☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
New York | 16-0757636 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
400 Jamison Rd | East Aurora, | New York | 14052-0018 | |||||||||||
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Class A common stock | MOG.A | New York Stock Exchange | ||||||
Class B common stock | MOG.B | New York Stock Exchange |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
PAGE | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
(dollars in thousands, except share and per share data) | January 2, 2021 | December 28, 2019 | ||||||||||||||||||||||||
Net sales | $ | 683,954 | $ | 754,843 | ||||||||||||||||||||||
Cost of sales | 494,311 | 543,586 | ||||||||||||||||||||||||
Gross profit | 189,643 | 211,257 | ||||||||||||||||||||||||
Research and development | 28,008 | 28,208 | ||||||||||||||||||||||||
Selling, general and administrative | 99,603 | 98,367 | ||||||||||||||||||||||||
Interest | 8,420 | 10,232 | ||||||||||||||||||||||||
Other | 3,241 | 7,546 | ||||||||||||||||||||||||
Earnings before income taxes | 50,371 | 66,904 | ||||||||||||||||||||||||
Income taxes | 12,529 | 16,877 | ||||||||||||||||||||||||
Net earnings | $ | 37,842 | $ | 50,027 | ||||||||||||||||||||||
Net earnings per share | ||||||||||||||||||||||||||
Basic | $ | 1.18 | $ | 1.45 | ||||||||||||||||||||||
Diluted | $ | 1.17 | $ | 1.44 | ||||||||||||||||||||||
Dividends declared per share | $ | 0.25 | $ | 0.25 | ||||||||||||||||||||||
Average common shares outstanding | ||||||||||||||||||||||||||
Basic | 32,074,873 | 34,510,851 | ||||||||||||||||||||||||
Diluted | 32,237,212 | 34,787,404 | ||||||||||||||||||||||||
See accompanying Notes to Consolidated Condensed Financial Statements. |
Three Months Ended | Six Months Ended | |||||||||||||||
(dollars in thousands, except share and per share data) | March 28, 2020 | March 30, 2019 (1) | March 28, 2020 | March 30, 2019 (1) | ||||||||||||
Net sales | $ | 765,277 | $ | 718,811 | $ | 1,520,120 | $ | 1,398,487 | ||||||||
Cost of sales | 557,223 | 521,410 | 1,100,809 | 1,001,584 | ||||||||||||
Gross profit | 208,054 | 197,401 | 419,311 | 396,903 | ||||||||||||
Research and development | 26,688 | 31,344 | 54,896 | 63,220 | ||||||||||||
Selling, general and administrative | 107,251 | 99,860 | 205,618 | 196,186 | ||||||||||||
Interest | 10,251 | 9,939 | 20,483 | 19,621 | ||||||||||||
Other | 2,333 | 2,342 | 9,879 | 7,477 | ||||||||||||
Earnings before income taxes | 61,531 | 53,916 | 128,435 | 110,399 | ||||||||||||
Income taxes | 11,786 | 12,857 | 28,663 | 26,571 | ||||||||||||
Net earnings | $ | 49,745 | $ | 41,059 | $ | 99,772 | $ | 83,828 | ||||||||
Net earnings per share | ||||||||||||||||
Basic | $ | 1.49 | $ | 1.18 | $ | 2.94 | $ | 2.41 | ||||||||
Diluted | $ | 1.48 | $ | 1.17 | $ | 2.91 | $ | 2.38 | ||||||||
Dividends declared per share | $ | 0.25 | $ | 0.25 | $ | 0.50 | $ | 0.50 | ||||||||
Average common shares outstanding | ||||||||||||||||
Basic | 33,434,420 | 34,886,541 | 33,972,635 | 34,850,898 | ||||||||||||
Diluted | 33,685,395 | 35,241,113 | 34,236,399 | 35,183,471 | ||||||||||||
See accompanying Notes to Consolidated Condensed Financial Statements. (1) As adjusted, see Note 1 - Basis of Presentation. |
Three Months Ended | ||||||||||||||||||||||||||
(dollars in thousands) | January 2, 2021 | December 28, 2019 | ||||||||||||||||||||||||
Net earnings | $ | 37,842 | $ | 50,027 | ||||||||||||||||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||||||||
Foreign currency translation adjustment | 33,497 | 21,533 | ||||||||||||||||||||||||
Retirement liability adjustment | 1,596 | 4,363 | ||||||||||||||||||||||||
Change in accumulated income on derivatives | 98 | 1,402 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | 35,191 | 27,298 | ||||||||||||||||||||||||
Comprehensive income | $ | 73,033 | $ | 77,325 | ||||||||||||||||||||||
See accompanying Notes to Consolidated Condensed Financial Statements. |
Three Months Ended | Six Months Ended | |||||||||||||||
(dollars in thousands) | March 28, 2020 | March 30, 2019 (1) | March 28, 2020 | March 30, 2019 (1) | ||||||||||||
Net earnings | $ | 49,745 | $ | 41,059 | $ | 99,772 | $ | 83,828 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Foreign currency translation adjustment | (23,418 | ) | 1,106 | (1,885 | ) | (8,281 | ) | |||||||||
Retirement liability adjustment | 6,116 | 5,977 | 10,479 | 12,096 | ||||||||||||
Change in accumulated income (loss) on derivatives | (1,163 | ) | (79 | ) | 239 | 585 | ||||||||||
Other comprehensive income (loss), net of tax | (18,465 | ) | 7,004 | 8,833 | 4,400 | |||||||||||
Comprehensive income (loss) | $ | 31,280 | $ | 48,063 | $ | 108,605 | $ | 88,228 | ||||||||
See accompanying Notes to Consolidated Condensed Financial Statements. (1) As adjusted, see Note 1 - Basis of Presentation. |
(dollars in thousands) | January 2, 2021 | October 3, 2020 | ||||||||||||
ASSETS | ||||||||||||||
Current assets | ||||||||||||||
Cash and cash equivalents | $ | 97,639 | $ | 84,583 | ||||||||||
Restricted cash | 695 | 489 | ||||||||||||
Receivables, net | 872,843 | 855,535 | ||||||||||||
Inventories, net | 646,627 | 623,043 | ||||||||||||
Prepaid expenses and other current assets | 47,119 | 49,837 | ||||||||||||
Total current assets | 1,664,923 | 1,613,487 | ||||||||||||
Property, plant and equipment, net | 609,358 | 600,498 | ||||||||||||
Operating lease right-of-use assets | 68,772 | 68,393 | ||||||||||||
Goodwill | 866,366 | 821,856 | ||||||||||||
Intangible assets, net | 117,717 | 85,046 | ||||||||||||
Deferred income taxes | 20,524 | 18,924 | ||||||||||||
Other assets | 18,888 | 17,627 | ||||||||||||
Total assets | $ | 3,366,548 | $ | 3,225,831 | ||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||
Current liabilities | ||||||||||||||
Current installments of long-term debt | $ | 69,148 | $ | 350 | ||||||||||
Accounts payable | 173,256 | 176,868 | ||||||||||||
Accrued compensation | 102,138 | 109,510 | ||||||||||||
Contract advances | 234,480 | 203,338 | ||||||||||||
Accrued liabilities and other | 234,840 | 220,488 | ||||||||||||
Total current liabilities | 813,862 | 710,554 | ||||||||||||
Long-term debt, excluding current installments | 898,078 | 929,982 | ||||||||||||
Long-term pension and retirement obligations | 189,081 | 183,366 | ||||||||||||
Deferred income taxes | 47,829 | 40,474 | ||||||||||||
Other long-term liabilities | 114,454 | 118,372 | ||||||||||||
Total liabilities | 2,063,304 | 1,982,748 | ||||||||||||
Shareholders’ equity | ||||||||||||||
Common stock - Class A | 43,802 | 43,799 | ||||||||||||
Common stock - Class B | 7,478 | 7,481 | ||||||||||||
Additional paid-in capital | 505,038 | 472,645 | ||||||||||||
Retained earnings | 2,142,566 | 2,112,734 | ||||||||||||
Treasury shares | (1,000,795) | (990,783) | ||||||||||||
Stock Employee Compensation Trust | (78,597) | (64,242) | ||||||||||||
Supplemental Retirement Plan Trust | (65,986) | (53,098) | ||||||||||||
Accumulated other comprehensive loss | (250,262) | (285,453) | ||||||||||||
Total shareholders’ equity | 1,303,244 | 1,243,083 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 3,366,548 | $ | 3,225,831 | ||||||||||
See accompanying Notes to Consolidated Condensed Financial Statements. |
(dollars in thousands) | March 28, 2020 | September 28, 2019 (1) | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 115,984 | $ | 89,702 | ||||
Restricted cash | 3,281 | 2,846 | ||||||
Receivables | 1,007,730 | 957,287 | ||||||
Inventories, net | 589,493 | 534,974 | ||||||
Prepaid expenses and other current assets | 44,002 | 44,164 | ||||||
Total current assets | 1,760,490 | 1,628,973 | ||||||
Property, plant and equipment, net | 617,369 | 586,767 | ||||||
Operating lease right-of-use assets | 66,193 | — | ||||||
Goodwill | 810,354 | 784,240 | ||||||
Intangible assets, net | 96,742 | 79,646 | ||||||
Deferred income taxes | 19,651 | 19,992 | ||||||
Other assets | 14,174 | 14,619 | ||||||
Total assets | $ | 3,384,973 | $ | 3,114,237 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Current installments of long-term debt | $ | — | $ | 249 | ||||
Accounts payable | 244,708 | 257,677 | ||||||
Accrued compensation | 111,280 | 143,765 | ||||||
Contract advances | 182,822 | 137,242 | ||||||
Accrued liabilities and other | 206,800 | 188,725 | ||||||
Total current liabilities | 745,610 | 727,658 | ||||||
Long-term debt, excluding current installments | 1,093,966 | 832,984 | ||||||
Long-term pension and retirement obligations | 161,973 | 160,034 | ||||||
Deferred income taxes | 50,259 | 40,528 | ||||||
Other long-term liabilities | 87,487 | 30,552 | ||||||
Total liabilities | 2,139,295 | 1,791,756 | ||||||
Shareholders’ equity | ||||||||
Common stock - Class A | 43,800 | 43,795 | ||||||
Common stock - Class B | 7,480 | 7,485 | ||||||
Additional paid-in capital | 449,720 | 510,546 | ||||||
Retained earnings | 2,211,462 | 2,128,739 | ||||||
Treasury shares | (957,082 | ) | (769,569 | ) | ||||
Stock Employee Compensation Trust | (60,386 | ) | (111,492 | ) | ||||
Supplemental Retirement Plan Trust | (42,672 | ) | (71,546 | ) | ||||
Accumulated other comprehensive loss | (406,644 | ) | (415,477 | ) | ||||
Total shareholders’ equity | 1,245,678 | 1,322,481 | ||||||
Total liabilities and shareholders’ equity | $ | 3,384,973 | $ | 3,114,237 | ||||
See accompanying Notes to Consolidated Condensed Financial Statements. (1) As adjusted, see Note 1 - Basis of Presentation. |
Three Months Ended | ||||||||||||||||||||||||||
(dollars in thousands) | January 2, 2021 | December 28, 2019 | ||||||||||||||||||||||||
COMMON STOCK | ||||||||||||||||||||||||||
Beginning and end of period | $ | 51,280 | $ | 51,280 | ||||||||||||||||||||||
ADDITIONAL PAID-IN CAPITAL | ||||||||||||||||||||||||||
Beginning of period | 472,645 | 510,546 | ||||||||||||||||||||||||
Issuance of treasury shares | 3,118 | 4,489 | ||||||||||||||||||||||||
Equity-based compensation expense | 2,412 | 2,381 | ||||||||||||||||||||||||
Adjustment to market - SECT and SERP | 26,863 | 1,406 | ||||||||||||||||||||||||
End of period | 505,038 | 518,822 | ||||||||||||||||||||||||
RETAINED EARNINGS | ||||||||||||||||||||||||||
Beginning of period | 2,112,734 | 2,128,739 | ||||||||||||||||||||||||
Net earnings | 37,842 | 50,027 | ||||||||||||||||||||||||
Dividends | (8,010) | (8,661) | ||||||||||||||||||||||||
End of period | 2,142,566 | 2,170,105 | ||||||||||||||||||||||||
TREASURY SHARES AT COST | ||||||||||||||||||||||||||
Beginning of period | (990,783) | (769,569) | ||||||||||||||||||||||||
Class A and B shares issued related to compensation | 850 | 527 | ||||||||||||||||||||||||
Class A and B shares purchased | (10,862) | (59,411) | ||||||||||||||||||||||||
End of period | (1,000,795) | (828,453) | ||||||||||||||||||||||||
STOCK EMPLOYEE COMPENSATION TRUST (SECT) | ||||||||||||||||||||||||||
Beginning of period | (64,242) | (111,492) | ||||||||||||||||||||||||
Issuance of shares | 274 | 0 | ||||||||||||||||||||||||
Purchase of shares | (655) | (2,440) | ||||||||||||||||||||||||
Adjustment to market | (13,974) | (1,571) | ||||||||||||||||||||||||
End of period | (78,597) | (115,503) | ||||||||||||||||||||||||
SUPPLEMENTAL RETIREMENT PLAN (SERP) TRUST | ||||||||||||||||||||||||||
Beginning of period | (53,098) | (71,546) | ||||||||||||||||||||||||
Adjustment to market | (12,888) | 165 | ||||||||||||||||||||||||
End of period | (65,986) | (71,381) | ||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||||||||||||||||
Beginning of period | (285,453) | (415,477) | ||||||||||||||||||||||||
Other comprehensive income | 35,191 | 27,298 | ||||||||||||||||||||||||
End of period | (250,262) | (388,179) | ||||||||||||||||||||||||
TOTAL SHAREHOLDERS’ EQUITY | $ | 1,303,244 | $ | 1,336,691 | ||||||||||||||||||||||
See accompanying Notes to Consolidated Condensed Financial Statements. |
Three Months Ended | Six Months Ended | |||||||||||||||
(dollars in thousands) | March 28, 2020 (1) | March 30, 2019 (1) | March 28, 2020 (1) | March 30, 2019 (1) | ||||||||||||
COMMON STOCK | ||||||||||||||||
Beginning and end of period | $ | 51,280 | $ | 51,280 | $ | 51,280 | $ | 51,280 | ||||||||
ADDITIONAL PAID-IN CAPITAL | ||||||||||||||||
Beginning of period | 518,822 | 491,945 | 510,546 | 502,257 | ||||||||||||
Issuance of treasury shares | (722 | ) | (1,390 | ) | 3,767 | 1,070 | ||||||||||
Equity-based compensation expense | 890 | 1,683 | 3,271 | 3,691 | ||||||||||||
Adjustment to market - SECT, SERP and other | (69,270 | ) | 18,300 | (67,864 | ) | 3,520 | ||||||||||
End of period | 449,720 | 510,538 | 449,720 | 510,538 | ||||||||||||
RETAINED EARNINGS | ||||||||||||||||
Beginning of period | 2,170,105 | 2,023,114 | 2,128,739 | 1,974,125 | ||||||||||||
Net earnings | 49,745 | 41,059 | 99,772 | 83,828 | ||||||||||||
Dividends | (8,388 | ) | (8,727 | ) | (17,049 | ) | (17,430 | ) | ||||||||
Adoption of ASC 606 | — | — | — | 14,923 | ||||||||||||
End of period | 2,211,462 | 2,055,446 | 2,211,462 | 2,055,446 | ||||||||||||
TREASURY SHARES AT COST | ||||||||||||||||
Beginning of period | (828,453 | ) | (747,900 | ) | (769,569 | ) | (738,494 | ) | ||||||||
Class A and B shares issued related to compensation | 3,921 | 3,833 | 4,448 | 4,968 | ||||||||||||
Class A and B shares purchased | (132,550 | ) | (5,778 | ) | (191,961 | ) | (16,319 | ) | ||||||||
End of period | (957,082 | ) | (749,845 | ) | (957,082 | ) | (749,845 | ) | ||||||||
STOCK EMPLOYEE COMPENSATION TRUST (SECT) | ||||||||||||||||
Beginning of period | (115,503 | ) | (102,182 | ) | (111,492 | ) | (118,449 | ) | ||||||||
Issuance of shares | 18,325 | 8,918 | 18,325 | 17,679 | ||||||||||||
Purchase of shares | (3,769 | ) | (5,424 | ) | (6,209 | ) | (7,354 | ) | ||||||||
Adjustment to market | 40,561 | (10,818 | ) | 38,990 | (1,382 | ) | ||||||||||
End of period | (60,386 | ) | (109,506 | ) | (60,386 | ) | (109,506 | ) | ||||||||
SUPPLEMENTAL RETIREMENT PLAN (SERP) TRUST | ||||||||||||||||
Beginning of period | (71,381 | ) | (67,597 | ) | (71,546 | ) | (72,941 | ) | ||||||||
Adjustment to market | 28,709 | (7,482 | ) | 28,874 | (2,138 | ) | ||||||||||
End of period | (42,672 | ) | (75,079 | ) | (42,672 | ) | (75,079 | ) | ||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||||||||
Beginning of period | (388,179 | ) | (375,396 | ) | (415,477 | ) | (372,792 | ) | ||||||||
Other comprehensive income (loss) | (18,465 | ) | 7,004 | 8,833 | 4,400 | |||||||||||
End of period | (406,644 | ) | (368,392 | ) | (406,644 | ) | (368,392 | ) | ||||||||
TOTAL SHAREHOLDERS’ EQUITY | $ | 1,245,678 | $ | 1,314,442 | $ | 1,245,678 | $ | 1,314,442 | ||||||||
See accompanying Notes to Consolidated Condensed Financial Statements. (1) As adjusted, see Note 1 - Basis of Presentation. |
Three Months Ended | ||||||||||||||||||||||||||
(share data) | January 2, 2021 | December 28, 2019 | ||||||||||||||||||||||||
COMMON STOCK - CLASS A | ||||||||||||||||||||||||||
Beginning of period | 43,799,229 | 43,794,935 | ||||||||||||||||||||||||
Conversion of Class B to Class A | 3,000 | 1,400 | ||||||||||||||||||||||||
End of period | 43,802,229 | 43,796,335 | ||||||||||||||||||||||||
COMMON STOCK - CLASS B | ||||||||||||||||||||||||||
Beginning of period | 7,480,484 | 7,484,778 | ||||||||||||||||||||||||
Conversion of Class B to Class A | (3,000) | (1,400) | ||||||||||||||||||||||||
End of period | 7,477,484 | 7,483,378 | ||||||||||||||||||||||||
TREASURY SHARES - CLASS A COMMON STOCK | ||||||||||||||||||||||||||
Beginning of period | (13,959,998) | (11,101,512) | ||||||||||||||||||||||||
Class A shares issued related to compensation | 14,452 | 3,078 | ||||||||||||||||||||||||
Class A shares purchased | (72,575) | (669,106) | ||||||||||||||||||||||||
End of period | (14,018,121) | (11,767,540) | ||||||||||||||||||||||||
TREASURY SHARES - CLASS B COMMON STOCK | ||||||||||||||||||||||||||
Beginning of period | (3,344,877) | (3,345,489) | ||||||||||||||||||||||||
Class B shares issued related to compensation | 71,059 | 94,567 | ||||||||||||||||||||||||
Class B shares purchased | (92,861) | (9,680) | ||||||||||||||||||||||||
End of period | (3,366,679) | (3,260,602) | ||||||||||||||||||||||||
SECT - CLASS A COMMON STOCK | ||||||||||||||||||||||||||
Beginning and end of period | (425,148) | (425,148) | ||||||||||||||||||||||||
SECT - CLASS B COMMON STOCK | ||||||||||||||||||||||||||
Beginning of period | (557,543) | (886,300) | ||||||||||||||||||||||||
Issuance of shares | 4,135 | 0 | ||||||||||||||||||||||||
Purchase of shares | (8,543) | (28,596) | ||||||||||||||||||||||||
End of period | (561,951) | (914,896) | ||||||||||||||||||||||||
SERP - CLASS B COMMON STOCK | ||||||||||||||||||||||||||
Beginning and end of period | (826,170) | (826,170) | ||||||||||||||||||||||||
See accompanying Notes to Consolidated Condensed Financial Statements. |
Three Months Ended | Six Months Ended | |||||||||||
(share data) | March 28, 2020 | March 30, 2019 | March 28, 2020 | March 30, 2019 | ||||||||
COMMON STOCK - CLASS A | ||||||||||||
Beginning of period | 43,796,335 | 43,785,435 | 43,794,935 | 43,784,489 | ||||||||
Conversion of Class B to Class A | 2,894 | — | 4,294 | 946 | ||||||||
End of period | 43,799,229 | 43,785,435 | 43,799,229 | 43,785,435 | ||||||||
COMMON STOCK - CLASS B | ||||||||||||
Beginning of period | 7,483,378 | 7,494,278 | 7,484,778 | 7,495,224 | ||||||||
Conversion of Class B to Class A | (2,894 | ) | — | (4,294 | ) | (946 | ) | |||||
End of period | 7,480,484 | 7,494,278 | 7,480,484 | 7,494,278 | ||||||||
TREASURY SHARES - CLASS A COMMON STOCK | ||||||||||||
Beginning of period | (11,767,540 | ) | (10,897,407 | ) | (11,101,512 | ) | (10,872,575 | ) | ||||
Class A shares issued related to compensation | 14,521 | 48,122 | 17,599 | 71,863 | ||||||||
Class A shares purchased | (1,617,591 | ) | (33,495 | ) | (2,286,697 | ) | (82,068 | ) | ||||
End of period | (13,370,610 | ) | (10,882,780 | ) | (13,370,610 | ) | (10,882,780 | ) | ||||
TREASURY SHARES - CLASS B COMMON STOCK | ||||||||||||
Beginning of period | (3,260,602 | ) | (3,348,499 | ) | (3,345,489 | ) | (3,323,996 | ) | ||||
Class B shares issued related to compensation | 44,217 | 39,536 | 138,784 | 98,329 | ||||||||
Class B shares purchased | (128,492 | ) | (38,287 | ) | (138,172 | ) | (121,583 | ) | ||||
End of period | (3,344,877 | ) | (3,347,250 | ) | (3,344,877 | ) | (3,347,250 | ) | ||||
SECT - CLASS A COMMON STOCK | ||||||||||||
Beginning and end of period | (425,148 | ) | (425,148 | ) | (425,148 | ) | (425,148 | ) | ||||
SECT - CLASS B COMMON STOCK | ||||||||||||
Beginning of period | (914,896 | ) | (899,864 | ) | (886,300 | ) | (983,772 | ) | ||||
Issuance of shares | 221,256 | 113,749 | 221,256 | 221,326 | ||||||||
Purchase of shares | (40,966 | ) | (60,412 | ) | (69,562 | ) | (84,081 | ) | ||||
End of period | (734,606 | ) | (846,527 | ) | (734,606 | ) | (846,527 | ) | ||||
SERP - CLASS B COMMON STOCK | ||||||||||||
Beginning and end of period | (826,170 | ) | (876,170 | ) | (826,170 | ) | (876,170 | ) | ||||
See accompanying Notes to Consolidated Condensed Financial Statements. |
Three Months Ended | ||||||||||||||
(dollars in thousands) | January 2, 2021 | December 28, 2019 | ||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||||
Net earnings | $ | 37,842 | $ | 50,027 | ||||||||||
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||||
Depreciation | 18,647 | 18,386 | ||||||||||||
Amortization | 2,841 | 3,281 | ||||||||||||
Deferred income taxes | (139) | 3,205 | ||||||||||||
Equity-based compensation expense | 2,502 | 2,381 | ||||||||||||
Other | 1,544 | (1,017) | ||||||||||||
Changes in assets and liabilities providing (using) cash: | ||||||||||||||
Receivables | 3,664 | (19,519) | ||||||||||||
Inventories | (4,058) | (13,782) | ||||||||||||
Accounts payable | (7,510) | (29,153) | ||||||||||||
Contract advances | 29,712 | 40,215 | ||||||||||||
Accrued expenses | 6,989 | (26,998) | ||||||||||||
Accrued income taxes | 8,831 | 5,349 | ||||||||||||
Net pension and post retirement liabilities | 5,022 | 8,327 | ||||||||||||
Other assets and liabilities | (11,792) | 1,404 | ||||||||||||
Net cash provided by operating activities | 94,095 | 42,106 | ||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||||
Acquisitions of businesses, net of cash acquired | (77,708) | (53,906) | ||||||||||||
Purchase of property, plant and equipment | (20,309) | (27,310) | ||||||||||||
Other investing transactions | 1,604 | (3,684) | ||||||||||||
Net cash used by investing activities | (96,413) | (84,900) | ||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||||
Proceeds from revolving lines of credit | 271,700 | 272,000 | ||||||||||||
Payments on revolving lines of credit | (235,700) | (617,500) | ||||||||||||
Proceeds from long-term debt | 25,100 | 0 | ||||||||||||
Payments on long-term debt | (27,586) | 0 | ||||||||||||
Proceeds from senior notes, net of issuance costs | 0 | 492,750 | ||||||||||||
Payments on finance lease obligations | (488) | (88) | ||||||||||||
Payment of dividends | (8,010) | (8,661) | ||||||||||||
Purchase of outstanding shares for treasury | (11,674) | (57,776) | ||||||||||||
Proceeds from sale of stock held by SECT | 274 | 0 | ||||||||||||
Purchase of stock held by SECT | (655) | (2,440) | ||||||||||||
Other financing transactions | 0 | (1,895) | ||||||||||||
Net cash provided by financing activities | 12,961 | 76,390 | ||||||||||||
Effect of exchange rate changes on cash | 2,619 | 1,147 | ||||||||||||
Increase in cash, cash equivalents and restricted cash | 13,262 | 34,743 | ||||||||||||
Cash, cash equivalents and restricted cash at beginning of period | 85,072 | 92,548 | ||||||||||||
Cash, cash equivalents and restricted cash at end of period | $ | 98,334 | $ | 127,291 | ||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||||||
Treasury shares issued as compensation | $ | 3,967 | $ | 5,016 | ||||||||||
Equipment acquired through lease financing | 3,081 | 568 | ||||||||||||
See accompanying Notes to Consolidated Condensed Financial Statements. |
Six Months Ended | ||||||||
(dollars in thousands) | March 28, 2020 | March 30, 2019 (1) | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net earnings | $ | 99,772 | $ | 83,828 | ||||
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | ||||||||
Depreciation | 36,962 | 36,074 | ||||||
Amortization | 6,676 | 7,212 | ||||||
Deferred income taxes | (1,346 | ) | 2,182 | |||||
Equity-based compensation expense | 3,271 | 3,691 | ||||||
Other | 5,674 | 1,331 | ||||||
Changes in assets and liabilities providing (using) cash: | ||||||||
Receivables | (43,910 | ) | (16,621 | ) | ||||
Inventories | (49,467 | ) | (44,428 | ) | ||||
Accounts payable | (14,891 | ) | 10,208 | |||||
Contract advances | 46,468 | 17,127 | ||||||
Accrued expenses | (9,920 | ) | (6,075 | ) | ||||
Accrued income taxes | (12,338 | ) | (1,767 | ) | ||||
Net pension and post retirement liabilities | 15,785 | 15,639 | ||||||
Other assets and liabilities | (2,032 | ) | 447 | |||||
Net cash provided by operating activities | 80,704 | 108,848 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Acquisitions of businesses, net of cash acquired | (54,265 | ) | — | |||||
Purchase of property, plant and equipment | (53,463 | ) | (59,971 | ) | ||||
Other investing transactions | (3,706 | ) | 2,447 | |||||
Net cash used by investing activities | (111,434 | ) | (57,524 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Net short-term repayments | — | (3,560 | ) | |||||
Proceeds from revolving lines of credit | 829,000 | 327,300 | ||||||
Payments on revolving lines of credit | (758,500 | ) | (361,300 | ) | ||||
Proceeds from long-term debt | 4,300 | — | ||||||
Payments on long-term debt | (4,300 | ) | (167 | ) | ||||
Proceeds from senior notes, net of issuance costs | 491,769 | — | ||||||
Payments on senior notes | (300,000 | ) | — | |||||
Payments on finance lease obligations | (412 | ) | — | |||||
Payment of dividends | (17,049 | ) | (17,430 | ) | ||||
Proceeds from sale of treasury stock | 3,199 | 2,443 | ||||||
Purchase of outstanding shares for treasury | (191,961 | ) | (16,319 | ) | ||||
Proceeds from sale of stock held by SECT | 14,278 | 9,479 | ||||||
Purchase of stock held by SECT | (6,209 | ) | (7,354 | ) | ||||
Other financing transactions | (5,877 | ) | — | |||||
Net cash provided (used) by financing activities | 58,238 | (66,908 | ) | |||||
Effect of exchange rate changes on cash | (791 | ) | (50 | ) | ||||
Increase (decrease) in cash, cash equivalents and restricted cash | 26,717 | (15,634 | ) | |||||
Cash, cash equivalents and restricted cash at beginning of period | 92,548 | 127,706 | ||||||
Cash, cash equivalents and restricted cash at end of period | $ | 119,265 | $ | 112,072 | ||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||
Treasury shares issued as compensation | $ | 9,063 | $ | 11,795 | ||||
Equipment acquired through lease financing | 13,090 | 148 | ||||||
See accompanying Notes to Consolidated Condensed Financial Statements. (1) As adjusted, see Note 1 - Basis of Presentation. |
Standard | Description | Financial Statement Effect or Other Significant Matters | ||||||||||||
Q1 2020 |
Q1 2021 | ||||||||||||||
ASU no. 2016-13 Measurement of Credit Losses on Financial Instruments | The standard replaces the incurred loss model with the current expected credit loss (CECL) model to estimate credit losses for financial assets measured at amortized cost and certain off-balance sheet credit exposures. The CECL model requires a Company to estimate credit losses expected over the life of the financial assets based on historical experience, current conditions and reasonable and supportable forecasts. The provisions of the standard are effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The amendment requires a modified retrospective approach by recording a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. | We adopted this standard using a modified retrospective approach. Based on immateriality, there was no cumulative-effect adjustment to retained earnings as of the beginning of period of adoption. Upon adoption, we now calculate current expected credits losses for financial assets measured at amortized cost. We utilize factors such as historical experience, credit quality, age of accounts receivable, current economic conditions and reasonable forecasted financial information in order to determine expected credit losses for these assets. We are | ||||||||||||
Q1 2021 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
As Reported (With Change), March 28, 2020 | Impact of Change | Without Change, March 28, 2020 | As Reported (With Change), March 28, 2020 | Impact of Change | Without Change, March 28, 2020 | |||||||||||||||||||
Other | $ | 2,333 | $ | 2,875 | $ | 5,208 | $ | 9,879 | $ | 5,751 | $ | 15,630 | ||||||||||||
Earnings before income taxes | 61,531 | (2,875 | ) | 58,656 | 128,435 | (5,751 | ) | 122,684 | ||||||||||||||||
Income taxes | 11,786 | (678 | ) | 11,108 | 28,663 | (1,357 | ) | 27,306 | ||||||||||||||||
Net earnings | $ | 49,745 | $ | (2,197 | ) | $ | 47,548 | $ | 99,772 | $ | (4,394 | ) | $ | 95,378 | ||||||||||
Net earnings per share | ||||||||||||||||||||||||
Basic | $ | 1.49 | $ | (0.07 | ) | $ | 1.42 | $ | 2.94 | $ | (0.13 | ) | $ | 2.81 | ||||||||||
Diluted | $ | 1.48 | $ | (0.07 | ) | $ | 1.41 | $ | 2.91 | $ | (0.12 | ) | $ | 2.79 | ||||||||||
Retirement liability adjustment | $ | 6,116 | $ | 2,197 | $ | 8,313 | $ | 10,479 | $ | 4,394 | $ | 14,873 | ||||||||||||
Other comprehensive income (loss), net of tax | $ | (18,465 | ) | $ | 2,197 | $ | (16,268 | ) | $ | 8,833 | $ | 4,394 | $ | 13,227 | ||||||||||
Comprehensive income (loss) | $ | 31,280 | $ | — | $ | 31,280 | $ | 108,605 | $ | — | $ | 108,605 |
As Reported (With Change), March 28, 2020 | Impact of Change | Without Change, March 28, 2020 | ||||||||||
Shareholders’ equity | ||||||||||||
Retained earnings | $ | 2,211,462 | $ | 195 | $ | 2,211,657 | ||||||
Accumulated other comprehensive loss | (406,644 | ) | (195 | ) | (406,839 | ) | ||||||
Total shareholders’ equity | $ | 1,245,678 | $ | — | $ | 1,245,678 |
Three Months Ended | Six Months Ended | |||||||||||||||||||||||
As Previously Reported, March 30, 2019 | Impact of Change | As Reported (With Change), March 30, 2019 | As Previously Reported, March 30, 2019 | Impact of Change | As Reported (With Change), March 30, 2019 | |||||||||||||||||||
Other | $ | 640 | $ | 1,702 | $ | 2,342 | $ | 4,074 | $ | 3,403 | $ | 7,477 | ||||||||||||
Earnings before income taxes | 55,618 | (1,702 | ) | 53,916 | 113,802 | (3,403 | ) | 110,399 | ||||||||||||||||
Income taxes | 13,259 | (402 | ) | 12,857 | 27,374 | (803 | ) | 26,571 | ||||||||||||||||
Net earnings | $ | 42,359 | $ | (1,300 | ) | $ | 41,059 | $ | 86,428 | $ | (2,600 | ) | $ | 83,828 | ||||||||||
Net earnings per share | ||||||||||||||||||||||||
Basic | $ | 1.21 | $ | (0.03 | ) | $ | 1.18 | $ | 2.48 | $ | (0.07 | ) | $ | 2.41 | ||||||||||
Diluted | $ | 1.20 | $ | (0.03 | ) | $ | 1.17 | $ | 2.46 | $ | (0.08 | ) | $ | 2.38 | ||||||||||
Retirement liability adjustment | $ | 4,677 | $ | 1,300 | $ | 5,977 | $ | 9,496 | $ | 2,600 | $ | 12,096 | ||||||||||||
Other comprehensive income (loss), net of tax | $ | 5,704 | $ | 1,300 | $ | 7,004 | $ | 1,800 | $ | 2,600 | $ | 4,400 | ||||||||||||
Comprehensive income | $ | 48,063 | $ | — | $ | 48,063 | $ | 88,228 | $ | — | $ | 88,228 |
As Previously Reported, March 30, 2019 | Impact of Change | As Reported (With Change), March 30, 2019 | ||||||||||
Shareholders’ equity | ||||||||||||
Retained earnings | $ | 2,057,435 | $ | (1,989 | ) | $ | 2,055,446 | |||||
Accumulated other comprehensive loss | (370,381 | ) | 1,989 | (368,392 | ) | |||||||
Total shareholders’ equity | $ | 1,314,442 | $ | — | $ | 1,314,442 |
As Previously Reported, September 28, 2019 | Impact of Change | As Reported (With Change), September 28, 2019 | ||||||||||
Shareholders’ equity | ||||||||||||
Retained earnings | $ | 2,133,328 | $ | (4,589 | ) | $ | 2,128,739 | |||||
Accumulated other comprehensive loss | (420,066 | ) | 4,589 | (415,477 | ) | |||||||
Total shareholders’ equity | $ | 1,322,481 | $ | — | $ | 1,322,481 |
January 2, 2021 | October 3, 2020 | |||||||||||||
Unbilled receivables | $ | 490,297 | $ | 493,734 | ||||||||||
Contract advances | 234,480 | 203,338 | ||||||||||||
Net contract assets | $ | 255,817 | $ | 290,396 |
March 28, 2020 | September 28, 2019 | |||||||
Unbilled receivables | $ | 510,760 | $ | 468,824 | ||||
Contract advances | 182,822 | 137,242 | ||||||
Net contract assets | $ | 327,938 | $ | 331,582 |
March 28, 2020 | September 28, 2019 | |||||||
Accounts receivable | $ | 489,069 | $ | 477,154 | ||||
Unbilled receivables | 510,760 | 468,824 | ||||||
Other | 13,265 | 16,711 | ||||||
Less allowance for doubtful accounts | (5,364 | ) | (5,402 | ) | ||||
Receivables | $ | 1,007,730 | $ | 957,287 |
January 2, 2021 | October 3, 2020 | ||||||||||||||||
Accounts receivable | $ | 382,836 | $ | 363,089 | |||||||||||||
Unbilled receivables | 490,297 | 493,734 | |||||||||||||||
Other | 6,472 | 5,025 | |||||||||||||||
Less allowance for credit losses | (6,762) | (6,313) | |||||||||||||||
Receivables, net | $ | 872,843 | $ | 855,535 |
March 28, 2020 | September 28, 2019 | |||||||
Raw materials and purchased parts | $ | 221,736 | $ | 189,875 | ||||
Work in progress | 305,725 | 276,538 | ||||||
Finished goods | 62,032 | 68,561 | ||||||
Inventories | $ | 589,493 | $ | 534,974 |
January 2, 2021 | October 3, 2020 | |||||||||||||
Raw materials and purchased parts | $ | 245,646 | $ | 235,906 | ||||||||||
Work in progress | 334,959 | 327,990 | ||||||||||||
Finished goods | 66,022 | 59,147 | ||||||||||||
Inventories, net | $ | 646,627 | $ | 623,043 |
March 28, 2020 | September 28, 2019 | |||||||
Land | $ | 36,591 | $ | 33,111 | ||||
Buildings and improvements | 482,869 | 469,867 | ||||||
Machinery and equipment | 814,828 | 775,378 | ||||||
Computer equipment and software | 144,305 | 137,221 | ||||||
Property, plant and equipment, at cost | 1,478,593 | 1,415,577 | ||||||
Less accumulated depreciation and amortization | (861,224 | ) | (828,810 | ) | ||||
Property, plant and equipment, net | $ | 617,369 | $ | 586,767 |
January 2, 2021 | October 3, 2020 | |||||||||||||||||||
Land | $ | 39,015 | $ | 37,463 | ||||||||||||||||
Buildings and improvements | 487,214 | 476,659 | ||||||||||||||||||
Machinery and equipment | 795,206 | 782,194 | ||||||||||||||||||
Computer equipment and software | 164,402 | 158,683 | ||||||||||||||||||
Property, plant and equipment, at cost | 1,485,837 | 1,454,999 | ||||||||||||||||||
Less accumulated depreciation and amortization | (876,479) | (854,501) | ||||||||||||||||||
Property, plant and equipment, net | $ | 609,358 | $ | 600,498 |
Three Months Ended March 28, 2020 | Six Months Ended March 28, 2020 | |||||||
Operating lease cost | $ | 5,956 | $ | 12,116 | ||||
Finance lease cost: | ||||||||
Amortization of right-of-use assets | $ | 336 | $ | 412 | ||||
Interest on lease liabilities | 80 | 128 | ||||||
Total finance lease cost | $ | 416 | $ | 540 |
Three Months Ended | ||||||||
January 2, 2021 | December 28, 2019 | |||||||
Operating lease cost | $ | 6,884 | $ | 6,160 | ||||
Finance lease cost: | ||||||||
Amortization of right-of-use assets | $ | 494 | $ | 76 | ||||
Interest on lease liabilities | 161 | 48 | ||||||
Total finance lease cost | $ | 655 | $ | 124 |
Six Months Ended March 28, 2020 | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flow for operating leases | $ | 11,731 | ||
Operating cash flow for finance leases | 128 | |||
Financing cash flow for finance leases | 412 | |||
Assets obtained in exchange for lease obligations: | ||||
Operating leases | 8,848 | |||
Finance leases | 4,242 |
Three Months Ended | ||||||||
January 2, 2021 | December 28, 2019 | |||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flow for operating leases | $ | 7,058 | $ | 6,027 | ||||
Operating cash flow for finance leases | 161 | $ | 48 | |||||
Financing cash flow for finance leases | 488 | $ | 88 | |||||
Assets obtained in exchange for lease obligations: | ||||||||
Operating leases | 3,081 | $ | 568 | |||||
Finance leases | 0 | 0 |
March 28, 2020 | |||
Operating Leases | |||
Operating lease right-of-use assets | $ | 66,193 | |
Accrued liabilities and other | $ | 13,194 | |
Other long-term liabilities | 54,966 | ||
Total operating lease liabilities | $ | 68,160 | |
Finance Leases | |||
Property, plant, and equipment, at cost | $ | 7,966 | |
Accumulated depreciation | (694 | ) | |
Property, plant, and equipment, net | $ | 7,272 | |
Accrued liabilities and other | $ | 929 | |
Other long-term liabilities | 6,385 | ||
Total finance lease liabilities | $ | 7,314 | |
Weighted average remaining lease term in years | |||
Operating leases | 7.6 | ||
Finance leases | 17.7 | ||
Weighted average discount rate | |||
Operating leases | 4.7 | % | |
Finance leases | 4.9 | % |
January 2, 2021 | October 3, 2020 | |||||||
Operating Leases | ||||||||
Operating lease right-of-use assets | $ | 68,772 | $ | 68,393 | ||||
Accrued liabilities and other | $ | 15,117 | $ | 15,034 | ||||
Other long-term liabilities | 61,066 | 60,837 | ||||||
Total operating lease liabilities | $ | 76,183 | $ | 75,871 | ||||
Finance Leases | ||||||||
Property, plant, and equipment, at cost | $ | 14,169 | $ | 13,930 | ||||
Accumulated depreciation | (2,061) | (1,497) | ||||||
Property, plant, and equipment, net | $ | 12,108 | $ | 12,433 | ||||
Accrued liabilities and other | $ | 2,264 | $ | 2,199 | ||||
Other long-term liabilities | 10,998 | 11,392 | ||||||
Total finance lease liabilities | $ | 13,262 | $ | 13,591 | ||||
Weighted average remaining lease term in years | ||||||||
Operating leases | 7.5 | 7.4 | ||||||
Finance leases | 12.2 | 12.3 | ||||||
Weighted average discount rate | ||||||||
Operating leases | 4.7 | % | 4.7 | % | ||||
Finance leases | 4.9 | % | 4.8 | % |
March 28, 2020 | ||||||||
Operating Leases | Finance Leases | |||||||
2020 | $ | 7,895 | $ | 608 | ||||
2021 | 16,432 | 1,187 | ||||||
2022 | 13,961 | 1,033 | ||||||
2023 | 10,178 | 955 | ||||||
2024 | 6,993 | 899 | ||||||
Thereafter | 35,498 | 7,584 | ||||||
Total lease payments | 90,957 | 12,266 | ||||||
Less: imputed interest | (22,797 | ) | (4,952 | ) | ||||
Total | $ | 68,160 | $ | 7,314 |
January 2, 2021 | ||||||||||||||
Operating Leases | Finance Leases | |||||||||||||
2021 | $ | 13,161 | $ | 1,886 | ||||||||||
2022 | 16,956 | 2,288 | ||||||||||||
2023 | 13,191 | 2,174 | ||||||||||||
2024 | 9,584 | 2,109 | ||||||||||||
2025 | 7,913 | 1,855 | ||||||||||||
Thereafter | 37,365 | 8,695 | ||||||||||||
Total lease payments | 98,170 | 19,007 | ||||||||||||
Less: imputed interest | (21,987) | (5,745) | ||||||||||||
Total | $ | 76,183 | $ | 13,262 |
Aircraft Controls | Space and Defense Controls | Industrial Systems | Total | |||||||||
Balance at September 28, 2019 | $ | 176,939 | $ | 261,684 | $ | 345,617 | $ | 784,240 | ||||
Acquisitions | — | — | 25,034 | 25,034 | ||||||||
Divestitures | — | — | (635 | ) | (635 | ) | ||||||
Foreign currency translation | 668 | 11 | 1,036 | 1,715 | ||||||||
Balance at March 28, 2020 | $ | 177,607 | $ | 261,695 | $ | 371,052 | $ | 810,354 |
Aircraft Controls | Space and Defense Controls | Industrial Systems | Total | |||||||||||
Balance at October 3, 2020 | $ | 179,521 | $ | 261,726 | $ | 380,609 | $ | 821,856 | ||||||
Acquisition | 32,608 | 0 | 0 | 32,608 | ||||||||||
Divestiture | (312) | 0 | 0 | (312) | ||||||||||
Foreign currency translation | 2,912 | 47 | 9,255 | 12,214 | ||||||||||
Balance at January 2, 2021 | $ | 214,729 | $ | 261,773 | $ | 389,864 | $ | 866,366 |
March 28, 2020 | September 28, 2019 | |||||||||||||||||
Weighted- Average Life (years) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||
Customer-related | 11 | $ | 141,843 | $ | (100,430 | ) | $ | 132,697 | $ | (100,091 | ) | |||||||
Technology-related | 9 | 77,471 | (52,042 | ) | 69,220 | (52,192 | ) | |||||||||||
Program-related | 19 | 62,684 | (37,937 | ) | 62,015 | (35,680 | ) | |||||||||||
Marketing-related | 8 | 25,222 | (20,390 | ) | 23,139 | (19,899 | ) | |||||||||||
Other | 10 | 4,134 | (3,813 | ) | 4,061 | (3,624 | ) | |||||||||||
Intangible assets | 12 | $ | 311,354 | $ | (214,612 | ) | $ | 291,132 | $ | (211,486 | ) |
January 2, 2021 | October 3, 2020 | |||||||||||||||||||||||||||||||
Weighted- Average Life (years) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||||||||||||
Customer-related | 11 | $ | 166,380 | $ | (106,303) | $ | 140,048 | $ | (103,733) | |||||||||||||||||||||||
Technology-related | 9 | 84,568 | (56,241) | 77,060 | (54,833) | |||||||||||||||||||||||||||
Program-related | 23 | 40,444 | (18,475) | 38,963 | (17,340) | |||||||||||||||||||||||||||
Marketing-related | 8 | 28,490 | (21,431) | 25,581 | (20,981) | |||||||||||||||||||||||||||
Other | 10 | 4,553 | (4,268) | 4,134 | (3,853) | |||||||||||||||||||||||||||
Intangible assets | 12 | $ | 324,435 | $ | (206,718) | $ | 285,786 | $ | (200,740) |
Three Months Ended | Six Months Ended | ||||||||||||||
March 28, 2020 | March 30, 2019 | March 28, 2020 | March 30, 2019 | ||||||||||||
Acquired intangible asset amortization | $ | 3,330 | $ | 3,402 | $ | 6,553 | $ | 7,085 |
Three Months Ended | |||||||||||||||||||||||
January 2, 2021 | December 28, 2019 | ||||||||||||||||||||||
Acquired intangible asset amortization | $ | 2,833 | $ | 3,223 |
2020 | 2021 | 2022 | 2023 | 2024 | |||||||||||
Estimated future amortization of acquired intangible assets | $ | 13,200 | $ | 12,200 | $ | 10,800 | $ | 9,900 | $ | 9,500 |
2021 | 2022 | 2023 | 2024 | 2025 | |||||||||||||
Estimated future amortization of acquired intangible assets | $ | 13,400 | $ | 13,600 | $ | 12,700 | $ | 12,200 | $ | 11,200 |
March 28, 2020 | September 28, 2019 | |||||||
U.S. revolving credit facility | $ | 464,439 | $ | 395,712 | ||||
SECT revolving credit facility | 9,000 | 7,000 | ||||||
Senior notes 4.25% | 500,000 | — | ||||||
Senior notes 5.25% | — | 300,000 | ||||||
Securitization program | 130,000 | 130,000 | ||||||
Obligations under capital leases | — | 679 | ||||||
Senior debt | 1,103,439 | 833,391 | ||||||
Less deferred debt issuance cost | (9,473 | ) | (158 | ) | ||||
Less current installments | — | (249 | ) | |||||
Long-term debt | $ | 1,093,966 | $ | 832,984 |
January 2, 2021 | October 3, 2020 | |||||||||||||
U.S. revolving credit facility | $ | 399,817 | $ | 362,136 | ||||||||||
SECT revolving credit facility | 5,000 | 6,000 | ||||||||||||
Senior notes 4.25% | 500,000 | 500,000 | ||||||||||||
Securitization program | 66,600 | 69,000 | ||||||||||||
Other long-term debt | 3,769 | 1,661 | ||||||||||||
Senior debt | 975,186 | 938,797 | ||||||||||||
Less deferred debt issuance cost | (7,960) | (8,465) | ||||||||||||
Less current installments | (69,148) | (350) | ||||||||||||
Long-term debt | $ | 898,078 | $ | 929,982 |
March 28, 2020 | September 28, 2019 | |||||||
Contract reserves | $ | 65,409 | $ | 60,914 | ||||
Employee benefits | 38,304 | 37,040 | ||||||
Warranty accrual | 28,386 | 28,061 | ||||||
Accrued income taxes | 13,613 | 26,532 | ||||||
Other | 61,088 | 36,178 | ||||||
Other accrued liabilities | $ | 206,800 | $ | 188,725 |
January 2, 2021 | October 3, 2020 | |||||||||||||
Contract reserves | $ | 70,807 | $ | 72,412 | ||||||||||
Employee benefits | 61,699 | 40,734 | ||||||||||||
Warranty accrual | 29,338 | 27,707 | ||||||||||||
Accrued income taxes | 13,830 | 11,785 | ||||||||||||
Other | 59,166 | 67,850 | ||||||||||||
Other accrued liabilities | $ | 234,840 | $ | 220,488 |
Three Months Ended | ||||||||||||||||||||||||||
January 2, 2021 | December 28, 2019 | |||||||||||||||||||||||||
Warranty accrual at beginning of period | $ | 27,707 | $ | 28,061 | ||||||||||||||||||||||
Additions from acquisitions | 990 | 542 | ||||||||||||||||||||||||
Warranties issued during current period | 4,064 | 3,843 | ||||||||||||||||||||||||
Adjustments to pre-existing warranties | 36 | (181) | ||||||||||||||||||||||||
Reductions for settling warranties | (3,783) | (3,172) | ||||||||||||||||||||||||
Foreign currency translation | 324 | 276 | ||||||||||||||||||||||||
Warranty accrual at end of period | $ | 29,338 | $ | 29,369 |
Three Months Ended | Six Months Ended | |||||||||||||||
March 28, 2020 | March 30, 2019 | March 28, 2020 | March 30, 2019 | |||||||||||||
Warranty accrual at beginning of period | $ | 29,369 | $ | 24,256 | $ | 28,061 | $ | 25,537 | ||||||||
Additions from acquisitions | 202 | — | 744 | — | ||||||||||||
Warranties issued during current period | 3,194 | 4,055 | 7,037 | 6,025 | ||||||||||||
Adjustments to pre-existing warranties | (1,003 | ) | (307 | ) | (1,184 | ) | (398 | ) | ||||||||
Reductions for settling warranties | (3,199 | ) | (3,892 | ) | (6,371 | ) | (6,869 | ) | ||||||||
Foreign currency translation | (177 | ) | 105 | 99 | (78 | ) | ||||||||||
Warranty accrual at end of period | $ | 28,386 | $ | 24,217 | $ | 28,386 | $ | 24,217 |
Three Months Ended | Six Months Ended | ||||||||||||||||
Statements of Earnings location | March 28, 2020 | March 30, 2019 | March 28, 2020 | March 30, 2019 | |||||||||||||
Net gain (loss) | |||||||||||||||||
Foreign currency contracts | Other | $ | (2,342 | ) | $ | 2,419 | $ | (771 | ) | $ | 769 |
Three Months Ended | |||||||||||||||||||||||||||||
Statements of Earnings location | January 2, 2021 | December 28, 2019 | |||||||||||||||||||||||||||
Net gain | |||||||||||||||||||||||||||||
Foreign currency contracts | Other | $ | 3,984 | $ | 1,571 |
Balance Sheets location | January 2, 2021 | October 3, 2020 | |||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||
Foreign currency contracts | Other current assets | $ | 2,063 | $ | 1,818 | ||||||||||||
Foreign currency contracts | Other assets | 0 | 169 | ||||||||||||||
Total asset derivatives | $ | 2,063 | $ | 1,987 | |||||||||||||
Foreign currency contracts | Accrued liabilities and other | $ | 27 | $ | 169 | ||||||||||||
Total liability derivatives | $ | 27 | $ | 169 | |||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Foreign currency contracts | Other current assets | $ | 1,200 | $ | 1,044 | ||||||||||||
Foreign currency contracts | Accrued liabilities and other | $ | 163 | $ | 245 | ||||||||||||
Balance Sheets location | March 28, 2020 | September 28, 2019 | |||||||
Derivatives designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current assets | $ | 873 | $ | 1,060 | ||||
Foreign currency contracts | Other assets | — | 261 | ||||||
Interest rate swaps | Other current assets | — | 57 | ||||||
Total asset derivatives | $ | 873 | $ | 1,378 | |||||
Foreign currency contracts | Accrued liabilities and other | $ | 824 | $ | 736 | ||||
Foreign currency contracts | Other long-term liabilities | 165 | 152 | ||||||
Interest rate swaps | Accrued liabilities and other | 35 | — | ||||||
Total liability derivatives | $ | 1,024 | $ | 888 | |||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current assets | $ | 1,293 | $ | 93 | ||||
Foreign currency contracts | Accrued liabilities and other | $ | 1,036 | $ | 359 |
Balance Sheets location | March 28, 2020 | September 28, 2019 | ||||||||
Foreign currency contracts | Other current assets | $ | 2,166 | $ | 1,153 | |||||
Foreign currency contracts | Other assets | — | 261 | |||||||
Interest rate swaps | Other current assets | — | 57 | |||||||
Total assets | $ | 2,166 | $ | 1,471 | ||||||
Foreign currency contracts | Accrued liabilities and other | $ | 1,860 | $ | 1,095 | |||||
Foreign currency contracts | Other long-term liabilities | 165 | 152 | |||||||
Interest rate swaps | Accrued liabilities and other | 35 | — | |||||||
Total liabilities | $ | 2,060 | $ | 1,247 |
Balance Sheets location | January 2, 2021 | October 3, 2020 | ||||||||||||||||||
Foreign currency contracts | Other current assets | $ | 3,263 | $ | 2,862 | |||||||||||||||
Foreign currency contracts | Other assets | 0 | 169 | |||||||||||||||||
Total assets | $ | 3,263 | $ | 3,031 | ||||||||||||||||
Foreign currency contracts | Accrued liabilities and other | $ | 190 | $ | 414 | |||||||||||||||
Total liabilities | $ | 190 | $ | 414 |
Aircraft Controls | Space and Defense Controls | Industrial Systems | Total | ||||||||||||||
Balance at October 3, 2020 | $ | 1,247 | $ | 0 | $ | 9,095 | $ | 10,342 | |||||||||
Adjustments to provision | 0 | 0 | (564) | (564) | |||||||||||||
Cash payments - 2018 plan | 0 | 0 | (104) | (104) | |||||||||||||
Cash payments - 2020 plan | (190) | 0 | (1,168) | (1,358) | |||||||||||||
Foreign currency translation | 0 | 0 | 183 | 183 | |||||||||||||
Balance at January 2, 2021 | $ | 1,057 | $ | 0 | $ | 7,442 | $ | 8,499 |
Three Months Ended | Six Months Ended | |||||||||||||||
March 28, 2020 | March 30, 2019 | March 28, 2020 | March 30, 2019 | |||||||||||||
U.S. Plans | ||||||||||||||||
Service cost | $ | 5,758 | $ | 5,251 | $ | 11,517 | $ | 10,502 | ||||||||
Interest cost | 7,649 | 9,231 | 15,298 | 18,462 | ||||||||||||
Expected return on plan assets | (11,021 | ) | (11,264 | ) | (22,042 | ) | (22,528 | ) | ||||||||
Amortization of prior service cost (credit) | 34 | 47 | 67 | 93 | ||||||||||||
Amortization of actuarial loss | 6,329 | 6,661 | 12,658 | 13,321 | ||||||||||||
Pension expense for U.S. defined benefit plans | $ | 8,749 | $ | 9,926 | $ | 17,498 | $ | 19,850 | ||||||||
Non-U.S. Plans | ||||||||||||||||
Service cost | $ | 1,666 | $ | 1,248 | $ | 3,337 | $ | 2,494 | ||||||||
Interest cost | 695 | 1,101 | 1,392 | 2,202 | ||||||||||||
Expected return on plan assets | (1,135 | ) | (1,303 | ) | (2,274 | ) | (2,601 | ) | ||||||||
Amortization of prior service cost (credit) | — | (4 | ) | — | (9 | ) | ||||||||||
Amortization of actuarial loss | 1,212 | 638 | 2,428 | 1,278 | ||||||||||||
Pension expense for non-U.S. defined benefit plans | $ | 2,438 | $ | 1,680 | $ | 4,883 | $ | 3,364 |
Three Months Ended | ||||||||||||||||||||||||||
January 2, 2021 | December 28, 2019 | |||||||||||||||||||||||||
U.S. Plans | ||||||||||||||||||||||||||
Service cost | $ | 5,622 | $ | 5,759 | ||||||||||||||||||||||
Interest cost | 4,276 | 7,649 | ||||||||||||||||||||||||
Expected return on plan assets | (7,636) | (11,021) | ||||||||||||||||||||||||
Amortization of prior service cost (credit) | 0 | 33 | ||||||||||||||||||||||||
Amortization of actuarial loss | 3,430 | 6,329 | ||||||||||||||||||||||||
Expense for U.S. defined benefit plans | $ | 5,692 | $ | 8,749 | ||||||||||||||||||||||
Non-U.S. Plans | ||||||||||||||||||||||||||
Service cost | $ | 1,668 | $ | 1,671 | ||||||||||||||||||||||
Interest cost | 705 | 697 | ||||||||||||||||||||||||
Expected return on plan assets | (1,143) | (1,139) | ||||||||||||||||||||||||
Amortization of prior service cost (credit) | (2) | 0 | ||||||||||||||||||||||||
Amortization of actuarial loss | 1,387 | 1,216 | ||||||||||||||||||||||||
Expense for non-U.S. defined benefit plans | $ | 2,615 | $ | 2,445 |
Three Months Ended | Six Months Ended | |||||||||||||||
March 28, 2020 | March 30, 2019 | March 28, 2020 | March 30, 2019 | |||||||||||||
U.S. defined contribution plans | $ | 7,206 | $ | 4,713 | $ | 12,604 | $ | 9,327 | ||||||||
Non-U.S. defined contribution plans | 1,388 | 1,340 | 2,790 | 2,536 | ||||||||||||
Total pension expense for defined contribution plans | $ | 8,594 | $ | 6,053 | $ | 15,394 | $ | 11,863 |
Three Months Ended | ||||||||||||||||||||||||||
January 2, 2021 | December 28, 2019 | |||||||||||||||||||||||||
U.S. defined contribution plans | $ | 8,573 | $ | 5,398 | ||||||||||||||||||||||
Non-U.S. defined contribution plans | 1,594 | 1,402 | ||||||||||||||||||||||||
Total expense for defined contribution plans | $ | 10,167 | $ | 6,800 |
Space and Defense Controls | Industrial Systems | Total | |||||||
Balance at September 28, 2019 | $ | 27 | $ | 4,096 | $ | 4,123 | |||
Adjustments to provision | (1 | ) | (969 | ) | (970 | ) | |||
Cash payments - 2018 plan | (26 | ) | (414 | ) | (440 | ) | |||
Foreign currency translation | — | 48 | 48 | ||||||
Balance at March 28, 2020 | $ | — | $ | 2,761 | $ | 2,761 |
Accumulated foreign currency translation (1) | Accumulated retirement liability | Accumulated gain (loss) on derivatives | Total | |||||||||||||||||||||||
AOCIL at October 3, 2020 | $ | (102,994) | $ | (183,653) | $ | 1,194 | $ | (285,453) | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 33,497 | (1,973) | 501 | 32,025 | ||||||||||||||||||||||
Amounts reclassified from AOCIL | 0 | 3,569 | (403) | 3,166 | ||||||||||||||||||||||
Other comprehensive income, net of tax | 33,497 | 1,596 | 98 | 35,191 | ||||||||||||||||||||||
AOCIL at January 2, 2021 | $ | (69,497) | $ | (182,057) | $ | 1,292 | $ | (250,262) |
Accumulated foreign currency translation (1) | Accumulated retirement liability | Accumulated gain (loss) on derivatives | Total | |||||||||||||
AOCIL at September 28, 2019 | $ | (129,399 | ) | $ | (285,734 | ) | $ | (344 | ) | $ | (415,477 | ) | ||||
Other comprehensive income (loss) before reclassifications | (1,392 | ) | (717 | ) | 444 | (1,665 | ) | |||||||||
Amounts reclassified from AOCIL | (493 | ) | 11,196 | (205 | ) | 10,498 | ||||||||||
Other comprehensive income (loss) | (1,885 | ) | 10,479 | 239 | 8,833 | |||||||||||
AOCIL at March 28, 2020 | $ | (131,284 | ) | $ | (275,255 | ) | $ | (105 | ) | $ | (406,644 | ) |
Three Months Ended | ||||||||||||||||||||||||||||||||
Statements of Earnings location | January 2, 2021 | December 28, 2019 | ||||||||||||||||||||||||||||||
Retirement liability: | ||||||||||||||||||||||||||||||||
Prior service cost (credit) | $ | (2) | $ | (32) | ||||||||||||||||||||||||||||
Actuarial losses | 4,689 | 7,394 | ||||||||||||||||||||||||||||||
Reclassification from AOCIL into earnings (2) | 4,687 | 7,362 | ||||||||||||||||||||||||||||||
Tax effect | (1,118) | (1,762) | ||||||||||||||||||||||||||||||
Net reclassification from AOCIL into earnings | $ | 3,569 | $ | 5,600 | ||||||||||||||||||||||||||||
Derivatives: | ||||||||||||||||||||||||||||||||
Foreign currency contracts | Sales | $ | 28 | $ | 2 | |||||||||||||||||||||||||||
Foreign currency contracts | Cost of sales | (557) | 40 | |||||||||||||||||||||||||||||
Interest rate swaps | Interest | 0 | (41) | |||||||||||||||||||||||||||||
Reclassification from AOCIL into earnings | (529) | 1 | ||||||||||||||||||||||||||||||
Tax effect | 126 | 0 | ||||||||||||||||||||||||||||||
Net reclassification from AOCIL into earnings | $ | (403) | $ | 1 |
Three Months Ended | Six Months Ended | |||||||||||||||||
Statements of Earnings location | March 28, 2020 | March 30, 2019 | March 28, 2020 | March 30, 2019 | ||||||||||||||
Retirement liability: | ||||||||||||||||||
Prior service cost (credit) | $ | (31 | ) | $ | (75 | ) | $ | (63 | ) | $ | (151 | ) | ||||||
Actuarial losses | 7,388 | 7,627 | 14,782 | 15,256 | ||||||||||||||
Reclassification from AOCIL into earnings (2) | 7,357 | 7,552 | 14,719 | 15,105 | ||||||||||||||
Tax effect | (1,761 | ) | (1,848 | ) | (3,523 | ) | (3,696 | ) | ||||||||||
Net reclassification from AOCIL into earnings | $ | 5,596 | $ | 5,704 | $ | 11,196 | $ | 11,409 | ||||||||||
Derivatives: | ||||||||||||||||||
Foreign currency contracts | Sales | $ | 5 | $ | (67 | ) | $ | 7 | $ | (100 | ) | |||||||
Foreign currency contracts | Cost of sales | (274 | ) | 235 | (234 | ) | 895 | |||||||||||
Interest rate swaps | Interest | — | (317 | ) | (41 | ) | (717 | ) | ||||||||||
Reclassification from AOCIL into earnings | (269 | ) | (149 | ) | (268 | ) | 78 | |||||||||||
Tax effect | 63 | 35 | 63 | (22 | ) | |||||||||||||
Net reclassification from AOCIL into earnings | $ | (206 | ) | $ | (114 | ) | $ | (205 | ) | $ | 56 |
The effective portion of |
Three Months Ended | ||||||||||||||||||||||||||
January 2, 2021 | December 28, 2019 | |||||||||||||||||||||||||
Foreign currency contracts | $ | 631 | $ | 1,794 | ||||||||||||||||||||||
Interest rate swaps | 0 | (4) | ||||||||||||||||||||||||
Net gain | 631 | 1,790 | ||||||||||||||||||||||||
Tax effect | (130) | (389) | ||||||||||||||||||||||||
Net deferral in AOCIL of derivatives | $ | 501 | $ | 1,401 |
Net deferral in AOCIL - effective portion | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
March 28, 2020 | March 30, 2019 | March 28, 2020 | March 30, 2019 | |||||||||||||
Foreign currency contracts | $ | (1,162 | ) | $ | 150 | $ | 632 | $ | 1,049 | |||||||
Interest rate swaps | (36 | ) | (107 | ) | (40 | ) | (342 | ) | ||||||||
Net gain (loss) | (1,198 | ) | 43 | 592 | 707 | |||||||||||
Tax effect | 241 | (8 | ) | (148 | ) | (178 | ) | |||||||||
Net deferral in AOCIL of derivatives | $ | (957 | ) | $ | 35 | $ | 444 | $ | 529 |
Three Months Ended | Six Months Ended | |||||||||||
March 28, 2020 | March 30, 2019 | March 28, 2020 | March 30, 2019 | |||||||||
Basic weighted-average shares outstanding | 33,434,420 | 34,886,541 | 33,972,635 | 34,850,898 | ||||||||
Dilutive effect of equity-based awards | 250,975 | 354,572 | 263,764 | 332,573 | ||||||||
Diluted weighted-average shares outstanding | 33,685,395 | 35,241,113 | 34,236,399 | 35,183,471 |
Three Months Ended | ||||||||||||||||||||||||||
January 2, 2021 | December 28, 2019 | |||||||||||||||||||||||||
Basic weighted-average shares outstanding | 32,074,873 | 34,510,851 | ||||||||||||||||||||||||
Dilutive effect of equity-based awards | 162,339 | 276,553 | ||||||||||||||||||||||||
Diluted weighted-average shares outstanding | 32,237,212 | 34,787,404 |
Three Months Ended | Six Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||||||||
Market Type | March 28, 2020 | March 30, 2019 | March 28, 2020 | March 30, 2019 | Market Type | January 2, 2021 | December 28, 2019 | |||||||||||||||||||||||||||||||||||
Net sales: | Net sales: | |||||||||||||||||||||||||||||||||||||||||
Military | $ | 175,784 | $ | 155,016 | $ | 349,478 | $ | 301,817 | Military | $ | 205,698 | $ | 173,694 | |||||||||||||||||||||||||||||
Commercial | 165,623 | 165,611 | 331,883 | 322,855 | Commercial | 81,076 | 166,260 | |||||||||||||||||||||||||||||||||||
Aircraft Controls | 341,407 | 320,627 | 681,361 | 624,672 | Aircraft Controls | 286,774 | 339,954 | |||||||||||||||||||||||||||||||||||
Space | 73,564 | 53,349 | 136,304 | 103,525 | Space | 77,811 | 62,740 | |||||||||||||||||||||||||||||||||||
Defense | 119,446 | 111,476 | 242,946 | 217,368 | Defense | 110,351 | 123,500 | |||||||||||||||||||||||||||||||||||
Space and Defense Controls | 193,010 | 164,825 | 379,250 | 320,893 | Space and Defense Controls | 188,162 | 186,240 | |||||||||||||||||||||||||||||||||||
Energy | 36,772 | 29,977 | 66,711 | 59,274 | Energy | 28,644 | 29,939 | |||||||||||||||||||||||||||||||||||
Industrial Automation | 106,177 | 116,369 | 213,008 | 225,499 | Industrial Automation | 95,231 | 106,831 | |||||||||||||||||||||||||||||||||||
Simulation and Test | 25,647 | 31,245 | 54,115 | 60,295 | Simulation and Test | 20,126 | 28,468 | |||||||||||||||||||||||||||||||||||
Medical | 62,264 | 55,768 | 125,675 | 107,854 | Medical | 65,017 | 63,411 | |||||||||||||||||||||||||||||||||||
Industrial Systems | 230,860 | 233,359 | 459,509 | 452,922 | Industrial Systems | 209,018 | 228,649 | |||||||||||||||||||||||||||||||||||
Net sales | $ | 765,277 | $ | 718,811 | $ | 1,520,120 | $ | 1,398,487 | Net sales | $ | 683,954 | $ | 754,843 |
Three Months Ended | ||||||||||||||||||||||||||
Customer Type | January 2, 2021 | December 28, 2019 | ||||||||||||||||||||||||
Net sales: | ||||||||||||||||||||||||||
Commercial | $ | 81,076 | $ | 166,260 | ||||||||||||||||||||||
U.S. Government (including OEM) | 156,677 | 132,209 | ||||||||||||||||||||||||
Other | 49,021 | 41,485 | ||||||||||||||||||||||||
Aircraft Controls | 286,774 | 339,954 | ||||||||||||||||||||||||
Commercial | 31,134 | 34,152 | ||||||||||||||||||||||||
U.S. Government (including OEM) | 138,172 | 134,687 | ||||||||||||||||||||||||
Other | 18,856 | 17,401 | ||||||||||||||||||||||||
Space and Defense Controls | 188,162 | 186,240 | ||||||||||||||||||||||||
Commercial | 201,953 | 220,519 | ||||||||||||||||||||||||
U.S. Government (including OEM) | 6,321 | 6,421 | ||||||||||||||||||||||||
Other | 744 | 1,709 | ||||||||||||||||||||||||
Industrial Systems | 209,018 | 228,649 | ||||||||||||||||||||||||
Commercial | 314,163 | 420,931 | ||||||||||||||||||||||||
U.S. Government (including OEM) | 301,170 | 273,317 | ||||||||||||||||||||||||
Other | 68,621 | 60,595 | ||||||||||||||||||||||||
Net sales | $ | 683,954 | $ | 754,843 |
Three Months Ended | Six Months Ended | |||||||||||||||
Customer Type | March 28, 2020 | March 30, 2019 | March 28, 2020 | March 30, 2019 | ||||||||||||
Net sales: | ||||||||||||||||
Commercial | $ | 165,623 | $ | 165,611 | $ | 331,883 | $ | 322,855 | ||||||||
U.S. Government (including OEM) | 140,677 | 122,779 | 272,886 | 239,960 | ||||||||||||
Other | 35,107 | 32,237 | 76,592 | 61,857 | ||||||||||||
Aircraft Controls | 341,407 | 320,627 | 681,361 | 624,672 | ||||||||||||
Commercial | 34,184 | 32,188 | 68,336 | 62,241 | ||||||||||||
U.S. Government (including OEM) | 141,735 | 121,821 | 276,422 | 236,286 | ||||||||||||
Other | 17,091 | 10,816 | 34,492 | 22,366 | ||||||||||||
Space and Defense Controls | 193,010 | 164,825 | 379,250 | 320,893 | ||||||||||||
Commercial | 223,128 | 226,894 | 443,647 | 437,462 | ||||||||||||
U.S. Government (including OEM) | 5,022 | 4,511 | 11,443 | 10,953 | ||||||||||||
Other | 2,710 | 1,954 | 4,419 | 4,507 | ||||||||||||
Industrial Systems | 230,860 | 233,359 | 459,509 | 452,922 | ||||||||||||
Commercial | 422,935 | 424,693 | 843,866 | 822,558 | ||||||||||||
U.S. Government (including OEM) | 287,434 | 249,111 | 560,751 | 487,199 | ||||||||||||
Other | 54,908 | 45,007 | 115,503 | 88,730 | ||||||||||||
Net sales | $ | 765,277 | $ | 718,811 | $ | 1,520,120 | $ | 1,398,487 |
Three Months Ended | Six Months Ended | |||||||||||||||
March 28, 2020 | March 30, 2019 | March 28, 2020 | March 30, 2019 | |||||||||||||
Operating profit: | ||||||||||||||||
Aircraft Controls | $ | 34,701 | $ | 27,122 | $ | 73,293 | $ | 60,321 | ||||||||
Space and Defense Controls | 24,652 | 20,504 | 49,934 | 38,977 | ||||||||||||
Industrial Systems | 24,775 | 30,228 | 51,574 | 57,933 | ||||||||||||
Total operating profit | 84,128 | 77,854 | 174,801 | 157,231 | ||||||||||||
Deductions from operating profit: | ||||||||||||||||
Interest expense | 10,251 | 9,939 | 20,483 | 19,621 | ||||||||||||
Equity-based compensation expense | 890 | 1,683 | 3,271 | 3,691 | ||||||||||||
Non-service pension expense | 3,598 | 4,889 | 7,199 | 9,783 | ||||||||||||
Corporate and other expenses, net | 7,858 | 7,427 | 15,413 | 13,737 | ||||||||||||
Earnings before income taxes | $ | 61,531 | $ | 53,916 | $ | 128,435 | $ | 110,399 |
Three Months Ended | ||||||||||||||||||||||||||
January 2, 2021 | December 28, 2019 | |||||||||||||||||||||||||
Operating profit: | ||||||||||||||||||||||||||
Aircraft Controls | $ | 27,922 | $ | 38,592 | ||||||||||||||||||||||
Space and Defense Controls | 23,046 | 25,282 | ||||||||||||||||||||||||
Industrial Systems | 19,898 | 26,799 | ||||||||||||||||||||||||
Total operating profit | 70,866 | 90,673 | ||||||||||||||||||||||||
Deductions from operating profit: | ||||||||||||||||||||||||||
Interest expense | 8,420 | 10,232 | ||||||||||||||||||||||||
Equity-based compensation expense | 2,502 | 2,381 | ||||||||||||||||||||||||
Non-service pension expense | 920 | 3,601 | ||||||||||||||||||||||||
Corporate and other expenses, net | 8,653 | 7,555 | ||||||||||||||||||||||||
Earnings before income taxes | $ | 50,371 | $ | 66,904 |
•maintaining our technological excellence by solving our customers’ most demanding technical problems in applications "When Performance Really Matters®," • |
CONSOLIDATED RESULTS OF OPERATIONS | CONSOLIDATED RESULTS OF OPERATIONS | CONSOLIDATED RESULTS OF OPERATIONS | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars and shares in millions, except per share data) | March 28, 2020 | March 30, 2019 | $ Variance | % Variance | March 28, 2020 | March 30, 2019 | $ Variance | % Variance | (dollars and shares in millions, except per share data) | January 2, 2021 | December 28, 2019 | $ Variance | % Variance | |||||||||||||||||||||||||||||||||||||||
Net sales | $ | 765 | $ | 719 | $ | 46 | 6 | % | $ | 1,520 | $ | 1,398 | $ | 122 | 9 | % | Net sales | $ | 684 | $ | 755 | $ | (71) | (9 | %) | |||||||||||||||||||||||||||
Gross margin | 27.2 | % | 27.5 | % | 27.6 | % | 28.4 | % | Gross margin | 27.7 | % | 28.0 | % | |||||||||||||||||||||||||||||||||||||||
Research and development expenses | $ | 27 | $ | 31 | $ | (5 | ) | (15 | %) | $ | 55 | $ | 63 | $ | (8 | ) | (13 | %) | Research and development expenses | $ | 28 | $ | 28 | $ | — | (1 | %) | |||||||||||||||||||||||||
Selling, general and administrative expenses as a percentage of sales | 14.0 | % | 13.9 | % | 13.5 | % | 14.0 | % | Selling, general and administrative expenses as a percentage of sales | 14.6 | % | 13.0 | % | |||||||||||||||||||||||||||||||||||||||
Interest expense | $ | 10 | $ | 10 | $ | — | 3 | % | $ | 20 | $ | 20 | $ | 1 | 4 | % | Interest expense | $ | 8 | $ | 10 | $ | (2) | (18 | %) | |||||||||||||||||||||||||||
Other | $ | 2 | $ | 2 | $ | — | — | % | $ | 10 | $ | 7 | $ | 2 | 32 | % | Other | $ | 3 | $ | 8 | $ | (4) | (57 | %) | |||||||||||||||||||||||||||
Effective tax rate | 19.2 | % | 23.8 | % | 22.3 | % | 24.1 | % | Effective tax rate | 24.9 | % | 25.2 | % | |||||||||||||||||||||||||||||||||||||||
Net earnings | $ | 50 | $ | 41 | $ | 9 | 21 | % | $ | 100 | $ | 84 | $ | 16 | 19 | % | Net earnings | $ | 38 | $ | 50 | $ | (12) | (24 | %) | |||||||||||||||||||||||||||
Diluted earnings per share | $ | 1.48 | $ | 1.17 | $ | 0.31 | 26 | % | $ | 2.91 | $ | 2.38 | $ | 0.53 | 22 | % | Diluted earnings per share | $ | 1.17 | $ | 1.44 | $ | (0.27) | (19 | %) | |||||||||||||||||||||||||||
Total backlog | $ | 2,603 | $ | 2,230 | $ | 373 | 17 | % | ||||||||||||||||||||||||||||||||||||||||||||
Twelve-month backlog | $ | 1,793 | $ | 1,636 | $ | 157 | 10 | % | Twelve-month backlog | $ | 1,898 | $ | 1,670 | $ | 228 | 14 | % |
Three Months Ended | |||||||||||||||||||||||||||||
(dollars in millions) | January 2, 2021 | December 28, 2019 | $ Variance | % Variance | |||||||||||||||||||||||||
Net sales - military aircraft | $ | 206 | $ | 174 | $ | 32 | 18 | % | |||||||||||||||||||||
Net sales - commercial aircraft | 81 | 166 | (85) | (51 | %) | ||||||||||||||||||||||||
$ | 287 | $ | 340 | $ | (53) | (16 | %) | ||||||||||||||||||||||
Operating profit | $ | 28 | $ | 39 | $ | (11) | (28 | %) | |||||||||||||||||||||
Operating margin | 9.7 | % | 11.4 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(dollars in millions) | March 28, 2020 | March 30, 2019 | $ Variance | % Variance | March 28, 2020 | March 30, 2019 | $ Variance | % Variance | |||||||||||||||
Net sales - military aircraft | $ | 176 | $ | 155 | $ | 21 | 13 | % | $ | 349 | $ | 302 | $ | 48 | 16 | % | |||||||
Net sales - commercial aircraft | 166 | 166 | — | — | % | 332 | 323 | 9 | 3 | % | |||||||||||||
$ | 341 | $ | 321 | $ | 21 | 6 | % | $ | 681 | $ | 625 | $ | 57 | 9 | % | ||||||||
Operating profit | $ | 35 | $ | 27 | $ | 8 | 28 | % | $ | 73 | $ | 60 | $ | 13 | 22 | % | |||||||
Operating margin | 10.2 | % | 8.5 | % | 10.8 | % | 9.7 | % |
Three Months Ended | |||||||||||||||||||||||||||||
(dollars in millions) | January 2, 2021 | December 28, 2019 | $ Variance | % Variance | |||||||||||||||||||||||||
Net sales | $ | 188 | $ | 186 | $ | 2 | 1 | % | |||||||||||||||||||||
Operating profit | $ | 23 | $ | 25 | $ | (2) | (9 | %) | |||||||||||||||||||||
Operating margin | 12.2 | % | 13.6 | % |
Three Months Ended | Six Months Ended | ||||||||||||||||||||||
(dollars in millions) | March 28, 2020 | March 30, 2019 | $ Variance | % Variance | March 28, 2020 | March 30, 2019 | $ Variance | % Variance | |||||||||||||||
Net sales | $ | 193 | $ | 165 | $ | 28 | 17 | % | $ | 379 | $ | 321 | $ | 58 | 18 | % | |||||||
Operating profit | $ | 25 | $ | 21 | $ | 4 | 20 | % | $ | 50 | $ | 39 | $ | 11 | 28 | % | |||||||
Operating margin | 12.8 | % | 12.4 | % | 13.2 | % | 12.1 | % |
Three Months Ended | Six Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
(dollars in millions) | March 28, 2020 | March 30, 2019 | $ Variance | % Variance | March 28, 2020 | March 30, 2019 | $ Variance | % Variance | (dollars in millions) | January 2, 2021 | December 28, 2019 | $ Variance | % Variance | |||||||||||||||||||||||||||||||||||||||
Net sales | $ | 231 | $ | 233 | $ | (2 | ) | (1 | %) | $ | 460 | $ | 453 | $ | 7 | 1 | % | Net sales | $ | 209 | $ | 229 | $ | (20) | (9 | %) | ||||||||||||||||||||||||||
Operating profit | $ | 25 | $ | 30 | $ | (5 | ) | (18 | %) | $ | 52 | $ | 58 | $ | (6 | ) | (11 | %) | Operating profit | $ | 20 | $ | 27 | $ | (7) | (26 | %) | |||||||||||||||||||||||||
Operating margin | 10.7 | % | 13.0 | % | 11.2 | % | 12.8 | % | Operating margin | 9.5 | % | 11.7 | % |
Six Months Ended | Three Months Ended | |||||||||||||||||||
(dollars in millions) | March 28, 2020 | March 30, 2019 | $ Variance | (dollars in millions) | January 2, 2021 | December 28, 2019 | $ Variance | |||||||||||||
Net cash provided (used) by: | Net cash provided (used) by: | |||||||||||||||||||
Operating activities | $ | 81 | $ | 109 | $ | (28 | ) | Operating activities | $ | 94 | $ | 42 | $ | 52 | ||||||
Investing activities | (111 | ) | (58 | ) | (54 | ) | Investing activities | (96) | (85) | (12) | ||||||||||
Financing activities | 58 | (67 | ) | 125 | Financing activities | 13 | 76 | (63) |
Period | (a) Total Number of Shares Purchased (1) (2)(3) | (b) Average Price Paid Per Share | (c) Total number of Shares Purchased as Part of Publicly Announced Plans or Programs (3) | (d) Maximum Number (or Approx. Dollar Value) of Shares that May Yet Be Purchased Under Plans or Programs (3) | ||||||||||||||||||||||
October 4, 2020 - October 31, 2020 | 161,991 | $ | 65.33 | 155,963 | 10,228 | |||||||||||||||||||||
November 1, 2020 - November 28, 2020 | 7,297 | 74.39 | — | 3,000,000 | ||||||||||||||||||||||
November 29, 2020 - January 2, 2021 | 4,691 | 83.28 | — | 3,000,000 | ||||||||||||||||||||||
Total | 173,979 | $ | 66.19 | 155,963 | 3,000,000 |
Period | (a) Total Number of Shares Purchased (1)(2)(3) | (b) Average Price Paid Per Share | (c) Total number of Shares Purchased as Part of Publicly Announced Plans or Programs (3) | (d) Maximum Number (or Approx. Dollar Value) of Shares that May Yet Be Purchased Under Plans or Programs (3) | |||||||||
December 29, 2019 - February 1, 2020 | 564,058 | $ | 90.16 | 507,011 | 1,871,350 | ||||||||
February 2, 2020 - February 29, 2020 | 535,257 | 87.91 | 418,612 | 1,452,738 | |||||||||
March 1, 2020 - March 28, 2020 | 687,734 | 55.85 | 687,418 | 765,320 | |||||||||
Total | 1,787,049 | $ | 76.28 | 1,613,041 | 765,320 |
(a) | Exhibits | ||||||||||
Certification of Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||||||
Certification of Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||||||||
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||||||||||
101 | Interactive Date files (submitted electronically herewith) |
(101.INS) | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
(101.SCH) | XBRL Taxonomy Extension Schema Document | ||||
(101.CAL) | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
(101.DEF) | XBRL Taxonomy Extension Definition Linkbase Document | ||||
(101.LAB) | XBRL Taxonomy Extension Label Linkbase Document | ||||
(101.PRE) | XBRL Taxonomy Extension Presentation Linkbase Document |
Moog Inc. | |||||||||||||||||
Date: | January 29, 2021 | By | |||||||||||||||
/s/ John R. Scannell | |||||||||||||||||
John R. Scannell | |||||||||||||||||
Chairman of the Board and Director Chief Executive Officer (Principal Executive Officer) | |||||||||||||||||
Date: | By | /s/ Jennifer Walter | |||||||||||||||
Jennifer Walter | |||||||||||||||||
Vice President and Chief Financial Officer (Principal Financial Officer) | |||||||||||||||||
Date: | By | /s/ Michael J. Swope | |||||||||||||||
Michael J. Swope | |||||||||||||||||
Controller (Principal Accounting Officer) | |||||||||||||||||