-based awards. |
(3) | The Board of Directors has authorized a share repurchase program. This program has been amended from time to time to authorize additional repurchases up to an aggregate 13 million common shares. The program permits the purchase of shares of Class A or Class B common stock in open market or privately negotiated transactions at the discretion of management. In January, we purchased 17,858 Class A shares at an average price of $74.87 per share and 143 Class B shares at an average price of $79.86 per share, in February, we purchased 186 Class B shares at an average price of $93.04 per share, and in March, we purchased 40 Class B shares at an average price of $85.16 per share. |
(a) | Exhibits | ||
Certification of Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
Certification of Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||
101 | Interactive Date files (submitted electronically herewith) |
(101.INS) | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. |
(101.SCH) | XBRL Taxonomy Extension Schema Document |
(101.CAL) | XBRL Taxonomy Extension Calculation Linkbase Document |
(101.DEF) | XBRL Taxonomy Extension Definition Linkbase Document |
(101.LAB) | XBRL Taxonomy Extension Label Linkbase Document |
(101.PRE) | XBRL Taxonomy Extension Presentation Linkbase Document |
Moog Inc. | |||||
(Registrant) | |||||
Date: | April 26, 2019 | By | /s/ John R. Scannell | ||
John R. Scannell | |||||
Chairman of the Board and Director Chief Executive Officer (Principal Executive Officer) | |||||
Date: | April 26, 2019 | By | /s/ Donald R. Fishback | ||
Donald R. Fishback | |||||
Director Vice President and Chief Financial Officer (Principal Financial Officer) | |||||
Date: | April 26, 2019 | By | /s/ Michael J. Swope | ||
Michael J. Swope | |||||
Controller (Principal Accounting Officer) | |||||
1. | I have reviewed this quarterly report on Form 10-Q of Moog Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
1. | I have reviewed this quarterly report on Form 10-Q of Moog Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Document And Entity Information - USD ($) |
6 Months Ended | ||
---|---|---|---|
Mar. 30, 2019 |
Apr. 23, 2019 |
Apr. 01, 2018 |
|
Document Information | |||
Entity Registrant Name | MOOG INC. | ||
Entity Central Index Key | 0000067887 | ||
Current Fiscal Year End Date | --09-28 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Mar. 30, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | Q2 | ||
Amendment Flag | false | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,718,000,000 | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Class A Common Stock | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 32,477,568 | ||
Entity Listing, Par Value Per Share | $ 1.00 | ||
Class B Common Stock | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 2,423,575 | ||
Entity Listing, Par Value Per Share | $ 1.00 |
Consolidated Condensed Statements of Earnings - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Income Statement [Abstract] | ||||
Net sales | $ 718,811 | $ 689,049 | $ 1,398,487 | $ 1,316,584 |
Cost of sales | 521,410 | 488,788 | 1,001,584 | 931,938 |
Inventory write-down - restructuring | 0 | 7,329 | 0 | 7,329 |
Gross profit | 197,401 | 192,932 | 396,903 | 377,317 |
Research and development | 31,344 | 33,995 | 63,220 | 66,329 |
Selling, general and administrative | 99,860 | 98,665 | 196,186 | 193,284 |
Interest | 9,939 | 9,089 | 19,621 | 17,735 |
Restructuring | 0 | 24,058 | 0 | 24,058 |
Other | 640 | 1,456 | 4,074 | 2,408 |
Earnings before income taxes | 55,618 | 25,669 | 113,802 | 73,503 |
Income taxes | 13,259 | 11,704 | 27,374 | 58,239 |
Net earnings | $ 42,359 | $ 13,965 | $ 86,428 | $ 15,264 |
Net earnings per share | ||||
Basic | $ 1.21 | $ 0.39 | $ 2.48 | $ 0.43 |
Diluted | 1.20 | 0.39 | 2.46 | 0.42 |
Dividends declared per share | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.25 |
Average common shares outstanding | ||||
Basic | 34,886,541 | 35,770,089 | 34,850,898 | 35,771,247 |
Diluted | 35,241,113 | 36,179,858 | 35,183,471 | 36,190,455 |
Consolidated Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 42,359 | $ 13,965 | $ 86,428 | $ 15,264 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | 1,106 | 20,297 | (8,281) | 30,661 |
Retirement liability adjustment | 4,677 | 4,682 | 9,496 | 8,938 |
Change in accumulated income (loss) on derivatives | (79) | (579) | 585 | 655 |
Other comprehensive income (loss) | 5,704 | 24,400 | 1,800 | 40,254 |
Tax Cuts and Jobs Act, reclassification from AOCIL to retained earnings | 0 | (47,077) | 0 | (47,077) |
Comprehensive income (loss) | $ 48,063 | $ (8,712) | $ 88,228 | $ 8,441 |
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Mar. 30, 2019 |
Sep. 29, 2018 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation | $ 812,879 | $ 816,837 |
Basis Of Presentation |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated condensed financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting of normal recurring adjustments considered necessary for the fair presentation of results for the interim period have been included. The results of operations for the three and six months ended March 30, 2019 are not necessarily indicative of the results expected for the full year. The accompanying unaudited consolidated condensed financial statements should be read in conjunction with the financial statements and notes thereto included in our Form 10-K for the fiscal year ended September 29, 2018. All references to years in these financial statements are to fiscal years. Certain prior year amounts have been reclassified to conform to current year's presentation. Management does not consider the amounts reclassified to be material. Recent Accounting Pronouncements Adopted
Recent Accounting Pronouncements Not Yet Adopted
We consider the applicability and impact of all ASUs. ASUs not listed above were assessed and determined to be either not applicable, or had or are expected to have minimal impact on our financial statements and related disclosures. In accordance with SEC Final Rule Release No. 33-10532, we have adopted Rule 3-04 of Regulation S-X during the first quarter of 2019 and have disclosed changes in the Consolidated Condensed Statement of Shareholders' Equity and the amount of dividends per share for each class of shares for all periods presented. Refer to Note 16, Earnings per Share and Dividends. Impact of Recent Accounting Pronouncements Adopted On September 30, 2018, we adopted ASC 606: Revenue from Contracts with Customers and the related amendments (ASC 606), using the modified retrospective method, as described above. ASC 606 was applied to contracts that were not completed as of September 29, 2018. Prior periods have not been restated and continue to be reported under the accounting standard in effect for those periods. Previously, we recognized revenue under ASC 605: Revenue Recognition (ASC 605). The cumulative effect from the adoption of ASC 606 as of September 30, 2018 was as follows:
The tables below represent the impact of the adoption of ASC 606 on the Consolidated Condensed Statement of Earnings for the three and six months ended March 30, 2019.
The table below represents the impact of the adoption of ASC 606 on the Consolidated Condensed Balance Sheet as of March 30, 2019.
The tables below represent the impact of the adoption of ASU 2017-07 on the Consolidated Condensed Statement of Earnings for the three and six months ended March 31, 2018.
The tables below represent the impact of the adoption of ASU 2017-07 on operating profit and deductions from operating profit for the three and six months ended March 31, 2018.
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Revenue from Contracts with Customers |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition and Contracts with Customers | Revenue from Contracts with Customers We recognize revenue from contracts with customers using the five-step model prescribed in ASC 606. The first step is identifying the contract. The identification of a contract with a customer requires an assessment of each party’s rights and obligations regarding the products or services to be transferred, including an evaluation of termination clauses and presently enforceable rights and obligations. Each party’s rights and obligations and the associated terms and conditions are typically determined in purchase orders. For sales that are governed by master supply agreements under which provisions define specific program requirements, purchase orders are issued under these agreements to reflect presently enforceable rights and obligations for the units of products and services being purchased. Contracts are sometimes modified to account for changes in contract specifications and requirements. When this occurs, we assess the modification as prescribed in ASC 606 and determine whether the existing contract needs to be modified (and revenue cumulatively caught up), whether the existing contract needs to be terminated and a new contract needs to be created, or whether the existing contract remains and a new contract needs to be created. This is determined based on the rights and obligations within the modification as well as the associated transaction price. The next step is identifying the performance obligations. A performance obligation is a promise to transfer goods or services to a customer that is distinct in the context of the contract, as defined by ASC 606. We identify a performance obligation for each promise in a contract to transfer a distinct good or service to the customer. As part of our assessment, we consider all goods and/or services promised in the contract, regardless of whether they are explicitly stated or implied by customary business practices. The products and services in our contracts are typically not distinct from one another due to their complexity and reliance on each other or, in many cases, we provide a significant integration service. Accordingly, many of our contracts are accounted for as one performance obligation. In limited cases, our contracts have more than one distinct performance obligation, which occurs when we perform activities that are not highly complex or interrelated or involve different product life cycles. Warranties are provided on certain contracts, but do not typically provide for services beyond standard assurances and are therefore not distinct performance obligations under ASC 606. The third step is determining the transaction price, which represents the amount of consideration we expect to be entitled to receive from a customer in exchange for providing the goods or services. There are times when this consideration is variable, for example a volume discount, and must be estimated. Sales, use, value-added, and excise taxes are excluded from the transaction price, where applicable. The fourth step is allocating the transaction price. The transaction price must be allocated to the performance obligations identified in the contract based on relative stand-alone selling prices when available, or an estimate for each distinct good or service in the contract when standalone prices are not available. Our contracts with customers generally require payment under normal commercial terms after delivery. Payment terms are typically within 30 to 60 days of delivery. The timing of satisfaction of our performance obligations does not significantly vary from the typical timing of payment. The final step is the recognition of revenue. We recognize revenue as the performance obligations are satisfied. ASC 606 provides guidance to help determine if we are satisfying the performance obligation at a point in time or over time. In determining when performance obligations are satisfied, we consider factors such as contract terms, payment terms and whether there is an alternative use of the product or service. In essence, we recognize revenue when or as control of the promised goods or services transfer to the customer. Under ASC 606, revenue recognized over time using the cost-to-cost method of accounting for the three and six months ended March 30, 2019 was 65% and 64%, respectively. The over time method of revenue recognition is predominantly used in Aircraft Controls and Space and Defense Controls. We use this method for U.S. Government contracts and repair and overhaul arrangements as we are creating or enhancing assets that the customer controls as the assets are being created or enhanced. In addition, many of our large commercial contracts qualify for over time accounting as our performance does not create an asset with an alternative use and we have enforceable right to payment for performance completed to date. Our over time contracts are primarily firm fixed price. Revenue is recognized on contracts using the cost-to-cost method of accounting as work progresses toward completion as determined by the ratio of cumulative costs incurred to date to estimated total contract costs at completion, multiplied by the total estimated contract revenue, less cumulative revenue recognized in prior periods. We believe that cumulative costs incurred to date as a percentage of estimated total contract costs at completion is an appropriate measure of progress toward satisfaction of performance obligations as this measure most accurately depicts the progress of our work and transfer of control to our customers. Changes in estimates affecting sales, costs and profits are recognized in the period in which the change becomes known using the cumulative catch-up method of accounting, resulting in the cumulative effect of changes reflected in the period. Estimates are reviewed and updated quarterly for substantially all contracts. For the three and six months ended March 30, 2019, we recognized lower revenues of $1,321 and higher revenues of $10,438, respectively, for adjustments made to performance obligations satisfied (or partially satisfied) in previous periods. Contract costs include only allocable, allowable and reasonable costs which are included in cost of sales when incurred. For applicable U.S. Government contracts, contract costs are determined in accordance with the Federal Acquisition Regulations and the related Cost Accounting Standards. The nature of these costs includes development engineering costs and product manufacturing costs such as direct material, direct labor, other direct costs and indirect overhead costs. Contract profit is recorded as a result of the revenue recognized less costs incurred in any reporting period. Variable consideration and contract modifications, such as performance incentives, penalties, contract claims or change orders are considered in estimating revenues, costs and profits when they can be reliably estimated and realization is considered probable. Revenue recognized on contracts for unresolved claims or unapproved contract change orders was not material for the three and six months ended March 30, 2019. As of March 30, 2019, we had contract and contract-related loss reserves of $49,383. For contracts with anticipated losses at completion, a provision for the entire amount of the estimated remaining loss is charged against income in the period in which the loss becomes known. Contract losses are determined considering all direct and indirect contract costs, exclusive of any selling, general or administrative cost allocations that are treated as period expenses. Loss reserves are more common on firm fixed-price contracts that involve, to varying degrees, the design and development of new and unique controls or control systems to meet the customers’ specifications. Contract-related loss reserves are recorded for the additional work needed on completed and delivered products in order for them to meet contract specifications. In accordance with ASC 606, we calculate contract losses at the contract level, versus the performance obligation level. For the three and six months ended March 30, 2019, 35% and 36% of revenue, respectively, was recognized at the point in time control transferred to the customer. This method of revenue recognition is used most frequently in Industrial Systems. We use this method for commercial contracts in which the asset being created has an alternative use. We determine the point in time control transfers to the customer by weighing the five indicators provided by ASC 606 - the entity has a present right to payment; the customer has legal title; the customer has physical possession; the customer has the significant risks and rewards of ownership; and the customer has accepted the asset. When control has transferred to the customer, profit is generated as cost of sales is recorded and as revenue is recognized. Inventory costs include all product manufacturing costs such as direct material, direct labor, other direct costs and indirect overhead cost allocations. Shipping and handling costs are considered costs to fulfill a contract and not considered performance obligations. They are included in cost of sales as incurred. Contract Assets and Liabilities Unbilled receivables (contract assets) primarily represent revenues recognized for performance obligations that have been satisfied but for which amounts have not been billed. These are included as Receivables on the Consolidated Condensed Balance Sheets. Contract advances (contract liabilities) relate to payments received from customers in advance of the satisfaction of performance obligations for a contract. We do not consider contract advances to be significant financing components as the intent of these payments in advance are for reasons other than providing a significant financing benefit and are customary in our industry. Total contract assets and contract liabilities as of March 30, 2019 are as follows:
The increase in contract assets reflects the net impact of additional unbilled revenues recorded in excess of revenue recognized during the period. The increase in contract liabilities reflects the net impact of additional deferred revenues recorded in excess of revenue recognized during the period. For the three and six months ended March 30, 2019, we recognized $46,078 and $93,586 of revenue, respectively, that was included in the contract liability balance at the beginning of the period. Remaining Performance Obligations As of March 30, 2019, the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied), also known as backlog, was approximately $2,230,000. We expect to recognize approximately 73% of that amount as sales over the next twelve months and the balance thereafter. Disaggregation of Revenue See Note 17, Segments, for disclosures related to disaggregation of revenue.
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Acquisitions, Divestitures and Equity Method Investments |
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Mar. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions, Divestitures and Equity Method Investments | Acquisitions, Divestitures and Equity Method Investments In the first quarter of 2019, we sold a non-core business of our Industrial Systems segment for $4,191 in cash and recorded a gain in other income of $2,641. On April 30, 2018, we acquired Electro-Optical Imaging, a designer and manufacturer of video trackers and imaging products, located in Florida, for a purchase price, net of acquired cash, of $5,442. This operation is included in our Space and Defense Controls segment. On March 29, 2018, we acquired a 100% ownership interest in VUES Brno s.r.o ("Vues") located in the Czech Republic, which included a 74% ownership interest in a subsidiary located in Germany. The purchase price, net of acquired cash, was $64,140, consisting of $42,961 in cash and $21,179 of assumed debt. VUES designs and manufactures electric motors and generators, and provides customized solutions. On September 6, 2018, we acquired the remaining 26% noncontrolling interest for $1,843 in cash. The difference between the cash paid and the adjustment to the noncontrolling interest is reflected in additional paid-in capital. This operation is included in our Industrial Systems segment. The purchase price allocations for this acquisition are complete. On October 3, 2017, we, in collaboration with SIA Engineering Company, announced the joint venture company, Moog Aircraft Services Asia ("MASA"), in Singapore, of which we currently hold a 51% ownership. MASA is intended to provide maintenance, repair and overhaul services for our manufactured flight control systems. As we hold a majority ownership in MASA, but share voting control, we are accounting for this investment using the equity method. As of March 30, 2019, we have made total contributions of $5,100. This operation is included in our Aircraft Controls segment.
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Receivables |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables | Receivables Receivables consist of: We securitize certain trade receivables in transactions that are accounted for as secured borrowings (Securitization Program). We maintain a subordinated interest in a portion of the pool of trade receivables that are securitized. The retained interest, which is included in Receivables in the consolidated condensed balance sheets, is recorded at fair value, which approximates the total amount of the designated pool of accounts receivable. Refer to Note 7, Indebtedness, for additional disclosures related to the Securitization Program.
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Inventories |
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories, net of reserves, consist of:
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Goodwill And Intangible Assets |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill And Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill are as follows:
Goodwill in our Space and Defense Controls segment is net of a $4,800 accumulated impairment loss at March 30, 2019. Goodwill in our Medical Devices reporting unit, included in our Industrial Systems segment, is net of a $38,200 accumulated impairment loss at March 30, 2019. The components of intangible assets are as follows:
Substantially all acquired intangible assets other than goodwill are being amortized. Customer-related intangible assets primarily consist of customer relationships. Technology-related intangible assets primarily consist of technology, patents, intellectual property and software. Program-related intangible assets consist of long-term programs represented by current contracts and probable follow on work. Marketing-related intangible assets primarily consist of trademarks, trade names and non-compete agreements. Amortization of acquired intangible assets was $3,402 and $7,085 for the three and six months ended March 30, 2019 and $4,671 and $9,271 for the three and six months ended March 31, 2018. Based on acquired intangible assets recorded at March 30, 2019, amortization is expected to be approximately $13,300 in 2019, $11,600 in 2020, $9,700 in 2021, $8,100 in 2022 and $7,300 in 2023.
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Indebtedness |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness | Indebtedness We maintain short-term line of credit facilities with banks throughout the world that are principally demand lines subject to revision by the banks. Long-term debt consists of:
Our U.S. revolving credit facility matures on June 28, 2021. Our U.S. revolving credit facility has a capacity of $1,100,000 and provides an expansion option, which permits us to request an increase of up to $200,000 to the credit facility upon satisfaction of certain conditions. The credit facility is secured by substantially all of our U.S. assets. The loan agreement contains various covenants which, among others, specify interest coverage and maximum leverage. We are in compliance with all covenants. The SECT has a revolving credit facility with a borrowing capacity of $35,000, maturing on July 26, 2020. Interest is based on LIBOR plus an applicable margin. A commitment fee is also charged based on a percentage of the unused amounts available and is not material. At March 30, 2019, we had $300,000 principal amount of 5.25% senior notes due December 1, 2022 with interest paid semiannually on June 1 and December 1 of each year. The senior notes are unsecured obligations, guaranteed on a senior unsecured basis by certain subsidiaries and contain normal incurrence-based covenants and limitations such as the ability to incur additional indebtedness, pay dividends, make other restricted payments and investments, create liens and certain corporate acts such as mergers and consolidations. The Securitization Program, effectively increasing our borrowing capacity by up to $130,000, was extended on October 30, 2018 and now matures on October 30, 2020. Under the Securitization Program, we sell certain trade receivables and related rights to an affiliate, which in turn sells an undivided variable percentage ownership interest in the trade receivables to a financial institution, while maintaining a subordinated interest in a portion of the pool of trade receivables. Interest for the Securitization Program is based on 30-day LIBOR plus an applicable margin. A commitment fee is also charged based on a percentage of the unused amounts available and is not material. The agreement governing the Securitization Program contains restrictions and covenants which include limitations on the making of certain restricted payments, creation of certain liens, and certain corporate acts such as mergers, consolidations and sale of substantially all assets. The Securitization Program has a minimum borrowing requirement equal to the lesser of either 80% of our borrowing capacity or 100% of our borrowing base, which is a subset of the trade receivables sold under this agreement. As of March 30, 2019, our minimum borrowing requirement was $104,000.
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Product Warranties |
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Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties | Product Warranties In the ordinary course of business, we warrant our products against defects in design, materials and workmanship typically over periods ranging from twelve to sixty months. We determine warranty reserves needed by product line based on historical experience and current facts and circumstances. Activity in the warranty accrual is summarized as follows:
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Derivative Financial Instruments |
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Derivative Instruments and Hedges, Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments We principally use derivative financial instruments to manage interest rate risk associated with long-term debt and foreign exchange risk related to foreign operations and foreign currency transactions. We enter into derivative financial instruments with a number of major financial institutions to minimize counterparty credit risk. Derivatives designated as hedging instruments Interest rate swaps are used to adjust the proportion of total debt that is subject to variable and fixed interest rates. The interest rate swaps are designated as hedges of the amount of future cash flows related to interest payments on variable-rate debt that, in combination with the interest payments on the debt, convert a portion of the variable-rate debt to fixed-rate debt. At March 30, 2019, we had interest rate swaps with notional amounts totaling $105,000. The interest rate swaps effectively convert this amount of variable-rate debt to fixed-rate debt at 2.99%, including the applicable margin of 1.63% as of March 30, 2019. The interest will revert back to variable rates based on LIBOR plus the applicable margin upon the maturity of the interest rate swaps. These interest rate swaps mature at various times through June 23, 2020. We use foreign currency contracts as cash flow hedges to effectively fix the exchange rates on future payments and revenue. To mitigate exposure in movements between various currencies, including the Philippine peso, the British pound and the Czech koruna, we had outstanding foreign currency forwards with notional amounts of $69,048 at March 30, 2019. These contracts mature at various times through February 26, 2021. We use forward currency contracts to hedge our net investment in certain foreign subsidiaries. As of March 30, 2019, we had no outstanding net investment hedges. These interest rate swaps, foreign currency contracts and net investment hedges are recorded in the Consolidated Condensed Balance Sheets at fair value and the related gains or losses are deferred in Shareholders’ Equity as a component of Accumulated Other Comprehensive Income (Loss) (AOCIL). These deferred gains and losses are reclassified into the Consolidated Condensed Statements of Earnings, as necessary, during the periods in which the related payments or receipts affect earnings. However, to the extent the interest rate swaps and foreign currency contracts are not perfectly effective in offsetting the change in the value of the payments and revenue being hedged, the ineffective portion of these contracts is recognized in earnings immediately. Ineffectiveness was not material in the first six months of 2019 or 2018. Derivatives not designated as hedging instruments We also have foreign currency exposure on balances, primarily intercompany, that are denominated in foreign currencies and are adjusted to current values using period-end exchange rates. The resulting gains or losses are recorded in the Consolidated Condensed Statements of Earnings. To minimize foreign currency exposure, we had foreign currency contracts with notional amounts of $78,359 at March 30, 2019. The foreign currency contracts are recorded in the Consolidated Condensed Balance Sheets at fair value and resulting gains or losses are recorded in the Consolidated Condensed Statements of Earnings. We recorded the following gains or losses on foreign currency contracts which are included in other income or expense and generally offset the gains or losses from the foreign currency adjustments on the intercompany balances that are also included in other income or expense:
Summary of derivatives The fair value and classification of derivatives is summarized as follows:
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Fair Value |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate fair value. The definition of the fair value hierarchy is as follows: Level 1 – Quoted prices in active markets for identical assets and liabilities. Level 2 – Observable inputs other than quoted prices in active markets for similar assets and liabilities. Level 3 – Inputs for which significant valuation assumptions are unobservable in a market and therefore value is based on the best available data, some of which is internally developed and considers risk premiums that a market participant would require. Our derivatives are valued using various pricing models or discounted cash flow analyses that incorporate observable market data, such as interest rate yield curves and currency rates, and are classified as Level 2 within the valuation hierarchy. The following table presents the fair values and classification of our financial assets and liabilities measured on a recurring basis, all of which are classified as Level 2.
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Employee Benefit Plans |
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Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans Net periodic benefit costs for our defined benefit pension plans are as follows:
Pension expense for our defined contribution plans consists of:
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Restructuring |
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Restructuring | Restructuring In the second quarter of 2018, we initiated restructuring actions in conjunction with exiting the wind pitch controls business within our Industrial Systems segment. These actions have resulted in workforce reductions, principally in Germany and China. The restructuring charge in 2018 consisted of $12,198 of non-cash inventory reserves, $12,316 of non-cash charges for the impairment of intangible assets, $2,162 of non-cash charges, primarily for the impairment of other long-lived assets, $7,969 for severance, $3,130 for facility closure and $3,217 for other costs. Restructuring activity for severance and other costs is as follows:
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Income Taxes |
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Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three and six months ended March 30, 2019 were 23.8% and 24.1%, respectively. The effective tax rate for this period is higher than would be expected by applying the U.S. federal statutory tax rate of 21% to earnings before income taxes primarily due to tax on earnings generated outside of the U.S. The effective tax rate for the three and six months ended March 31, 2018 were 45.6% and 79.2%, respectively. The effective tax rate for this period was significantly impacted by the enactment of the Tax Cuts and Jobs Act (the "Act") of 2017. The Act was enacted on December 22, 2017. It reduced the U.S. federal corporate tax rate from 35% to 21%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign sourced earnings. In 2018, we recorded provisional amounts by applying the guidance in SAB 118, as we had not yet completed the accounting for the tax effects of enactment of the Act. For the year ended September 29, 2018, we recorded tax expense related to the Act of $30,795 for the one-time transition tax on undistributed foreign earnings deemed to be repatriated and a tax charge of $10,383 as an additional provision for taxes on undistributed earnings not considered to be permanently reinvested. These charges were partially offset by a $10,946 benefit due to the remeasurement of deferred tax assets and liabilities arising from the lower U.S. corporate tax rate. Determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis difference in these entities is not practicable. Upon further analysis of the Act and notices and regulations issued and proposed by the U.S. Department of the Treasury and the Internal Revenue Service, we finalized our calculations of the transition tax liability with no further amounts recorded in the six months ended March 30, 2019. Some of the provisions of the Act become effective for us in 2019, which include a Global Intangible Low-Taxed Income (GILTI) provision that imposes U.S. tax on certain foreign subsidiary income in the year it is earned. Our accounting policy is to treat tax on the GILTI as a current period cost included in income tax expense in the year incurred.
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Accumulated Other Comprehensive Income (Loss) |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in AOCIL, net of tax, by component for the six months ended March 30, 2019 are as follows:
The amounts reclassified from AOCIL into earnings are as follows:
(1) The reclassifications are included in the computation of non-service pension expense, which is included in Other on the Consolidated Condensed Statement of Earnings. The amounts deferred in AOCIL are as follows:
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Stock Employee Compensation Trust and Supplemental Retirement Plan Trust |
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Mar. 30, 2019 | |
Share-based Compensation [Abstract] | |
Stock Employee Compensation Trust and Supplemental Retirement Plan Trust | Stock Employee Compensation Trust and Supplemental Retirement Plan TrustThe Stock Employee Compensation Trust (SECT) assists in administering and provides funding for equity-based compensation plans and benefit programs, including the Moog Inc. Retirement Savings Plan (RSP) and the Employee Stock Purchase Plan (ESPP). The Supplemental Retirement Plan (SERP) Trust provides funding for benefits under the SERP provisions of the Moog Inc. Plan to Equalize Retirement Income and Supplemental Retirement Income. Both the SECT and the SERP Trust hold Moog shares as investments. The shares in the SECT and SERP Trust are not considered outstanding for purposes of calculating earnings per share. However, in accordance with the trust agreements governing the SECT and SERP Trust, the trustees vote all shares held by the SECT and SERP Trust on all matters submitted to shareholders. |
Earnings Per Share and Dividends |
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Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share and Dividends | Basic and diluted weighted-average shares outstanding are as follows:
For the three and six months ended March 30, 2019, there were 29,839 and 38,132 common shares from equity-based awards, respectively, excluded from the calculation of diluted earnings per share as they would be anti-dilutive. For the three and six months ended March 31, 2018, there were 21,887 and 17,432 common shares from equity-based awards, respectively, excluded from the calculation of diluted earnings per share as they would be anti-dilutive. We declared and paid cash dividends of $0.25 per share on our Class A and Class B common stock in the first and second quarters of 2019. We declared a cash dividend of $0.25 per share on our Class A and Class B common stock in the second quarter of 2018.
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Segment Information |
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Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Below are net sales by segment for the three and six months ended March 30, 2019 and March 31, 2018 disaggregated by type of good or service and market or type of customer.
Sales by customer are as follows:
Below is operating profit by segment for the three and six months ended March 30, 2019 and March 31, 2018 and a reconciliation of segment operating profit to earnings before income taxes. Operating profit is net sales less cost of sales and other operating expenses, excluding interest expense, equity-based compensation expense and other corporate expenses. Cost of sales and other operating expenses are directly identifiable to the respective segment or allocated on the basis of sales, number of employees or profit.
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Related Party Transactions |
6 Months Ended |
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Mar. 30, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related Party TransactionsOn November 20, 2017, John Scannell was elected to the Board of Directors of M&T Bank Corporation and M&T Bank. We currently engage with M&T Bank in the ordinary course of business for various financing activities, all of which were initiated prior to the election of Mr. Scannell to the Board. M&T Bank provides credit extension for routine purchases, which for the three and six months ended March 30, 2019 totaled $6,726 and $11,078, respectively. Credit extension for the three and six months ended March 31, 2018 totaled $5,759 and $11,218, respectively. At March 30, 2019, we held a $15,000 interest rate swap with M&T Bank and outstanding leases with a total original cost of $27,678. M&T Bank also maintains an interest of approximately 12% in our U.S. revolving credit facility. Further details of the U.S. revolving credit facility can be found in Note 7, Indebtedness. |
Commitments and Contingencies |
6 Months Ended |
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Mar. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, we are involved in legal proceedings. We are not a party to any pending legal proceedings which management believes will result in a material adverse effect on our financial condition, results of operations or cash flows. We are engaged in administrative proceedings with governmental agencies and legal proceedings with governmental agencies and other third parties in the normal course of our business, including litigation under Superfund laws, regarding environmental matters. We believe that adequate reserves have been established for our share of the estimated cost for all currently pending environmental administrative or legal proceedings and do not expect that these environmental matters will have a material adverse effect on our financial condition, results of operations or cash flows. In the ordinary course of business we could be subject to ongoing claims or disputes from our customers, the ultimate settlement of which could have a material adverse impact on our consolidated results of operations. While the receivables and any loss provisions recorded to date reflect management's best estimate of the projected costs to complete a given project, there may still be significant effort required to complete the ultimate deliverable. Future variability in internal cost as well as future profitability is dependent upon a number of factors including deliveries, performance and government budgetary pressures. The inability to achieve a satisfactory contractual solution, further unplanned delays, additional developmental cost growth or variations in any of the estimates used in the existing contract analysis could lead to further loss provisions. Additional losses could have a material adverse impact on our financial condition, results of operations or cash flows in the period in which the loss may be recognized. We are contingently liable for $35,285 of standby letters of credit issued to third parties on our behalf at March 30, 2019.
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Subsequent Event |
6 Months Ended |
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Mar. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventOn April 25, 2019, the Board of Directors declared a $0.25 per share quarterly dividend payable on issued and outstanding shares of our Class A and Class B common stock on June 3, 2019 to shareholders of record at the close of business on May 15, 2019. |
Basis Of Presentation (Policies) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Accounting | The accompanying unaudited consolidated condensed financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting of normal recurring adjustments considered necessary for the fair presentation of results for the interim period have been included. The results of operations for the three and six months ended March 30, 2019 are not necessarily indicative of the results expected for the full year. The accompanying unaudited consolidated condensed financial statements should be read in conjunction with the financial statements and notes thereto included in our Form 10-K for the fiscal year ended September 29, 2018. All references to years in these financial statements are to fiscal years. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification | Certain prior year amounts have been reclassified to conform to current year's presentation. Management does not consider the amounts reclassified to be material. |
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Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted
Recent Accounting Pronouncements Not Yet Adopted
On September 30, 2018, we adopted ASC 606: Revenue from Contracts with Customers and the related amendments (ASC 606), using the modified retrospective method, as described above. ASC 606 was applied to contracts that were not completed as of September 29, 2018. Prior periods have not been restated and continue to be reported under the accounting standard in effect for those periods. Previously, we recognized revenue under ASC 605: Revenue Recognition (ASC 605). The cumulative effect from the adoption of ASC 606 as of September 30, 2018 was as follows:
The tables below represent the impact of the adoption of ASC 606 on the Consolidated Condensed Statement of Earnings for the three and six months ended March 30, 2019.
The table below represents the impact of the adoption of ASC 606 on the Consolidated Condensed Balance Sheet as of March 30, 2019.
The tables below represent the impact of the adoption of ASU 2017-07 on the Consolidated Condensed Statement of Earnings for the three and six months ended March 31, 2018.
The tables below represent the impact of the adoption of ASU 2017-07 on operating profit and deductions from operating profit for the three and six months ended March 31, 2018.
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Shareholders' Equity | In accordance with SEC Final Rule Release No. 33-10532, we have adopted Rule 3-04 of Regulation S-X during the first quarter of 2019 and have disclosed changes in the Consolidated Condensed Statement of Shareholders' Equity and the amount of dividends per share for each class of shares for all periods presented. Refer to Note 16, Earnings per Share and Dividends. |
Basis Of Presentation Basis Of Presentation (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The tables below represent the impact of the adoption of ASU 2017-07 on operating profit and deductions from operating profit for the three and six months ended March 31, 2018.
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Schedule of Prospective Adoption of New Accounting Pronouncements | The tables below represent the impact of the adoption of ASC 606 on the Consolidated Condensed Statement of Earnings for the three and six months ended March 30, 2019.
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Revenue from Contracts with Customers (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract Assets and Liabilities | Total contract assets and contract liabilities as of March 30, 2019 are as follows:
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Receivables (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | Receivables consist of:
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Inventories (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, net of reserves | Inventories, net of reserves, consist of:
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Goodwill and Intangible Assets (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carry Amount of Goodwill | The changes in the carrying amount of goodwill are as follows:
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Components of Intangible Assets | The components of intangible assets are as follows:
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Indebtedness (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Long-term debt | Long-term debt consists of:
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Product Warranties (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Activity in Warranty Accrual | Activity in the warranty accrual is summarized as follows:
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Derivative Financial Instruments (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedges, Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains And Losses On Foreign Currency Forwards Included In Other Income Or Expense | We recorded the following gains or losses on foreign currency contracts which are included in other income or expense and generally offset the gains or losses from the foreign currency adjustments on the intercompany balances that are also included in other income or expense:
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Fair Value And Classification Of Derivatives On The Consolidated Balance Sheets | The fair value and classification of derivatives is summarized as follows:
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Fair Value (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values And Classification Of Financial Assets And Liabilities Measured On A Recurring Basis | The following table presents the fair values and classification of our financial assets and liabilities measured on a recurring basis, all of which are classified as Level 2.
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Employee Benefit Plans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Benefit Costs | Net periodic benefit costs for our defined benefit pension plans are as follows:
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Defined Contribution Plan Disclosures | Pension expense for our defined contribution plans consists of:
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Restructuring (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve Activity | Restructuring activity for severance and other costs is as follows:
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Accumulated Other Comprehensive Income (Loss) (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of AOCIL | The changes in AOCIL, net of tax, by component for the six months ended March 30, 2019 are as follows:
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Reclassification from AOCIL | The amounts reclassified from AOCIL into earnings are as follows:
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Activity and Classification of Derivative Deferral in AOCIL | The amounts deferred in AOCIL are as follows:
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Earnings Per Share and Dividends (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic And Diluted Weighted-Average Shares Outstanding | Basic and diluted weighted-average shares outstanding are as follows:
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Segment Information (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales And Operating Profit By Segment And Reconciliation Of Segment Operating Profit To Earnings Before Income Taxes | Sales by customer are as follows:
|
Basis Of Presentation Basis of Presentation (Cumulative effect from adoption of ASC 606) (Details) - USD ($) $ in Thousands |
Mar. 30, 2019 |
Sep. 30, 2018 |
Sep. 29, 2018 |
---|---|---|---|
New Accounting Pronouncements or Change in Accounting Principle | |||
Receivables | $ 898,801 | $ 883,032 | $ 793,911 |
Inventories | 489,067 | 446,531 | 512,522 |
Deferred income taxes | 15,671 | 17,462 | 17,328 |
Contract advances | 169,836 | 152,608 | 151,687 |
Contract and contract-related loss reserves | 49,383 | 44,688 | 42,258 |
Other accrued liabilities | 117,094 | 122,083 | 120,944 |
Deferred income taxes | 53,272 | 50,328 | 46,477 |
Retained earnings | $ 2,057,435 | 1,988,437 | $ 1,973,514 |
ASC 606 | |||
New Accounting Pronouncements or Change in Accounting Principle | |||
Receivables | 89,121 | ||
Inventories | (65,991) | ||
Deferred income taxes | 134 | ||
Contract advances | 921 | ||
Contract and contract-related loss reserves | 2,430 | ||
Other accrued liabilities | 1,139 | ||
Deferred income taxes | 3,851 | ||
Retained earnings | $ 14,923 |
Basis Of Presentation Basis of Presentation (Impact of adoption of ASC 606 on Consolidated Condensed Statement of Earnings) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Item Effected | ||||
Net sales | $ 718,811 | $ 689,049 | $ 1,398,487 | $ 1,316,584 |
Cost of sales | 521,410 | 488,788 | 1,001,584 | 931,938 |
Gross Profit | 197,401 | 192,932 | 396,903 | 377,317 |
Earnings before income taxes | 55,618 | 25,669 | 113,802 | 73,503 |
Income taxes | 13,259 | 11,704 | 27,374 | 58,239 |
Net earnings | 42,359 | $ 13,965 | 86,428 | $ 15,264 |
ASC 605 | ||||
Item Effected | ||||
Net sales | 704,600 | 1,381,934 | ||
Cost of sales | 511,889 | 989,768 | ||
Gross Profit | 192,711 | 392,166 | ||
Earnings before income taxes | 50,928 | 109,065 | ||
Income taxes | 12,025 | 26,128 | ||
Net earnings | 38,903 | 82,937 | ||
Adjustment for ASC 606 | ||||
Item Effected | ||||
Net sales | 14,211 | 16,553 | ||
Cost of sales | 9,521 | 11,816 | ||
Gross Profit | 4,690 | 4,737 | ||
Earnings before income taxes | 4,690 | 4,737 | ||
Income taxes | 1,234 | 1,246 | ||
Net earnings | 3,456 | 3,491 | ||
ASC 606 | ||||
Item Effected | ||||
Net sales | 718,811 | 1,398,487 | ||
Cost of sales | 521,410 | 1,001,584 | ||
Gross Profit | 197,401 | 396,903 | ||
Earnings before income taxes | 55,618 | 113,802 | ||
Income taxes | 13,259 | 27,374 | ||
Net earnings | $ 42,359 | $ 86,428 |
Basis Of Presentation Basis of Presentation (Impact of adoption of ASC 2017-07 on Consolidated Condensed Statement of Earnings) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
New Accounting Pronouncements or Change in Accounting Principle | ||||
Cost of sales | $ 521,410 | $ 488,788 | $ 1,001,584 | $ 931,938 |
Gross Profit | 197,401 | 192,932 | 396,903 | 377,317 |
Research and development | 31,344 | 33,995 | 63,220 | 66,329 |
Selling, general and administrative | 99,860 | 98,665 | 196,186 | 193,284 |
Other | $ 640 | 1,456 | $ 4,074 | 2,408 |
Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Cost of sales | 489,071 | 932,497 | ||
Gross Profit | 192,649 | 376,758 | ||
Research and development | 34,085 | 66,505 | ||
Selling, general and administrative | 99,999 | 195,949 | ||
Other | (251) | (992) | ||
ASC 2017-07 | Restatement Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Cost of sales | (283) | (559) | ||
Gross Profit | 283 | 559 | ||
Research and development | (90) | (176) | ||
Selling, general and administrative | (1,334) | (2,665) | ||
Other | $ 1,707 | $ 3,400 |
Revenue from Contracts with Customers (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands |
Mar. 30, 2019 |
Sep. 30, 2018 |
Sep. 29, 2018 |
---|---|---|---|
Revenue from Contract with Customer [Abstract] | |||
Unbilled receivables | $ 430,901 | $ 405,610 | $ 316,489 |
Contract advances | 169,836 | 152,608 | $ 151,687 |
Net contract assets | $ 261,065 | $ 253,002 |
Receivables (Schedule of Receivables) (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 30, 2019 |
Sep. 29, 2018 |
Sep. 30, 2018 |
|
Receivables [Abstract] | |||
Accounts receivable | $ 240,180 | $ 295,180 | |
Long-term contract receivables - Billed | 210,464 | 156,414 | |
Long-term contract receivables - Unbilled | 430,901 | 316,489 | $ 405,610 |
Total long-term contract receivables | 641,365 | 472,903 | |
Other | 21,900 | 30,787 | |
Less allowance for doubtful accounts | (4,644) | (4,959) | |
Receivables | $ 898,801 | $ 793,911 | $ 883,032 |
Inventories (Schedule of Inventory) (Details) - USD ($) $ in Thousands |
Mar. 30, 2019 |
Sep. 30, 2018 |
Sep. 29, 2018 |
---|---|---|---|
Inventory Disclosure [Abstract] | |||
Raw materials and purchased parts | $ 173,916 | $ 197,071 | |
Work in progress | 244,948 | 240,885 | |
Finished goods | 70,203 | 74,566 | |
Inventories | $ 489,067 | $ 446,531 | $ 512,522 |
Goodwill And Intangible Assets (Changes In Carrying Amount Of Goodwill) (Details) $ in Thousands |
6 Months Ended |
---|---|
Mar. 30, 2019
USD ($)
| |
Goodwill | |
Beginning balance | $ 797,217 |
Divestitures | (1,237) |
Foreign currency translation | (4,582) |
Ending balance | 791,398 |
Aircraft Controls | |
Goodwill | |
Beginning balance | 179,907 |
Divestitures | 0 |
Foreign currency translation | (32) |
Ending balance | 179,875 |
Space And Defense Controls | |
Goodwill | |
Beginning balance | 261,732 |
Divestitures | 0 |
Foreign currency translation | (1) |
Ending balance | 261,731 |
Industrial Systems | |
Goodwill | |
Beginning balance | 355,578 |
Divestitures | (1,237) |
Foreign currency translation | (4,549) |
Ending balance | $ 349,792 |
Goodwill And Intangible Assets (Goodwill Narrative) (Details) $ in Thousands |
Mar. 30, 2019
USD ($)
|
---|---|
Space And Defense Controls | |
Goodwill [Line Items] | |
Goodwill, accumulated impairment loss | $ 4,800 |
Industrial Systems | |
Goodwill [Line Items] | |
Goodwill, accumulated impairment loss | $ 38,200 |
Goodwill And Intangible Assets (Intangibles Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of acquired intangible assets | $ 3,402 | $ 4,671 | $ 7,085 | $ 9,271 |
Future amortization expenses, 2019 | 13,300 | 13,300 | ||
Future amortization expenses, 2020 | 11,600 | 11,600 | ||
Future amortization expenses, 2021 | 9,700 | 9,700 | ||
Future amortization expenses, 2022 | 8,100 | 8,100 | ||
Future amortization expenses, 2023 | $ 7,300 | $ 7,300 |
Indebtedness (Components of Long-term debt) (Details) - USD ($) $ in Thousands |
Mar. 30, 2019 |
Sep. 29, 2018 |
---|---|---|
Line of Credit Facility | ||
Senior notes | $ 300,000 | $ 300,000 |
Securitization program | 130,000 | 130,000 |
Obligations under capital leases | 870 | 918 |
Senior debt | 826,870 | 860,918 |
Less deferred debt issuance cost | (863) | (1,717) |
Less current installments | (315) | (365) |
Long-term debt | 825,692 | 858,836 |
U.S. revolving credit facility | ||
Line of Credit Facility | ||
Revolving credit facility | 392,000 | 430,000 |
SECT revolving credit facility | ||
Line of Credit Facility | ||
Revolving credit facility | $ 4,000 | $ 0 |
Product Warranties (Narrative) (Details) |
6 Months Ended |
---|---|
Mar. 30, 2019 | |
Minimum | |
Product Warranty Liability | |
Warranty period - months | twelve |
Maximum | |
Product Warranty Liability | |
Warranty period - months | sixty |
Product Warranties (Summary Of Activity In Warranty Accrual) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Warranty accrual at beginning of period | $ 24,256 | $ 27,748 | $ 25,537 | $ 25,848 |
Warranties issued during current period | 4,055 | 3,280 | 6,025 | 8,037 |
Adjustments to pre-existing warranties | (307) | (175) | (398) | (245) |
Reductions for settling warranties | (3,892) | (3,007) | (6,869) | (5,922) |
Foreign currency translation | 105 | 409 | (78) | 537 |
Warranty accrual at end of period | $ 24,217 | $ 28,255 | $ 24,217 | $ 28,255 |
Derivative Financial Instruments (Narrative) (Details) $ in Thousands |
Mar. 30, 2019
USD ($)
|
---|---|
Designated as Hedging Instrument | Interest Rate Swaps | |
Derivative | |
Notional Amount, Derivative | $ 105,000 |
Conversion Rate Of Interest Rate Swaps From Variable to Fixed | 2.99% |
Basis Spread on Variable Rate Derivative | 1.63% |
Designated as Hedging Instrument | Foreign Currency Contracts | |
Derivative | |
Notional Amount, Derivative | $ 69,048 |
Designated as Hedging Instrument | Net Investment Hedge | |
Derivative | |
Notional Amount, Derivative | 0 |
Not Designated as Hedging Instrument | Foreign Currency Contracts | |
Derivative | |
Notional Amount, Derivative | $ 78,359 |
Derivative Financial Instruments (Gains And Losses On Foreign Currency Forwards Included In Other Income Or Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Other Income (Expense) | ||||
Derivative | ||||
Net gain (loss) | $ 2,419 | $ (2,381) | $ 769 | $ (3,009) |
Fair Value Fair Value (Narrative) (Details) $ in Thousands |
Mar. 30, 2019
USD ($)
|
---|---|
Fair Value Disclosures [Abstract] | |
Fair value of long-term debt | $ 826,120 |
Carrying value of long-term debt | $ 826,870 |
Employee Benefit Plans (Net Periodic Benefit Costs) (Details) - Defined Benefit Pension Plans - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
U.S. Plans | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | $ 5,251 | $ 5,633 | $ 10,502 | $ 11,267 |
Interest cost | 9,231 | 8,073 | 18,462 | 16,146 |
Expected return on plan assets | (11,771) | (13,575) | (23,542) | (27,151) |
Amortization of prior service cost (credit) | 47 | 47 | 93 | 94 |
Amortization of actuarial loss | 5,466 | 6,902 | 10,932 | 13,804 |
Pension expense for defined benefit plans | 8,224 | 7,080 | 16,447 | 14,160 |
Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 1,248 | 1,519 | 2,494 | 2,989 |
Interest cost | 1,101 | 1,092 | 2,202 | 2,147 |
Expected return on plan assets | (1,303) | (1,290) | (2,601) | (2,533) |
Amortization of prior service cost (credit) | (4) | (15) | (9) | (29) |
Amortization of actuarial loss | 638 | 648 | 1,278 | 1,272 |
Pension expense for defined benefit plans | $ 1,680 | $ 1,954 | $ 3,364 | $ 3,846 |
Employee Benefit Plans (Defined Contribution Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Defined Contribution Pension Plans | ||||
Defined Contribution Plan Disclosure | ||||
Pension expense for defined contribution plans | $ 6,053 | $ 5,489 | $ 11,863 | $ 10,678 |
U.S. Plans | ||||
Defined Contribution Plan Disclosure | ||||
Pension expense for defined contribution plans | 4,713 | 4,136 | 9,327 | 8,108 |
Non-U.S. Plans | ||||
Defined Contribution Plan Disclosure | ||||
Pension expense for defined contribution plans | $ 1,340 | $ 1,353 | $ 2,536 | $ 2,570 |
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
---|---|---|---|---|---|---|---|
Dec. 22, 2017 |
Oct. 01, 2017 |
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 30, 2019 |
Mar. 31, 2018 |
Sep. 29, 2018 |
|
Income Tax Disclosure [Abstract] | |||||||
Effective income tax rate | 23.80% | 45.60% | 24.10% | 79.20% | |||
U.S. federal corporate tax rate | 21.00% | 35.00% | |||||
Transition Tax on Undistributed Foreign Earnings Deemed To Be Repatriated | $ 30,795 | ||||||
Withholding Taxes on Undistributed Foreign Earnings Deemed To Be Repatriated | 10,383 | ||||||
Income tax benefit due to remeasurement of deferred tax assets and liabilities | $ 10,946 | ||||||
Tax Cuts and Jobs Act, Final Calculation, Additional Transition Tax Liability | $ 0 |
Accumulated Other Comprehensive Income (Loss) (Activity and Classification of Derivative Deferral in AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Derivative Instruments, Gain (Loss) | ||||
Net deferral in AOCIL of derivatives (effective portion) | $ 43 | $ (1,025) | $ 707 | $ 420 |
Net gain (loss) | 43 | (1,025) | 707 | 420 |
Tax effect | (8) | 256 | (178) | (284) |
Net deferral in AOCIL of derivatives | 35 | (769) | 529 | 136 |
Foreign Currency Contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Net deferral in AOCIL of derivatives (effective portion) | 150 | (1,655) | 1,049 | (827) |
Net gain (loss) | 150 | (1,655) | 1,049 | (827) |
Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Net deferral in AOCIL of derivatives (effective portion) | (107) | 630 | (342) | 1,247 |
Net gain (loss) | $ (107) | $ 630 | $ (342) | $ 1,247 |
Earnings Per Share and Dividends (Basic And Diluted Weighted-Average Shares Outstanding) (Details) - shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Earnings Per Share [Abstract] | ||||
Basic weighted-average shares outstanding | 34,886,541 | 35,770,089 | 34,850,898 | 35,771,247 |
Dilutive effect of equity-based awards | 354,572 | 409,769 | 332,573 | 419,208 |
Diluted weighted-average shares outstanding | 35,241,113 | 36,179,858 | 35,183,471 | 36,190,455 |
Earnings Per Share and Dividends (Narrative) (Details) - $ / shares |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 30, 2019 |
Dec. 29, 2018 |
Mar. 31, 2018 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Earnings Per Share [Abstract] | |||||
Antidilutive securities excluded from calculation of diluted earnings per share | 29,839 | 21,887 | 38,132 | 17,432 | |
Cash dividends paid per share | $ 0.25 | $ 0.25 | |||
Dividends declared per share | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.50 | $ 0.25 |
Segment Information (Operating Profit By Segment And Reconciliation Of Segment Operating Profit To Earnings Before Income Taxes) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Segment Reporting Information | ||||
Operating profit | $ 77,854 | $ 45,407 | $ 157,231 | $ 112,834 |
Deductions from operating profit: | ||||
Interest expense | 9,939 | 9,089 | 19,621 | 17,735 |
Equity-based compensation expense | 1,683 | 1,499 | 3,691 | 3,500 |
Non-service pension expense | 3,187 | 1,707 | 6,380 | 3,400 |
Corporate and other expenses, net | 7,427 | 7,443 | 13,737 | 14,696 |
Earnings before income taxes | 55,618 | 25,669 | 113,802 | 73,503 |
Aircraft Controls | ||||
Segment Reporting Information | ||||
Operating profit | 27,122 | 33,793 | 60,321 | 64,836 |
Space And Defense Controls | ||||
Segment Reporting Information | ||||
Operating profit | 20,504 | 17,042 | 38,977 | 33,515 |
Industrial Systems | ||||
Segment Reporting Information | ||||
Operating profit | $ 30,228 | $ (5,428) | $ 57,933 | $ 14,483 |
Related Party Transactions (Narrative) (Details) - M&T Bank - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 30, 2019 |
Mar. 31, 2018 |
Mar. 30, 2019 |
Mar. 31, 2018 |
|
Related Party Transaction | ||||
Related Party US Revolving Credit Facility Interest Percentage | 12.00% | 12.00% | ||
Credit Extension on Routine Purchases | ||||
Related Party Transaction | ||||
Related Party Transaction, Amounts of Transaction | $ 6,726 | $ 5,759 | $ 11,078 | $ 11,218 |
Interest Rate Swaps | ||||
Related Party Transaction | ||||
Related Party Transaction, Amounts of Transaction | 15,000 | |||
Lease Agreements | ||||
Related Party Transaction | ||||
Related Party Transaction, Amounts of Transaction | $ 27,678 |
Commitments and Contingencies (Narrative) (Details) $ in Thousands |
Mar. 30, 2019
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Standby letters of credit | $ 35,285 |
Subsequent Events (Narrative) (Details) |
Apr. 25, 2019
$ / shares
|
---|---|
Subsequent Event | |
Subsequent Event | |
Dividend payable declared | $ 0.25 |
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