Basis Of Presentation (Policies)

6 Months Ended

Mar. 30, 2019

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.

Recent Accounting Pronouncements

Recent Accounting Pronouncements Adopted

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

    

Recent Accounting Pronouncements Not Yet Adopted

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

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. 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:

	September 29, 2018		Adjustments due to adoption of ASC 606			September 30, 2018
ASSETS
Receivables	$	793,911	$	89,121		$	883,032
Inventories	512,522		(65,991		)	446,531
Deferred income taxes	17,328		134			17,462
LIABILITIES AND SHAREHOLDERS’ EQUITY
Contract advances	$	151,687	$	921		$	152,608
Contract and contract-related loss reserves	42,258		2,430			44,688
Other accrued liabilities	120,944		1,139			122,083
Deferred income taxes	46,477		3,851			50,328
Retained earnings	1,973,514		14,923			1,988,437

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.

	Three Months Ended
	Under ASC 605		Effect of ASC 606		As Reported Under ASC 606
Net sales	$	704,600	$	14,211	$	718,811
Cost of sales	511,889		9,521		521,410
Gross profit	192,711		4,690		197,401
Earnings before income taxes	50,928		4,690		55,618
Income taxes	12,025		1,234		13,259
Net earnings	$	38,903	$	3,456	$	42,359

	Six Months Ended
	Under ASC 605		Effect of ASC 606		As Reported Under ASC 606
Net sales	$	1,381,934	$	16,553	$	1,398,487
Cost of sales	989,768		11,816		1,001,584
Gross profit	392,166		4,737		396,903
Earnings before income taxes	109,065		4,737		113,802
Income taxes	26,128		1,246		27,374
Net earnings	$	82,937	$	3,491	$	86,428

The table below represents the impact of the adoption of ASC 606 on the Consolidated Condensed Balance Sheet as of March 30, 2019.

	Under ASC 605			Effect of ASC 606			As Reported Under ASC 606
ASSETS
Current assets
Receivables	$	792,124		$	106,677		$	898,801
Inventories	568,287			(79,220		)	489,067
Total current assets	1,519,712			27,457			1,547,169
Deferred income taxes	15,776			(105		)	15,671
Total assets	3,005,605			27,352			3,032,957
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Contract advances	$	169,349		$	487		$	169,836
Contract and contract-related loss reserves	47,223			2,160			49,383
Other accrued liabilities	114,728			2,366			117,094
Total current liabilities	683,079			5,013			688,092
Deferred income taxes	49,658			3,614			53,272
Total liabilities	1,709,888			8,627			1,718,515
Shareholders’ equity
Retained earnings	2,039,021			18,414			2,057,435
Accumulated other comprehensive loss	(370,692		)	311			(370,381		)
Total shareholders’ equity	1,295,717			18,725			1,314,442
Total liabilities and shareholders’ equity	3,005,605			27,352			3,032,957

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.

	Three Months Ended
	As Reported, March 31, 2018			Impact of Adoption			As Adjusted, March 31, 2018
Cost of sales	$	489,071		$	(283	)	$	488,788
Gross profit	192,649			283			192,932
Research and development	34,085			(90		)	33,995
Selling, general and administrative	99,999			(1,334		)	98,665
Other	(251		)	1,707			1,456

	Six Months Ended
	As Reported, March 31, 2018			Impact of Adoption			As Adjusted, March 31, 2018
Cost of sales	$	932,497		$	(559	)	$	931,938
Gross profit	376,758			559			377,317
Research and development	66,505			(176		)	66,329
Selling, general and administrative	195,949			(2,665		)	193,284
Other	(992		)	3,400			2,408

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.

	Three Months Ended
	As Reported, March 31, 2018			Impact of Adoption			As Adjusted, March 31, 2018
Operating profit (loss):
Aircraft Controls	$	33,480		$	313		$	33,793
Space and Defense Controls	16,841			201			17,042
Industrial Systems	(6,050		)	622			(5,428		)
Total operating profit	$	44,271		$	1,136		$	45,407
Deductions from operating profit:
Non-service pension expense	$	—		$	1,707		$	1,707
Corporate and other expenses, net	$	8,014		$	(571	)	$	7,443

	Six Months Ended
	As Reported, March 31, 2018		Impact of Adoption			As Adjusted, March 31, 2018
Operating profit (loss):
Aircraft Controls	$	64,248	$	588		$	64,836
Space and Defense Controls	33,130		385			33,515
Industrial Systems	13,196		1,287			14,483
Total operating profit	$	110,574	$	2,260		$	112,834
Deductions from operating profit:
Non-service pension expense	$	—	$	3,400		$	3,400
Corporate and other expenses, net	$	15,836	$	(1,140	)	$	14,696

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.