☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
Minnesota | 41-0908057 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
14000 Technology Drive Eden Prairie, Minnesota | 55344 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer ☒ | Accelerated filer ☐ |
Non-accelerated filer ☐ | Smaller reporting company ☐ |
(Do not check if smaller reporting company) | |
Emerging growth company ☐ |
June 30, 2018 | September 30, 2017 | |||||||
(Unaudited) | (Note) | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 66,403 | $ | 108,733 | ||||
Accounts receivable, net of allowance for doubtful accounts of $5,439 and $5,371, respectively | 111,894 | 123,994 | ||||||
Unbilled accounts receivable, net | 64,108 | 76,914 | ||||||
Inventories, net | 142,431 | 127,728 | ||||||
Prepaid expenses and other current assets | 27,296 | 19,880 | ||||||
Total current assets | 412,132 | 457,249 | ||||||
Property and equipment, net | 94,341 | 99,930 | ||||||
Goodwill | 369,815 | 369,762 | ||||||
Intangible assets, net | 247,076 | 255,079 | ||||||
Other long-term assets | 3,061 | 4,116 | ||||||
Deferred income taxes | 3,483 | 3,556 | ||||||
Total assets | $ | 1,129,908 | $ | 1,189,692 | ||||
Liabilities and Shareholders' Equity | ||||||||
Current liabilities | ||||||||
Current maturities of long-term debt, net | $ | 48,913 | $ | 39,095 | ||||
Accounts payable | 47,400 | 47,515 | ||||||
Accrued payroll and related costs | 38,971 | 49,434 | ||||||
Advance payments from customers | 78,702 | 76,712 | ||||||
Accrued warranty costs | 5,589 | 6,018 | ||||||
Accrued income taxes | 3,318 | 4,464 | ||||||
Accrued dividends | 5,354 | 5,278 | ||||||
Other accrued liabilities | 18,193 | 18,873 | ||||||
Total current liabilities | 246,440 | 247,389 | ||||||
Long-term debt, less current maturities, net | 342,419 | 418,544 | ||||||
Deferred income taxes | 44,721 | 74,981 | ||||||
Non-current accrued income taxes | 10,118 | 5,855 | ||||||
Defined benefit pension plan obligation | 8,583 | 8,588 | ||||||
Other long-term liabilities | 5,077 | 5,558 | ||||||
Total liabilities | 657,358 | 760,915 | ||||||
Shareholders' Equity | ||||||||
Common stock, $0.25 par value; 64,000 shares authorized: 17,844 and 17,760 shares issued and outstanding as of June 30, 2018 and September 30, 2017, respectively | 4,461 | 4,440 | ||||||
Additional paid-in capital | 169,339 | 163,632 | ||||||
Retained earnings | 295,825 | 261,258 | ||||||
Accumulated other comprehensive income (loss) | 2,925 | (553 | ) | |||||
Total shareholders' equity | 472,550 | 428,777 | ||||||
Total liabilities and shareholders' equity | $ | 1,129,908 | $ | 1,189,692 |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||
Revenue | ||||||||||||||||
Product | $ | 168,651 | $ | 167,592 | $ | 503,345 | $ | 514,987 | ||||||||
Service | 26,017 | 26,172 | 76,808 | 71,480 | ||||||||||||
Total revenue | 194,668 | 193,764 | 580,153 | 586,467 | ||||||||||||
Cost of Sales | ||||||||||||||||
Product | 103,182 | 101,629 | 304,809 | 316,012 | ||||||||||||
Service | 15,202 | 16,579 | 46,307 | 42,579 | ||||||||||||
Total cost of sales | 118,384 | 118,208 | 351,116 | 358,591 | ||||||||||||
Gross profit | 76,284 | 75,556 | 229,037 | 227,876 | ||||||||||||
Operating expenses | ||||||||||||||||
Selling and marketing | 32,171 | 31,857 | 94,796 | 92,954 | ||||||||||||
General and administrative | 19,081 | 18,726 | 58,635 | 66,305 | ||||||||||||
Research and development | 8,768 | 8,356 | 26,235 | 26,298 | ||||||||||||
Total operating expenses | 60,020 | 58,939 | 179,666 | 185,557 | ||||||||||||
Income from operations | 16,264 | 16,617 | 49,371 | 42,319 | ||||||||||||
Interest expense, net | (6,249 | ) | (7,711 | ) | (19,761 | ) | (22,409 | ) | ||||||||
Other income (expense), net | 30 | (923 | ) | 81 | (1,086 | ) | ||||||||||
Income before income taxes | 10,045 | 7,983 | 29,691 | 18,824 | ||||||||||||
Income tax provision (benefit) | 1,066 | (2,627 | ) | (20,877 | ) | (690 | ) | |||||||||
Net income | $ | 8,979 | $ | 10,610 | $ | 50,568 | $ | 19,514 | ||||||||
Earnings per share | ||||||||||||||||
Basic | ||||||||||||||||
Earnings per share | $ | 0.47 | $ | 0.56 | $ | 2.64 | $ | 1.03 | ||||||||
Weighted average common shares outstanding | 19,174 | 19,052 | 19,149 | 19,012 | ||||||||||||
Diluted | ||||||||||||||||
Earnings per share | $ | 0.47 | $ | 0.55 | $ | 2.62 | $ | 1.02 | ||||||||
Weighted average common shares outstanding | 19,305 | 19,138 | 19,269 | 19,108 | ||||||||||||
Dividends declared per share | $ | 0.30 | $ | 0.30 | $ | 0.90 | $ | 0.90 |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||
Net income | $ | 8,979 | $ | 10,610 | $ | 50,568 | $ | 19,514 | ||||||||
Other comprehensive income (loss), net of tax | ||||||||||||||||
Foreign currency translation gain (loss) adjustments | (8,056 | ) | 5,811 | (385 | ) | (794 | ) | |||||||||
Derivative instruments | ||||||||||||||||
Unrealized net gain (loss) | 2,089 | (781 | ) | 3,359 | 2,360 | |||||||||||
Net (gain) loss reclassified to earnings | (516 | ) | 153 | 274 | (53 | ) | ||||||||||
Defined benefit pension plan | ||||||||||||||||
Unrealized net gain (loss) | 78 | 42 | (193 | ) | 368 | |||||||||||
Net (gain) loss reclassified to earnings | 92 | 174 | 278 | 511 | ||||||||||||
Currency exchange rate gain (loss) | 413 | (663 | ) | 145 | (156 | ) | ||||||||||
Other comprehensive income (loss) | (5,900 | ) | 4,736 | 3,478 | 2,236 | |||||||||||
Comprehensive income (loss) | $ | 3,079 | $ | 15,346 | $ | 54,046 | $ | 21,750 |
Nine Months Ended | ||||||||
June 30, 2018 | July 1, 2017 | |||||||
Cash Flows from Operating Activities | ||||||||
Net income | $ | 50,568 | $ | 19,514 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities | ||||||||
Stock-based compensation | 5,378 | 3,925 | ||||||
Fair value adjustment to acquired inventory | — | 7,975 | ||||||
Net periodic pension benefit cost | 890 | 1,298 | ||||||
Depreciation and amortization | 25,858 | 25,430 | ||||||
Amortization of debt issuance costs | 3,824 | 2,698 | ||||||
Deferred income taxes | (30,189 | ) | (4,399 | ) | ||||
Bad debt provision (recovery), net | 1,344 | 1,345 | ||||||
Other | (111 | ) | — | |||||
Changes in operating assets and liabilities | ||||||||
Accounts receivable and unbilled accounts receivable | 22,915 | 16,992 | ||||||
Inventories, net | (15,158 | ) | (5,134 | ) | ||||
Prepaid expenses | (784 | ) | (2,071 | ) | ||||
Accounts payable | (283 | ) | (452 | ) | ||||
Accrued payroll and related costs | (10,525 | ) | (5,204 | ) | ||||
Advance payments from customers | 1,987 | 5,689 | ||||||
Accrued warranty costs | (422 | ) | (232 | ) | ||||
Other assets and liabilities | (3,181 | ) | (14,763 | ) | ||||
Net Cash Provided by (Used in) Operating Activities | 52,111 | 52,611 | ||||||
Cash Flows from Investing Activities | ||||||||
Purchases of property and equipment | (9,777 | ) | (13,239 | ) | ||||
Proceeds from sale of property and equipment | 69 | 45 | ||||||
Purchases of business | — | (1,000 | ) | |||||
Other | 823 | — | ||||||
Net Cash Provided by (Used in) Investing Activities | (8,885 | ) | (14,194 | ) | ||||
Cash Flows from Financing Activities | ||||||||
Payment of long-term debt | (63,233 | ) | (3,511 | ) | ||||
Payment of debt issuance costs for long-term debt | — | (186 | ) | |||||
Payment of debt component of tangible equity units | (6,805 | ) | (6,351 | ) | ||||
Payment of debt issuance costs for revolving credit facility | — | (49 | ) | |||||
Receipts under short-term borrowings | 12,750 | — | ||||||
Payments under short-term borrowings | (12,750 | ) | — | |||||
Cash dividends | (15,958 | ) | (14,976 | ) | ||||
Proceeds from exercise of stock options and employee stock purchase plan | 1,701 | 5,580 | ||||||
Payments to purchase and retire common stock | (1,306 | ) | (1,652 | ) | ||||
Net Cash Provided by (Used in) Financing Activities | (85,601 | ) | (21,145 | ) | ||||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | 45 | (432 | ) | |||||
Cash and Cash Equivalents | ||||||||
Increase (decrease) during the period | (42,330 | ) | 16,840 | |||||
Balance, beginning of period | 108,733 | 84,780 | ||||||
Balance, end of period | $ | 66,403 | $ | 101,620 | ||||
Supplemental Disclosures | ||||||||
Cash paid during the period for | ||||||||
Interest | $ | 16,768 | $ | 21,917 | ||||
Income taxes | 7,645 | 10,538 | ||||||
Non-cash investing and financing activities | ||||||||
Property and equipment acquired under capital lease | 138 | 2,452 | ||||||
Dividends declared not yet paid | 5,354 | 5,048 |
June 30, 2018 | September 30, 2017 | |||||||
Components, assemblies and parts | $ | 95,453 | $ | 86,991 | ||||
Customer projects in various stages of completion | 35,133 | 30,225 | ||||||
Finished goods | 11,845 | 10,512 | ||||||
Total inventories, net | $ | 142,431 | $ | 127,728 |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||
Beginning accrued warranty costs | $ | 6,191 | $ | 5,240 | $ | 6,018 | $ | 5,718 | ||||||||
Warranty claims | (1,384 | ) | (1,208 | ) | (3,969 | ) | (3,051 | ) | ||||||||
Warranty provisions | 756 | 972 | 3,483 | 2,466 | ||||||||||||
Adjustments to preexisting warranties | 50 | 470 | 64 | 353 | ||||||||||||
Currency translation | (24 | ) | 21 | (7 | ) | 9 | ||||||||||
Ending accrued warranty costs | $ | 5,589 | $ | 5,495 | $ | 5,589 | $ | 5,495 |
June 30, 2018 | September 30, 2017 | |||||||
Land and improvements | $ | 2,866 | $ | 2,867 | ||||
Buildings and improvements | 60,704 | 60,340 | ||||||
Machinery and equipment | 203,293 | 196,621 | ||||||
Assets held under capital leases | 2,886 | 2,747 | ||||||
Total property and equipment | 269,749 | 262,575 | ||||||
Less: Accumulated depreciation | (175,408 | ) | (162,645 | ) | ||||
Total property and equipment, net | $ | 94,341 | $ | 99,930 |
Test | Sensors | Total | ||||||||||
Balance, September 30, 2017 | $ | 25,109 | $ | 344,653 | $ | 369,762 | ||||||
Currency translation | 69 | (16 | ) | 53 | ||||||||
Balance, June 30, 2018 | $ | 25,178 | $ | 344,637 | $ | 369,815 |
June 30, 2018 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | Weighted Average Useful Life (in Years) | |||||||||||
Software development costs | $ | 28,445 | $ | (15,859 | ) | $ | 12,586 | 6.7 | ||||||
Technology and patents | 46,777 | (11,683 | ) | 35,094 | 14.9 | |||||||||
Trademarks and trade names | 6,962 | (2,916 | ) | 4,046 | 25.6 | |||||||||
Customer lists | 156,960 | (20,814 | ) | 136,146 | 15.8 | |||||||||
Land-use rights | 2,382 | (678 | ) | 1,704 | 26.4 | |||||||||
Trade names | 57,500 | — | 57,500 | Indefinite | ||||||||||
Total intangible assets | $ | 299,026 | $ | (51,950 | ) | $ | 247,076 | 15.0 |
September 30, 2017 | ||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Value | Weighted Average Useful Life (in Years) | |||||||||||
Software development costs | $ | 26,083 | $ | (15,830 | ) | $ | 10,253 | 5.9 | ||||||
Technology and patents | 46,731 | (9,399 | ) | 37,332 | 14.9 | |||||||||
Trademarks and trade names | 6,936 | (2,484 | ) | 4,452 | 25.6 | |||||||||
Customer lists | 157,016 | (13,359 | ) | 143,657 | 15.8 | |||||||||
Land-use rights | 2,377 | (492 | ) | 1,885 | 26.4 | |||||||||
Trade names | 57,500 | — | 57,500 | Indefinite | ||||||||||
Total intangible assets | $ | 296,643 | $ | (41,564 | ) | $ | 255,079 | 15.0 |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||
Amortization expense | $ | 3,453 | $ | 3,656 | $ | 10,388 | $ | 10,984 |
Amortization Expense | |||
Remainder of 2018 | $ | 3,422 | |
2019 | 13,595 | ||
2020 | 13,314 | ||
2021 | 14,213 | ||
2022 | 14,929 | ||
2023 | 14,827 | ||
Thereafter | 115,276 |
• | Level 1: Unadjusted quoted prices which are available in active markets for identical assets or liabilities accessible to us at the measurement date. |
• | Level 2: Inputs other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. |
• | Level 3: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. |
June 30, 2018 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Currency contracts 1 | $ | — | $ | 977 | $ | — | $ | 977 | ||||||||
Interest rate swaps 2 | — | 7,354 | — | 7,354 | ||||||||||||
Total assets | — | 8,331 | — | 8,331 | ||||||||||||
Liabilities | ||||||||||||||||
Currency contracts 1 | — | 114 | — | 114 | ||||||||||||
Total liabilities | $ | — | $ | 114 | $ | — | $ | 114 |
September 30, 2017 | ||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||
Assets | ||||||||||||||||
Currency contracts 1 | $ | — | $ | 150 | $ | — | $ | 150 | ||||||||
Interest rate swaps 2 | — | 3,499 | — | 3,499 | ||||||||||||
Total assets | — | 3,649 | — | 3,649 | ||||||||||||
Liabilities | ||||||||||||||||
Currency contracts 1 | — | 551 | — | 551 | ||||||||||||
Total liabilities | $ | — | $ | 551 | $ | — | $ | 551 |
1 | Based on observable market transactions of spot currency rates and forward currency rates on equivalently-termed instruments. Carrying amounts of the financial assets and liabilities are equal to the fair value. See Note 7 for additional information on derivative financial instruments. |
2 | Based on London Interbank Offered Rate (LIBOR) and spot rates. Carrying amount of the financial asset is equal to the fair value. See Note 7 for additional information on derivative financial instruments. |
June 30, 2018 | ||||||||||||||||||||
Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Debt component of tangible equity units 1 | $ | 9,638 | $ | 11,650 | $ | — | $ | 11,650 | $ | — | ||||||||||
Tranche B term loan 2 | 392,566 | 394,529 | — | 394,529 | — | |||||||||||||||
Total debt | $ | 402,204 | $ | 406,179 | $ | — | $ | 406,179 | $ | — |
September 30, 2017 | ||||||||||||||||||||
Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||||||
Debt component of tangible equity units 1 | $ | 16,443 | $ | 19,844 | $ | — | $ | 19,844 | $ | — | ||||||||||
Tranche B term loan 2 | 455,400 | 457,085 | — | 457,085 | — | |||||||||||||||
Total debt | $ | 471,843 | $ | 476,929 | $ | — | $ | 476,929 | $ | — |
1 | The fair value of the 8.75% tangible equity units (TEUs) is based on the most recently quoted price for the outstanding securities, adjusted for any known significant deviations in value. The estimated fair value of these long-term obligations is not necessarily indicative of the amount that would be realized in a current market exchange. See Note 12 for additional information on the TEUs. |
2 | The fair value of the tranche B term loan is based on the most recently quoted market price for the outstanding debt instrument, adjusted for any known significant deviations in value. The estimated fair value of the debt obligation is not necessarily indicative of the amount that would be realized in a current market exchange. See Note 8 for additional information on debt instruments. |
June 30, 2018 | ||||||||
Prepaid Expenses and Other Current Assets | Other Accrued Liabilities | |||||||
Designated hedge derivatives | ||||||||
Cash flow derivatives | $ | 731 | $ | 114 | ||||
Interest rate swaps | 7,354 | — | ||||||
Total designated hedge derivatives | 8,085 | 114 | ||||||
Undesignated hedge derivatives | ||||||||
Balance sheet derivatives | 246 | — | ||||||
Total hedge derivatives | $ | 8,331 | $ | 114 |
September 30, 2017 | ||||||||
Prepaid Expenses and Other Current Assets | Other Accrued Liabilities | |||||||
Designated hedge derivatives | ||||||||
Cash flow derivatives | $ | 73 | $ | 551 | ||||
Interest rate swaps | 3,499 | — | ||||||
Total designated hedge derivatives | 3,572 | 551 | ||||||
Undesignated hedge derivatives | ||||||||
Balance sheet derivatives | 77 | — | ||||||
Total hedge derivatives | $ | 3,649 | $ | 551 |
Gross Recognized Amount | Gross Offset Amount | Net Amount Presented | Derivatives Subject to Offset | Cash Collateral Received | Net Amount 1 | |||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||||||
Assets | $ | 8,085 | $ | — | $ | 8,085 | $ | (114 | ) | $ | — | $ | 7,971 | |||||||||||
Liabilities | 114 | — | 114 | (114 | ) | — | — | |||||||||||||||||
September 30, 2017 | ||||||||||||||||||||||||
Assets | $ | 3,572 | $ | — | $ | 3,572 | $ | (210 | ) | $ | — | $ | 3,362 | |||||||||||
Liabilities | 551 | — | 551 | (210 | ) | — | 341 |
1 | Net fair value of designated hedge derivatives that could have been reported in the Consolidated Balance Sheets. |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||
Beginning unrealized net gain (loss) in AOCI | $ | (1,092 | ) | $ | (115 | ) | $ | (443 | ) | $ | (400 | ) | ||||
Net (gain) loss reclassified into revenue (effective portion) | (273 | ) | 58 | 1,031 | (679 | ) | ||||||||||
Net gain (loss) recognized in OCI (effective portion) | 1,967 | (222 | ) | 14 | 800 | |||||||||||
Ending unrealized net gain (loss) in AOCI | $ | 602 | $ | (279 | ) | $ | 602 | $ | (279 | ) |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||
Beginning unrealized net gain (loss) in AOCI | $ | 6,925 | $ | 4,310 | $ | 3,499 | $ | — | ||||||||
Net (gain) loss reclassified into interest expense (effective portion) | (422 | ) | 182 | (661 | ) | 598 | ||||||||||
Net gain (loss) recognized in OCI (effective portion) | 851 | (1,001 | ) | 4,516 | 2,893 | |||||||||||
Ending unrealized net gain (loss) in AOCI | $ | 7,354 | $ | 3,491 | $ | 7,354 | $ | 3,491 |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||
Net gain (loss) recognized in other income (expense), net | $ | 981 | $ | (680 | ) | $ | (46 | ) | $ | (691 | ) |
June 30, 2018 | September 30, 2017 | |||||||
Long-term debt | ||||||||
Tranche B term loan, 1.00% amortizing per year, maturing July 5, 2023 | $ | 392,566 | $ | 455,400 | ||||
Tangible equity units, 8.75% coupon, maturing July 1, 2019 1 | 9,638 | 16,443 | ||||||
Capital lease obligations | 2,205 | 2,466 | ||||||
Total long-term debt | 404,409 | 474,309 | ||||||
Less: Unamortized underwriting discounts, commissions and other expenses | (9,190 | ) | (12,491 | ) | ||||
Less: Current maturities of tranche B term loan debt 2 | (42,600 | ) | (33,600 | ) | ||||
Less: Current maturities of TEU debt 2, 3 | (9,638 | ) | (9,152 | ) | ||||
Less: Current maturities of capital lease obligations 2 | (562 | ) | (522 | ) | ||||
Total long-term debt, less current maturities, net | $ | 342,419 | $ | 418,544 |
1 | See Note 12 for additional information on our TEUs issued in the third quarter of fiscal year 2016. |
2 | In addition to the current maturities above, current maturities of long-term debt, net in the Consolidated Balance Sheets includes the current portion of unamortized underwriting discounts, commissions and other expenses of $3,887 and $4,179 as of June 30, 2018 and September 30, 2017, respectively. |
3 | As of June 30, 2018 and September 30, 2017, current maturities of tranche B term loan consists of the 1% annual payment and the calculated or estimated required annual Excess Cash Flow payment as defined below, as well as planned prepayments. |
Notional Amount | ||||
October 3, 2018 | $ | 225,000 | ||
October 3, 2019 | 180,000 | |||
October 3, 2020 | 125,000 | |||
April 3, 2021 | — |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||
Service cost | $ | 320 | $ | 356 | $ | 969 | $ | 1,047 | ||||||||
Interest cost | 159 | 108 | 483 | 317 | ||||||||||||
Expected return on plan assets | (317 | ) | (271 | ) | (960 | ) | (797 | ) | ||||||||
Net amortization and deferral | 131 | 249 | 398 | 731 | ||||||||||||
Net periodic benefit cost | $ | 293 | $ | 442 | $ | 890 | $ | 1,298 |
Equity Component | Debt Component | Total | |||||||||
Fair value price per TEU 1 | $ | 76.19 | $ | 23.81 | $ | 100.00 | |||||
Gross proceeds | 87,614 | 27,386 | 115,000 | ||||||||
Less: Underwriting discounts and commissions | (2,628 | ) | (822 | ) | (3,450 | ) | |||||
Less: Other expenses 2 | (475 | ) | (149 | ) | (624 | ) | |||||
Issuance of TEUs, net | $ | 84,511 | $ | 26,415 | $ | 110,926 |
1 | The fair value price allocation between equity and debt for each TEU was determined using a discounted cash flow model. |
2 | Other expenses include direct and incremental costs related to the issuance of the TEUs. |
• | if the applicable market value is equal to or greater than the threshold appreciation price of $50.40 per share, holders will receive 1.9841 shares of common stock per purchase contract, or the minimum settlement rate; |
• | if the applicable market value is greater than the reference price of $42.00 per share, but less than the threshold appreciation price of $50.40 per share, holders will receive a number of shares of common stock equal to $100 per TEU divided by the applicable market value; or |
• | if the applicable market value is less than or equal to the reference price of $42.00 per share, holders will receive 2.3810 shares of common stock per purchase contract, or the maximum settlement rate. |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||
Net income | $ | 8,979 | $ | 10,610 | $ | 50,568 | $ | 19,514 | ||||||||
Weighted average common shares outstanding | 19,174 | 19,052 | 19,149 | 19,012 | ||||||||||||
Effect of dilutive securities | ||||||||||||||||
Stock-based compensation | 131 | 86 | 120 | 96 | ||||||||||||
Weighted average dilutive common shares outstanding | 19,305 | 19,138 | 19,269 | 19,108 | ||||||||||||
Earnings per share | ||||||||||||||||
Basic | $ | 0.47 | $ | 0.56 | $ | 2.64 | $ | 1.03 | ||||||||
Diluted | 0.47 | 0.55 | 2.62 | 1.02 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||||||
Pre-tax | Tax | Net | Pretax | Tax | Net | |||||||||||||||||||
Foreign currency translation gain (loss) adjustments | $ | (8,056 | ) | $ | — | $ | (8,056 | ) | $ | (385 | ) | $ | — | $ | (385 | ) | ||||||||
Derivative instruments | ||||||||||||||||||||||||
Unrealized net gain (loss) | 2,817 | (728 | ) | 2,089 | 4,530 | (1,171 | ) | 3,359 | ||||||||||||||||
Net (gain) loss reclassified to earnings | (695 | ) | 179 | (516 | ) | 370 | (96 | ) | 274 | |||||||||||||||
Defined benefit pension plan | ||||||||||||||||||||||||
Unrealized net gain (loss) | 111 | (33 | ) | 78 | (277 | ) | 84 | (193 | ) | |||||||||||||||
Net (gain) loss reclassified to earnings | 131 | (39 | ) | 92 | 398 | (120 | ) | 278 | ||||||||||||||||
Currency exchange rate gain (loss) | 413 | — | 413 | 145 | — | 145 | ||||||||||||||||||
Other comprehensive income (loss) | $ | (5,279 | ) | $ | (621 | ) | $ | (5,900 | ) | $ | 4,781 | $ | (1,303 | ) | $ | 3,478 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
July 1, 2017 | ||||||||||||||||||||||||
Pre-tax | Tax | Net | Pretax | Tax | Net | |||||||||||||||||||
Foreign currency translation gain (loss) adjustments | $ | 5,811 | $ | — | $ | 5,811 | $ | (794 | ) | $ | — | $ | (794 | ) | ||||||||||
Derivative instruments | ||||||||||||||||||||||||
Unrealized net gain (loss) | (1,223 | ) | 442 | (781 | ) | 3,693 | (1,333 | ) | 2,360 | |||||||||||||||
Net (gain) loss reclassified to earnings | 240 | (87 | ) | 153 | (81 | ) | 28 | (53 | ) | |||||||||||||||
Defined benefit pension plan | ||||||||||||||||||||||||
Unrealized net gain (loss) | 60 | (18 | ) | 42 | 527 | (159 | ) | 368 | ||||||||||||||||
Net (gain) loss reclassified to earnings | 249 | (75 | ) | 174 | 731 | (220 | ) | 511 | ||||||||||||||||
Currency exchange rate gain (loss) | (663 | ) | — | (663 | ) | (156 | ) | — | (156 | ) | ||||||||||||||
Other comprehensive income (loss) | $ | 4,474 | $ | 262 | $ | 4,736 | $ | 3,920 | $ | (1,684 | ) | $ | 2,236 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
June 30, 2018 | ||||||||||||||||||||||||||||||||
Adjustments | Adjustments | |||||||||||||||||||||||||||||||
Foreign Currency Translation | Unrealized Derivative Instrument | Defined Benefit Pension Plan | Total | Foreign Currency Translation | Unrealized Derivative Instrument | Defined Benefit Pension Plan | Total | |||||||||||||||||||||||||
Beginning balance | $ | 11,617 | $ | 4,013 | $ | (6,805 | ) | $ | 8,825 | $ | 3,946 | $ | 1,953 | $ | (6,452 | ) | $ | (553 | ) | |||||||||||||
Other comprehensive net gain (loss) reclassifications | (8,056 | ) | 2,089 | 491 | (5,476 | ) | (385 | ) | 3,359 | (48 | ) | 2,926 | ||||||||||||||||||||
Net (gain) loss reclassified to earnings | — | (516 | ) | 92 | (424 | ) | — | 274 | 278 | 552 | ||||||||||||||||||||||
Other comprehensive income (loss) | (8,056 | ) | 1,573 | 583 | (5,900 | ) | (385 | ) | 3,633 | 230 | 3,478 | |||||||||||||||||||||
Ending balance | $ | 3,561 | $ | 5,586 | $ | (6,222 | ) | $ | 2,925 | $ | 3,561 | $ | 5,586 | $ | (6,222 | ) | $ | 2,925 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
July 1, 2017 | ||||||||||||||||||||||||||||||||
Adjustments | Adjustments | |||||||||||||||||||||||||||||||
Foreign Currency Translation | Unrealized Derivative Instrument | Defined Benefit Pension Plan | Total | Foreign Currency Translation | Unrealized Derivative Instrument | Defined Benefit Pension Plan | Total | |||||||||||||||||||||||||
Beginning balance | $ | (5,932 | ) | $ | 2,680 | $ | (9,621 | ) | $ | (12,873 | ) | $ | 673 | $ | (255 | ) | $ | (10,791 | ) | $ | (10,373 | ) | ||||||||||
Other comprehensive net gain (loss) reclassifications | 5,811 | (781 | ) | (621 | ) | 4,409 | (794 | ) | 2,360 | 212 | 1,778 | |||||||||||||||||||||
Net (gain) loss reclassified to earnings | — | 153 | 174 | 327 | — | (53 | ) | 511 | 458 | |||||||||||||||||||||||
Other comprehensive income (loss) | 5,811 | (628 | ) | (447 | ) | 4,736 | (794 | ) | 2,307 | 723 | 2,236 | |||||||||||||||||||||
Ending balance | $ | (121 | ) | $ | 2,052 | $ | (10,068 | ) | $ | (8,137 | ) | $ | (121 | ) | $ | 2,052 | $ | (10,068 | ) | $ | (8,137 | ) |
Three Months Ended | Nine Months Ended | Affected Line Item in the Consolidated Statements of Income | ||||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||||
Derivative instruments | ||||||||||||||||||
Currency exchange contracts gain (loss) | $ | 273 | $ | (58 | ) | $ | (1,031 | ) | $ | 679 | Revenue | |||||||
Interest rate swap contracts gain (loss) | 422 | (182 | ) | 661 | (598 | ) | Interest expense, net | |||||||||||
Income tax benefit (expense) | (179 | ) | 87 | 96 | (28 | ) | Income tax provision (benefit) | |||||||||||
Total net gain (loss) on derivative instruments | 516 | (153 | ) | (274 | ) | 53 | Net income | |||||||||||
Defined benefit pension plan | ||||||||||||||||||
Actuarial loss | (71 | ) | (136 | ) | (217 | ) | (399 | ) | Cost of sales | |||||||||
Actuarial loss | (38 | ) | (70 | ) | (113 | ) | (207 | ) | Selling and marketing | |||||||||
Actuarial loss | (22 | ) | (43 | ) | (68 | ) | (125 | ) | General and administrative | |||||||||
Total actuarial loss | (131 | ) | (249 | ) | (398 | ) | (731 | ) | Income before income taxes | |||||||||
Income tax benefit | 39 | 75 | 120 | 220 | Income tax provision (benefit) | |||||||||||||
Total net loss on pension plan | (92 | ) | (174 | ) | (278 | ) | (511 | ) | Net income | |||||||||
Total net of tax reclassifications out of AOCI included in net income | $ | 424 | $ | (327 | ) | $ | (552 | ) | $ | (458 | ) |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||
Revenue | ||||||||||||||||
Test | $ | 116,055 | $ | 124,359 | $ | 344,496 | $ | 379,325 | ||||||||
Sensors | 79,000 | 69,405 | 236,501 | 207,142 | ||||||||||||
Intersegment eliminations | (387 | ) | — | (844 | ) | — | ||||||||||
Total revenue | $ | 194,668 | $ | 193,764 | $ | 580,153 | $ | 586,467 | ||||||||
Income from operations | ||||||||||||||||
Test | $ | 3,873 | $ | 8,709 | $ | 12,777 | $ | 26,792 | ||||||||
Sensors | 12,398 | 7,908 | 36,623 | 15,527 | ||||||||||||
Intersegment eliminations | (7 | ) | — | (29 | ) | — | ||||||||||
Total income from operations | $ | 16,264 | $ | 16,617 | $ | 49,371 | $ | 42,319 |
Three Months Ended | ||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | |||||||||||||||||||||||
Test | Sensors | Total | Test | Sensors | Total | |||||||||||||||||||
Cost of sales | $ | 386 | $ | — | $ | 386 | $ | — | $ | 67 | $ | 67 | ||||||||||||
Selling and marketing | 158 | (4 | ) | 154 | — | 10 | 10 | |||||||||||||||||
General and administrative | 52 | — | 52 | — | 15 | 15 | ||||||||||||||||||
Research and development | 143 | — | 143 | — | — | — | ||||||||||||||||||
Total restructuring expense | $ | 739 | $ | (4 | ) | $ | 735 | $ | — | $ | 92 | $ | 92 |
Nine Months Ended | ||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | |||||||||||||||||||||||
Test | Sensors | Total | Test | Sensors | Total | |||||||||||||||||||
Cost of sales | $ | 810 | $ | — | $ | 810 | $ | — | $ | 647 | $ | 647 | ||||||||||||
Selling and marketing | 158 | 3 | 161 | — | 136 | 136 | ||||||||||||||||||
General and administrative | 229 | — | 229 | — | 253 | 253 | ||||||||||||||||||
Research and development | 143 | — | 143 | — | — | — | ||||||||||||||||||
Total restructuring expense | $ | 1,340 | $ | 3 | $ | 1,343 | $ | — | $ | 1,036 | $ | 1,036 |
2017 | 2016 | 2014 | ||||||||||||||||||
Test | Sensors | Sensors | Test | Total | ||||||||||||||||
Balance, September 30, 2017 | $ | 2,899 | $ | 120 | $ | 209 | $ | 734 | $ | 3,962 | ||||||||||
Restructuring expense | 1,340 | 3 | — | — | 1,343 | |||||||||||||||
Payments | (1,451 | ) | (92 | ) | (62 | ) | (202 | ) | (1,807 | ) | ||||||||||
Other adjustments | 74 | — | — | — | 74 | |||||||||||||||
Currency translation | — | — | 5 | (98 | ) | (93 | ) | |||||||||||||
Balance, June 30, 2018 | $ | 2,862 | $ | 31 | $ | 152 | $ | 434 | $ | 3,479 |
June 30, 2018 | September 30, 2017 | |||||||
Accrued payroll and related costs | $ | 3,257 | $ | 3,485 | ||||
Other accrued liabilities | 99 | 98 | ||||||
Other long-term liabilities | 123 | 379 | ||||||
Total severance and related costs | $ | 3,479 | $ | 3,962 |
• | Overview |
• | Financial Results |
• | Cash Flow Comparison |
• | Liquidity and Capital Resources |
• | Off-balance Sheet Arrangements |
• | Critical Accounting Policies |
• | Recently Issued Accounting Pronouncements |
• | Other Matters |
• | Forward-looking Statements |
• | Realize growth within the rapidly expanding Sensors market through an increase in our global market share and new product development; |
• | Expand Test services offerings into our large installed base of Test equipment; |
• | Capitalize on growth opportunities in the Test materials sector spurred by new manufacturing processes, focus on light-weight materials in aerospace and ground vehicle markets, and trends in energy exploration; and |
• | Adapt our industry-leading ground vehicle testing applications to align with emerging trends in vehicle electrification, autonomous vehicles and simulation. |
Three Months Ended | ||||||||||||||||||||
Estimated | ||||||||||||||||||||
June 30, 2018 | Business Change | Restructuring | Currency Translation | July 1, 2017 | ||||||||||||||||
Revenue | $ | 194,668 | $ | (3,878 | ) | $ | — | $ | 4,782 | $ | 193,764 | |||||||||
Cost of sales | 118,384 | (3,364 | ) | 386 | 3,154 | 118,208 | ||||||||||||||
Gross profit | 76,284 | (514 | ) | (386 | ) | 1,628 | 75,556 | |||||||||||||
Gross margin | 39.2 | % | 39.0 | % | ||||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling and marketing | 32,171 | (474 | ) | 154 | 634 | 31,857 | ||||||||||||||
General and administrative | 19,081 | (6 | ) | 52 | 309 | 18,726 | ||||||||||||||
Research and development | 8,768 | 199 | 143 | 70 | 8,356 | |||||||||||||||
Total operating expenses | 60,020 | (281 | ) | 349 | 1,013 | 58,939 | ||||||||||||||
Income from operations | $ | 16,264 | $ | (233 | ) | $ | (735 | ) | $ | 615 | $ | 16,617 |
Nine Months Ended | ||||||||||||||||||||
Estimated | ||||||||||||||||||||
June 30, 2018 | Business Change | Restructuring | Currency Translation | July 1, 2017 | ||||||||||||||||
Revenue | $ | 580,153 | $ | (24,794 | ) | $ | — | $ | 18,480 | $ | 586,467 | |||||||||
Cost of sales | 351,116 | (20,951 | ) | 810 | 12,666 | 358,591 | ||||||||||||||
Gross profit | 229,037 | (3,843 | ) | (810 | ) | 5,814 | 227,876 | |||||||||||||
Gross margin | 39.5 | % | 38.9 | % | ||||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling and marketing | 94,796 | (889 | ) | 161 | 2,570 | 92,954 | ||||||||||||||
General and administrative | 58,635 | (8,992 | ) | 229 | 1,093 | 66,305 | ||||||||||||||
Research and development | 26,235 | (470 | ) | 143 | 264 | 26,298 | ||||||||||||||
Total operating expenses | 179,666 | (10,351 | ) | 533 | 3,927 | 185,557 | ||||||||||||||
Income from operations | $ | 49,371 | $ | 6,508 | $ | (1,343 | ) | $ | 1,887 | $ | 42,319 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Revenue | $ | 194,668 | $ | 193,764 | $ | 904 | 0.5 | % | $ | 580,153 | $ | 586,467 | $ | (6,314 | ) | (1.1 | )% |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Gross profit | $ | 76,284 | $ | 75,556 | $ | 728 | 1.0 | % | $ | 229,037 | $ | 227,876 | $ | 1,161 | 0.5 | % | ||||||||||||||
Gross margin | 39.2 | % | 39.0 | % | 0.2 | ppts | 39.5 | % | 38.9 | % | 0.6 | ppts |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Selling and marketing | $ | 32,171 | $ | 31,857 | $ | 314 | 1.0 | % | $ | 94,796 | $ | 92,954 | $ | 1,842 | 2.0 | % | ||||||||||||||
% of Revenue | 16.5 | % | 16.4 | % | 16.3 | % | 15.8 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
General and administrative | $ | 19,081 | $ | 18,726 | $ | 355 | 1.9 | % | $ | 58,635 | $ | 66,305 | $ | (7,670 | ) | (11.6 | )% | |||||||||||||
% of Revenue | 9.8 | % | 9.7 | % | 10.1 | % | 11.3 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Research and development | $ | 8,768 | $ | 8,356 | $ | 412 | 4.9 | % | $ | 26,235 | $ | 26,298 | $ | (63 | ) | (0.2 | )% | |||||||||||||
% of Revenue | 4.5 | % | 4.3 | % | 4.5 | % | 4.5 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Income from operations | $ | 16,264 | $ | 16,617 | $ | (353 | ) | (2.1 | )% | $ | 49,371 | $ | 42,319 | $ | 7,052 | 16.7 | % | |||||||||||||
% of Revenue | 8.4 | % | 8.6 | % | 8.5 | % | 7.2 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Interest expense, net | $ | 6,249 | $ | 7,711 | $ | (1,462 | ) | (19.0 | )% | $ | 19,761 | $ | 22,409 | $ | (2,648 | ) | (11.8 | )% |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Other income (expense), net | $ | 30 | $ | (923 | ) | $ | 953 | 103.3 | % | $ | 81 | $ | (1,086 | ) | $ | 1,167 | 107.5 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Income tax provision (benefit) | $ | 1,066 | $ | (2,627 | ) | $ | 3,693 | 140.6 | % | $ | (20,877 | ) | $ | (690 | ) | $ | (20,187 | ) | (2,925.7 | )% | ||||||||||
Effective tax rate | 10.6 | % | (32.9 | )% | (70.3 | )% | (3.7 | )% |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Net income | $ | 8,979 | $ | 10,610 | $ | (1,631 | ) | (15.4 | )% | $ | 50,568 | $ | 19,514 | $ | 31,054 | 159.1 | % | |||||||||||||
Diluted earnings per share | $ | 0.47 | $ | 0.55 | $ | (0.08 | ) | (14.5 | )% | $ | 2.62 | $ | 1.02 | $ | 1.60 | 156.9 | % |
Three Months Ended | ||||||||||||||||||||
Estimated | ||||||||||||||||||||
June 30, 2018 | Business Change | Restructuring | Currency Translation | July 1, 2017 | ||||||||||||||||
Revenue | $ | 116,055 | $ | (10,949 | ) | $ | — | $ | 2,645 | $ | 124,359 | |||||||||
Cost of sales | 79,475 | (6,121 | ) | 386 | 1,970 | 83,240 | ||||||||||||||
Gross profit | 36,580 | (4,828 | ) | (386 | ) | 675 | 41,119 | |||||||||||||
Gross margin | 31.5 | % | 33.1 | % | ||||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling and marketing | 17,479 | (776 | ) | 158 | 317 | 17,780 | ||||||||||||||
General and administrative | 10,921 | 441 | 52 | 219 | 10,209 | |||||||||||||||
Research and development | 4,307 | (263 | ) | 143 | 6 | 4,421 | ||||||||||||||
Total operating expenses | 32,707 | (598 | ) | 353 | 542 | 32,410 | ||||||||||||||
Income from operations | $ | 3,873 | $ | (4,230 | ) | $ | (739 | ) | $ | 133 | $ | 8,709 |
Nine Months Ended | ||||||||||||||||||||
Estimated | ||||||||||||||||||||
June 30, 2018 | Business Change | Restructuring | Currency Translation | July 1, 2017 | ||||||||||||||||
Revenue | $ | 344,496 | $ | (45,194 | ) | $ | — | $ | 10,365 | $ | 379,325 | |||||||||
Cost of sales | 234,550 | (21,063 | ) | 810 | 8,165 | 246,638 | ||||||||||||||
Gross profit | 109,946 | (24,131 | ) | (810 | ) | 2,200 | 132,687 | |||||||||||||
Gross margin | 31.9 | % | 35.0 | % | ||||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling and marketing | 51,200 | (2,450 | ) | 158 | 1,304 | 52,188 | ||||||||||||||
General and administrative | 32,754 | (7,040 | ) | 229 | 733 | 38,832 | ||||||||||||||
Research and development | 13,215 | (1,821 | ) | 143 | 18 | 14,875 | ||||||||||||||
Total operating expenses | 97,169 | (11,311 | ) | 530 | 2,055 | 105,895 | ||||||||||||||
Income from operations | $ | 12,777 | $ | (12,820 | ) | $ | (1,340 | ) | $ | 145 | $ | 26,792 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Revenue | $ | 116,055 | $ | 124,359 | $ | (8,304 | ) | (6.7 | )% | $ | 344,496 | $ | 379,325 | $ | (34,829 | ) | (9.2 | )% |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Gross profit | $ | 36,580 | $ | 41,119 | $ | (4,539 | ) | (11.0 | )% | $ | 109,946 | $ | 132,687 | $ | (22,741 | ) | (17.1 | )% | ||||||||||||
Gross margin | 31.5 | % | 33.1 | % | (1.6 | ) | ppts | 31.9 | % | 35.0 | % | (3.1 | ) | ppts |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Selling and marketing | $ | 17,479 | $ | 17,780 | $ | (301 | ) | (1.7 | )% | $ | 51,200 | $ | 52,188 | $ | (988 | ) | (1.9 | )% | ||||||||||||
% of Revenue | 15.1 | % | 14.3 | % | 14.9 | % | 13.8 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
General and administrative | $ | 10,921 | $ | 10,209 | $ | 712 | 7.0 | % | $ | 32,754 | $ | 38,832 | $ | (6,078 | ) | (15.7 | )% | |||||||||||||
% of Revenue | 9.4 | % | 8.2 | % | 9.5 | % | 10.2 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Research and development | $ | 4,307 | $ | 4,421 | $ | (114 | ) | (2.6 | )% | $ | 13,215 | $ | 14,875 | $ | (1,660 | ) | (11.2 | )% | ||||||||||||
% of Revenue | 3.7 | % | 3.6 | % | 3.8 | % | 3.9 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Income from operations | $ | 3,873 | $ | 8,709 | $ | (4,836 | ) | (55.5 | )% | $ | 12,777 | $ | 26,792 | $ | (14,015 | ) | (52.3 | )% | ||||||||||||
% of Revenue | 3.3 | % | 7.0 | % | 3.7 | % | 7.1 | % |
Three Months Ended | ||||||||||||||||||||
Estimated | ||||||||||||||||||||
June 30, 2018 | Business Change | Restructuring | Currency Translation | July 1, 2017 | ||||||||||||||||
Revenue | $ | 79,000 | $ | 7,458 | $ | — | $ | 2,137 | $ | 69,405 | ||||||||||
Cost of sales | 39,289 | 3,137 | — | 1,184 | 34,968 | |||||||||||||||
Gross profit | 39,711 | 4,321 | — | 953 | 34,437 | |||||||||||||||
Gross margin | 50.3 | % | 49.6 | % | ||||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling and marketing | 14,692 | 302 | (4 | ) | 317 | 14,077 | ||||||||||||||
General and administrative | 8,160 | (447 | ) | — | 90 | 8,517 | ||||||||||||||
Research and development | 4,461 | 462 | — | 64 | 3,935 | |||||||||||||||
Total operating expenses | 27,313 | 317 | (4 | ) | 471 | 26,529 | ||||||||||||||
Income (loss) from operations | $ | 12,398 | $ | 4,004 | $ | 4 | $ | 482 | $ | 7,908 |
Nine Months Ended | ||||||||||||||||||||
Estimated | ||||||||||||||||||||
June 30, 2018 | Business Change | Restructuring | Currency Translation | July 1, 2017 | ||||||||||||||||
Revenue | $ | 236,501 | $ | 21,244 | $ | — | $ | 8,115 | $ | 207,142 | ||||||||||
Cost of sales | 117,381 | 927 | — | 4,501 | 111,953 | |||||||||||||||
Gross profit | 119,120 | 20,317 | — | 3,614 | 95,189 | |||||||||||||||
Gross margin | 50.4 | % | 46.0 | % | ||||||||||||||||
Operating expenses | ||||||||||||||||||||
Selling and marketing | 43,596 | 1,561 | 3 | 1,266 | 40,766 | |||||||||||||||
General and administrative | 25,881 | (1,952 | ) | — | 360 | 27,473 | ||||||||||||||
Research and development | 13,020 | 1,351 | — | 246 | 11,423 | |||||||||||||||
Total operating expenses | 82,497 | 960 | 3 | 1,872 | 79,662 | |||||||||||||||
Income (loss) from operations | $ | 36,623 | $ | 19,357 | $ | (3 | ) | $ | 1,742 | $ | 15,527 |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased /(Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Revenue | $ | 79,000 | $ | 69,405 | $ | 9,595 | 13.8 | % | $ | 236,501 | $ | 207,142 | $ | 29,359 | 14.2 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Gross profit | $ | 39,711 | $ | 34,437 | $ | 5,274 | 15.3 | % | $ | 119,120 | $ | 95,189 | $ | 23,931 | 25.1 | % | ||||||||||||||
Gross margin | 50.3 | % | 49.6 | % | 0.7 | ppts | 50.4 | % | 46.0 | % | 4.4 | ppts |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Selling and marketing | $ | 14,692 | $ | 14,077 | $ | 615 | 4.4 | % | $ | 43,596 | $ | 40,766 | $ | 2,830 | 6.9 | % | ||||||||||||||
% of Revenue | 18.6 | % | 20.3 | % | 18.4 | % | 19.7 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
General and administrative | $ | 8,160 | $ | 8,517 | $ | (357 | ) | (4.2 | )% | $ | 25,881 | $ | 27,473 | $ | (1,592 | ) | (5.8 | )% | ||||||||||||
% of Revenue | 10.3 | % | 12.3 | % | 10.9 | % | 13.3 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Research and development | $ | 4,461 | $ | 3,935 | $ | 526 | 13.4 | % | $ | 13,020 | $ | 11,423 | $ | 1,597 | 14.0 | % | ||||||||||||||
% of Revenue | 5.6 | % | 5.7 | % | 5.5 | % | 5.5 | % |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
June 30, 2018 | July 1, 2017 | Increased / (Decreased) | June 30, 2018 | July 1, 2017 | Increased / (Decreased) | |||||||||||||||||||||||||
$ | % | $ | % | |||||||||||||||||||||||||||
Income from operations | $ | 12,398 | $ | 7,908 | $ | 4,490 | 56.8 | % | $ | 36,623 | $ | 15,527 | $ | 21,096 | 135.9 | % | ||||||||||||||
% of Revenue | 15.7 | % | 11.4 | % | 15.5 | % | 7.5 | % |
Nine Months Ended | ||||||||
June 30, 2018 | July 1, 2017 | |||||||
Total cash provided by (used in): | ||||||||
Operating activities | $ | 52,111 | $ | 52,611 | ||||
Investing activities | (8,885 | ) | (14,194 | ) | ||||
Financing activities | (85,601 | ) | (21,145 | ) | ||||
Effect of exchange rate changes on cash | 45 | (432 | ) | |||||
Increase (decrease) during the period | (42,330 | ) | 16,840 | |||||
Cash and cash equivalents balance, beginning of period | 108,733 | 84,780 | ||||||
Cash and cash equivalents balance, end of period | $ | 66,403 | $ | 101,620 |
Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs | ||||||||||
April 1, 2018 - May 5, 2018 | — | $ | — | — | 438 | ||||||||
May 6, 2018 - June 2, 2018 | — | $ | — | — | 438 | ||||||||
June 3, 2018 - June 30, 2018 | — | $ | — | — | 438 | ||||||||
Total | — | $ | — | — |
Exhibit Number | Description | |||
10.1 | ||||
10.2 | ||||
31.1 | ||||
31.2 | ||||
32.1 | ||||
32.2 | ||||
101.INS | XBRL Instance Document (filed herewith). | |||
101.SCH | XBRL Taxonomy Extension Schema Document (filed herewith). | |||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document (filed herewith). | |||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document (filed herewith). | |||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document (filed herewith). | |||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document (filed herewith). | |||
MTS SYSTEMS CORPORATION | |||
Date: | August 6, 2018 | /s/ JEFFREY A. GRAVES | |
Jeffrey A. Graves | |||
President and Chief Executive Officer | |||
(Principal Executive Officer) | |||
Date: | August 6, 2018 | /s/ BRIAN T. ROSS | |
Brian T. Ross | |||
Senior Vice President and Chief Financial Officer | |||
(Principal Financial Officer and Principal Accounting Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of MTS Systems Corporation; |
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 the registrant's board of directors (or persons performing the 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. |
Date: | August 6, 2018 | /s/ JEFFREY A. GRAVES |
Jeffrey A. Graves | ||
President and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of MTS Systems Corporation; |
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 the registrant's board of directors (or persons performing the 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. |
Date: | August 6, 2018 | /s/ BRIAN T. ROSS |
Brian T. Ross | ||
Senior Vice President and Chief Financial Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | August 6, 2018 | /s/ JEFFREY A. GRAVES |
Jeffrey A. Graves | ||
President and Chief Executive Officer |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | August 6, 2018 | /s/ BRIAN T. ROSS |
Brian T. Ross | ||
Senior Vice President and Chief Financial Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Aug. 02, 2018 |
|
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MTS SYSTEMS CORP | |
Entity Central Index Key | 0000068709 | |
Current Fiscal Year End Date | --09-29 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding (in shares) | 17,860,052 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5,439 | $ 5,371 |
Common stock, par value (in dollars per share) | $ 0.25 | $ 0.25 |
Common stock, shares authorized (in shares) | 64,000,000 | 64,000,000 |
Common stock, shares issued (in shares) | 17,844,000 | 17,760,000 |
Common stock, shares outstanding (in shares) | 17,844,000 | 17,760,000 |
Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Revenue | ||||
Revenue | $ 194,668 | $ 193,764 | $ 580,153 | $ 586,467 |
Cost of Sales | ||||
Total cost of sales | 118,384 | 118,208 | 351,116 | 358,591 |
Gross profit | 76,284 | 75,556 | 229,037 | 227,876 |
Operating expenses | ||||
Selling and marketing | 32,171 | 31,857 | 94,796 | 92,954 |
General and administrative | 19,081 | 18,726 | 58,635 | 66,305 |
Research and development | 8,768 | 8,356 | 26,235 | 26,298 |
Total operating expenses | 60,020 | 58,939 | 179,666 | 185,557 |
Income from operations | 16,264 | 16,617 | 49,371 | 42,319 |
Interest expense, net | (6,249) | (7,711) | (19,761) | (22,409) |
Other income (expense), net | 30 | (923) | 81 | (1,086) |
Income before income taxes | 10,045 | 7,983 | 29,691 | 18,824 |
Income tax provision (benefit) | 1,066 | (2,627) | (20,877) | (690) |
Net income | $ 8,979 | $ 10,610 | $ 50,568 | $ 19,514 |
Basic | ||||
Earnings per share (in dollars per share) | $ 0.47 | $ 0.56 | $ 2.64 | $ 1.03 |
Weighted average common shares outstanding (in shares) | 19,174 | 19,052 | 19,149 | 19,012 |
Diluted | ||||
Earnings per share (in dollars per share) | $ 0.47 | $ 0.55 | $ 2.62 | $ 1.02 |
Weighted average common shares outstanding (in shares) | 19,305 | 19,138 | 19,269 | 19,108 |
Dividends declared per share (in dollars per share) | $ 0.30 | $ 0.30 | $ 0.90 | $ 0.90 |
Product | ||||
Revenue | ||||
Revenue | $ 168,651 | $ 167,592 | $ 503,345 | $ 514,987 |
Cost of Sales | ||||
Cost of goods and services sold | 103,182 | 101,629 | 304,809 | 316,012 |
Service | ||||
Revenue | ||||
Revenue | 26,017 | 26,172 | 76,808 | 71,480 |
Cost of Sales | ||||
Cost of goods and services sold | $ 15,202 | $ 16,579 | $ 46,307 | $ 42,579 |
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 8,979 | $ 10,610 | $ 50,568 | $ 19,514 |
Other comprehensive income (loss), net of tax | ||||
Foreign currency translation gain (loss) adjustments | (8,056) | 5,811 | (385) | (794) |
Derivative instruments | ||||
Unrealized net gain (loss) | 2,089 | (781) | 3,359 | 2,360 |
Net (gain) loss reclassified to earnings | (516) | 153 | 274 | (53) |
Defined benefit pension plan | ||||
Unrealized net gain (loss) | 78 | 42 | (193) | 368 |
Net (gain) loss reclassified to earnings | 92 | 174 | 278 | 511 |
Currency exchange rate gain (loss) | 413 | (663) | 145 | (156) |
Other comprehensive income (loss) | (5,900) | 4,736 | 3,478 | 2,236 |
Comprehensive income (loss) | $ 3,079 | $ 15,346 | $ 54,046 | $ 21,750 |
Basis of Presentation |
9 Months Ended |
---|---|
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | BASIS OF PRESENTATION The consolidated financial statements include the accounts of MTS Systems Corporation and its wholly owned subsidiaries. Significant intercompany account balances and transactions have been eliminated. The terms "MTS," "we," "us," "the Company" or "our" in this Quarterly Report on Form 10-Q, unless the context otherwise requires, refer to MTS Systems Corporation and its wholly owned subsidiaries. We have prepared the interim unaudited consolidated financial statements included herein pursuant to the rules and regulations of the United States (U.S.) Securities and Exchange Commission (SEC). The information furnished in these consolidated financial statements includes normal recurring adjustments and reflects all adjustments that are, in our opinion, necessary for a fair presentation of such financial statements. The consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). GAAP requires us to make estimates and assumptions that affect amounts reported. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to SEC rules and regulations. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017 filed with the SEC. Interim results of operations for the third fiscal quarter ended June 30, 2018 are not necessarily indicative of the results to be expected for the full fiscal year. We have a 5-4-4 week, quarterly accounting cycle with our fiscal year ending on the Saturday closest to September 30. Fiscal year 2018 ending on September 29, 2018 will consist of 52 weeks. Fiscal year 2017 ended on September 30, 2017 and consisted of 52 weeks. |
Recently Issued Accounting Pronouncements |
9 Months Ended |
---|---|
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), and in August 2015, issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date, which amended ASU No. 2014-09 as to the effective date of the standard. The guidance, as amended, clarifies the principles for revenue recognition in transactions involving contracts with customers. Determination of when and how revenue is recognized will be based on a five-step analysis. The new guidance will require revenue recognition to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The mandatory effective date of the new revenue recognition standard was deferred by one year under ASU No. 2015-14. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which amends ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify principal versus agent guidance in situations in which a revenue transaction involves a third party in providing goods or services to a customer. In such circumstances, an entity must determine whether the nature of its promise to the customer is to provide the underlying goods or services (i.e., the entity is the principal in the transaction) or to arrange for the third party to provide the underlying goods or services (i.e., the entity is the agent in the transaction). To determine the nature of its promise to the customer, the entity must first identify each specified good or service to be provided to the customer and then (before transferring it) assess whether it controls each specified good or service. The new guidance clarifies how an entity should identify the unit of accounting (the specified good or service) for the principal versus agent evaluation, and how it should apply the control principle to certain types of arrangements, such as service transactions, by explaining what a principal controls before the specified good or service is transferred to the customer. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, to amend ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), on identifying performance obligations to allow entities to disregard items that are immaterial in the context of the contract, clarify when a promised good or service is separately identifiable from other promises in the contract and allow an entity to elect to account for the cost of shipping and handling performed after control of a good has been transferred to the customer as a fulfillment cost or an expense. The updated guidance also clarifies how an entity would evaluate the nature of its promise in granting a license of intellectual property, which determines whether the entity recognizes revenue over time or at a point in time, and other aspects relative to licensing. In May 2016, the FASB issued ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update), which rescinds previous guidance on revenue and expense recognition for freight services in process, accounting for shipping and handling fees and costs and accounting for consideration given by a vendor to a customer. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which amends ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify that, for a contract to be considered completed at transition, all (or substantially all) of the revenue must have been recognized under legacy GAAP. The amendment also added an expedient to ease transition for contracts that were modified prior to adoption of the new revenue standard and clarifies both how an entity should evaluate the collectibility threshold and when an entity can recognize non-refundable considerations received as revenue if the arrangement does not meet the standard's contract criteria. The amendment clarifies that fair value of non-cash considerations should be measured at contract inception when determining the transaction price and allows an entity to make an accounting policy election to exclude from the transaction price certain types of taxes collected from a customer if it discloses the policy. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which amends ASU 2014-09, Revenue from Contracts with Customers (Topic 606), providing thirteen corrections and improvements to the new revenue standard. The aforementioned revenue standards and amendments are required to be adopted for annual periods beginning after December 15, 2017, including interim periods within that annual period, which is our fiscal year 2019. The new standards and amendments may be adopted retrospectively for all periods presented, or adopted using a modified retrospective approach. Early adoption is permitted for annual reporting periods beginning after December 15, 2016, and interim periods within that annual period, which is our fiscal year 2018. We intend to adopt the aforementioned revenue standards and amendments for our fiscal year 2019. The modified retrospective approach will be used as our method of adoption. We have substantially completed our review and analysis of our sales channels, selected contracts, policies and practices as compared to the new guidance and continue to work through implementation steps. We continue to evaluate and design our procedural and system requirements related to the provisions of this standard. We are updating and rewriting our revenue recognition accounting policy as needed to reflect the requirements of this standard, and we are drafting our new revenue disclosures. We anticipate the revenue recognition methodology will change for certain products and contracts. Certain contracts will have a delay in revenue recognition until the customer takes control of the product, while certain products and contracts will accelerate to recognize revenue over the life of the contract. This change may have a material impact on the timing of revenue recognition in our Test segment with minimal impact to our Sensors segment. We continue to evaluate the impact that these changes in methodology will have on our consolidated financial statements. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset, representing the right to use the underlying asset for the lease term, and a lease liability on the balance sheet for all leases with terms greater than 12 months. Lessees can forgo recognizing a right-of-use asset and lease liability with lease terms of 12 months or less on the balance sheet through accounting policy elections as long as the lease does not include options to renew or purchase the underlying assets that are reasonably certain to be exercised. The new guidance also requires certain qualitative and quantitative disclosures designed to assess the amount, timing and uncertainty of cash flows arising from leases, along with additional key information about leasing arrangements. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, to clarify certain aspects of the new lease standard. The FASB also issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which allows the election of an optional transition method to apply the provisions of the new lease standard as of the date of adoption and recognize a cumulative-effect adjustment to retained earnings in the period of adoption, while continuing to present all prior periods under previous lease accounting guidance. The aforementioned lease standards and amendments are required to be adopted for annual periods beginning after December 15, 2018, including interim periods within that annual period, which is our fiscal year 2020. The new standards and amendments are to be applied using a modified retrospective approach, which includes a number of optional practical expedients and an optional transition method. Early adoption is permitted. We are currently evaluating the impact the adoption of this guidance will have on our financial condition, results of operations and disclosures. Other In March 2016, the FASB issued ASU No. 2016-04, Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products, which amends existing guidance on extinguishing financial liabilities for certain prepaid stored-value products. The new standard requires recognition of the expected breakage amount or the value that is ultimately not redeemed either proportionally in earnings as redemption occurs or when redemption is remote, if issuers are not entitled to breakage. The standard is required to be adopted for annual periods beginning after December 15, 2017, including interim periods within that annual period, which is our fiscal year 2019. The amendment is to be applied either using a modified retrospective approach by recognizing a cumulative-effect adjustment to retained earnings as of the beginning of the year or retrospectively to each period presented. Early adoption is permitted. We do not expect the adoption of this standard to have a material effect on our financial condition, results of operations or disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the accounting for credit losses on instruments measured at amortized cost by adding an impairment model that is based on expected losses rather than incurred losses. An entity will recognize as an allowance its estimate of expected credit losses, which is believed to result in more timely recognition of such losses as the standard eliminates the probable initial recognition threshold. The standard is required to be adopted for annual periods beginning after December 15, 2019, including interim periods within that annual period, which is our fiscal year 2021. The amendment is to be applied using a modified retrospective approach as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which adopted. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within that annual period, which is our fiscal year 2020. We have not yet evaluated the impact the adoption of this guidance may have on our financial condition, results of operations or disclosures. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory, which requires companies to account for the income tax effects of intercompany sales and transfers of assets other than inventory when the transfer occurs. Current guidance requires companies to defer the income tax effects of intercompany transfers of assets until the asset has been sold to an outside party or otherwise recognized. The standard is required to be adopted for annual periods beginning after December 15, 2017, including interim periods within that annual period, which is our fiscal year 2019. The amendment is to be applied using a modified retrospective approach. Early adoption is permitted as of the beginning of an annual period. We do not expect the adoption of this standard to have a material effect on our financial condition, results of operations or disclosures. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which changes how employers that sponsor defined benefit pension or other postretirement benefit plans present the net periodic benefit cost in the income statement. The new guidance requires the service cost component of net periodic benefit cost to be presented in the same income statement line items as other employee compensation costs arising from services rendered during the period with only the service cost component eligible for capitalization in assets. Other components of the net periodic benefit cost are to be stated separately from the line items that include the service cost and outside of operating income. These components are not eligible for capitalization in assets. The standard is required to be adopted for annual periods beginning after December 15, 2017, including interim periods within that annual period, which is our fiscal year 2019. The amendment is to be applied retrospectively. Early adoption is permitted as of the beginning of an annual period. We are currently evaluating the impact the adoption of this guidance will have on our financial condition, results of operations and disclosures. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Modification guidance must be applied if the fair value, vesting conditions or classification of the awards changes. The standard is required to be adopted for annual periods beginning after December 15, 2017, including interim periods within that annual period, which is our fiscal year 2019. The amendment is to be applied prospectively to an award modified on or after the adoption date, with early adoption permitted. We do not expect the adoption of this standard to have a material effect on our financial condition, results of operations or disclosures. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting model in Accounting Standards Codification (ASC) 815 to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. The standard is required to be adopted for annual periods beginning after December 15, 2018, including interim periods within that annual period, which is our fiscal year 2020. The amendment is to be applied using a modified retrospective approach, with early adoption permitted. We have not yet evaluated the impact the adoption of this guidance may have on our financial condition, results of operations or disclosures. In March 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which provides an option to reclassify stranded tax effects within accumulated other comprehensive income (loss) (AOCI) to retained earnings due to the lower U.S. corporate tax rate in the Tax Cuts and Jobs Act (the Tax Act). The standard is required to be adopted for annual periods beginning after December 15, 2018, including interim periods within that annual period, which is our fiscal year 2020. The amendment is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. Early adoption is permitted. We are currently evaluating the impact the adoption of this guidance will have on our financial condition, results of operations or disclosures. Adopted In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which modifies existing requirements regarding measuring inventory at the lower of cost or market. Under current inventory standards, the market value requires consideration of replacement cost, net realizable value and net realizable value less an approximately normal profit margin. The new guidance replaces market with net realizable value defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This eliminates the need to determine and consider replacement cost or net realizable value less an approximately normal profit margin when measuring inventory. We adopted the new standard on a prospective basis for the annual period ending September 29, 2018, including interim periods within that annual period. The adoption of this guidance had no impact on our financial condition, results of operations or disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which is intended to simplify certain aspects of accounting for share-based compensation arrangements, including modifications to the accounting for income taxes upon vesting or settlement of awards, employer tax withholding on share-based compensation, classification on the statement of cash flows and forfeitures. We adopted the new standard for the annual period ending September 29, 2018, including interim periods within that annual period. Certain aspects of the amendment were applied using a retrospective transition method, while others were applied prospectively. The adoption of this standard resulted in an increase in cash flows from operating activities and a decrease of cash flows from financing activities of $208 for fiscal year 2017 and $187 for fiscal year 2016 for the reclassification from financing activities to operating activities of excess tax benefits from stock-based compensation. Additionally, we elected to modify our accounting policy for forfeitures on stock-based awards to record forfeitures when the forfeiture occurs instead of recording stock-based compensation expense based on an estimation of stock awards that will ultimately vest. The adoption of this guidance will not have a material impact on our financial condition, results of operations or disclosures for fiscal year 2018. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance on the classification of certain cash receipts and cash payments with the objective of reducing diversity in practice. We early adopted the new standard on a retrospective basis for the annual period ending September 29, 2018, including interim periods within that annual period. The adoption of this guidance did not have a material impact on our current or prior year financial condition, results of operations or disclosures. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The new guidance clarifies that a business must also include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in ASC 606, Revenue from Contracts with Customers. We early adopted the new standard on a prospective basis for the annual period ending September 29, 2018, including interim periods within that annual period. The adoption of this guidance had no impact on our financial condition, results of operations or disclosures, as the standard only applies to transactions occurring subsequent to adoption. In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SAB 118), which incorporates various SEC paragraphs from SAB 118 into income tax accounting guidance effective immediately. The SEC issued the interpretive guidance in SAB 118 on December 22, 2017 concurrent with the enactment of the Tax Act to clarify accounting and disclosure requirements. Pursuant to SAB 118, we recognized the estimated income tax effects of the Tax Act in our consolidated financial statements for all interim periods in our current fiscal year ending September 29, 2018. We adopted the new standard for the interim period ended March 31, 2018. See Note 11 for disclosure of the impact the adoption of this guidance on our financial condition and results of operations for fiscal year 2018. |
Inventories |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | INVENTORIES Inventories consist of material, labor and overhead costs and are stated at the lower of cost or net realizable value determined under the first-in, first-out accounting method. Certain inventories are measured using the weighted average cost method. Inventories, net are as follows:
|
Warranty Obligations |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty Obligations | WARRANTY OBLIGATIONS Sales of our products and systems are subject to limited warranty obligations that are included in customer contracts. For sales that include installation services, warranty obligations generally extend for a period of 12 to 24 months from the date of either shipment or acceptance based on the contract terms. Product obligations generally extend for a period of 12 to 24 months from the date of purchase. Certain products offered in our Sensors segment include a lifetime warranty. Under the terms of these warranties, we are obligated to repair or replace any components or assemblies deemed defective due to workmanship or materials. We reserve the right to reject warranty claims where it is determined that failure is due to normal wear, customer modifications, improper maintenance or misuse. We record general warranty provisions based on an estimated warranty expense percentage applied to current period revenue. The percentage applied reflects our historical warranty claims experience over the preceding 12-month period. Both the experience percentage and the warranty liability are evaluated on an ongoing basis for adequacy. Warranty provisions are also recognized for certain unanticipated product claims that are individually significant. Changes to accrued warranty costs are as follows:
|
Capital Assets |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Assets | CAPITAL ASSETS Property and Equipment Property and equipment, net are as follows:
Assets held under capital leases, consisting of machinery and equipment, are recorded at the present value of minimum lease payments and are amortized on a straight-line basis over the estimated life of the asset or the lease term. Amortization of assets held as capital leases is included in depreciation expense in the Consolidated Statements of Income. Goodwill Changes to the carrying amount of goodwill are as follows:
Intangible Assets Intangible assets are as follows:
Amortization expense recognized is as follows:
Estimated future amortization expense related to finite-lived intangible assets is as follows:
Future amortization amounts presented above are estimates. Actual future amortization expense may be different due to fluctuations in foreign currency exchange rates, future acquisitions, impairments, changes in amortization periods or other factors. |
Fair Value Measurements |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements | FAIR VALUE MEASUREMENTS In determining the fair value of financial assets and liabilities, we currently utilize market data or other assumptions that we believe market participants would use in pricing the asset or liability in the principal or most advantageous market and adjust for non-performance and/or other risk associated with the company as well as counterparties, as appropriate. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels:
The hierarchy gives the highest priority to Level 1, as this level provides the most reliable measure of fair value, while giving the lowest priority to Level 3. Assets and Liabilities Measured at Fair Value on a Recurring Basis Financial assets and liabilities subject to fair value measurements on a recurring basis are as follows:
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We measure certain financial instruments at fair value on a nonrecurring basis. These assets primarily include goodwill, intangible assets and other long-lived assets acquired either as part of a business acquisition, individually or with a group of other assets, as well as property and equipment. These assets were initially measured and recognized at amounts equal to the fair value determined as of the date of acquisition or purchase subject to changes in value only for foreign currency translation. Periodically, these assets are tested for impairment by comparing their respective carrying values to the estimated fair value of the reporting unit or asset group in which they reside. In the event any of these assets were to become impaired, we would recognize an impairment loss equal to the amount by which the carrying value of the reporting unit, impaired asset or asset group exceeds its estimated fair value. Fair value measurements of reporting units are estimated using an income approach involving discounted or undiscounted cash flow models that contain certain Level 3 inputs requiring management judgment, including projections of economic conditions and customer demand, revenue and margins, changes in competition, operating costs, working capital requirements and new product introductions. Fair value measurements of the reporting units associated with our goodwill balances and our indefinite-lived intangible assets are estimated at least annually in the fourth quarter of each fiscal year for purposes of impairment testing if a quantitative analysis is performed. Fair value measurements associated with our intangible assets, other long-lived assets and property and equipment are estimated when events or changes in circumstances such as market value, asset utilization, physical change, legal factors or other matters indicate that the carrying value may not be recoverable. See Note 5 for additional information on goodwill, indefinite-lived intangible assets, other long-lived assets and property and equipment. Assets and Liabilities Not Measured at Fair Value Certain financial instruments are not measured at fair value but are recorded at carrying amounts approximating fair value based on their short-term nature or variable interest rate. These financial instruments include cash and cash equivalents, accounts receivable, accounts payable and short-term borrowings. Other Financial Instruments Other financial instruments subject to fair value measurements include debt, which is recorded at carrying value in the Consolidated Balance Sheets. The carrying amount and estimated fair value of our debt is as follows:
|
Derivative Instruments and Hedging Activities |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Our currency exchange contracts and interest rate swaps are designated as cash flow hedges and qualify as hedging instruments. We also have derivatives which are not designated as cash flow hedges and, therefore, are accounted for and reported under foreign currency guidance. Regardless of designation for accounting purposes, we believe all of our derivative instruments are hedges of transactional risk exposures. The fair value of our outstanding designated and undesignated derivative assets and liabilities are reported in the Consolidated Balance Sheets as follows:
A reconciliation of the net fair value of designated hedge derivatives subject to master netting arrangements that are recorded in the Consolidated Balance Sheets to the net fair value that could have been reported in the Consolidated Balance Sheets are as follows:
Cash Flow Hedging – Currency Risks Currency exchange contracts utilized to maintain the functional currency value of expected financial transactions denominated in foreign currencies are designated as cash flow hedges. Qualifying gains and losses related to changes in the market value of these contracts are reported as a component of AOCI within shareholders' equity in the Consolidated Balance Sheets and reclassified into earnings in the same period during which the underlying hedged transaction affects earnings. The effective portion of the cash flow hedges represents the change in fair value of the hedge that offsets the change in the functional currency value of the hedged item. We periodically assess whether our currency exchange contracts are effective and, when a contract is determined to be no longer effective as a hedge, we discontinue hedge accounting prospectively. Subsequent changes in the market value of ineffective currency exchange contracts are recognized as an increase or decrease in revenue in the Consolidated Statements of Income as that is the same line item in which the underlying hedged transaction is reported. As of June 30, 2018 and September 30, 2017, we had outstanding cash flow hedge currency exchange contracts with gross notional U.S. dollar equivalent amounts of $43,200 and $29,136, respectively. Upon netting offsetting contracts to sell foreign currencies against contracts to purchase foreign currencies, irrespective of contract maturity dates, the net notional U.S. dollar equivalent amount of contracts outstanding was $32,226 and $24,093 as of June 30, 2018 and September 30, 2017, respectively. As of June 30, 2018, the net market value of the foreign currency exchange contracts was a net asset of $617, consisting of $731 in assets and $114 in liabilities. As of September 30, 2017, the net market value of the foreign currency exchange contracts was a net liability of $478, consisting of $73 in assets and $551 in liabilities. The pretax amounts recognized in AOCI on currency exchange contracts, including (gains) losses reclassified into earnings in the Consolidated Statements of Income and gains (losses) recognized in other comprehensive income (loss) (OCI), are as follows:
The amount recognized in earnings as a result of the ineffectiveness of cash flow hedges was $5 and $10 in the three and nine months ended June 30, 2018, respectively, and $0 and $7 in the three and nine months ended July 1, 2017, respectively. As of June 30, 2018, the amount projected to be reclassified from AOCI into earnings in the next 12 months was a net gain of $552. The maximum remaining maturity of any forward or optional contract as of June 30, 2018 was 1.6 years. Interest Rate Swaps On October 20, 2016, we entered into a floating to fixed interest rate swap agreement to mitigate our exposure to interest rate increases related to a portion of our tranche B term loan facility. The total notional amount of the interest rate swap was $255,000 as of June 30, 2018. The interest rate swap agreement expires April 3, 2021. As a result of this agreement, every month we pay fixed interest at 1.256% in exchange for interest received at one month U.S. LIBOR. The market value of the interest rate swap as of June 30, 2018 was an asset of $7,354. The interest rate swap has been designated as a cash flow hedge. As a result, changes in the fair value of the interest rate swap are recorded in AOCI within shareholders' equity in the Consolidated Balance Sheets. The pretax amounts recognized in AOCI on interest rate swaps, including (gains) losses reclassified into earnings in the Consolidated Statements of Income and gains (losses) recognized in OCI, are as follows:
As of June 30, 2018, the amount projected to be reclassified from AOCI into earnings in the next 12 months was a net gain of $2,821. Foreign Currency Balance Sheet Derivatives We also use foreign currency derivative contracts to maintain the functional currency value of monetary assets and liabilities denominated in non-functional foreign currencies. The gains and losses related to the changes in the market value of these derivative contracts are included in other income (expense), net in the Consolidated Statements of Income. As of June 30, 2018 and September 30, 2017, we had outstanding foreign currency balance sheet derivative contracts with gross notional U.S. dollar equivalent amounts of $77,464 and $52,208, respectively. Upon netting offsetting contracts by counterparty banks to sell foreign currencies against contracts to purchase foreign currencies, irrespective of contract maturity dates, the net notional U.S. dollar equivalent amount of contracts outstanding as of June 30, 2018 and September 30, 2017 was $27,171 and $14,762, respectively. As of June 30, 2018 and September 30, 2017, the net market value of the foreign exchange balance sheet derivative contracts was a net asset of $246 and $77, respectively. The net gain (loss) recognized in the Consolidated Statements of Income on foreign exchange balance sheet derivative contracts is as follows:
|
Financing |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing | FINANCING Long-term debt consists of the following:
Tranche B Term Loan and Revolving Credit Facility We have a credit agreement with U.S. Bank National Association and HSBC Bank USA, National Association as Co-Documentation Agents, Wells Fargo Bank, National Association as Syndication Agent, JPMorgan Chase Bank, N.A. as Administrative Agent and JP Morgan Chase Bank, N.A. and Wells Fargo Securities, LLC as Joint Bookrunners and Joint Lead Arrangers (the Credit Agreement). The Credit Agreement provides for senior secured credit facilities consisting of a $120,000 revolving credit facility (the Revolving Credit Facility) which expires on July 5, 2021 and a $460,000 tranche B term loan facility (the Term Facility) which expires on July 5, 2023. The proceeds of the Revolving Credit Facility can be drawn upon to refinance existing indebtedness and for working capital and other general corporate purposes up to a maximum of $120,000. The proceeds of the Term Facility were used for financing the acquisition of PCB Group, Inc. (PCB) in fiscal year 2016. The Term Facility amortizes in equal quarterly installments equal to 1% of the original principal amount. The primary categories of borrowing include Alternate Base Rate (ABR) Borrowing (ABR Term Loans and ABR Revolving Loans), Swingline Loans and Eurocurrency Borrowing (each as defined in the Credit Agreement). ABR Borrowings and Swingline Loans made in U.S. dollars under the Credit Agreement bear interest at a rate per annum equal to the ABR plus the Applicable Rate (as defined in the Credit Agreement). The ABR is defined as the greater of (a) the Prime Rate (as defined in the Credit Agreement) in effect on such day, (b) the New York Federal Reserve Bank (NYFRB) rate (as defined in the Credit Agreement) in effect on such day plus ½ of 1.00%, or (c) the Adjusted LIBOR (as defined in the Credit Agreement) for a one-month interest period in dollars on such day plus 1.00%. The ABR for ABR Term Loans shall not be less than 1.75% per annum. The Applicable Rate for any ABR Revolving Loans will be based upon the leverage ratio applicable on such date. As of June 30, 2018, the Applicable Rate for ABR Term Loans was 2.25% per annum. Eurocurrency Borrowings made under the Credit Agreement bear interest at a rate per annum equal to the Adjusted LIBOR Rate plus the Applicable Rate. The Adjusted LIBOR Rate is defined as an interest rate per annum equal to (a) the LIBOR Rate for such interest period multiplied by (b) the Statutory Reserve Rate (as defined in the Credit Agreement). The Applicable Rate for any Eurocurrency Revolving Loan is based upon the leverage ratio applicable on such date. The Adjusted LIBOR Rate for Eurocurrency Term Loans shall not be less than 0.75% per annum. Based on our leverage ratio as of June 30, 2018, the Applicable Rate for Eurocurrency Revolving Loans was 3.00%. As of June 30, 2018, the Applicable Rate for Eurocurrency Term Loans was 3.25% per annum, plus the applicable Adjusted LIBOR Rate of 2.09%. The weighted average interest rate on Term Facility debt during the nine months ended June 30, 2018 was 4.84%. As of June 30, 2018 and September 30, 2017, there were no outstanding borrowings under the Revolving Credit Facility. We had outstanding letters of credit drawn from the Revolving Credit Facility totaling $26,366 and $37,811 as of June 30, 2018 and September 30, 2017, respectively, leaving approximately $93,634 and $82,189, respectively, of unused borrowing capacity. Commitment fees are payable on the unused portion of the Revolving Credit Facility at rates between 0.25% and 0.40% based on our leverage ratio. During the three and nine months ended June 30, 2018, commitment fees incurred totaled $94 and $250, respectively. During the three and nine months ended July 1, 2017, commitment fees incurred totaled $106 and $320, respectively. The Credit Agreement governing the Term Facility requires us to prepay outstanding term loans, subject to certain exceptions, depending on the leverage ratio with (a) up to 50% of the Company's annual Excess Cash Flow (as defined in the Credit Agreement) and (b) 100% of the net cash proceeds of (i) certain asset sales and casualty and condemnation events, subject to reinvestment rights and certain other exceptions; and (ii) any incurrence or issuance of certain debt, other than debt permitted under the Credit Agreement. We may voluntarily prepay outstanding loans under the Term Facility at any time without premium or penalty. All obligations under the Credit Agreement are unconditionally guaranteed by certain of the Company's existing wholly owned domestic subsidiaries, and are secured, subject to certain exceptions, by substantially all of the Company's assets and the assets of the Company's subsidiary guarantors. Under the Credit Agreement, we are subject to customary affirmative and negative covenants, including, among others, restrictions on our ability to incur debt, create liens, dispose of assets, make investments, loans, advances, guarantees, and acquisitions, enter into transactions with affiliates, and enter into any restrictive agreements and customary events of default (including payment defaults, covenant defaults, change of control defaults and bankruptcy defaults). The Credit Agreement also contains financial covenants, including the ratio of consolidated total indebtedness to adjusted consolidated earnings before income, taxes, depreciation and amortization (Adjusted EBITDA), as defined in the Credit Agreement, as well as the ratio of Adjusted EBITDA to consolidated interest expense. These covenants restrict our ability to purchase outstanding shares of our common stock. As of June 30, 2018 and September 30, 2017, we were in compliance with these financial covenants. See Note 6 for additional information on the fair value of the tranche B term loan and the TEU debt. Interest Rate Swaps On October 20, 2016, in order to mitigate our exposure to interest rate increases on our variable rate debt, we entered into a variable to fixed amortizing interest rate swap. See Note 7 for additional information on derivative financial instruments. The interest rate swap will be reduced to the following notional amounts over the next four years:
|
Stock-Based Compensation |
9 Months Ended |
---|---|
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION We compensate our officers, directors and employees with stock-based compensation under the 2017 Stock Incentive Plan (the 2017 Plan) approved by our shareholders and administered under the supervision of our Board of Directors. As of June 30, 2018, a total of 1,258 shares were available for issuance under the 2017 Plan. We make an annual stock grant under the 2017 Plan of stock options, restricted stock units and performance restricted stock units, as well as stock grants throughout the fiscal year. For fiscal years 2018, 2017 and 2016, the annual stock grant occurred in April 2018, April 2017 and December 2015, respectively. In fiscal year 2018, we adopted ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. See Note 2 for additional information regarding the impact of adoption. Stock Options There were 245 and 288 stock options granted during the nine months ended June 30, 2018 and July 1, 2017. The weighted average fair value of the stock options granted during the nine months ended June 30, 2018 and July 1, 2017 was $11.10 and $8.91, respectively. Restricted Stock Units and Performance Restricted Stock Units We award restricted stock units to directors and key employees and performance restricted stock units to key employees. During the nine months ended June 30, 2018 and July 1, 2017, we granted approximately 109 restricted stock units and 29 performance restricted stock units and 118 restricted stock units and 35 performance restricted stock units to directors, officers and employees, respectively. The fair value of the restricted stock units and performance restricted stock units granted during the nine months ended June 30, 2018 and July 1, 2017 was $49.63 and $45.00, respectively, representing the market value of our shares at the date of grant less the present value of estimated foregone dividends over the vesting period. Employee Stock Purchase Plan Our U.S. employees are eligible to participate in the 2012 Employee Stock Purchase Plan (2012 ESPP) approved by our shareholders. As of June 30, 2018, a total of 615 shares were available for issuance under the 2012 ESPP. During the nine months ended June 30, 2018 and July 1, 2017, we issued 24 and 25 shares, respectively, of our common stock for a single closed purchase period to participants under the 2012 ESPP at a weighted average price per share of $44.39 and $40.49, respectively. |
Employee Benefit Plans |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | EMPLOYEE BENEFIT PLANS We sponsor a non-contributory, defined benefit retirement plan for eligible employees of one of our German subsidiaries. Net periodic benefit cost for our defined benefit pension plan includes the following components:
The weighted average expected long-term rate of return on plan assets used to determine the net periodic benefit cost for each of the three and nine months ended June 30, 2018 and July 1, 2017 was 5.5%. |
Income Taxes |
9 Months Ended |
---|---|
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The income tax benefit for the nine months ended June 30, 2018 included certain discrete benefits of $25,378 for the estimated impact of the Tax Act enacted into law on December 22, 2017. The discrete benefits primarily related to $32,264 of estimated benefit from the remeasurement of our estimated net deferred tax liabilities, partially offset by $6,886 of estimated expense associated with the mandatory deemed repatriation tax. Excluding the impact of these discrete benefits, the effective tax rate for the nine months ended June 30, 2018 increased compared to the prior year primarily due to higher earnings before taxes, partially offset by the lower U.S. corporate tax rate under the Tax Act. In March 2018, the FASB issued ASU No. 2018-05 which incorporates various SEC paragraphs from SAB 118 into income tax accounting guidance effective immediately, allowing registrants to record provisional amounts during a one-year measurement period. The updated guidance summarizes a three-step process to be applied at each reporting period to account for and qualitatively disclose: (i) the effects of the change in tax law for which accounting is complete; (ii) provisional amounts (or adjustments to provisional amounts) for the effects of the tax law where accounting is not complete, but that a reasonable estimate has been determined; and (iii) if a reasonable estimate cannot yet be made and therefore taxes are reflected in accordance with law prior to the enactment of the Tax Act. See Note 2 for additional information on the adoption of this guidance. Amounts recorded where the accounting is complete during the nine months ended June 30, 2018 primarily relate to the reduction in the U.S. corporate income tax rate to 21%. We recorded an income tax benefit of $32,244 to remeasure deferred tax liabilities associated with intangible assets that will reverse at the new 21% rate. Amounts recorded where the accounting is provisional during the nine months ended June 30, 2018 include the remeasurement of other deferred taxes where the timing of the reversal cannot be known at this time. We have performed a provisional estimate of the net impact of remeasurement of other deferred tax assets and liabilities and recorded a $20 income tax benefit during the nine months ended June 30, 2018. In addition, the Tax Act includes a one-time mandatory repatriation transition tax on the net accumulated earnings and profits of our foreign subsidiaries. We have performed a provisional estimate of this tax and recorded a $6,886 income tax provision during the nine months ended June 30, 2018. The provisional amounts are based on information available at this time and may change due to a variety of factors, including, among others, anticipated guidance from the U.S. Department of Treasury about implementing the Tax Act and management's further assessment of the Tax Act and related regulatory guidance. We have completed our initial analysis of the impact of all provisions of the Tax Act expected to be effective in fiscal year 2018, and there are no anticipated effects of the Tax Act where we have not yet recorded a provisional estimate of the accounting effect as of June 30, 2018. The full-year estimated annual effective tax rate, which excludes the impact of discrete items, was 17.3% as of June 30, 2018, as compared to 11.6% as of July 1, 2017. This increase is primarily due to higher earnings before taxes, partially offset by the reduction of the U.S. federal statutory rate from 35.0% to 24.5%, a blended rate based upon our fiscal year. The income tax benefit for the three and nine months ended July 1, 2017 included certain discrete benefits of $2,801 recognized during the three months ended July 1, 2017 which consisted of additional U.S. tax benefits for prior fiscal years associated with domestic manufacturing, deductible PCB acquisition-related expenses and U.S. R&D tax credit. As of June 30, 2018, the liability for unrecognized tax benefits was $6,119, of which $3,531 would favorably affect our effective tax rate, if recognized. As of September 30, 2017, the liability for unrecognized tax benefits was $5,849, of which $3,234 would favorably affect our effective tax rate, if recognized. As of June 30, 2018, we do not expect significant changes in the amount of unrecognized tax benefits during the next twelve months. |
Shareholders' Equity |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shareholders' Equity | SHAREHOLDERS' EQUITY Tangible Equity Units During the third quarter of fiscal year 2016, we issued 1,150 TEUs in a registered public offering primarily to finance the acquisition of PCB, to repay amounts outstanding under our existing revolving credit facility and to pay related costs, fees and expenses. Total proceeds, net of underwriting discounts, commissions and other expenses were $110,926. Each TEU has a stated amount of $100 per TEU and is comprised of a prepaid stock purchase contract and a senior amortizing note having a final installment payment date of July 1, 2019. We allocated the proceeds from the issuance of the TEUs between equity and debt based on the relative fair values of the respective components of each TEU. The fair value of the prepaid stock purchase contracts, net of underwriting discounts, commissions and other expenses, was recorded in additional paid-in capital in the Consolidated Balance Sheets. The fair value of the senior amortizing note, net of underwriting discounts, commissions and other expenses, was split between current maturities of long-term debt, net and long-term debt, less current maturities, net in the Consolidated Balance Sheets. Underwriting discounts, commissions and other costs directly associated with the TEU-related debt will be amortized using the effective interest rate method over the three-year term of the instrument. The aggregate values assigned upon issuance to each component of the TEUs, based on the relative fair value of the respective components, were as follows:
Equity Component Unless converted earlier at the option of the holder, each prepaid stock purchase contract will automatically settle on July 1, 2019. If converted prior to the automatic settlement date at the option of the holder, the minimum of 1.9841 shares of our common stock are delivered to the holder of each prepaid stock purchase contract. On the automatic settlement date, a minimum of 1.9841 shares and a maximum of 2.3810 shares of our common stock, subject to adjustment based upon the applicable market value discussed below, will be delivered to the holder of each prepaid stock purchase contract at the settlement date. The number of shares of our common stock issuable upon settlement of each purchase contract on July 1, 2019 will be determined as follows:
The "applicable market value" is defined as the average of the daily volume-weighted average price of the common stock on each of the 20 consecutive trading days beginning on, and including, the 23rd scheduled trading day immediately preceding July 1, 2019. During the fourth quarter of fiscal year 2017, certain holders of our TEUs elected to early convert the equity component on 473 of our outstanding TEUs at the minimum conversion rate of 1.9841 which resulted in the issuance of 939 shares of our common stock. During the nine months ended June 30, 2018, no holders of our TEUs elected to early convert the equity component of our outstanding TEUs. There were 677 units of the equity component of TEUs outstanding as of both June 30, 2018 and September 30, 2017. Debt Component The amortizing senior note was issued with an initial principal amount of $27,386 or $23.8136 per TEU. Equal quarterly cash installments of $2.1875 per amortizing note will be paid, which in the aggregate will be equivalent to a 8.75% cash distribution per year with respect to each $100 stated amount per TEU. Each installment will constitute a payment of interest and partial repayment of principal. Earnings Per Common Share The TEUs have a dilutive effect on our earnings per share. The 1.9841 minimum shares to be issued are included in the calculation of basic weighted average shares outstanding. The 0.3969 difference between the minimum shares and the 2.3810 maximum shares are potentially dilutive, and accordingly, are included in our diluted earnings per share on a pro rata basis to the extent the applicable market value is higher than the reference price but less than the threshold appreciation price. See Note 13 for additional information regarding the calculation of earnings per share. Capped Calls In connection with the pricing of the TEUs sold in our public offering in fiscal year 2016, we purchased capped calls from third party banking institutions (Capped Calls) for $7,935. The initial Capped Calls were for 2,282 equivalent shares of our common stock with a strike price of $50.40, a cap price of $58.80 and an expiration date of July 1, 2019. The value of the Capped Calls is settled with shares of our common stock, based on the approximate market value of our common stock at such time, and could be settled as the TEUs were early converted or settled upon expiration on July 1, 2019 (Capped Call Expiration). During the fourth quarter of fiscal year 2017, we settled approximately 10% of the Capped Calls, which resulted in us receiving and retiring 12 shares of our common stock. During the nine months ended June 30, 2018, no Capped Calls were settled. On June 13, 2018, we amended the agreements with third party banking institutions for the outstanding Capped Calls (Capped Call Agreements) to modify the timing of settlement to be only upon expiration for all outstanding Capped Calls. Per the Capped Call Agreements, the outstanding Capped Calls are for 2,054 equivalent shares of our common stock with a strike price of $50.40, a cap price of $57.97. The Capped Calls will be automatically settled upon Capped Call Expiration with shares of our common stock based on the average market value of our common stock as defined in the Capped Call Agreements. As of June 30, 2018, the range of shares of our common stock to be received for the outstanding Capped Calls was a minimum of 0 shares to a maximum of 268 shares, which will be realized if the average market value of our common stock as defined in the Capped Call Agreements is at or below $50.40 or at $57.97, respectively, upon Capped Call Expiration. |
Earnings Per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income by the daily weighted average number of common shares outstanding during the applicable period. The TEUs are assumed to be settled at the minimum settlement amount of 1.9841 shares per TEU when calculating weighted-average common shares outstanding for purposes of basic earnings per share. Using the treasury stock method, diluted earnings per share includes the potentially dilutive effect of common shares issued in connection with outstanding stock-based compensation options and grants. The potentially dilutive effect of common shares issued in connection with outstanding stock options is determined based on the average market price for the period. For diluted earnings per share, the TEUs are assumed to be settled at a conversion factor based on our daily volume-weighted average price per share of our common stock for the 20 consecutive trading days preceding the end of the current fiscal quarter not to exceed 2.3810 shares of common stock per TEU. Under the treasury stock method, shares associated with certain stock options have been excluded from the diluted weighted average shares outstanding calculation because the exercise of those options would lead to a net reduction in common shares outstanding, or anti-dilution. As a result, stock options to acquire 667 and 813 weighted common shares have been excluded from the diluted weighted average common shares outstanding calculation for the three months ended June 30, 2018 and July 1, 2017, respectively. Stock options to acquire 548 and 702 weighted common shares have been excluded from the diluted weighted average common shares outstanding calculation for the nine months ended June 30, 2018 and July 1, 2017, respectively. In connection with the pricing of the TEUs, we purchased Capped Calls. The Capped Calls will not be reflected in the calculation of diluted earnings per share until settled as they will lead to a net reduction in common shares outstanding, or anti-dilution. See Note 12 for additional information on our equity instruments. Basic and diluted earnings per share are calculated as follows:
|
Other Comprehensive Income (Loss) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss) | OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income (loss), a component of shareholders' equity, consists of foreign currency translation adjustments, gains or losses on derivative instruments and defined benefit pension plan adjustments. Income tax expense or benefit allocated to each component of other comprehensive income (loss) are as follows:
The changes in the net of tax balances of each component of AOCI are as follows:
The effect on certain line items in the Consolidated Statements of Income of amounts reclassified out of AOCI are as follows:
|
Business Segment Information |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Segment Information | BUSINESS SEGMENT INFORMATION Our Chief Executive Officer (the Chief Operating Decision Maker) regularly reviews financial information for our two operating segments, Test and Sensors. Test provides testing equipment, systems and services to the ground vehicles, materials and structures sectors. Sensors provides high performance sensors for acceleration, position, vibration, motion, pressure and force measurement. In evaluating each segment's performance, our Chief Executive Officer focuses on income from operations. This measure excludes interest income and expense, income taxes and other non-operating items. Corporate expenses, including costs associated with various support functions such as human resources, information technology, legal, finance and accounting, and general and administrative costs, are allocated to the reportable segments on the basis of revenue. The accounting policies of the reportable segments are the same as those described in Note 1 to the Consolidated Financial Statements found in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017. The acquisition of PCB in fiscal year 2016 generated new opportunities to sell between our operating segments. Intersegment revenue is based on standard costs with reasonable mark-ups established between the reportable segments. All significant intersegment amounts are eliminated to arrive at consolidated financial results. Financial information by reportable segment is as follows:
|
Restructuring and Related Costs |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | RESTRUCTURING AND RELATED COSTS Fiscal Year 2017 Restructuring During the fourth quarter of fiscal year 2017, we initiated a series of Test workforce reductions and facility closures intended to increase organizational effectiveness, gain manufacturing efficiencies and provide cost savings that can be reinvested in our growth initiatives. These actions include the transfer of certain production operations in China to a contract manufacturing partner in fiscal year 2018. As a result, in the three and nine months ended June 30, 2018, we recorded $715 and $1,129 of pre-tax severance and related expense, respectively, and $24 and $211 of pre-tax facility closure costs, respectively. As of June 30, 2018, we have incurred a total of $4,262 of pre-tax expense, including $4,028 and $234 of pre-tax expense related to severance and facility closure costs, respectively. For our fiscal year ending September 29, 2018, we expect to incur total expense of approximately $2,000 related to these restructuring actions. The majority of the expenses are expected to be paid in the first half of fiscal year 2019. During the fourth quarter of fiscal year 2017, in an effort to reduce costs and create economic efficiencies in Sensors, we initiated plans to close our Machida, Japan sales office in the second quarter of fiscal year 2018. In the three months ended June 30, 2018, we recorded an immaterial adjustment to the severance and related expense reported in previous periods. In the nine months ended June 30, 2018, we recorded $3 of pre-tax severance and related expense. As of June 30, 2018, we have incurred a total of $133 of pre-tax severance and related expense. We expect to incur additional pre-tax severance and related expense of approximately $40. The majority of the expenses are expected to be paid in fiscal year 2018 and the first half of fiscal year 2019. Fiscal Year 2016 Restructuring During fiscal year 2016, we initiated plans to reduce costs in Sensors by closing our Machida, Japan manufacturing facility in the third quarter of fiscal year 2017. We recorded no restructuring expenses in the three and nine months ended June 30, 2018 and $92 and $1,036 in the three and nine months ended July 1, 2017, respectively. As of June 30, 2018, we have incurred a total of $1,964 of pre-tax expense, including $1,444 and $520 related to severance and facility closure costs, respectively. The remaining severance and facility closing costs are expected to be paid during the fourth quarter of fiscal year 2018. Fiscal Year 2014 Restructuring During fiscal year 2014, we initiated workforce and other cost reduction actions at certain of our Test locations in the U.S. and Europe. No restructuring expenses were recognized during the three or nine months ended June 30, 2018 or July 1, 2017 related to these restructuring actions. Restructuring expenses included in our Consolidated Statements of Income for all restructuring actions are as follows:
Restructuring expense accruals included in the Consolidated Balance Sheets for all restructuring actions are as follows:
Restructuring expense accruals included in the Consolidated Balance Sheets are as follows:
|
Basis of Presentation (Policies) |
9 Months Ended |
---|---|
Jun. 30, 2018 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The consolidated financial statements include the accounts of MTS Systems Corporation and its wholly owned subsidiaries. Significant intercompany account balances and transactions have been eliminated. The terms "MTS," "we," "us," "the Company" or "our" in this Quarterly Report on Form 10-Q, unless the context otherwise requires, refer to MTS Systems Corporation and its wholly owned subsidiaries. We have prepared the interim unaudited consolidated financial statements included herein pursuant to the rules and regulations of the United States (U.S.) Securities and Exchange Commission (SEC). The information furnished in these consolidated financial statements includes normal recurring adjustments and reflects all adjustments that are, in our opinion, necessary for a fair presentation of such financial statements. The consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). GAAP requires us to make estimates and assumptions that affect amounts reported. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted pursuant to SEC rules and regulations. The accompanying consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017 filed with the SEC. Interim results of operations for the third fiscal quarter ended June 30, 2018 are not necessarily indicative of the results to be expected for the full fiscal year. |
Fiscal Period | We have a 5-4-4 week, quarterly accounting cycle with our fiscal year ending on the Saturday closest to September 30. Fiscal year 2018 ending on September 29, 2018 will consist of 52 weeks. Fiscal year 2017 ended on September 30, 2017 and consisted of 52 weeks. |
Recently issued accounting pronouncements | Revenue Recognition In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), and in August 2015, issued ASU No. 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of Effective Date, which amended ASU No. 2014-09 as to the effective date of the standard. The guidance, as amended, clarifies the principles for revenue recognition in transactions involving contracts with customers. Determination of when and how revenue is recognized will be based on a five-step analysis. The new guidance will require revenue recognition to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The mandatory effective date of the new revenue recognition standard was deferred by one year under ASU No. 2015-14. In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net), which amends ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify principal versus agent guidance in situations in which a revenue transaction involves a third party in providing goods or services to a customer. In such circumstances, an entity must determine whether the nature of its promise to the customer is to provide the underlying goods or services (i.e., the entity is the principal in the transaction) or to arrange for the third party to provide the underlying goods or services (i.e., the entity is the agent in the transaction). To determine the nature of its promise to the customer, the entity must first identify each specified good or service to be provided to the customer and then (before transferring it) assess whether it controls each specified good or service. The new guidance clarifies how an entity should identify the unit of accounting (the specified good or service) for the principal versus agent evaluation, and how it should apply the control principle to certain types of arrangements, such as service transactions, by explaining what a principal controls before the specified good or service is transferred to the customer. In April 2016, the FASB issued ASU No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, to amend ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), on identifying performance obligations to allow entities to disregard items that are immaterial in the context of the contract, clarify when a promised good or service is separately identifiable from other promises in the contract and allow an entity to elect to account for the cost of shipping and handling performed after control of a good has been transferred to the customer as a fulfillment cost or an expense. The updated guidance also clarifies how an entity would evaluate the nature of its promise in granting a license of intellectual property, which determines whether the entity recognizes revenue over time or at a point in time, and other aspects relative to licensing. In May 2016, the FASB issued ASU No. 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815): Rescission of SEC Guidance Because of Accounting Standards Updates 2014-09 and 2014-16 Pursuant to Staff Announcements at the March 3, 2016 EITF Meeting (SEC Update), which rescinds previous guidance on revenue and expense recognition for freight services in process, accounting for shipping and handling fees and costs and accounting for consideration given by a vendor to a customer. In May 2016, the FASB issued ASU No. 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which amends ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), to clarify that, for a contract to be considered completed at transition, all (or substantially all) of the revenue must have been recognized under legacy GAAP. The amendment also added an expedient to ease transition for contracts that were modified prior to adoption of the new revenue standard and clarifies both how an entity should evaluate the collectibility threshold and when an entity can recognize non-refundable considerations received as revenue if the arrangement does not meet the standard's contract criteria. The amendment clarifies that fair value of non-cash considerations should be measured at contract inception when determining the transaction price and allows an entity to make an accounting policy election to exclude from the transaction price certain types of taxes collected from a customer if it discloses the policy. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers, which amends ASU 2014-09, Revenue from Contracts with Customers (Topic 606), providing thirteen corrections and improvements to the new revenue standard. The aforementioned revenue standards and amendments are required to be adopted for annual periods beginning after December 15, 2017, including interim periods within that annual period, which is our fiscal year 2019. The new standards and amendments may be adopted retrospectively for all periods presented, or adopted using a modified retrospective approach. Early adoption is permitted for annual reporting periods beginning after December 15, 2016, and interim periods within that annual period, which is our fiscal year 2018. We intend to adopt the aforementioned revenue standards and amendments for our fiscal year 2019. The modified retrospective approach will be used as our method of adoption. We have substantially completed our review and analysis of our sales channels, selected contracts, policies and practices as compared to the new guidance and continue to work through implementation steps. We continue to evaluate and design our procedural and system requirements related to the provisions of this standard. We are updating and rewriting our revenue recognition accounting policy as needed to reflect the requirements of this standard, and we are drafting our new revenue disclosures. We anticipate the revenue recognition methodology will change for certain products and contracts. Certain contracts will have a delay in revenue recognition until the customer takes control of the product, while certain products and contracts will accelerate to recognize revenue over the life of the contract. This change may have a material impact on the timing of revenue recognition in our Test segment with minimal impact to our Sensors segment. We continue to evaluate the impact that these changes in methodology will have on our consolidated financial statements. Leases In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which requires lessees to recognize a right-of-use asset, representing the right to use the underlying asset for the lease term, and a lease liability on the balance sheet for all leases with terms greater than 12 months. Lessees can forgo recognizing a right-of-use asset and lease liability with lease terms of 12 months or less on the balance sheet through accounting policy elections as long as the lease does not include options to renew or purchase the underlying assets that are reasonably certain to be exercised. The new guidance also requires certain qualitative and quantitative disclosures designed to assess the amount, timing and uncertainty of cash flows arising from leases, along with additional key information about leasing arrangements. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases, to clarify certain aspects of the new lease standard. The FASB also issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements, which allows the election of an optional transition method to apply the provisions of the new lease standard as of the date of adoption and recognize a cumulative-effect adjustment to retained earnings in the period of adoption, while continuing to present all prior periods under previous lease accounting guidance. The aforementioned lease standards and amendments are required to be adopted for annual periods beginning after December 15, 2018, including interim periods within that annual period, which is our fiscal year 2020. The new standards and amendments are to be applied using a modified retrospective approach, which includes a number of optional practical expedients and an optional transition method. Early adoption is permitted. We are currently evaluating the impact the adoption of this guidance will have on our financial condition, results of operations and disclosures. Other In March 2016, the FASB issued ASU No. 2016-04, Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products, which amends existing guidance on extinguishing financial liabilities for certain prepaid stored-value products. The new standard requires recognition of the expected breakage amount or the value that is ultimately not redeemed either proportionally in earnings as redemption occurs or when redemption is remote, if issuers are not entitled to breakage. The standard is required to be adopted for annual periods beginning after December 15, 2017, including interim periods within that annual period, which is our fiscal year 2019. The amendment is to be applied either using a modified retrospective approach by recognizing a cumulative-effect adjustment to retained earnings as of the beginning of the year or retrospectively to each period presented. Early adoption is permitted. We do not expect the adoption of this standard to have a material effect on our financial condition, results of operations or disclosures. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which changes the accounting for credit losses on instruments measured at amortized cost by adding an impairment model that is based on expected losses rather than incurred losses. An entity will recognize as an allowance its estimate of expected credit losses, which is believed to result in more timely recognition of such losses as the standard eliminates the probable initial recognition threshold. The standard is required to be adopted for annual periods beginning after December 15, 2019, including interim periods within that annual period, which is our fiscal year 2021. The amendment is to be applied using a modified retrospective approach as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which adopted. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within that annual period, which is our fiscal year 2020. We have not yet evaluated the impact the adoption of this guidance may have on our financial condition, results of operations or disclosures. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory, which requires companies to account for the income tax effects of intercompany sales and transfers of assets other than inventory when the transfer occurs. Current guidance requires companies to defer the income tax effects of intercompany transfers of assets until the asset has been sold to an outside party or otherwise recognized. The standard is required to be adopted for annual periods beginning after December 15, 2017, including interim periods within that annual period, which is our fiscal year 2019. The amendment is to be applied using a modified retrospective approach. Early adoption is permitted as of the beginning of an annual period. We do not expect the adoption of this standard to have a material effect on our financial condition, results of operations or disclosures. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which changes how employers that sponsor defined benefit pension or other postretirement benefit plans present the net periodic benefit cost in the income statement. The new guidance requires the service cost component of net periodic benefit cost to be presented in the same income statement line items as other employee compensation costs arising from services rendered during the period with only the service cost component eligible for capitalization in assets. Other components of the net periodic benefit cost are to be stated separately from the line items that include the service cost and outside of operating income. These components are not eligible for capitalization in assets. The standard is required to be adopted for annual periods beginning after December 15, 2017, including interim periods within that annual period, which is our fiscal year 2019. The amendment is to be applied retrospectively. Early adoption is permitted as of the beginning of an annual period. We are currently evaluating the impact the adoption of this guidance will have on our financial condition, results of operations and disclosures. In May 2017, the FASB issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting, which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. Modification guidance must be applied if the fair value, vesting conditions or classification of the awards changes. The standard is required to be adopted for annual periods beginning after December 15, 2017, including interim periods within that annual period, which is our fiscal year 2019. The amendment is to be applied prospectively to an award modified on or after the adoption date, with early adoption permitted. We do not expect the adoption of this standard to have a material effect on our financial condition, results of operations or disclosures. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities, which amends the hedge accounting model in Accounting Standards Codification (ASC) 815 to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. The standard is required to be adopted for annual periods beginning after December 15, 2018, including interim periods within that annual period, which is our fiscal year 2020. The amendment is to be applied using a modified retrospective approach, with early adoption permitted. We have not yet evaluated the impact the adoption of this guidance may have on our financial condition, results of operations or disclosures. In March 2018, the FASB issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which provides an option to reclassify stranded tax effects within accumulated other comprehensive income (loss) (AOCI) to retained earnings due to the lower U.S. corporate tax rate in the Tax Cuts and Jobs Act (the Tax Act). The standard is required to be adopted for annual periods beginning after December 15, 2018, including interim periods within that annual period, which is our fiscal year 2020. The amendment is to be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. Early adoption is permitted. We are currently evaluating the impact the adoption of this guidance will have on our financial condition, results of operations or disclosures. Adopted In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, which modifies existing requirements regarding measuring inventory at the lower of cost or market. Under current inventory standards, the market value requires consideration of replacement cost, net realizable value and net realizable value less an approximately normal profit margin. The new guidance replaces market with net realizable value defined as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This eliminates the need to determine and consider replacement cost or net realizable value less an approximately normal profit margin when measuring inventory. We adopted the new standard on a prospective basis for the annual period ending September 29, 2018, including interim periods within that annual period. The adoption of this guidance had no impact on our financial condition, results of operations or disclosures. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, which is intended to simplify certain aspects of accounting for share-based compensation arrangements, including modifications to the accounting for income taxes upon vesting or settlement of awards, employer tax withholding on share-based compensation, classification on the statement of cash flows and forfeitures. We adopted the new standard for the annual period ending September 29, 2018, including interim periods within that annual period. Certain aspects of the amendment were applied using a retrospective transition method, while others were applied prospectively. The adoption of this standard resulted in an increase in cash flows from operating activities and a decrease of cash flows from financing activities of $208 for fiscal year 2017 and $187 for fiscal year 2016 for the reclassification from financing activities to operating activities of excess tax benefits from stock-based compensation. Additionally, we elected to modify our accounting policy for forfeitures on stock-based awards to record forfeitures when the forfeiture occurs instead of recording stock-based compensation expense based on an estimation of stock awards that will ultimately vest. The adoption of this guidance will not have a material impact on our financial condition, results of operations or disclosures for fiscal year 2018. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance on the classification of certain cash receipts and cash payments with the objective of reducing diversity in practice. We early adopted the new standard on a retrospective basis for the annual period ending September 29, 2018, including interim periods within that annual period. The adoption of this guidance did not have a material impact on our current or prior year financial condition, results of operations or disclosures. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which changes the definition of a business to assist entities with evaluating when a set of transferred assets and activities is a business. The new guidance clarifies that a business must also include at least one substantive process and narrows the definition of outputs by more closely aligning it with how outputs are described in ASC 606, Revenue from Contracts with Customers. We early adopted the new standard on a prospective basis for the annual period ending September 29, 2018, including interim periods within that annual period. The adoption of this guidance had no impact on our financial condition, results of operations or disclosures, as the standard only applies to transactions occurring subsequent to adoption. In March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (SAB 118), which incorporates various SEC paragraphs from SAB 118 into income tax accounting guidance effective immediately. The SEC issued the interpretive guidance in SAB 118 on December 22, 2017 concurrent with the enactment of the Tax Act to clarify accounting and disclosure requirements. Pursuant to SAB 118, we recognized the estimated income tax effects of the Tax Act in our consolidated financial statements for all interim periods in our current fiscal year ending September 29, 2018. We adopted the new standard for the interim period ended March 31, 2018. See Note 11 for disclosure of the impact the adoption of this guidance on our financial condition and results of operations for fiscal year 2018. |
Inventories (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Inventories | Inventories, net are as follows:
|
Warranty Obligations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warranty Provisions and Claims | Changes to accrued warranty costs are as follows:
|
Capital Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Capital Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property and Equipment | Property and equipment, net are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Changes to the carrying amount of goodwill are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets | Intangible assets are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization Expense | Amortization expense recognized is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Estimated Future Amortization Expense on Finite-Lived Intangible Assets | Estimated future amortization expense related to finite-lived intangible assets is as follows:
|
Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Assets And Liabilities Subject To Fair Value Measurements On A Recurring Basis | Financial assets and liabilities subject to fair value measurements on a recurring basis are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Estimated Fair Values of Debt Instruments | The carrying amount and estimated fair value of our debt is as follows:
|
Derivative Instruments and Hedging Activities (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Of Outstanding Designated And Undesignated Derivative Assets And Liabilities | The fair value of our outstanding designated and undesignated derivative assets and liabilities are reported in the Consolidated Balance Sheets as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation Of The Net Fair Value Of Designated Hedge Derivatives | A reconciliation of the net fair value of designated hedge derivatives subject to master netting arrangements that are recorded in the Consolidated Balance Sheets to the net fair value that could have been reported in the Consolidated Balance Sheets are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pretax Amounts Recognized In Accumulated Other Comprehensive Income On Currency Contracts | The pretax amounts recognized in AOCI on currency exchange contracts, including (gains) losses reclassified into earnings in the Consolidated Statements of Income and gains (losses) recognized in other comprehensive income (loss) (OCI), are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pretax Amounts Recognized In AOCI On Interest Rate Swaps | The pretax amounts recognized in AOCI on interest rate swaps, including (gains) losses reclassified into earnings in the Consolidated Statements of Income and gains (losses) recognized in OCI, are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Gains (Losses) Recognized In Income For Foreign Exchange Balance Sheet Derivative Contracts | The net gain (loss) recognized in the Consolidated Statements of Income on foreign exchange balance sheet derivative contracts is as follows:
|
Financing (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt Instruments | Long-term debt consists of the following:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments | The interest rate swap will be reduced to the following notional amounts over the next four years:
|
Employee Benefit Plans (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Costs For The Retirement Benefit Plan | Net periodic benefit cost for our defined benefit pension plan includes the following components:
|
Shareholders' Equity (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Tangible Equity Units | The aggregate values assigned upon issuance to each component of the TEUs, based on the relative fair value of the respective components, were as follows:
|
Earnings Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted earnings per share are calculated as follows:
|
Other Comprehensive Income (Loss) (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Changes In Each Component Of Accumulated Other Comprehensive Income | Income tax expense or benefit allocated to each component of other comprehensive income (loss) are as follows:
The changes in the net of tax balances of each component of AOCI are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Amounts Reclassified Out Of Accumulated Other Comprehensive Income | The effect on certain line items in the Consolidated Statements of Income of amounts reclassified out of AOCI are as follows:
|
Business Segment Information (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Information By Reportable Segment | Financial information by reportable segment is as follows:
|
Restructuring and Related Costs (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Costs | Restructuring expense accruals included in the Consolidated Balance Sheets are as follows:
Restructuring expense accruals included in the Consolidated Balance Sheets for all restructuring actions are as follows:
Restructuring expenses included in our Consolidated Statements of Income for all restructuring actions are as follows:
|
Recently Issued Accounting Pronouncements Recently Issued Accounting Pronouncements (Narrative) (Details) - Accounting Standards Update 2016-09, Excess Tax Benefit Component - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Oct. 01, 2016 |
|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Excess tax benefit from stock-based compensation, financing activities | $ (208) | $ (187) |
Excess tax benefit from stock-based compensation, operating activities | $ 208 | $ 187 |
Inventories (Summary of Inventories) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Components, assemblies and parts | $ 95,453 | $ 86,991 |
Customer projects in various stages of completion | 35,133 | 30,225 |
Finished goods | 11,845 | 10,512 |
Total inventories, net | $ 142,431 | $ 127,728 |
Warranty Obligations (Warranty Provisions And Claims) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Beginning accrued warranty costs | $ 6,191 | $ 5,240 | $ 6,018 | $ 5,718 |
Warranty claims | (1,384) | (1,208) | (3,969) | (3,051) |
Warranty provisions | 756 | 972 | 3,483 | 2,466 |
Adjustments to preexisting warranties | 50 | 470 | 64 | 353 |
Currency translation | (24) | 21 | (7) | 9 |
Ending accrued warranty costs | $ 5,589 | $ 5,495 | $ 5,589 | $ 5,495 |
Capital Assets (Property and Equipment) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 269,749 | $ 262,575 |
Less: Accumulated depreciation | (175,408) | (162,645) |
Total property and equipment, net | 94,341 | 99,930 |
Land and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 2,866 | 2,867 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 60,704 | 60,340 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | 203,293 | 196,621 |
Assets held under capital leases | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 2,886 | $ 2,747 |
Capital Assets (Goodwill) (Details) $ in Thousands |
9 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
| |
Goodwill [Roll Forward] | |
Balance, September 30, 2017 | $ 369,762 |
Currency translation | 53 |
Balance, June 30, 2018 | 369,815 |
Test | |
Goodwill [Roll Forward] | |
Balance, September 30, 2017 | 25,109 |
Currency translation | 69 |
Balance, June 30, 2018 | 25,178 |
Sensors | |
Goodwill [Roll Forward] | |
Balance, September 30, 2017 | 344,653 |
Currency translation | (16) |
Balance, June 30, 2018 | $ 344,637 |
Capital Assets (Amortization Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Capital Assets [Abstract] | ||||
Amortization expense | $ 3,453 | $ 3,656 | $ 10,388 | $ 10,984 |
Capital Assets (Estimated Future Amortization Expense On Intangible Assets) (Details) $ in Thousands |
Jun. 30, 2018
USD ($)
|
---|---|
Capital Assets [Abstract] | |
Remainder of 2018 | $ 3,422 |
2019 | 13,595 |
2020 | 13,314 |
2021 | 14,213 |
2022 | 14,929 |
2023 | 14,827 |
Thereafter | $ 115,276 |
Fair Value Measurements (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Assets | ||
Currency contracts | $ 977 | $ 150 |
Total assets | 8,331 | 3,649 |
Liabilities | ||
Currency contracts | 114 | 551 |
Total liabilities | 114 | 551 |
Level 1 | ||
Assets | ||
Currency contracts | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Currency contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Assets | ||
Currency contracts | 977 | 150 |
Total assets | 8,331 | 3,649 |
Liabilities | ||
Currency contracts | 114 | 551 |
Total liabilities | 114 | 551 |
Level 3 | ||
Assets | ||
Currency contracts | 0 | 0 |
Total assets | 0 | 0 |
Liabilities | ||
Currency contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Interest rate swaps | ||
Assets | ||
Interest rate swaps | 7,354 | 3,499 |
Interest rate swaps | Level 1 | ||
Assets | ||
Interest rate swaps | 0 | 0 |
Interest rate swaps | Level 2 | ||
Assets | ||
Interest rate swaps | 7,354 | 3,499 |
Interest rate swaps | Level 3 | ||
Assets | ||
Interest rate swaps | $ 0 | $ 0 |
Derivative Instruments and Hedging Activities (Reconciliation Of The Net Fair Value Of Designated Hedge Derivatives) (Details) - Currency exchange contracts gain (loss) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Offsetting Derivative Assets [Abstract] | ||
Gross Recognized Amount | $ 8,085 | $ 3,572 |
Gross Offset Amount | 0 | 0 |
Net Amount Presented | 8,085 | 3,572 |
Derivatives Subject to Offset | (114) | (210) |
Cash Collateral Received | 0 | 0 |
Net Amount | 7,971 | 3,362 |
Offsetting Derivative Liabilities [Abstract] | ||
Gross Recognized Amount | 114 | 551 |
Gross Offset Amount | 0 | 0 |
Net Amount Presented | 114 | 551 |
Derivatives Subject to Offset | (114) | (210) |
Cash Collateral Received | 0 | 0 |
Net Amount | $ 0 | $ 341 |
Derivative Instruments and Hedging Activities (Net Gains (Losses) Recognized in Income for Derivative Contracts) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Net gain (loss) recognized in other income (expense), net | $ 981 | $ (680) | $ (46) | $ (691) |
Financing (Schedule of Long term Debt) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
Jul. 02, 2016 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Total long-term debt | $ 404,409 | $ 474,309 | |
Less: Unamortized underwriting discounts, commissions and other expenses | (9,190) | (12,491) | |
Total long-term debt, less current maturities, net | 342,419 | 418,544 | |
Current portion of unamortized underwriting discounts, commissions and other expenses | 3,887 | 4,179 | |
Term loan B facility | |||
Debt Instrument [Line Items] | |||
Total long-term debt | 392,566 | 455,400 | |
Current maturities | $ (42,600) | $ (33,600) | |
Principal amount, amortization percentage | 1.00% | 1.00% | |
Tangible equity units senior amortizing note | |||
Debt Instrument [Line Items] | |||
Total long-term debt | $ 9,638 | $ 16,443 | |
Current maturities | $ (9,638) | (9,152) | |
Interest rate, percentage | 8.75% | 8.75% | |
Capital lease obligations | |||
Debt Instrument [Line Items] | |||
Capital lease obligations | $ 2,205 | 2,466 | |
Less: Current maturities of capital lease obligations | $ (562) | $ (522) |
Financing (Schedule of Interest Rate Swap) (Details) $ in Thousands |
Oct. 20, 2016
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
October 3, 2018 | $ 225,000 |
October 3, 2019 | 180,000 |
October 3, 2020 | 125,000 |
April 3, 2021 | $ 0 |
Employee Benefit Plans (Schedule Of Costs For The Retirement Benefit Plan) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Retirement Benefits [Abstract] | ||||
Service cost | $ 320 | $ 356 | $ 969 | $ 1,047 |
Interest cost | 159 | 108 | 483 | 317 |
Expected return on plan assets | (317) | (271) | (960) | (797) |
Net amortization and deferral | 131 | 249 | 398 | 731 |
Net periodic benefit cost | $ 293 | $ 442 | $ 890 | $ 1,298 |
Employee Benefit Plans (Narrative) (Details) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Retirement Benefits [Abstract] | ||||
Expected rate of return on plan assets | 5.50% | 5.50% | 5.50% | 5.50% |
Income Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
Sep. 30, 2017 |
|
Income Tax Disclosure [Abstract] | ||||
Income tax discrete benefits | $ 2,801 | $ 25,378 | ||
Change in enacted tax rate | 32,264 | |||
Tax Cuts and Jobs Act of 2017, income tax expense, accounting complete, mandatory deemed repatriation tax | 6,886 | |||
Tax Cuts and Jobs Act of 2017, incomplete accounting, change in tax rate, provisional income tax benefit | 32,244 | |||
Tax Cuts and Jobs Act of 2017, income tax benefit, accounting provisional, remeasurement of deferred tax assets and liabilities | $ 20 | |||
Full-year estimated annual effective tax rate, excluding impact of discrete items | 17.30% | 11.60% | ||
Federal statutory income tax rate, percent | 24.50% | |||
Unrecognized tax benefits | $ 6,119 | $ 5,849 | ||
Unrecognized tax benefits that would favorably impact the effective tax rate on continuing operations | $ 3,531 | $ 3,234 |
Shareholders' Equity (Tangible Equity Units Narrative) (Details) Tangible_Equity_Unit in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Jul. 02, 2016
USD ($)
Tangible_Equity_Unit
$ / per_TEU
|
Jun. 30, 2018 |
|
Debt Instrument [Line Items] | ||
Issued tangible equity units (in tangible equity units) | Tangible_Equity_Unit | 1,150 | |
Tangible equity units, issued, net | $ | $ 110,926 | |
Fair value price per TEU (in dollars per tangible equity unit) | 100 | |
Tangible equity units senior amortizing note | ||
Debt Instrument [Line Items] | ||
Fair value price per TEU (in dollars per tangible equity unit) | 100 | |
Amortization period of costs | 3 years |
Shareholders' Equity (Schedule of TEU Components) (Details) $ in Thousands |
3 Months Ended |
---|---|
Jul. 02, 2016
USD ($)
$ / per_TEU
| |
Debt Instrument [Line Items] | |
Fair value price per TEU (in dollars per tangible equity unit) | $ / per_TEU | 100 |
Gross proceeds | $ 115,000 |
Less: Underwriting discounts and commissions | (3,450) |
Less: Other expenses | (624) |
Issuance of TEUs, net | $ 110,926 |
Equity Component | |
Debt Instrument [Line Items] | |
Fair value price per TEU (in dollars per tangible equity unit) | $ / per_TEU | 76.19 |
Gross proceeds | $ 87,614 |
Less: Underwriting discounts and commissions | (2,628) |
Less: Other expenses | (475) |
Issuance of TEUs, net | $ 84,511 |
Debt Component | |
Debt Instrument [Line Items] | |
Fair value price per TEU (in dollars per tangible equity unit) | $ / per_TEU | 23.81 |
Gross proceeds | $ 27,386 |
Less: Underwriting discounts and commissions | (822) |
Less: Other expenses | (149) |
Issuance of TEUs, net | $ 26,415 |
Shareholders' Equity (Debt Component) (Details) |
3 Months Ended | |
---|---|---|
Jul. 02, 2016
USD ($)
$ / per_TEU
|
Jun. 30, 2018 |
|
Debt Instrument [Line Items] | ||
Fair value price per TEU (in dollars per tangible equity unit) | 100 | |
Tangible equity units senior amortizing note | ||
Debt Instrument [Line Items] | ||
Principal amount | $ | $ 27,386,000 | |
Principal amount per note (in dollars per TEU) | 23.8136 | |
Periodic payment per note, after initial payment | $ | $ 2.1875 | |
Interest rate, percentage | 8.75% | 8.75% |
Fair value price per TEU (in dollars per tangible equity unit) | 100 |
Shareholders' Equity (Earnings Per Common Share) (Details) - Common Class A - shares |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Sep. 30, 2017 |
Jul. 02, 2016 |
Jun. 30, 2018 |
|
Tangible equity units senior amortizing note | |||
Class of Stock [Line Items] | |||
Incremental common shares attributable to dilutive effect of conversion of debt securities (in shares) | 0.3969 | ||
Equity Component | Minimum | |||
Class of Stock [Line Items] | |||
Convertible, number of equity instruments per contract (in shares) | 1.9841 | 1.9841 | 1.9841 |
Equity Component | Maximum | |||
Class of Stock [Line Items] | |||
Convertible, number of equity instruments per contract (in shares) | 2.3810 | 2.3810 |
Earnings Per Share (Narrative) (Details) |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2018
shares
|
Sep. 30, 2017
shares
|
Jul. 01, 2017
shares
|
Jul. 02, 2016
trade_day
shares
|
Jun. 30, 2018
trade_day
shares
|
Jul. 01, 2017
shares
|
|
Class of Stock [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 667,000 | 813,000 | 548,000 | 702,000 | ||
Equity Component | ||||||
Class of Stock [Line Items] | ||||||
Threshold consecutive trading days | trade_day | 20 | 20 | ||||
Equity Component | Minimum | Common Class A | ||||||
Class of Stock [Line Items] | ||||||
Convertible, number of equity instruments per contract (in shares) | 1.9841 | 1.9841 | 1.9841 | |||
Equity Component | Maximum | Common Class A | ||||||
Class of Stock [Line Items] | ||||||
Convertible, number of equity instruments per contract (in shares) | 2.3810 | 2.3810 |
Earnings Per Share (Schedule Of Earnings Per Share, Basic And Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 8,979 | $ 10,610 | $ 50,568 | $ 19,514 |
Weighted average common shares outstanding (in shares) | 19,174 | 19,052 | 19,149 | 19,012 |
Effect of dilutive securities | ||||
Stock-based compensation (in shares) | 131 | 86 | 120 | 96 |
Weighted average dilutive common shares outstanding (in shares) | 19,305 | 19,138 | 19,269 | 19,108 |
Earnings per share | ||||
Basic (in dollars per share) | $ 0.47 | $ 0.56 | $ 2.64 | $ 1.03 |
Diluted (in dollars per share) | $ 0.47 | $ 0.55 | $ 2.62 | $ 1.02 |
Business Segment Information (Financial Information By Reportable Segment) (Details) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018
USD ($)
|
Jul. 01, 2017
USD ($)
|
Jun. 30, 2018
USD ($)
segment
|
Jul. 01, 2017
USD ($)
|
|
Segment Reporting Information [Line Items] | ||||
Number of operating segments | segment | 2 | |||
Total revenue | $ 194,668 | $ 193,764 | $ 580,153 | $ 586,467 |
Total income from operations | 16,264 | 16,617 | 49,371 | 42,319 |
Test | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 116,055 | 124,359 | 344,496 | 379,325 |
Total income from operations | 3,873 | 8,709 | 12,777 | 26,792 |
Sensors | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 79,000 | 69,405 | 236,501 | 207,142 |
Total income from operations | 12,398 | 7,908 | 36,623 | 15,527 |
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | (387) | 0 | (844) | 0 |
Total income from operations | $ (7) | $ 0 | $ (29) | $ 0 |
Restructuring and Related Costs (Summary Of Severance Charges On Balance Sheet) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Restructuring Cost and Reserve [Line Items] | ||
Total severance and related costs | $ 3,479 | $ 3,962 |
Employee Severance | ||
Restructuring Cost and Reserve [Line Items] | ||
Total severance and related costs | 3,479 | 3,962 |
Employee Severance | Accrued payroll and related costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Total severance and related costs | 3,257 | 3,485 |
Employee Severance | Other accrued liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Total severance and related costs | 99 | 98 |
Employee Severance | Other long-term liabilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Total severance and related costs | $ 123 | $ 379 |
^Q9N@ E&&&WZ+J!>B'/U3^S< 79)CLDLJ6$8RF$UY_(.
M'-Z?GU[G=0OC$DFG,+]*1M YX)I=)[^M-MO=(^OJBC\453[-CC>"WXNZ^9A<
M?_C=A*W79F_^L?%5L&OAU[_HO@!02P,$% @ [H$&39E QE!MO*/5-$B%WSPQ+CW/35_,=X3O3<7LVBWPG[3Q4N]>B]"3')T-T:3YCAJ
MR$)#TG\:I/UG"'%"B#4(%P8X3MT&H=,@M ;1NRK#596C)K&:;M1$Y#]E1DY*
M9!WBA0,)<+;";$4XC+/8S8F=G-C!(<&*LQ7A,,21F[-S 16$;.$]-XYZS+K#X!4F
MC&XA&QL" \+3! 862+%8HV6.MP'N;40X,SB\Z>3A;2<)X22@,PG(^0Q:^^!F
M/CGM@)$.6.N W3@(C07I,%&+*5L,"[28&/,Q"978*(PA"&G*G*3,"&290I)R2% V2F$=6F&X492A-7?F&M@^P( \V$XB
M.I.(S"0B,HD-%I$5@G.D@\S((#,[2&2F2F%&1" F@\2V S92A^#38N9/WWTP
MHH= I(&F((*UK"%8D@C6K%N@A/#TCD6S$ )8RB"3D,E,, .=B1TV'XZ#UW
M&79%KP 4)FQ$=J6&@VHXH,8YY27WWD,98=@MC@]C..5LXK!C4$X,R'$Z:AG[
MD8R6?XH]
M.ZWLV+;VY)"?2_9$KU^)$A38EE+_G5Q(R>$B$NYC1\M._EJ[<\=HI5AX*%7^
MVC^+6CZOBO_-##;PE($W&'#?'QGXRL!_-\ ?&F!E@&_U$"B#0//@]-IE,C,EWQ^4V0@6LR/;\^]<_3@^
M2[T*.I9M7O*JSD7E2;Z;^T]XNB;$!%C$SYQ?ZMZ[9TIY%>+-++YLYSXR&?&"
M;Y2A8/IQYBM>%(9)Y_&[)?4[31/8?[^R?[+%ZV)>6UGD#K-6C68R&*J
MIED(P2(1*!(-13("$\0@0?QXF0E(D#Q09H/!J%=G$D_PB$X*ZJ1 I:FCDP[:
M29!S+NY";M+(P#0R((W,22,;:H2PAFD)9$4T4(D0 MC;LL$$E^BH
M-RDA*<&?; V4Q 27B."$$I3@MFPPP26X *"4H 2W='(!IG< 3GI"B1XT. ,"
M
C9'(C%):&E:)3+]AEZY2V1C