Basis Of Presentation

9 Months Ended

Jun. 29, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

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 nine months ended June 29, 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



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 plan to adopt the standard using the modified retrospective method without adjusting prior comparative periods. We expect to record a material right-of-use asset and lease liability on the Consolidated Condensed Balance Sheet. We have identified, and are in the process of implementing, changes to our financial statements and related disclosures, internal controls, financial policies and information technology systems. Upon adoption, we do not anticipate material changes to our Consolidated Condensed Statement of Earnings or Consolidated Condensed Statement of Cash Flows. We have not yet fully quantified the impact 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 an immaterial 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:



	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 loss and contract-related reserves	47,417		2,430			49,847
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 nine months ended June 29, 2019.



	Three Months Ended
	Under ASC 605		Effect of ASC 606			As Reported Under ASC 606
Net sales	$	737,887	$	3,082		$	740,969
Cost of sales	531,952		(2,902		)	529,050
Gross profit	205,935		5,984			211,919
Earnings before income taxes	55,736		5,984			61,720
Income taxes	12,735		1,520			14,255
Net earnings	$	43,001	$	4,464		$	47,465



	Nine Months Ended
	Under ASC 605		Effect of ASC 606		As Reported Under ASC 606
Net sales	$	2,119,821	$	19,635	$	2,139,456
Cost of sales	1,521,720		8,914		1,530,634
Gross profit	598,101		10,721		608,822
Earnings before income taxes	164,801		10,721		175,522
Income taxes	38,863		2,766		41,629
Net earnings	$	125,938	$	7,955	$	133,893

The table below represents the impact of the adoption of ASC 606 on the Consolidated Condensed Balance Sheet as of June 29, 2019.



	Under ASC 605			Effect of ASC 606			As Reported Under ASC 606
ASSETS
Current assets
Receivables	$	813,187		$	109,666		$	922,853
Inventories	592,925			(77,870		)	515,055
Total current assets	1,539,396			31,796			1,571,192
Deferred income taxes	15,783			(47		)	15,736
Total assets	3,034,390			31,749			3,066,139
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Contract advances	$	148,393		$	(716	)	$	147,677
Contract loss and contract-related reserves	55,755			1,801			57,556
Other accrued liabilities	104,656			3,885			108,541
Total current liabilities	670,804			4,970			675,774
Deferred income taxes	53,054			3,610			56,664
Total liabilities	1,701,902			8,580			1,710,482
Shareholders’ equity
Retained earnings	2,073,296			22,878			2,096,174
Accumulated other comprehensive loss	(366,845		)	291			(366,554		)
Total shareholders’ equity	1,332,488			23,169			1,355,657
Total liabilities and shareholders’ equity	3,034,390			31,749			3,066,139

The tables below represent the impact of the adoption of ASU 2017-07: Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, on the Consolidated Condensed Statement of Earnings for the three and nine months ended June 30, 2018.



	Three Months Ended
	As Reported, June 30, 2018		Impact of Adoption			As Adjusted, June 30, 2018
Cost of sales	$	492,234	$	(275	)	$	491,959
Gross profit	197,386		275			197,661
Research and development	31,040		(87		)	30,953
Selling, general and administrative	103,053		(1,331		)	101,722
Other	1,037		1,693			2,730



	Nine Months Ended
	As Reported, June 30, 2018		Impact of Adoption			As Adjusted, June 30, 2018
Cost of sales	$	1,424,731	$	(834	)	$	1,423,897
Gross profit	574,144		834			574,978
Research and development	97,545		(263		)	97,282
Selling, general and administrative	299,002		(3,996		)	295,006
Other	45		5,093			5,138

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 nine months ended June 30, 2018.



	Three Months Ended
	As Reported, June 30, 2018		Impact of Adoption			As Adjusted, June 30, 2018
Operating profit:
Aircraft Controls	$	33,342	$	259		$	33,601
Space and Defense Controls	16,513		176			16,689
Industrial Systems	24,283		689			24,972
Total operating profit	$	74,138	$	1,124		$	75,262
Deductions from operating profit:
Non-service pension expense	$	—	$	1,693		$	1,693
Corporate and other expenses, net	$	9,439	$	(569	)	$	8,870



	Nine Months Ended
	As Reported, June 30, 2018		Impact of Adoption			As Adjusted, June 30, 2018
Operating profit:
Aircraft Controls	$	97,590	$	847		$	98,437
Space and Defense Controls	49,643		561			50,204
Industrial Systems	37,479		1,976			39,455
Total operating profit	$	184,712	$	3,384		$	188,096
Deductions from operating profit:
Non-service pension expense	$	—	$	5,093		$	5,093
Corporate and other expenses, net	$	25,275	$	(1,709	)	$	23,566