During the preparation of its unaudited consolidated financial statements for the fiscal quarter ended April 1, 2023, the Company determined that certain personnel in one of its divisions had failed to properly substantiate and update cost estimates for materials and other costs over the life of certain contracts. As a result, the Company conducted an independent investigation (the “Investigation”) under the direction of the Audit Committee of the Company’s Board of Directors (the “Audit Committee”). The division, like other Company divisions, has a stand-alone finance organization, which reports directly to the Company finance organization and indirectly to the management of the division. References in the findings below refer solely to this division unless otherwise noted. The Investigation found that:

The following tables present the impact of the financial statement adjustments on the Company’s previously reported consolidated financial statements for the fiscal year ended October 1, 2022, October 2, 2021 and October 3, 2020. The “Previously Reported” amounts in the following tables are amounts derived from the Original Form 10-K for the fiscal year ended October 1, 2022. The amounts in columns labeled “Investigation Adjustments” represent the effect of adjustments resulting from the Investigation and the amounts in columns labeled “Other Adjustments” represent the effect of other adjustments that relate primarily to uncorrected balance sheet misstatements in previously filed financial statements and were not material, individually or in the aggregate, to those previously filed financial statements. The effects of the restatement, including the related income tax impacts, have been corrected in all impacted tables and footnotes throughout these consolidated financial statements. The only impact to the Consolidated Statements of Comprehensive Income and Consolidated Statements of Stockholders’ Equity was to net income.

Investigation Adjustments correct misstatements that resulted primarily from 1) increases to estimated costs at completion of a contract that previously did not properly reflect estimated costs remaining to be incurred to complete a contract, 2) reductions in the amount of transaction consideration expected to be received under a contract, and 3) segmentation of contracts that had previously been combined. The adjustments primarily affected net sales, cost of sales, contract assets and inventory.

Other Adjustments primarily correct balance sheet misstatements related to inventory cut-off, advance payments from customers and long-term leases of land.

The following table presents the impact of the financial statement adjustments on the Company’s previously reported Consolidated Balance Sheets for the fiscal year ended October 1, 2022 and October 2, 2021.


	As of								As of
	October 1, 2022								October 2, 2021
	Previously		Investigation		Other				Previously		Investigation		Other
	Reported		Adjustments		Adjustments		As Restated		Reported		Adjustments		Adjustments		As Restated

	(In thousands)
ASSETS
Current assets:
Cash and cash equivalents	$	529,857	$	—	$	—	$	529,857	$	650,026	$	—	$	—	$	650,026
Accounts receivable, net of allowances		1,138,894		—		—		1,138,894		1,192,434		—		1,003		1,193,437
Contract assets		503,674		(27,953)		—		475,721		348,741		(28,708)		12,157		332,190
Inventories		1,691,081		(21,705)		14,723		1,684,099		1,036,511		(2,285)		7,564		1,041,790
Prepaid expenses and other current assets		62,044		—		—		62,044		53,952		—		—		53,952
Total current assets		3,925,550		(49,658)		14,723		3,890,615		3,281,664		(30,993)		20,724		3,271,395
Property, plant and equipment, net		575,170		—		—		575,170		532,985		—		—		532,985
Deferred tax assets		198,588		10,966		—		209,554		235,117		7,144		—		242,261
Other		160,192		—		—		160,192		156,953		—		—		156,953
Total assets	$	4,859,500		(38,692)		14,723	$	4,835,531	$	4,206,719	$	(23,849)	$	20,724	$	4,203,594
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,029,534	$	—	$	11,900	$	2,041,434	$	1,464,693	$	—	$	7,564	$	1,472,257
Accrued liabilities		275,735		1,441		4,423		281,599		161,896		2,147		13,160		177,203
Accrued payroll and related benefits		130,892		—		—		130,892		117,648		—		—		117,648
Short-term debt, including current portion of long-term debt		17,500		—		—		17,500		18,750		—		—		18,750
Total current liabilities		2,453,661		1,441		16,323		2,471,425		1,762,987		2,147		20,724		1,785,858
Long-term liabilities:
Long-term debt		329,237		—		—		329,237		311,572		—		—		311,572
Other		215,333		—		—		215,333		253,532		—		—		253,532
Total long-term liabilities	$	544,570	$	—	$	—	$	544,570	$	565,104	$	—	$	—	$	565,104
Commitments and Contingencies (Note 11)
Stockholders' equity:
Preferred stock, $0.01 par value, authorized 5,000 shares, none issued and outstanding		—		—		—		—		—		—		—		—
Common stock, $0.01 par value, authorized 166,667 shares; 110,160 and 108,734 shares issued and 57,394 and 64,307 shares outstanding as of October 1, 2022 and October 2, 2021, respectively		574		—		—		574		643		—		—		643
Treasury stock, 52,766 and 44,427 shares as of October 1, 2022 and October 2, 2021, respectively, at cost		(1,378,159)		—		—		(1,378,159)		(1,047,202)		—		—		(1,047,202)
Additional paid-in capital		6,380,774		—		—		6,380,774		6,338,863		—		—		6,338,863
Accumulated other comprehensive income		56,325		—		—		56,325		40,690		—		—		40,690
Accumulated deficit		(3,198,245)		(40,133)		(1,600)		(3,239,978)		(3,454,366)		(25,996)		—		(3,480,362)
Total stockholders’ equity		1,861,269		(40,133)		(1,600)		1,819,536		1,878,628		(25,996)		—		1,852,632
Total liabilities and stockholders’ equity	$	4,859,500	$	(38,692)	$	14,723	$	4,835,531	$	4,206,719	$	(23,849)	$	20,724	$	4,203,594

The following table presents the impact of the financial statement adjustments on the Company’s previously reported Consolidated Statements of Income for the fiscal year ended October 1, 2022, October 2, 2021 and October 3, 2020.


	Year Ended								Year Ended
	October 1, 2022								October 2, 2021
	Previously		Investigation		Other				Previously		Investigation		Other
	Reported		Adjustments		Adjustments		As Restated		Reported		Adjustments		Adjustments		As Restated

	(In thousands, except per share amounts)

Net sales	$	7,890,475	$	23,265	$	5,882	$	7,919,622	$	6,756,643	$	(18,287)	$	—	$	6,738,356
Cost of sales		7,249,961		41,573		5,882		7,297,416		6,204,838		7,077		—		6,211,915
Gross profit		640,514		(18,308)		—		622,206		551,805		(25,364)		—		526,441
Operating expenses:
Selling, general and administrative		244,569		—		—		244,569		234,537		—		—		234,537
Research and development		21,343		—		—		21,343		20,911		—		—		20,911
Restructuring and other		11,425		—		—		11,425		15,057		—		—		15,057
Gain on sale of long-lived assets		(4,610)		—		—		(4,610)		—		—		—		—
Total operating expenses		272,727		—		—		272,727		270,505		—		—		270,505

Operating income		367,787		(18,308)		—		349,479		281,300		(25,364)		—		255,936

Interest income		1,628		—		—		1,628		925		—		—		925
Interest expense		(22,473)		—		—		(22,473)		(19,551)		—		—		(19,551)
Other income (expense), net		(26,314)		—		—		(26,314)		44,331		—		—		44,331
Interest and other, net		(47,159)		—		—		(47,159)		25,705		—		—		25,705
Income before income taxes		320,628		(18,308)		—		302,320		307,005		(25,364)		—		281,641
Provision for income taxes		64,507		(4,171)		1,600		61,936		38,007		(5,912)		—		32,095
Net income	$	256,121	$	(14,137)	$	(1,600)	$	240,384	$	268,998	$	(19,452)	$	—	$	249,546

Net income per share:
Basic	$	4.18	$	(0.23)	$	(0.03)	$	3.92	$	4.12	$	(0.30)	$	—	$	3.82
Diluted	$	4.06	$	(0.23)	$	(0.03)	$	3.81	$	4.01	$	(0.29)	$	—	$	3.72

Weighted-average shares used in computing per share amounts:
Basic		61,310		—		—		61,310		65,318		—		—		65,318
Diluted		63,117		—		—		63,117		67,084		—		—		67,084


	Year Ended
	October 3, 2020
	Previously		Investigation
	Reported		Adjustments		Other Adjustments		As Restated

	(In thousands, except per share amounts)

Net sales	$	6,960,370	$	(10,162)	$	—	$	6,950,208
Cost of sales		6,434,663		(1,619)		—		6,433,044
Gross profit		525,707		(8,543)		—		517,164
Operating expenses:
Selling, general and administrative		240,931		—		—		240,931
Research and development		22,564		—		—		22,564
Restructuring and other		27,916		—		—		27,916
Goodwill impairment		6,609		—		—		6,609
Total operating expenses		298,020		—		—		298,020

Operating income		227,687		(8,543)		—		219,144

Interest income		2,322		—		—		2,322
Interest expense		(28,903)		—		—		(28,903)
Other expense, net		(348)		—		—		(348)
Interest and other, net		(26,929)		—		—		(26,929)
Income before income taxes		200,758		(8,543)		—		192,215
Provision for income taxes		61,045		(1,999)				59,046
Net income	$	139,713	$	(6,544)	$	—	$	133,169

Net income per share:
Basic	$	2.02	$	(0.09)	$	—	$	1.93
Diluted	$	1.97	$	(0.09)	$	—	$	1.88

Weighted-average shares used in computing per share amounts:
Basic		69,041		—		—		69,041
Diluted		70,793		—		—		70,793

The following table presents the impact of the financial statement adjustments on the Company’s previously reported Consolidated Statements of Cash Flows for the fiscal year ended October 1, 2022, October 2, 2021 and October 3, 2020. There were no adjustments to cash flows provided by (used in) investing or financing activities for the fiscal year ended October 1, 2022, October 2, 2021 and October 3, 2020.


	Year Ended								Year Ended
	October 1, 2022								October 2, 2021
	Previously		Investigation		Other				Previously		Investigation		Other
	Reported		Adjustments		Adjustments		As Restated		Reported		Adjustments		Adjustments		As Restated

	(In thousands)
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net income	$	256,121	$	(14,137)	$	(1,600)	$	240,384	$	268,998	$	(19,452)	$	—	$	249,546
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization		108,783		—		—		108,783		109,656		—		—		109,656
Stock-based compensation expense		39,608		—		—		39,608		34,976		—		—		34,976
Deferred income taxes		31,733		(3,823)		—		27,910		33,724		(5,349)		—		28,375
Gain on sale of intellectual property		—		—		—		—		(15,000)		—		—		(15,000)
Gain on liquidation of foreign entity		—		—		—		—		(8,263)		—		—		(8,263)
Impairment of goodwill and other assets		1,848		—		—		1,848		—		—		—		—
Loss on sale of intellectual property		7,000		—		—		7,000		—		—		—		—
Other, net		1,260		—		—		1,260		(1,371)		—		—		(1,371)
Changes in operating assets and liabilities, net of amounts acquired:
Accounts receivable		46,480		—		1,003		47,483		(146,516)		—		706		(145,810)
Contract assets		(154,933)		(755)		12,157		(143,531)		47,842		4,272		2,365		54,479
Inventories		(663,379)		19,420		(7,159)		(651,118)		(167,186)		17,472		(7,564)		(157,278)
Prepaid expenses and other assets		(31,700)		—		—		(31,700)		(6,486)		706		—		(5,780)
Accounts payable		554,492		—		4,336		558,828		236,270		—		7,564		243,834
Accrued liabilities		133,541		(705)		(8,737)		124,099		(48,302)		2,351		(3,071)		(49,022)
Cash provided by operating activities	$	330,854	$	—	$	—	$	330,854	$	338,342	$	—	$	—	$	338,342


	Year Ended
	October 3, 2020
	Previously		Investigation		Other
	Reported		Adjustments		Adjustments		As Restated

		(In thousands)
CASH FLOWS PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net income	$	139,713	$	(6,544)	$	—	$	133,169
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization		114,218		—		—		114,218
Stock-based compensation expense		26,235		—		—		26,235
Deferred income taxes		13,567		(1,795)		—		11,772
Gain on sale of intellectual property		—		—		—		—
Gain on liquidation of foreign entity		—		—		—		—
Impairment of goodwill and other assets		8,409		—		—		8,409
Loss on sale of intellectual property		—		—		—		—
Other, net		(239)		—		—		(239)
Changes in operating assets and liabilities, net of amounts acquired:
Accounts receivable		83,623		—		(1,709)		81,914
Contract assets		(283)		24,436		(14,522)		9,631
Inventories		39,564		(15,187)		—		24,377
Prepaid expenses and other assets		17,798		(706)		—		17,092
Accounts payable		(106,640)		—		—		(106,640)
Accrued liabilities		(35,410)		(204)		16,231		(19,383)
Cash provided by operating activities	$	300,555	$	—	$	—	$	300,555