Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jan. 02, 2021 | Jan. 25, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 2, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-32833 | |
Entity Registrant Name | TransDigm Group Incorporated | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 41-2101738 | |
Entity Address, Address Line One | 1301 East 9th Street, | |
Entity Address, Address Line Two | Suite 3000, | |
Entity Address, City or Town | Cleveland, | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44114 | |
City Area Code | 216 | |
Local Phone Number | 706-2960 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | TDG | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 54,688,918 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001260221 | |
Document Fiscal Year Focus | 2021 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Jan. 02, 2021 | Sep. 30, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 4,907 | $ 4,717 |
Trade accounts receivable—Net | 627 | 720 |
Inventories—Net | 1,284 | 1,283 |
Prepaid expenses and other | 256 | 240 |
Total current assets | 7,074 | 6,960 |
PROPERTY, PLANT AND EQUIPMENT—Net | 777 | 752 |
GOODWILL | 7,927 | 7,889 |
OTHER INTANGIBLE ASSETS—Net | 2,604 | 2,610 |
DEFERRED INCOME TAXES | 18 | 17 |
OTHER | 157 | 167 |
TOTAL ASSETS | 18,557 | 18,395 |
CURRENT LIABILITIES: | ||
Current portion of long-term debt | 276 | 276 |
Short-term borrowings—trade receivable securitization facility | 350 | 349 |
Accounts payable | 197 | 218 |
Accrued and other current liabilities | 740 | 773 |
Total current liabilities | 1,563 | 1,616 |
LONG-TERM DEBT | 19,394 | 19,384 |
DEFERRED INCOME TAXES | 437 | 430 |
OTHER NON-CURRENT LIABILITIES | 884 | 933 |
Total liabilities | 22,278 | 22,363 |
TD GROUP STOCKHOLDERS’ DEFICIT: | ||
Common stock - $.01 par value; authorized 224,400,000 shares; issued 58,853,007 and 58,612,028 at January 2, 2021 and September 30, 2020, respectively | 1 | 1 |
Additional paid-in capital | 1,656 | 1,581 |
Accumulated deficit | (4,314) | (4,359) |
Accumulated other comprehensive loss | (277) | (401) |
Treasury stock, at cost; 4,198,226 shares at January 2, 2021 and September 30, 2020, respectively | 794 | 794 |
Total TD Group stockholders’ deficit | (3,728) | (3,972) |
NONCONTROLLING INTERESTS | 7 | 4 |
Total stockholders’ deficit | (3,721) | (3,968) |
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ 18,557 | $ 18,395 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets Parenthetical - $ / shares | Jan. 02, 2021 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 224,400,000 | 224,400,000 |
Common Stock, Shares, Issued | 58,853,007 | 58,612,028 |
Treasury Stock, Shares | 4,198,226 | 4,198,226 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
NET SALES | $ 1,108 | $ 1,465 |
COST OF SALES | 567 | 664 |
GROSS PROFIT | 541 | 801 |
SELLING AND ADMINISTRATIVE EXPENSES | 197 | 201 |
AMORTIZATION OF INTANGIBLE ASSETS | 29 | 40 |
INCOME FROM OPERATIONS | 315 | 560 |
INTEREST EXPENSE—NET | 267 | 248 |
REFINANCING COSTS | 0 | 22 |
OTHER INCOME | (5) | (3) |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 53 | 293 |
INCOME TAX PROVISION | 3 | 59 |
INCOME FROM CONTINUING OPERATIONS | 50 | 234 |
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX | 0 | 71 |
NET INCOME | 50 | 305 |
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | 0 | (1) |
NET INCOME ATTRIBUTABLE TO TD GROUP | 50 | 304 |
NET (LOSS) INCOME APPLICABLE TO TD GROUP COMMON STOCKHOLDERS | $ (23) | $ 119 |
(Loss) Earnings per share attributable to TD Group common stockholders: | ||
(Loss) Earnings per share from continuing operations—basic and diluted | $ (0.42) | $ 0.83 |
Earnings per share from discontinued operations—basic and diluted | 0 | 1.24 |
(Loss) Earnings per share | (0.42) | 2.07 |
Cash dividends paid per common share | $ 0 | $ 32.50 |
Weighted-average shares outstanding: | ||
Basic and diluted | 54.7 | 57.4 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Net income | $ 50 | $ 305 |
Less: Net income attributable to noncontrolling interests | 0 | 1 |
NET INCOME ATTRIBUTABLE TO TD GROUP | 50 | 304 |
Other comprehensive income, net of tax: | ||
Foreign currency translation | 111 | 98 |
Unrealized gain on derivatives | 13 | 23 |
Pensions and other postretirement benefits | 0 | 6 |
Other comprehensive income, net of tax, attributable to TD Group | 124 | 127 |
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO TD GROUP | $ 174 | $ 431 |
Condensed Consolidated Statem_3
Condensed Consolidated Statement of Changes in Stockholders' Deficit - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Non-controlling Interests |
NONCONTROLLING INTERESTS | $ 10 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Total stockholders’ deficit | $ (2,884) | ||||||
BALANCE (in shares) at Sep. 30, 2019 | 57,623,311 | ||||||
BALANCE (in shares) at Sep. 30, 2019 | (4,161,326) | ||||||
BALANCE at Sep. 30, 2019 | $ 1 | $ 1,379 | $ (3,120) | $ (379) | $ (775) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Changes in noncontrolling interest of consolidated subsidiaries, net | (6) | (6) | |||||
Special dividends and vested dividend equivalents declared | (1,864) | (1,864) | |||||
Accrued unvested dividend equivalents and other | (19) | (19) | |||||
Compensation expense recognized for employee stock options | 23 | 23 | |||||
Exercise of employee stock options | 169,470 | ||||||
Exercise of employee stock options | 20 | 20 | |||||
NET INCOME ATTRIBUTABLE TO TD GROUP | 304 | 304 | |||||
Foreign currency translation adjustments, net of tax | 98 | 98 | |||||
Unrealized gain on derivatives, net of tax | 23 | 23 | |||||
Pensions and other postretirement benefits adjustments, net of tax | 6 | 6 | |||||
BALANCE (in shares) at Dec. 28, 2019 | 57,792,781 | ||||||
BALANCE (in shares) at Dec. 28, 2019 | (4,161,326) | ||||||
BALANCE at Dec. 28, 2019 | $ 1 | 1,422 | (4,699) | (252) | $ (775) | ||
NONCONTROLLING INTERESTS | 4 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Total stockholders’ deficit | (4,299) | ||||||
NONCONTROLLING INTERESTS | 4 | 4 | |||||
Total stockholders’ deficit | $ (3,968) | ||||||
BALANCE (in shares) at Sep. 30, 2020 | 58,612,028 | 58,612,028 | |||||
BALANCE (in shares) at Sep. 30, 2020 | (4,198,226) | (4,198,226) | |||||
BALANCE at Sep. 30, 2020 | $ (3,972) | $ 1 | 1,581 | (4,359) | (401) | $ (794) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Changes in noncontrolling interest of consolidated subsidiaries, net | 3 | 3 | |||||
Accrued unvested dividend equivalents and other | (5) | (5) | |||||
Compensation expense recognized for employee stock options | 43 | 43 | |||||
Exercise of employee stock options | 240,979 | ||||||
Exercise of employee stock options | 32 | 32 | |||||
NET INCOME ATTRIBUTABLE TO TD GROUP | 50 | 50 | |||||
Foreign currency translation adjustments, net of tax | 111 | 111 | |||||
Unrealized gain on derivatives, net of tax | 13 | 13 | |||||
Pensions and other postretirement benefits adjustments, net of tax | $ 0 | 0 | |||||
BALANCE (in shares) at Jan. 02, 2021 | 58,853,007 | 58,853,007 | |||||
BALANCE (in shares) at Jan. 02, 2021 | (4,198,226) | (4,198,226) | |||||
BALANCE at Jan. 02, 2021 | $ (3,728) | $ 1 | $ 1,656 | $ (4,314) | $ (277) | $ (794) | |
NONCONTROLLING INTERESTS | 7 | $ 7 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Total stockholders’ deficit | $ (3,721) |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
OPERATING ACTIVITIES: | ||
NET INCOME | $ 50 | $ 305 |
Net income from discontinued operations | 0 | (71) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 29 | 29 |
Amortization of intangible assets | 29 | 40 |
Amortization of debt issuance costs, original issue discount and premium | 9 | 8 |
Amortization of loss contract reserves | (18) | (11) |
Refinancing costs | 0 | 22 |
Non-cash stock compensation | 49 | 26 |
Deferred income taxes | 5 | (2) |
Changes in assets/liabilities, net of effects from acquisitions of businesses: | ||
Trade accounts receivable | 86 | 51 |
Inventories | 1 | (69) |
Income taxes receivable/payable | 16 | 30 |
Other assets | 3 | (5) |
Accounts payable | (20) | (14) |
Accrued interest | 7 | 88 |
Accrued and other liabilities | 28 | 6 |
Net cash provided by operating activities | 274 | 433 |
INVESTING ACTIVITIES: | ||
Capital expenditures | (31) | (27) |
Acquisition of businesses, net of cash acquired | (6) | 0 |
Net proceeds from sale of businesses | 8 | 904 |
Net cash (used in) provided by investing activities | (29) | 877 |
FINANCING ACTIVITIES: | ||
Proceeds from exercise of stock options | 32 | 20 |
Dividend equivalent payments | (73) | (64) |
Repayment on term loans | (19) | 0 |
Redemption of 6.00% senior subordinated notes due 2022, net | 0 | (1,168) |
Proceeds from 5.50% senior subordinated notes due 2027, net | 0 | 2,625 |
Financing costs and other, net | 0 | 1 |
Net cash (used in) provided by financing activities | (60) | 1,414 |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 5 | 3 |
NET INCREASE IN CASH AND CASH EQUIVALENTS | 190 | 2,727 |
Cash and cash equivalents | 4,907 | 4,194 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Cash paid during the period for interest | 252 | 155 |
Cash (refunded) paid during the period for income taxes, net | $ (5) | $ 29 |
DESCRIPTION OF THE BUSINESS AND
DESCRIPTION OF THE BUSINESS AND IMPACT OF COVID-19 PANDEMIC | 3 Months Ended |
Jan. 02, 2021 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF THE BUSINESS AND IMPACT OF COVID-19 | DESCRIPTION OF THE BUSINESS AND IMPACT OF COVID-19 PANDEMIC Description of the Business TransDigm Group Incorporated (“TD Group”), through its wholly-owned subsidiary, TransDigm Inc., is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly every commercial and military aircraft in service today. TransDigm Inc., along with TransDigm Inc.’s direct and indirect wholly-owned operating subsidiaries (collectively, with TD Group, the “Company” or “TransDigm”), offers a broad range of proprietary aerospace products. TD Group has no significant assets or operations other than its 100% ownership of TransDigm Inc. TD Group’s common stock is listed on the New York Stock Exchange, or the NYSE, under the trading symbol “TDG.” TransDigm's major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, databus and power controls, cockpit security components and systems, specialized and advanced cockpit displays, aircraft audio systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, advanced sensor products, switches and relay panels, thermal protection and insulation, lighting and control technology, parachutes, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems. Impact of COVID-19 Pandemic - Restructuring Costs The commercial aerospace industry continues to be significantly disrupted, both domestically and internationally, by the COVID-19 pandemic resulting in ongoing business challenges. Material actions to reduce costs in response to the impact that the pandemic has had on operating results include: (1) reducing the Company's workforce to align operations with customer demand through a reduction in force or through a realignment of certain business units; (2) implementing unpaid furloughs and salary reductions; (3) delaying non-essential capital projects and (4) minimizing discretionary spending. For the thirteen week period ended January 2, 2021, COVID-19 restructuring costs of approximately $20 million were incurred, of which $13 million was recorded in cost of sales and $7 million was recorded in selling and administrative expenses on the condensed consolidated statements of income. These costs are primarily related to the Company's actions to reduce its workforce to align with customer demand. Additionally, the Company incurred approximately $1 million in incremental costs related to the pandemic that are not expected to recur once the pandemic has subsided and are clearly separable from normal operations (e.g., additional cleaning and disinfecting of facilities by contractors above and beyond normal requirements, personal protective equipment, etc.). There were no COVID-19 restructuring costs or incremental costs incurred related to the pandemic for the thirteen week period ended December 28, 2019. As of January 2, 2021 and September 30, 2020, the restructuring accrual associated with the costs incurred in response to the COVID-19 pandemic was approximately $27 million and $13 million, respectively. This accrual is recorded as a component of accrued and other current liabilities on the condensed consolidated balance sheets. The Company expects to incur and pay additional restructuring costs during fiscal 2021 related to the COVID-19 pandemic though at a reduced level in comparison to fiscal 2020. The Company continues to analyze its cost structure and may implement additional cost reduction measures as necessary due to the ongoing business challenges resulting from the COVID-19 pandemic. |
UNAUDITED INTERIM FINANCIAL INF
UNAUDITED INTERIM FINANCIAL INFORMATION | 3 Months Ended |
Jan. 02, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
UNAUDITED INTERIM FINANCIAL INFOMRATION | UNAUDITED INTERIM FINANCIAL INFORMATIONThe financial information included herein is unaudited; however, the information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s Condensed Consolidated Financial Statements for the interim periods presented. These financial statements and notes should be read in conjunction with the financial statements and related notes for the year ended September 30, 2020 included in TD Group’s Form 10-K filed on November 12, 2020. As disclosed therein, the Company’s annual consolidated financial statements were prepared in conformity with generally accepted accounting principles in the United States (“U.S. GAAP”). The September 30, 2020 condensed consolidated balance sheet was derived from TD Group’s audited financial statements. The results of operations for the thirteen week period ended January 2, 2021 are not necessarily indicative of the results to be expected for the full year. |
ACQUISITIONS AND DIVESTITURES
ACQUISITIONS AND DIVESTITURES | 3 Months Ended |
Jan. 02, 2021 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DIVESTITURES | ACQUISITIONS AND DIVESTITURES Acquisitions Cobham Aero Connectivity – On November 24, 2020, the Company entered into a definitive agreement to acquire Cobham Aero Connectivity (“CAC”) for approximately $959 million in cash. The acquisition was substantially completed on January 5, 2021 and financed through existing cash on hand. A portion of the acquisition representing approximately 2% of the purchase price remains subject to Finnish regulatory approval and is expected to close during the second quarter of fiscal 2021. CAC operates from two primary facilities (Marlow, United Kingdom and Prescott, Arizona) and is a leading provider of highly engineered antennas and radios for the aerospace end market. The products are primarily proprietary with significant aftermarket content and have a strong presence across major defense platforms as well as select commercial applications. CAC will be included in TransDigm's Airframe segment. The acquisition will strengthen and expand the Company’s position to design, produce and supply highly engineered proprietary aerospace components in niche markets with significant aftermarket content and provide opportunities to create value through the application of our three core value-driven operating strategies (obtaining profitable new business, improving our cost structure, and providing highly engineered value-added products to customers). The purchase price paid for the acquisition reflects the current earnings before interest, taxes, depreciation and amortization (EBITDA) and cash flows, as well as the future EBITDA and cash flows expected to be generated by the business, which are driven in most cases by the recurring aftermarket consumption over the life of a particular aircraft, estimated to be approximately 25 to 30 years. Divestitures Racal Acoustics – On January 29, 2021, TransDigm completed the divestiture of the Racal Acoustics business (“Racal”) to Invisio Communications AB for approximately $20 million in cash. Racal was acquired by TransDigm as part of its acquisition of Esterline in March 2019 and is included in TransDigm's Non-aviation segment. During the first quarter of fiscal 2021, the Company determined Racal met the criteria to be classified as held for sale. Therefore, the assets and liabilities of Racal, which are not material, have been presented as held for sale in the condensed consolidated balance sheet as of January 2, 2021. Avista – On November 17, 2020, TransDigm completed the divestiture of the Avista, Inc. business ("Avista") to Belcan, LLC ("Belcan") for approximately $8 million. Avista was acquired by TransDigm as part of its acquisition of Esterline in March 2019 and was included in TransDigm's Airframe segment. During the fourth quarter of fiscal 2020, the Company determined Avista met the criteria to be classified as held for sale. Therefore, the assets and liabilities of Avista, which were not material, have been presented as held for sale in the condensed consolidated balance sheet as of September 30, 2020. Souriau-Sunbank – On December 20, 2019, TransDigm completed the divestiture of the Souriau-Sunbank Connection Technologies business (“Souriau-Sunbank”) to Eaton Corporation plc (“Eaton”) for approximately $920 million. Souriau-Sunbank was acquired by TransDigm as part of its acquisition of Esterline in March 2019 and was included in TransDigm's Non-aviation segment. Refer to Note 18, "Discontinued Operations," for additional disclosures on the Souriau-Sunbank divestiture. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Jan. 02, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016-13)," which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. The Company adopted ASU 2016-13 on October 1, 2020. The adoption of this standard did not have a material impact on our condensed consolidated financial statements. Refer to Note 5, "Revenue Recognition," for additional disclosures. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” to eliminate Step 2 from the goodwill impairment test in order to simplify the subsequent measurement of goodwill. The guidance is effective for the Company on October 1, 2020. The adoption of this standard did not have a material impact on our condensed consolidated financial statements and disclosures. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (ASC 740) - Simplifying the Accounting for Income Taxes,” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC 740. The amendments also improve consistent application of and simplify U.S. GAAP for other areas of ASC 740 by clarifying and amending existing guidance. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. Early adoption of the amendments is permitted, including adoption in any interim period for which financial statements have not yet been issued. Depending on the amendment, adoption may be applied on the retrospective, modified retrospective or prospective basis. The Company is currently evaluating the impact of adopting this standard on our condensed consolidated financial statements and disclosures. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform." This ASU provides optional guidance for a limited period of time to ease potential accounting impacts associated with transitioning away from reference rates that are expected to be discontinued, such as the London Interbank Offered Rate ("LIBOR"). The amendments in this ASU apply only to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued. The amendments in this ASU are effective through December 31, 2022. The Company is currently evaluating the impact of adopting this standard on our condensed consolidated financial statements and disclosures. |
REVENUE RECOGNITION
REVENUE RECOGNITION | 3 Months Ended |
Jan. 02, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE RECOGNITION | REVENUE RECOGNITION TransDigm's sales are concentrated in the aerospace industry. The Company’s customers include: distributors of aerospace components, commercial airlines, large commercial transport and regional and business aircraft OEMs, various armed forces of the United States and friendly foreign governments, defense OEMs, system suppliers, and various other industrial customers. The majority of the Company's revenue is recorded at a point in time. Revenue is recognized from the sale of products when control transfers to the customer, which is demonstrated by our right to payment, a transfer of title, a transfer of the risk and rewards of ownership, or the customer acceptance, but most frequently upon shipment where the customer obtains physical possession of the goods. In some contracts, control transfers to the customer over time, primarily in contracts where the customer is required to pay for the cost of both the finished and unfinished goods at the time of cancellation plus a reasonable profit relative to the work performed for products that were customized for the customer. Therefore, we recognize revenue over time for those agreements that have a right to margin and where the products being produced have no alternative use. Based on our production cycle, it is generally expected that goods related to the revenue will be shipped and billed within the current year. For revenue recognized over time, we estimate the amount of revenue attributable to a contract earned at a given point during the production cycle based on certain costs, such as materials and labor incurred to date, plus the expected profit, which is a cost-to-cost input method. We consider the contractual consideration payable by the customer and assesses variable consideration that may affect the total transaction price. Variable consideration is included in the estimated transaction price when there is a basis to reasonably estimate the amount, including whether the estimate should be constrained in order to avoid a significant reversal of revenue in a future period. These estimates are based on historical experience, anticipated performance under the terms of the contract and our best judgment at the time. The Company’s payment terms vary by the type and location of the customer and the products or services offered. The Company does not offer any payment terms that would meet the requirements for consideration as a significant financing component. Shipping and handling fees and costs incurred in connection with products sold are recorded in cost of sales in the condensed consolidated statements of income, and are not considered a performance obligation to our customers. The Company pays sales commissions that relate to contracts for products or services that are satisfied at a point in time or over a period of one year or less and are expensed as incurred. These costs are reported as a component of selling and administrative expenses in the condensed consolidated statements of income. Contract Assets and Liabilities - Contract assets reflect revenue recognized and performance obligations satisfied in advance of customer billing or reimbursable costs related to a specific contract. Contract liabilities relate to payments received in advance of the satisfaction of performance under the contract. We receive payments from customers based on the terms established in our contracts. The following table summarizes our contract assets and liabilities balances (in millions): January 2, 2021 September 30, 2020 Change Contract assets, current (1) $ 49 $ 36 $ 13 Contract assets, non-current (2) 2 6 (4) Total contract assets 51 42 9 Contract liabilities, current (3) 19 18 1 Contract liabilities, non-current (4) 5 9 (4) Total contract liabilities 24 27 (3) Net contract assets $ 27 $ 15 $ 12 (1) Included in prepaid expenses and other on the condensed consolidated balance sheets. (2) Included in other non-current assets on the condensed consolidated balance sheets. (3) Included in accrued and other current liabilities on the condensed consolidated balance sheets. (4) Included in other non-current liabilities on the condensed consolidated balance sheets. For the thirteen week period ended January 2, 2021, the revenue recognized that was previously included in contract liabilities was not material. Refer to Note 13, “Segments,” for disclosures related to the disaggregation of revenue. Allowance for Credit Losses - The Company's allowance for credit losses is the allowance for uncollectible accounts. The allowance for uncollectible accounts reduces the trade accounts receivable balance to the estimated net realizable value equal to the amount that is expected to be collected. The Company’s method for developing its allowance for credit losses is based on historical write-off experience, the aging of receivables, an assessment of the creditworthiness of customers, economic conditions and other external market information. All provisions for allowances for uncollectible accounts are included in selling and administrative expenses. The allowance for uncollectible accounts was $41 million and $37 million as of January 2, 2021 and September 30, 2020, respectively. The increase in the allowance for uncollectible accounts in the first quarter of fiscal 2021 is primarily driven by additional collectibility risk assessed on receivables from certain customers that have been significantly adversely impacted by the COVID-19 pandemic. The allowance for uncollectible accounts is assessed individually at each operating unit by the operating unit’s management team. |
EARNINGS PER SHARE (TWO-CLASS M
EARNINGS PER SHARE (TWO-CLASS METHOD) | 3 Months Ended |
Jan. 02, 2021 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE (TWO-CLASS METHOD) | EARNINGS PER SHARE The following table sets forth the computation of basic and diluted (loss) earnings per share (in millions, except per share data) using the two-class method: Thirteen Week Periods Ended January 2, 2021 December 28, 2019 Numerator for (loss) earnings per share: Income from continuing operations $ 50 $ 234 Less: Net income attributable to noncontrolling interests — (1) Net income from continuing operations attributable to TD Group 50 233 Less: Special dividends declared or paid on participating securities, including dividend equivalent payments (73) (185) Income from discontinued operations, net of tax — 71 Net (loss) income applicable to TD Group common stockholders - basic and diluted $ (23) $ 119 Denominator for basic and diluted (loss) earnings per share under the two-class method: Weighted-average common shares outstanding 54.7 53.6 Vested options deemed participating securities — 3.8 Total shares for basic and diluted (loss) earnings per share 54.7 57.4 (Loss) Earnings per share from continuing operations—basic and diluted $ (0.42) $ 0.83 Earnings per share from discontinued operations—basic and diluted — 1.24 (Loss) Earnings per share $ (0.42) $ 2.07 |
INVENTORIES
INVENTORIES | 3 Months Ended |
Jan. 02, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories are stated at the lower of cost or net realizable value. Cost of inventories is generally determined by the average cost and the first-in, first-out ("FIFO") methods and includes material, labor and overhead related to the manufacturing process. Inventories consist of the following (in millions): January 2, 2021 September 30, 2020 Raw materials and purchased component parts $ 900 $ 881 Work-in-progress 360 358 Finished goods 213 222 Total 1,473 1,461 Reserves for excess and obsolete inventory (189) (178) Inventories - Net $ 1,284 $ 1,283 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 3 Months Ended |
Jan. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Other intangible assets - net in the condensed consolidated balance sheets consist of the following (in millions): January 2, 2021 September 30, 2020 Gross Carrying Accumulated Net Gross Carrying Accumulated Net Trademarks and trade names $ 963 $ — $ 963 $ 958 $ — $ 958 Technology 1,856 613 1,243 1,842 589 1,253 Order backlog 91 91 — 93 93 — Customer relationships 449 58 391 443 52 391 Other 18 11 7 18 10 8 Total $ 3,377 $ 773 $ 2,604 $ 3,354 $ 744 $ 2,610 The aggregate amortization expense on identifiable intangible assets for the thirteen week periods ended January 2, 2021 and December 28, 2019 was approximately $29 million and $40 million, respectively. The estimated amortization expense is $115 million for fiscal year 2021, $114 million for each of the following four succeeding fiscal years 2022 through 2025 and $109 million for fiscal year 2026. The following is a summary of changes in the carrying value of goodwill by segment from September 30, 2020 through January 2, 2021 (in millions): Power & Airframe Non- Total Balance at September 30, 2020 $ 4,141 $ 3,647 $ 101 $ 7,889 Goodwill acquired during the period 4 — — 4 Reclassification of goodwill to assets held-for-sale (Note 3) — — (8) (8) Currency translation adjustments 15 27 — 42 Balance at January 2, 2021 $ 4,160 $ 3,674 $ 93 $ 7,927 |
DEBT
DEBT | 3 Months Ended |
Jan. 02, 2021 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT The Company’s debt consists of the following (in millions): January 2, 2021 Gross Amount Debt Issuance Costs Original Issue Discount or Premium Net Amount Short-term borrowings—trade receivable securitization facility $ 350 $ — $ — $ 350 Term loans $ 7,429 $ (46) $ (20) $ 7,363 Revolving credit facility 200 — — 200 6.50% senior subordinated notes due 2024 (2024 Notes) 1,200 (4) — 1,196 6.50% senior subordinated notes due 2025 (2025 Notes) 750 (2) 2 750 8.00% senior secured notes due 2025 (2025 Secured Notes) 1,100 (9) — 1,091 6.375% senior subordinated notes due 2026 (6.375% 2026 Notes) 950 (6) — 944 6.875% senior subordinated notes due 2026 (6.875% 2026 Notes) 500 (4) (3) 493 6.25% senior secured notes due 2026 (2026 Secured Notes) 4,400 (53) 5 4,352 7.50% senior subordinated notes due 2027 (7.50% 2027 Notes) 550 (4) — 546 5.50% senior subordinated notes due 2027 (5.50% 2027 Notes) 2,650 (21) — 2,629 Government refundable advances 30 — — 30 Finance lease obligations 76 — — 76 19,835 (149) (16) 19,670 Less: current portion 277 (1) — 276 Long-term debt $ 19,558 $ (148) $ (16) $ 19,394 September 30, 2020 Gross Amount Debt Issuance Costs Original Issue Discount or Premium Net Amount Short-term borrowings—trade receivable securitization facility $ 350 $ (1) $ — $ 349 Term loans $ 7,449 $ (48) $ (23) $ 7,378 Revolving credit facility 200 — — 200 2024 Notes 1,200 (5) — 1,195 2025 Notes 750 (3) 3 750 2025 Secured Notes 1,100 (9) — 1,091 6.375% 2026 Notes 950 (6) — 944 6.875% 2026 Notes 500 (4) (3) 493 2026 Secured Notes 4,400 (55) 5 4,350 7.50% 2027 Notes 550 (5) — 545 5.50 % 2027 Notes 2,650 (21) — 2,629 Government refundable advances 28 — — 28 Finance lease obligations 57 — — 57 19,834 (156) (18) 19,660 Less: current portion 277 (1) — 276 Long-term debt $ 19,557 $ (155) $ (18) $ 19,384 Accrued interest, which is classified as a component of accrued and other current liabilities, was $185.0 million and $177.6 million as of January 2, 2021 and September 30, 2020, respectively. Subsequent Event - Issuance of Senior Subordinated Notes due 2029 – On January 14, 2021, the Company entered into a purchase agreement in connection with a private offering of $1,200 million of 4.625% Senior Subordinated Notes due 2029 (herein, the “2029 Notes”) at an issue price of 100% of the principal amount. The 2029 Notes were issued pursuant to an indenture, dated January 20, 2021, among TransDigm, Inc., as issuer, TransDigm Group, TransDigm UK and the other subsidiaries of TransDigm, Inc. named therein, as guarantors. The 2029 Notes bear interest at the rate of 4.625% per annum, which accrues from January 14, 2021 and is payable in arrears on January 15th and July 15th of each year, commencing on July 15, 2021. The 2029 Notes mature on January 15, 2029, unless earlier redeemed or repurchased, and are subject to the terms and conditions set forth in the indenture. The Company expects to use the net proceeds from the offering of the 2029 Notes to redeem all of its outstanding 2024 Notes. Government Refundable Advances - Government refundable advances consist of payments received from the Canadian government to assist in research and development related to commercial aviation. The requirement to repay this advance is solely based on year-over-year commercial aviation revenue growth at CMC Electronics, which is a subsidiary of TransDigm. The balance was $29.8 million at January 2, 2021 and $28.4 million at September 30, 2020. Obligations under Finance Leases - The Company leases certain buildings and equipment under finance leases. The present value of the minimum capital lease payments, net of the current portion, represents a balance of $75.6 million at January 2, 2021 and $56.8 million at September 30, 2020. Refer to Note 16, "Leases," for further disclosure on the Company's finance lease obligations. |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jan. 02, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES At the end of each reporting period, TD Group makes an estimate of its annual effective income tax rate. The estimate used in the year-to-date period may change in subsequent periods. During the thirteen week periods ended January 2, 2021 and December 28, 2019, the effective income tax rate was 5.5% and 20.1%, respectively. The Company's lower effective tax rate for the thirteen week period ended January 2, 2021, which also was lower than the Federal statutory tax rate of 21%, was primarily due to the significant discrete impact of excess tax benefits associated with share-based payments. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jan. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following summarizes the carrying amounts and fair values of financial instruments (in millions): January 2, 2021 September 30, 2020 Level Carrying Fair Value Carrying Fair Value Assets: Cash and cash equivalents 1 $ 4,907 $ 4,907 $ 4,717 $ 4,717 Foreign currency forward exchange contracts and other (1) 2 3 3 — — Liabilities: Interest rate swap agreements (2) 2 66 66 56 56 Interest rate swap agreements (3) 2 302 302 328 328 Foreign currency forward exchange contracts and other (2) 2 — — 1 1 Short-term borrowings - trade receivable securitization facility (4) 2 350 350 349 349 Long-term debt, including current portion: Term loans (4) 2 7,363 7,223 7,378 7,004 Revolving credit facility (4) 2 200 200 200 200 2024 Notes (4) 1 1,196 1,218 1,195 1,194 2025 Notes (4) 1 750 772 750 743 2025 Secured Notes (4) 1 1,091 1,209 1,091 1,194 6.375% 2026 Notes (4) 1 944 983 944 948 6.875% 2026 Notes (4) 1 493 526 493 500 2026 Secured Notes (4) 1 4,352 4,686 4,350 4,604 7.50% 2027 Notes (4) 1 546 587 545 569 5.50% 2027 Notes (4) 1 2,629 2,763 2,629 2,554 Government refundable advances 2 30 30 28 28 Finance lease obligations 2 76 76 57 57 (1) Included in prepaid expenses and other on the condensed consolidated balance sheets. (2) Included in accrued and other current liabilities on the condensed consolidated balance sheets. (3) Included in other non-current liabilities on the condensed consolidated balance sheets. (4) The carrying amount of the debt instrument is presented net of debt issuance costs, premium and discount. Refer to Note 9, "Debt," for gross carrying amounts. The Company values its financial instruments using an industry standard market approach, in which prices and other relevant information are generated by market transactions involving identical or comparable assets or liabilities. No financial instruments were recognized using unobservable inputs (i.e., Level 3). Interest rate swaps were measured at fair value using quoted market prices for the swap interest rate indexes over the term of the swap discounted to present value versus the fixed rate of the contract. The interest rate caps were measured at fair value using implied volatility rates of each individual caplet and the yield curve for the related periods. The Company’s derivative contracts consist of foreign currency exchange contracts and, from time to time, interest rate swap and cap agreements. These derivative contracts are over-the-counter, and their fair value is determined using modeling techniques that include market inputs such as interest rates, yield curves, and currency exchange rates. These contracts are categorized as Level 2 in the fair value hierarchy. The estimated fair value of the Company’s term loans was based on information provided by the agent under the Company’s senior secured credit facility. The estimated fair values of the Company’s notes were based upon quoted market prices. There has not been any impact to the fair value of derivative liabilities due to the Company's own credit risk. Similarly, there has not been any impact to the fair value of derivative assets based on the Company's evaluation of counterparties' credit risks. The fair value of cash and cash equivalents, trade accounts receivable-net and accounts payable approximated carrying value due to the short-term nature of these instruments at January 2, 2021 and September 30, 2020. |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 3 Months Ended |
Jan. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITIES | DERIVATIVES AND HEDGING ACTIVITIES The Company is exposed to, among other things, the impact of changes in foreign currency exchange rates and interest rates in the normal course of business. The Company’s risk management program is designed to manage the exposure and volatility arising from these risks, and utilizes derivative financial instruments to offset a portion of these risks. The Company uses derivative financial instruments only to the extent necessary to hedge identified business risks and does not enter into such transactions for trading purposes. The Company generally does not require collateral or other security with counterparties to these financial instruments and is therefore subject to credit risk in the event of nonperformance; however, the Company monitors credit risk and currently does not anticipate nonperformance by other parties. These derivative financial instruments do not subject the Company to undue risk, as gains and losses on these instruments generally offset gains and losses on the underlying assets, liabilities, or anticipated transactions that are being hedged. The Company has agreements with each of its swap and cap counterparties that contain a provision whereby if the Company defaults on the credit facility the Company could also be declared in default on its swaps and caps, resulting in an acceleration of payment under the swaps and caps. All derivative financial instruments are recorded at fair value in the condensed consolidated balance sheets. For a derivative that has not been designated as an accounting hedge, the change in the fair value is recognized immediately through earnings. For a derivative that has been designated as an accounting hedge of an existing asset or liability (a fair value hedge), the change in the fair value of both the derivative and underlying asset or liability is recognized immediately through earnings. For a derivative designated as an accounting hedge of an anticipated transaction (a cash flow hedge), the change in the fair value is recorded on the condensed consolidated balance sheet in accumulated other comprehensive loss to the extent the derivative is effective in mitigating the exposure related to the anticipated transaction. The change in the fair value related to the ineffective portion of the hedge, if any, is immediately recognized in earnings. The amount recorded within accumulated other comprehensive loss is reclassified into earnings in the same period during which the underlying hedged transaction affects earnings. Interest Rate Swap and Cap Agreements – Interest rate swap and cap agreements are used to manage interest rate risk associated with floating-rate borrowings under our credit facility. The interest rate swap and cap agreements utilized by the Company effectively modify the Company’s exposure to interest rate risk by converting a portion of the Company’s floating-rate debt to a fixed rate basis through the expiration date of the interest rate swap and cap agreements, thereby reducing the impact of interest rate changes on future interest expense. These agreements involve the receipt of floating rate amounts in exchange for fixed rate interest payments over the term of the agreements without an exchange of the underlying principal amount. These derivative instruments qualify as effective cash flow hedges under U.S. GAAP. For these cash flow hedges, the effective portion of the gain or loss from the financial instruments was initially reported as a component of accumulated other comprehensive loss in stockholders’ deficit and subsequently reclassified into earnings in the same line as the hedged item in the same period or periods during which the hedged item affected earnings. As the interest rate swap and cap agreements are used to manage interest rate risk, any gains or losses from the derivative instruments that are reclassified into earnings are recognized in interest expense - net in the condensed consolidated statements of income. The following table summarizes the Company's interest rate swap agreements: Aggregate Notional Amount Start Date End Date Related Term Loans Conversion of Related Variable Rate Debt to $500 6/29/2018 3/31/2025 Tranche E 5.25% (3.0% plus the 2.25% margin percentage) $750 6/30/2020 6/30/2022 Tranche E 4.75% (2.5% plus the 2.25% margin percentage) $1,500 6/30/2022 3/31/2025 Tranche E 5.35% (3.1% plus the 2.25% margin percentage) $1,000 6/28/2019 12/9/2025 Tranche F 4.05% (1.8% plus the 2.25% margin percentage) $1,400 6/30/2021 12/9/2025 Tranche F 5.25% (3.0% plus the 2.25% margin percentage) $500 12/30/2016 12/31/2021 Tranche G 4.15% (1.9% plus the 2.25% margin percentage) $400 9/30/2017 9/30/2022 Tranche G 4.15% (1.9% plus the 2.25% margin percentage) $900 12/31/2021 6/28/2024 Tranche G 5.35% (3.1% plus the 2.25% margin percentage) $400 9/30/2022 6/28/2024 Tranche G 5.25% (3.0% plus the 2.25% margin percentage) The following table summarizes the Company's interest rate cap agreements: Aggregate Notional Amount Start Date End Date Related Term Loans Offsets Variable Rate Debt Attributable to $750 6/30/2020 6/30/2022 Tranche E Three month LIBOR rate of 2.5% $400 6/30/2016 6/30/2021 Tranche F Three month LIBOR rate of 2.0% $400 12/30/2016 12/31/2021 Tranche G Three month LIBOR rate of 2.5% Certain derivative asset and liability balances are offset where master netting agreements provide for the legal right of setoff. For classification purposes, we record the net fair value of each type of derivative position that is expected to settle in less than one year with each counterparty as a net current asset or liability and each type of long-term position as a net non-current asset or liability. The amounts shown in the table below represent the gross amounts of recognized assets and liabilities, the amounts offset in the condensed consolidated balance sheet and the net amounts of assets and liabilities presented therein (in millions). January 2, 2021 September 30, 2020 Asset Liability Asset Liability Interest rate swap agreements (1) $ — $ (368) $ — $ (384) (1) Refer to Note 11, "Fair Value Measurements," for the condensed consolidated balance sheet classification of our interest rate swap agreements. Based on the fair values of the interest rate swap and cap agreements determined as of January 2, 2021, the estimated net amount of existing gains and losses and caplet amortization expected to be reclassified into interest expense within the next twelve months is approximately $13.7 million. Foreign Currency Forward Exchange Contracts – The Company transacts business in various foreign currencies, which subjects the Company’s cash flows and earnings to exposure related to changes in foreign currency exchange rates. These exposures arise primarily from purchases or sales of products and services from third parties. Foreign currency forward exchange contracts provide for the purchase or sale of foreign currencies at specified future dates at specified exchange rates, and are used to offset changes in the fair value of certain assets or liabilities or forecasted cash flows resulting from transactions denominated in foreign currencies. At January 2, 2021, the Company had outstanding foreign currency forward exchange contracts to sell U.S. dollars with notional amounts of $123.6 million. These notional values consist of contracts for the Canadian dollar and the European euro and are stated in U.S. dollar equivalents at spot exchange rates at the respective trade dates. There was an immaterial impact to the Company's earnings related to the effective and ineffective portion of the foreign currency forward exchange contracts designated as cash flow hedges for the thirteen week period ended January 2, 2021. |
SEGMENTS
SEGMENTS | 3 Months Ended |
Jan. 02, 2021 | |
Segment Reporting [Abstract] | |
SEGMENTS | SEGMENTS The Company’s businesses are organized and managed in three reporting segments: Power & Control, Airframe and Non-aviation. The Power & Control segment includes operations that primarily develop, produce and market systems and components that predominately provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies. Major product offerings include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, batteries and chargers, databus and power controls, advanced sensor products, switches and relay panels, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems. Primary customers of this segment are engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies and repair depots. Products are sold in the original equipment and aftermarket market channels. The Airframe segment includes operations that primarily develop, produce and market systems and components that are used in non-power airframe applications utilizing airframe and cabin structure technologies. Major product offerings include engineered latching and locking devices, engineered rods, engineered connectors and elastomer sealing solutions, cockpit security components and systems, specialized and advanced cockpit displays, aircraft audio systems, specialized lavatory components, seat belts and safety restraints, engineered and customized interior surfaces and related components, thermal protection and insulation, lighting and control technology and parachutes. Primary customers of this segment are airframe manufacturers and cabin system suppliers and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies and repair depots. Products are sold in the original equipment and aftermarket market channels. The Non-aviation segment includes operations that primarily develop, produce and market products for non-aviation markets. Major product offerings include headsets for high-noise, medium-noise, and dismounted applications, seat belts and safety restraints for ground transportation applications, mechanical/electro-mechanical actuators and controls for space applications, hydraulic/electromechanical actuators and fuel valves for land based gas turbines, and refueling systems for heavy equipment used in mining, construction and other industries and turbine controls for the energy and oil and gas markets. Primary customers of this segment are off-road vehicle suppliers and subsystem suppliers, child restraint system suppliers, satellite and space system suppliers, manufacturers of heavy equipment used in mining, construction and other industries and turbine original equipment manufacturers, gas pipeline builders and electric utilities. The primary measurement used by management to review and assess the operating performance of each segment is EBITDA As Defined. The Company defines EBITDA As Defined as earnings before interest, taxes, depreciation and amortization plus certain non-operating items recorded as corporate expenses including non-cash compensation charges incurred in connection with the Company’s stock incentive plans, restructuring costs related to the Company's cost reduction measures in response to the COVID-19 pandemic, foreign currency gains and losses, acquisition-integration costs, acquisition transaction-related expenses, and refinancing costs. COVID-19 restructuring costs represent actions taken by the Company to reduce its workforce to align with customer demand, as well as incremental costs related to the pandemic that are not expected to recur once the pandemic has subsided and are clearly separable from normal operations (e.g., additional cleaning and disinfecting of facilities by contractors above and beyond normal requirements, personal protective equipment, etc.). Acquisition-related costs represent accounting adjustments to inventory associated with acquisitions of businesses and product lines that were charged to cost of sales when the inventory was sold; costs incurred to integrate acquired businesses and product lines into the Company’s operations, facility relocation costs and other acquisition-related costs; transaction-related costs comprising deal fees; legal, financial and tax diligence expenses and valuation costs that are required to be expensed as incurred and other acquisition accounting adjustments. EBITDA As Defined is not a measurement of financial performance under U.S. GAAP. Although the Company uses EBITDA As Defined to assess the performance of its business and for various other purposes, the use of this non-GAAP financial measure as an analytical tool has limitations, and it should not be considered in isolation or as a substitute for analysis of the Company’s results of operations as reported in accordance with U.S. GAAP. The Company’s segments are reported on the same basis used internally for evaluating performance and for allocating resources. The accounting policies for each segment are the same as those described in the summary of significant accounting policies in the Company’s consolidated financial statements. Intersegment sales and transfers are recorded at values based on market prices, which creates intercompany profit on intersegment sales or transfers that is eliminated in consolidation. Intersegment sales were immaterial for the periods presented below. Certain corporate-level expenses are allocated to the operating segments. The following table presents net sales by reportable segment (in millions): Thirteen Week Periods Ended January 2, 2021 December 28, 2019 Net sales to external customers Power & Control Commercial OEM $ 126 $ 184 Commercial Aftermarket 132 220 Defense 343 348 Total Power & Control 601 752 Airframe Commercial OEM 142 230 Commercial Aftermarket 112 245 Defense 210 199 Total Airframe 464 674 Total Non-aviation 43 39 $ 1,108 $ 1,465 The following table reconciles EBITDA As Defined by segment to consolidated income from continuing operations before income taxes (in millions): Thirteen Week Periods Ended January 2, 2021 December 28, 2019 EBITDA As Defined Power & Control $ 304 $ 385 Airframe 177 305 Non-aviation 15 13 Total segment EBITDA As Defined 496 703 Less: Unallocated corporate expenses 22 22 Total Company EBITDA As Defined 474 681 Depreciation and amortization expense 58 69 Interest expense, net 267 248 Acquisition-related costs 4 7 Stock compensation expense 49 26 Refinancing costs — 22 COVID-19 pandemic restructuring costs 21 — Other, net 22 16 Income from continuing operations before income taxes $ 53 $ 293 The following table presents total assets by segment (in millions): January 2, 2021 September 30, 2020 Total assets Power & Control $ 7,022 $ 7,005 Airframe 6,603 6,575 Non-aviation 241 251 Corporate 4,691 4,564 $ 18,557 $ 18,395 The Company’s sales principally originate from the United States, and the Company’s long-lived assets are principally located in the United States. |
RETIREMENT BENEFITS
RETIREMENT BENEFITS | 3 Months Ended |
Jan. 02, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | RETIREMENT PLANS The components of net periodic pension cost for the Company's defined benefit plans were as follows (in millions): Thirteen Week Periods Ended January 2, 2021 December 28, 2019 U.S. Pension Plans Non-U.S. Pension Plans U.S. Pension Plans Non-U.S. Pension Plans Service cost $ 2 $ 1 $ 2 $ 1 Interest cost 2 1 3 1 Expected return on plan assets (5) (2) (5) (1) Amortization — 1 — — Net periodic pension (benefit) cost $ (1) $ 1 $ — $ 1 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Jan. 02, 2021 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the components of accumulated other comprehensive loss, net of taxes, for the thirteen week period ended January 2, 2021 (in millions): Unrealized gains on derivatives designated and qualifying as cash flow hedges (1) Defined benefit pension plan activity (2) Currency translation adjustment Total Balance at September 30, 2020 $ (302) $ (8) $ (91) $ (401) Current-period other comprehensive income 13 — 111 124 Balance at January 2, 2021 $ (289) $ (8) $ 20 $ (277) (1) Unrealized gains represents derivative instruments, net of taxes of $(5.0) million and $(9.8) million for the thirteen week periods ended January 2, 2021 and December 28, 2019, respectively. (2) There were no material pension liability adjustments, net of taxes, for the thirteen week periods ended January 2, 2021 and December 28, 2019. Reclassifications out of accumulated other comprehensive loss for the thirteen week periods ended January 2, 2021 and December 28, 2019 were immaterial. |
LEASES
LEASES | 3 Months Ended |
Jan. 02, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases certain manufacturing facilities, offices, land, equipment and vehicles. Such leases, some of which are noncancelable and, in many cases, include renewals, expire at various dates. Such options to renew are included in the lease term when it is reasonably certain that the option will be exercised. The Company’s lease agreements typically do not contain any significant residual value guarantees or restrictive covenants, and payments within certain lease agreements are adjusted periodically for changes in an index or rate. The Company determines if an arrangement is a lease at inception. Operating lease assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. Lease assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. The discount rate implicit within our leases is generally not determinable and therefore we determine the discount rate based on our incremental borrowing rate. The incremental borrowing rate for our leases is determined based on the lease term and the currency in which lease payments are made. The length of a lease term includes options to extend or terminate the lease when it is reasonably certain that the Company will exercise those options. The Company made an accounting policy election to not recognize lease assets or liabilities for leases with a term of 12 months or less. Additionally, when accounting for leases, the Company combines payments for leased assets, related services and other components of a lease. The components of lease expense for the are as follows (in millions): Thirteen Week Periods Ended Classification January 2, 2021 December 28, 2019 Operating lease cost Cost of Sales or Selling and Administrative Expenses $ 7 $ 7 Finance lease cost Amortization of leased assets Cost of Sales $ 1 $ 1 Interest on lease liabilities Interest Expense - Net 1 1 Total lease cost $ 9 $ 9 Supplemental cash flow information related to leases is as follows (in millions): Thirteen Week Periods Ended January 2, 2021 December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 7 $ 7 Operating cash outflows from finance leases 1 1 Lease assets obtained in exchange for new lease obligations: Operating leases $ 4 $ 10 Finance leases 19 — Supplemental balance sheet information related to leases is as follows (in millions): Classification January 2, 2021 September 30, 2020 Operating Leases Operating lease right-of-use assets Other Assets $ 93 $ 103 Current operating lease liabilities Accrued and Other Current Liabilities 22 22 Long-term operating lease liabilities Other Non-current Liabilities 75 87 Total operating lease liabilities $ 97 $ 109 Finance Leases Finance lease right-of-use assets, net Property, Plant and Equipment—Net $ 87 $ 67 Current finance lease liabilities Accrued and Other Current Liabilities 2 2 Long-term finance lease liabilities Other Non-current Liabilities 74 55 Total finance lease liabilities $ 76 $ 57 As of January 2, 2021, the Company has the following remaining lease term and weighted average discount rates: Weighted-average remaining lease term Operating leases 5.8 years Finance leases 19.9 years Weighted-average discount rate Operating leases 6.2% Finance leases 7.2% Maturities of lease liabilities at January 2, 2021 are as follows (in millions): Operating Leases Finance Leases 2021 $ 21 $ 7 2022 23 7 2023 18 7 2024 15 7 2025 12 7 Thereafter 28 117 Total future minimum lease payments 117 152 Less: imputed interest 20 76 Present value of lease liabilities reported $ 97 $ 76 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jan. 02, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | COMMITMENTS AND CONTINGENCIESOn August 8, 2019, a fire caused significant damage to the Niort, France operating facility of the Leach International Europe subsidiary, which is reported within the Company’s Power & Control segment. The facility as well as certain machinery, equipment and inventory sustained damage. The Company suspended operations at the Niort facility as a result of the fire; however, has transferred certain operations to temporary facilities until operations are fully restored at the rebuilt facility. The new facility was completed in December 2020 and certain production commenced in January 2021. The facility is expected to be fully operational in the second quarter of fiscal 2021. The Company’s insurance covers damage to the facility, equipment, inventory, and other assets, at replacement cost, as well as business interruption, and recovery-related expenses caused by the fire, subject to a $1 million deductible and certain sub-limits based on the nature of the covered item. Anticipated insurance recoveries related to losses and incremental costs incurred are recognized when receipt is probable. Anticipated insurance recoveries in excess of net book value of the damaged property and inventory will not be recorded until all contingencies relating to the claim have been resolved. As of January 2, 2021, approximately $27 million in insurance proceeds have been received. The recoveries received were previously recorded as an insurance recovery receivable (classified as a component of prepaid expenses and other on the condensed consolidated balance sheets) at the time of loss. The timing of and amount of insurance recoveries for business interruption is not known at this time. |
DISCONTINUED OPERATIONS
DISCONTINUED OPERATIONS | 3 Months Ended |
Jan. 02, 2021 | |
DISCONTINUED OPERATIONS [Abstract] | |
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS Prior Year Divestitures On December 20, 2019, TransDigm completed the divestiture of Souriau-Sunbank to Eaton for approximately $920 million. Souriau-Sunbank was acquired by TransDigm as part of its acquisition of Esterline in March 2019 and was included in TransDigm’s Non-aviation segment. The divestiture represented a strategic shift in TransDigm’s business and, in accordance with U.S. GAAP, qualified as discontinued operations. Income from discontinued operations, net of tax, for the thirteen week period ended December 28, 2019 was $71 million. This was comprised of $9 million income from Souriau-Sunbank's operations, and a gain on the sale of Souriau-Sunbank of $62 million. Operating Results Summary The following is the summarized operating results for Souriau-Sunbank for the thirteen week period ended December 28, 2019 (in millions): Thirteen Week Period Ended December 28, 2019 Net sales $ 79 Income from discontinued operations before income taxes 13 Income tax expense 4 Income from discontinued operations, net of tax 9 Gain from sale of discontinued operations, net of tax 62 Income from discontinued operations, net of tax $ 71 Current Year Divestitures No divestitures occurring in the thirteen week period ended January 2, 2021 met the criteria to qualify as discontinued operations under U.S. GAAP. Refer to Note 3, "Acquisitions and Divestitures," for additional details on the Company's fiscal 2021 divestitures. |
REVENUE Contract Assets and Lia
REVENUE Contract Assets and Liabilities (Tables) | 3 Months Ended |
Jan. 02, 2021 | |
Schedule of Contract Assets and Liabilities [Line Items] | |
Contract with Customer, Asset and Liability [Table Text Block] | The following table summarizes our contract assets and liabilities balances (in millions): January 2, 2021 September 30, 2020 Change Contract assets, current (1) $ 49 $ 36 $ 13 Contract assets, non-current (2) 2 6 (4) Total contract assets 51 42 9 Contract liabilities, current (3) 19 18 1 Contract liabilities, non-current (4) 5 9 (4) Total contract liabilities 24 27 (3) Net contract assets $ 27 $ 15 $ 12 (1) Included in prepaid expenses and other on the condensed consolidated balance sheets. (2) Included in other non-current assets on the condensed consolidated balance sheets. (3) Included in accrued and other current liabilities on the condensed consolidated balance sheets. (4) Included in other non-current liabilities on the condensed consolidated balance sheets. |
Accounts Receivable, Allowance for Credit Loss | Allowance for Credit Losses - The Company's allowance for credit losses is the allowance for uncollectible accounts. The allowance for uncollectible accounts reduces the trade accounts receivable balance to the estimated net realizable value equal to the amount that is expected to be collected. The Company’s method for developing its allowance for credit losses is based on historical write-off experience, the aging of receivables, an assessment of the creditworthiness of customers, economic conditions and other external market information. All provisions for allowances for uncollectible accounts are included in selling and administrative expenses. The allowance for uncollectible accounts was $41 million and $37 million as of January 2, 2021 and September 30, 2020, respectively. The increase in the allowance for uncollectible accounts in the first quarter of fiscal 2021 is primarily driven by additional collectibility risk assessed on receivables from certain customers that have been significantly adversely impacted by the COVID-19 pandemic. The allowance for uncollectible accounts is assessed individually at each operating unit by the operating unit’s management team. |
EARNINGS PER SHARE (TWO-CLASS_2
EARNINGS PER SHARE (TWO-CLASS METHOD) (Tables) | 3 Months Ended |
Jan. 02, 2021 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted (loss) earnings per share (in millions, except per share data) using the two-class method: Thirteen Week Periods Ended January 2, 2021 December 28, 2019 Numerator for (loss) earnings per share: Income from continuing operations $ 50 $ 234 Less: Net income attributable to noncontrolling interests — (1) Net income from continuing operations attributable to TD Group 50 233 Less: Special dividends declared or paid on participating securities, including dividend equivalent payments (73) (185) Income from discontinued operations, net of tax — 71 Net (loss) income applicable to TD Group common stockholders - basic and diluted $ (23) $ 119 Denominator for basic and diluted (loss) earnings per share under the two-class method: Weighted-average common shares outstanding 54.7 53.6 Vested options deemed participating securities — 3.8 Total shares for basic and diluted (loss) earnings per share 54.7 57.4 (Loss) Earnings per share from continuing operations—basic and diluted $ (0.42) $ 0.83 Earnings per share from discontinued operations—basic and diluted — 1.24 (Loss) Earnings per share $ (0.42) $ 2.07 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Jan. 02, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories consist of the following (in millions): January 2, 2021 September 30, 2020 Raw materials and purchased component parts $ 900 $ 881 Work-in-progress 360 358 Finished goods 213 222 Total 1,473 1,461 Reserves for excess and obsolete inventory (189) (178) Inventories - Net $ 1,284 $ 1,283 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Jan. 02, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets Subject to Amortization | Other intangible assets - net in the condensed consolidated balance sheets consist of the following (in millions): January 2, 2021 September 30, 2020 Gross Carrying Accumulated Net Gross Carrying Accumulated Net Trademarks and trade names $ 963 $ — $ 963 $ 958 $ — $ 958 Technology 1,856 613 1,243 1,842 589 1,253 Order backlog 91 91 — 93 93 — Customer relationships 449 58 391 443 52 391 Other 18 11 7 18 10 8 Total $ 3,377 $ 773 $ 2,604 $ 3,354 $ 744 $ 2,610 |
Summary of Changes in Carrying Value of Goodwill | The following is a summary of changes in the carrying value of goodwill by segment from September 30, 2020 through January 2, 2021 (in millions): Power & Airframe Non- Total Balance at September 30, 2020 $ 4,141 $ 3,647 $ 101 $ 7,889 Goodwill acquired during the period 4 — — 4 Reclassification of goodwill to assets held-for-sale (Note 3) — — (8) (8) Currency translation adjustments 15 27 — 42 Balance at January 2, 2021 $ 4,160 $ 3,674 $ 93 $ 7,927 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Jan. 02, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The Company’s debt consists of the following (in millions): January 2, 2021 Gross Amount Debt Issuance Costs Original Issue Discount or Premium Net Amount Short-term borrowings—trade receivable securitization facility $ 350 $ — $ — $ 350 Term loans $ 7,429 $ (46) $ (20) $ 7,363 Revolving credit facility 200 — — 200 6.50% senior subordinated notes due 2024 (2024 Notes) 1,200 (4) — 1,196 6.50% senior subordinated notes due 2025 (2025 Notes) 750 (2) 2 750 8.00% senior secured notes due 2025 (2025 Secured Notes) 1,100 (9) — 1,091 6.375% senior subordinated notes due 2026 (6.375% 2026 Notes) 950 (6) — 944 6.875% senior subordinated notes due 2026 (6.875% 2026 Notes) 500 (4) (3) 493 6.25% senior secured notes due 2026 (2026 Secured Notes) 4,400 (53) 5 4,352 7.50% senior subordinated notes due 2027 (7.50% 2027 Notes) 550 (4) — 546 5.50% senior subordinated notes due 2027 (5.50% 2027 Notes) 2,650 (21) — 2,629 Government refundable advances 30 — — 30 Finance lease obligations 76 — — 76 19,835 (149) (16) 19,670 Less: current portion 277 (1) — 276 Long-term debt $ 19,558 $ (148) $ (16) $ 19,394 September 30, 2020 Gross Amount Debt Issuance Costs Original Issue Discount or Premium Net Amount Short-term borrowings—trade receivable securitization facility $ 350 $ (1) $ — $ 349 Term loans $ 7,449 $ (48) $ (23) $ 7,378 Revolving credit facility 200 — — 200 2024 Notes 1,200 (5) — 1,195 2025 Notes 750 (3) 3 750 2025 Secured Notes 1,100 (9) — 1,091 6.375% 2026 Notes 950 (6) — 944 6.875% 2026 Notes 500 (4) (3) 493 2026 Secured Notes 4,400 (55) 5 4,350 7.50% 2027 Notes 550 (5) — 545 5.50 % 2027 Notes 2,650 (21) — 2,629 Government refundable advances 28 — — 28 Finance lease obligations 57 — — 57 19,834 (156) (18) 19,660 Less: current portion 277 (1) — 276 Long-term debt $ 19,557 $ (155) $ (18) $ 19,384 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Jan. 02, 2021 | |
Fair Value Disclosures [Abstract] | |
Carrying Amounts and Fair Values of Financial Instruments | The following summarizes the carrying amounts and fair values of financial instruments (in millions): January 2, 2021 September 30, 2020 Level Carrying Fair Value Carrying Fair Value Assets: Cash and cash equivalents 1 $ 4,907 $ 4,907 $ 4,717 $ 4,717 Foreign currency forward exchange contracts and other (1) 2 3 3 — — Liabilities: Interest rate swap agreements (2) 2 66 66 56 56 Interest rate swap agreements (3) 2 302 302 328 328 Foreign currency forward exchange contracts and other (2) 2 — — 1 1 Short-term borrowings - trade receivable securitization facility (4) 2 350 350 349 349 Long-term debt, including current portion: Term loans (4) 2 7,363 7,223 7,378 7,004 Revolving credit facility (4) 2 200 200 200 200 2024 Notes (4) 1 1,196 1,218 1,195 1,194 2025 Notes (4) 1 750 772 750 743 2025 Secured Notes (4) 1 1,091 1,209 1,091 1,194 6.375% 2026 Notes (4) 1 944 983 944 948 6.875% 2026 Notes (4) 1 493 526 493 500 2026 Secured Notes (4) 1 4,352 4,686 4,350 4,604 7.50% 2027 Notes (4) 1 546 587 545 569 5.50% 2027 Notes (4) 1 2,629 2,763 2,629 2,554 Government refundable advances 2 30 30 28 28 Finance lease obligations 2 76 76 57 57 (1) Included in prepaid expenses and other on the condensed consolidated balance sheets. (2) Included in accrued and other current liabilities on the condensed consolidated balance sheets. (3) Included in other non-current liabilities on the condensed consolidated balance sheets. (4) The carrying amount of the debt instrument is presented net of debt issuance costs, premium and discount. Refer to Note 9, "Debt," for gross carrying amounts. |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 3 Months Ended |
Jan. 02, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table summarizes the Company's interest rate swap agreements: Aggregate Notional Amount Start Date End Date Related Term Loans Conversion of Related Variable Rate Debt to $500 6/29/2018 3/31/2025 Tranche E 5.25% (3.0% plus the 2.25% margin percentage) $750 6/30/2020 6/30/2022 Tranche E 4.75% (2.5% plus the 2.25% margin percentage) $1,500 6/30/2022 3/31/2025 Tranche E 5.35% (3.1% plus the 2.25% margin percentage) $1,000 6/28/2019 12/9/2025 Tranche F 4.05% (1.8% plus the 2.25% margin percentage) $1,400 6/30/2021 12/9/2025 Tranche F 5.25% (3.0% plus the 2.25% margin percentage) $500 12/30/2016 12/31/2021 Tranche G 4.15% (1.9% plus the 2.25% margin percentage) $400 9/30/2017 9/30/2022 Tranche G 4.15% (1.9% plus the 2.25% margin percentage) $900 12/31/2021 6/28/2024 Tranche G 5.35% (3.1% plus the 2.25% margin percentage) $400 9/30/2022 6/28/2024 Tranche G 5.25% (3.0% plus the 2.25% margin percentage) The following table summarizes the Company's interest rate cap agreements: Aggregate Notional Amount Start Date End Date Related Term Loans Offsets Variable Rate Debt Attributable to $750 6/30/2020 6/30/2022 Tranche E Three month LIBOR rate of 2.5% $400 6/30/2016 6/30/2021 Tranche F Three month LIBOR rate of 2.0% $400 12/30/2016 12/31/2021 Tranche G Three month LIBOR rate of 2.5% |
Schedule of Interest Rate Derivatives [Table Text Block] | January 2, 2021 September 30, 2020 Asset Liability Asset Liability Interest rate swap agreements (1) $ — $ (368) $ — $ (384) (1) Refer to Note 11, "Fair Value Measurements," for the condensed consolidated balance sheet classification of our interest rate swap agreements. |
SEGMENTS (Tables)
SEGMENTS (Tables) | 3 Months Ended |
Jan. 02, 2021 | |
Segment Reporting [Abstract] | |
Net Sales by Reportable Segments | The following table presents net sales by reportable segment (in millions): Thirteen Week Periods Ended January 2, 2021 December 28, 2019 Net sales to external customers Power & Control Commercial OEM $ 126 $ 184 Commercial Aftermarket 132 220 Defense 343 348 Total Power & Control 601 752 Airframe Commercial OEM 142 230 Commercial Aftermarket 112 245 Defense 210 199 Total Airframe 464 674 Total Non-aviation 43 39 $ 1,108 $ 1,465 |
EBITDA Defined by Segment to Consolidated Income Before Taxes | The following table reconciles EBITDA As Defined by segment to consolidated income from continuing operations before income taxes (in millions): Thirteen Week Periods Ended January 2, 2021 December 28, 2019 EBITDA As Defined Power & Control $ 304 $ 385 Airframe 177 305 Non-aviation 15 13 Total segment EBITDA As Defined 496 703 Less: Unallocated corporate expenses 22 22 Total Company EBITDA As Defined 474 681 Depreciation and amortization expense 58 69 Interest expense, net 267 248 Acquisition-related costs 4 7 Stock compensation expense 49 26 Refinancing costs — 22 COVID-19 pandemic restructuring costs 21 — Other, net 22 16 Income from continuing operations before income taxes $ 53 $ 293 |
Total Assets by Segment | The following table presents total assets by segment (in millions): January 2, 2021 September 30, 2020 Total assets Power & Control $ 7,022 $ 7,005 Airframe 6,603 6,575 Non-aviation 241 251 Corporate 4,691 4,564 $ 18,557 $ 18,395 |
RETIREMENT BENEFITS (Tables)
RETIREMENT BENEFITS (Tables) | 3 Months Ended |
Jan. 02, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Schedule of Net Benefit Costs [Table Text Block] | The components of net periodic pension cost for the Company's defined benefit plans were as follows (in millions): Thirteen Week Periods Ended January 2, 2021 December 28, 2019 U.S. Pension Plans Non-U.S. Pension Plans U.S. Pension Plans Non-U.S. Pension Plans Service cost $ 2 $ 1 $ 2 $ 1 Interest cost 2 1 3 1 Expected return on plan assets (5) (2) (5) (1) Amortization — 1 — — Net periodic pension (benefit) cost $ (1) $ 1 $ — $ 1 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Jan. 02, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the components of accumulated other comprehensive loss, net of taxes, for the thirteen week period ended January 2, 2021 (in millions): Unrealized gains on derivatives designated and qualifying as cash flow hedges (1) Defined benefit pension plan activity (2) Currency translation adjustment Total Balance at September 30, 2020 $ (302) $ (8) $ (91) $ (401) Current-period other comprehensive income 13 — 111 124 Balance at January 2, 2021 $ (289) $ (8) $ 20 $ (277) (1) Unrealized gains represents derivative instruments, net of taxes of $(5.0) million and $(9.8) million for the thirteen week periods ended January 2, 2021 and December 28, 2019, respectively. |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Jan. 02, 2021 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | The components of lease expense for the are as follows (in millions): Thirteen Week Periods Ended Classification January 2, 2021 December 28, 2019 Operating lease cost Cost of Sales or Selling and Administrative Expenses $ 7 $ 7 Finance lease cost Amortization of leased assets Cost of Sales $ 1 $ 1 Interest on lease liabilities Interest Expense - Net 1 1 Total lease cost $ 9 $ 9 |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Supplemental cash flow information related to leases is as follows (in millions): Thirteen Week Periods Ended January 2, 2021 December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 7 $ 7 Operating cash outflows from finance leases 1 1 Lease assets obtained in exchange for new lease obligations: Operating leases $ 4 $ 10 Finance leases 19 — |
Leases, Supplemental Balance Sheet Information [Table Text Block] | Supplemental balance sheet information related to leases is as follows (in millions): Classification January 2, 2021 September 30, 2020 Operating Leases Operating lease right-of-use assets Other Assets $ 93 $ 103 Current operating lease liabilities Accrued and Other Current Liabilities 22 22 Long-term operating lease liabilities Other Non-current Liabilities 75 87 Total operating lease liabilities $ 97 $ 109 Finance Leases Finance lease right-of-use assets, net Property, Plant and Equipment—Net $ 87 $ 67 Current finance lease liabilities Accrued and Other Current Liabilities 2 2 Long-term finance lease liabilities Other Non-current Liabilities 74 55 Total finance lease liabilities $ 76 $ 57 As of January 2, 2021, the Company has the following remaining lease term and weighted average discount rates: Weighted-average remaining lease term Operating leases 5.8 years Finance leases 19.9 years Weighted-average discount rate Operating leases 6.2% Finance leases 7.2% |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Maturities of lease liabilities at January 2, 2021 are as follows (in millions): Operating Leases Finance Leases 2021 $ 21 $ 7 2022 23 7 2023 18 7 2024 15 7 2025 12 7 Thereafter 28 117 Total future minimum lease payments 117 152 Less: imputed interest 20 76 Present value of lease liabilities reported $ 97 $ 76 |
Finance Lease, Liability, Maturity [Table Text Block] | Maturities of lease liabilities at January 2, 2021 are as follows (in millions): Operating Leases Finance Leases 2021 $ 21 $ 7 2022 23 7 2023 18 7 2024 15 7 2025 12 7 Thereafter 28 117 Total future minimum lease payments 117 152 Less: imputed interest 20 76 Present value of lease liabilities reported $ 97 $ 76 |
DISCONTINUED OPERATIONS (Tables
DISCONTINUED OPERATIONS (Tables) | 3 Months Ended |
Jan. 02, 2021 | |
Souriau Sunbank [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Thirteen Week Period Ended December 28, 2019 Net sales $ 79 Income from discontinued operations before income taxes 13 Income tax expense 4 Income from discontinued operations, net of tax 9 Gain from sale of discontinued operations, net of tax 62 Income from discontinued operations, net of tax $ 71 |
DESCRIPTION OF THE BUSINESS A_2
DESCRIPTION OF THE BUSINESS AND IMPACT OF COVID-19 PANDEMIC - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 02, 2021 | Sep. 30, 2020 | |
Transdigm Inc [Member] | ||
Accounting Policies [Abstract] | ||
Percentage of ownership in subsidiary | 100.00% | |
Restructuring Cost and Reserve [Line Items] | ||
Percentage of ownership in subsidiary | 100.00% | |
COVID-19 [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 20 | |
Restructuring and Related Cost, Cost Incurred to Date | 27 | $ 13 |
COVID-19 [Member] | Unusual or Infrequent Item, or Both [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 1 | |
COVID-19 [Member] | Cost of Sales [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | 13 | |
COVID-19 [Member] | Selling, General and Administrative Expenses [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring Costs | $ 7 |
ACQUISITIONS AND DIVESTITURES -
ACQUISITIONS AND DIVESTITURES - Narratives (Details) - USD ($) $ in Millions | Nov. 17, 2020 | Dec. 20, 2019 | Jan. 02, 2021 |
Cobham [Member] | |||
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 959 | ||
Souriau Sunbank [Member] | |||
Business Acquisition [Line Items] | |||
Divestiture, Sale Price | $ 920 | ||
Racal [Member] | |||
Business Acquisition [Line Items] | |||
Divestiture, Sale Price | $ 20 | ||
Avista [Member] | |||
Business Acquisition [Line Items] | |||
Divestiture, Sale Price | $ 8 |
REVENUE - Contract Assets and L
REVENUE - Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Jan. 02, 2021 | Sep. 30, 2020 | |||
Schedule of Contract Assets and Liabilities [Line Items] | ||||
Contract with Customer, Asset, Net, Current | $ 49 | $ 36 | [1] | |
Contract with Customer, Asset, Current, Increase or Decrease | [1] | 13 | ||
Contract with Customer, Asset, Net, Noncurrent | 2 | 6 | [2] | |
Contract with customer, Asset, Non-current, Increase or Decrease | [2] | (4) | ||
Contract with Customer, Asset, after Allowance for Credit Loss | 51 | 42 | ||
Contract assets, Increase or Decrease | 9 | |||
Contract with Customer, Liability, Current | 19 | 18 | [3] | |
Contract liabilities, Current, Increase or Decrease | [3] | 1 | ||
Contract with Customer, Liability, Noncurrent | 5 | 9 | [4] | |
Contract liabilities, Non-current, Increase or Decrease | [4] | (4) | ||
Contract with Customer, Liability | 24 | 27 | ||
Contract Liabilities, Increase or Decrease | (3) | |||
Net Contract Asset | 27 | $ 15 | ||
Net Contract Asset, Increase or Decrease | $ 12 | |||
[1] | Included in prepaid expenses and other on the condensed consolidated balance sheets. | |||
[2] | Included in other non-current assets on the condensed consolidated balance sheets. | |||
[3] | Included in accrued and other current liabilities on the condensed consolidated balance sheets. | |||
[4] | Included in other non-current liabilities on the condensed consolidated balance sheets. |
REVENUE - Narratives (Details)
REVENUE - Narratives (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Sep. 30, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 41 | $ 37 |
EARNINGS PER SHARE (TWO-CLASS_3
EARNINGS PER SHARE (TWO-CLASS METHOD) - Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Earnings Per Share [Abstract] | ||
Income from continuing operations | $ 50 | $ 234 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 1 |
Net income from continuing operations attributable to TD Group | 50 | 233 |
Numerator for (loss) earnings per share: | ||
Less: Special dividends declared or paid on participating securities, including dividend equivalent payments | (73) | (185) |
Net income from discontinued operations | 0 | (71) |
Net (loss) income applicable to TD Group common stockholders - basic and diluted | $ (23) | $ 119 |
Denominator for basic and diluted earnings per share under the two-class method, in shares: | ||
Weighted-average common shares outstanding | 54.7 | 53.6 |
Vested options deemed participating securities | 0 | 3.8 |
Basic and diluted (in shares) | 54.7 | 57.4 |
(Loss) Earnings per share from continuing operations—basic and diluted | $ (0.42) | $ 0.83 |
Earnings per share from discontinued operations—basic and diluted | 0 | 1.24 |
Basic and diluted earnings per share (in dollars per share) | $ (0.42) | $ 2.07 |
INVENTORIES - Schedule of Inven
INVENTORIES - Schedule of Inventory (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Sep. 30, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials and purchased component parts | $ 900 | $ 881 |
Work-in-progress | 360 | 358 |
Finished goods | 213 | 222 |
Total | 1,473 | 1,461 |
Reserves for excess and obsolete inventory | (189) | (178) |
Inventories - Net | $ 1,284 | $ 1,283 |
INTANGIBLE ASSETS - Intangible
INTANGIBLE ASSETS - Intangible Assets Subject to Amortization (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Sep. 30, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible Assets, Gross (Excluding Goodwill) | $ 3,377 | $ 3,354 |
Intangible Assets, Accumulated Amortization | 773 | 744 |
Total | 2,604 | 2,610 |
Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,856 | 1,842 |
Accumulated Amortization | 613 | 589 |
Net | 1,243 | 1,253 |
Order backlog | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 91 | 93 |
Accumulated Amortization | 91 | 93 |
Net | 0 | 0 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 449 | 443 |
Accumulated Amortization | 58 | 52 |
Net | 391 | 391 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 18 | 18 |
Accumulated Amortization | 11 | 10 |
Net | 7 | 8 |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets (Excluding Goodwill), Gross | 963 | 958 |
Indefinite-Lived Intangible Assets, Accumulated Amortization | 0 | 0 |
Intangible Assets (Excluding Goodwill), Net | $ 963 | $ 958 |
INTANGIBLE ASSETS - Summary of
INTANGIBLE ASSETS - Summary of changes in carrying value of Goodwill (Details) $ in Millions | 3 Months Ended |
Jan. 02, 2021USD ($) | |
Goodwill [Roll Forward] | |
Balance at September 30, 2020 | $ 7,889 |
Goodwill, Acquired During Period | 4 |
Disposal Group, Including Discontinued Operation, Goodwill | (8) |
Currency translation adjustment | 42 |
Balance at January 2, 2021 | 7,927 |
Power & Control | |
Goodwill [Roll Forward] | |
Balance at September 30, 2020 | 4,141 |
Goodwill, Acquired During Period | 4 |
Disposal Group, Including Discontinued Operation, Goodwill | 0 |
Currency translation adjustment | 15 |
Balance at January 2, 2021 | 4,160 |
Airframe | |
Goodwill [Roll Forward] | |
Balance at September 30, 2020 | 3,647 |
Goodwill, Acquired During Period | 0 |
Disposal Group, Including Discontinued Operation, Goodwill | 0 |
Currency translation adjustment | 27 |
Balance at January 2, 2021 | 3,674 |
Non- aviation | |
Goodwill [Roll Forward] | |
Balance at September 30, 2020 | 101 |
Goodwill, Acquired During Period | 0 |
Disposal Group, Including Discontinued Operation, Goodwill | (8) |
Currency translation adjustment | 0 |
Balance at January 2, 2021 | $ 93 |
INTANGIBLE ASSETS - Narratives
INTANGIBLE ASSETS - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
AMORTIZATION OF INTANGIBLE ASSETS | $ 29 | $ 40 |
Estimated Amortization Expense, 2021 | 115 | |
Estimated Amortization Expense, 2022 | 114 | |
Estimated Amortization Expense, 2026 | $ 109 |
DEBT - Schedule of Debt (Detail
DEBT - Schedule of Debt (Detail) - USD ($) $ in Millions | Jan. 02, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | |||
Gross Amount | $ 19,835 | $ 19,834 | |
Debt Issuance Costs | (149) | (156) | |
Debt Instrument, Unamortized Discount (Premium), Net | (16) | (18) | |
Short-term borrowings—trade receivable securitization facility | 350 | 349 | |
Long-term Debt | 19,670 | 19,660 | |
Current portion of long-term debt | 276 | 276 | |
Long-term Debt, Excluding Current Maturities, Gross | 19,558 | 19,557 | |
Deferred Finance Costs, Excluding Current Maturities | (148) | (155) | |
Debt Instrument, Unamortized Discount, Excluding Current Maturities | (16) | (18) | |
Long-term debt | 19,394 | 19,384 | |
Term loans | |||
Debt Instrument [Line Items] | |||
Gross Amount | 7,429 | 7,449 | |
Debt Issuance Costs | (46) | (48) | |
Debt Instrument, Unamortized Discount (Premium), Net | (20) | (23) | |
Long-term Debt | [1] | 7,363 | 7,378 |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Gross Amount | 200 | 200 | |
Debt Issuance Costs | 0 | 0 | |
Debt Instrument, Unamortized Discount (Premium), Net | 0 | 0 | |
Long-term Debt | 200 | 200 | |
Senior Subordinated Notes | 6.50% Senior Subordinated Notes Due 2024 [Member] | |||
Debt Instrument [Line Items] | |||
Gross Amount | 1,200 | 1,200 | |
Debt Issuance Costs | (4) | (5) | |
Debt Instrument, Unamortized Discount (Premium), Net | 0 | 0 | |
Long-term Debt | [1] | 1,196 | 1,195 |
Senior Subordinated Notes | Senior Subordinated Notes Due 2025 6.50% [Member] | |||
Debt Instrument [Line Items] | |||
Gross Amount | 750 | 750 | |
Debt Issuance Costs | (2) | (3) | |
Debt Instrument, Unamortized Discount (Premium), Net | 2 | 3 | |
Long-term Debt | 750 | 750 | |
Senior Subordinated Notes | Senior Secured Notes Due 2025 8.00% [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Debt | [1] | 750 | 750 |
Senior Subordinated Notes | Senior Subordinated Notes Due 2026 6.375% [Member] | |||
Debt Instrument [Line Items] | |||
Gross Amount | 950 | 950 | |
Debt Issuance Costs | (6) | (6) | |
Debt Instrument, Unamortized Discount (Premium), Net | 0 | 0 | |
Long-term Debt | [1] | 944 | 944 |
Senior Subordinated Notes | Senior subordinated notes due 2026 6.875% [Member] | |||
Debt Instrument [Line Items] | |||
Gross Amount | 500 | 500 | |
Debt Issuance Costs | (4) | (4) | |
Debt Instrument, Unamortized Discount (Premium), Net | (3) | (3) | |
Long-term Debt | [1] | 493 | 493 |
Senior Subordinated Notes | Senior Subordinated Notes $550M Due 2027 7.50% [Member] | |||
Debt Instrument [Line Items] | |||
Gross Amount | 550 | 550 | |
Debt Issuance Costs | (4) | (5) | |
Debt Instrument, Unamortized Discount (Premium), Net | 0 | 0 | |
Long-term Debt | [1] | 546 | 545 |
Senior Subordinated Notes | Senior Subordinated Notes $2650M Due 2027 5.50% [Member] | |||
Debt Instrument [Line Items] | |||
Gross Amount | 2,650 | 2,650 | |
Debt Issuance Costs | (21) | (21) | |
Debt Instrument, Unamortized Discount (Premium), Net | 0 | 0 | |
Long-term Debt | [1] | 2,629 | 2,629 |
Senior Notes | Senior Secured Notes Due 2025 8.00% [Member] | |||
Debt Instrument [Line Items] | |||
Gross Amount | 1,100 | 1,100 | |
Debt Issuance Costs | (9) | (9) | |
Debt Instrument, Unamortized Discount (Premium), Net | 0 | 0 | |
Long-term Debt | 1,091 | 1,091 | |
Senior Notes | Senior Secured Notes $4.4B Due 2026 6.25% [Member] | |||
Debt Instrument [Line Items] | |||
Gross Amount | 4,400 | 4,400 | |
Debt Issuance Costs | (53) | (55) | |
Debt Instrument, Unamortized Discount (Premium), Net | 5 | 5 | |
Long-term Debt | 4,352 | 4,350 | |
Government Refundable Advances [Member] | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs | 0 | ||
Debt Instrument, Unamortized Discount (Premium), Net | 0 | ||
Long-term Debt | 30 | 28 | |
Government refundable advances | 29.8 | 28.4 | |
Government Refundable Advances [Member] | Government Refundable Advances [Member] | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs | 0 | ||
Debt Instrument, Unamortized Discount (Premium), Net | 0 | ||
Government refundable advances | 28 | ||
Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs | 0 | ||
Debt Instrument, Unamortized Discount (Premium), Net | 0 | ||
Long-term Debt | 76 | 57 | |
Capital Lease Obligations | 75.6 | 56.8 | |
Capital Lease Obligations [Member] | Capital Lease Obligations [Member] | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs | 0 | ||
Debt Instrument, Unamortized Discount (Premium), Net | 0 | ||
Capital Lease Obligations | 57 | ||
Less: current portion | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs | (1) | (1) | |
Debt Instrument, Unamortized Discount (Premium), Net | 0 | ||
Debt Instrument, Unamortized Discount | 0 | ||
Long-term Debt, Current Maturities, Gross | 277 | 277 | |
Current portion of long-term debt | 276 | 276 | |
Asset-backed Securities | |||
Debt Instrument [Line Items] | |||
Debt Issuance Costs | 0 | (1) | |
Debt Instrument, Unamortized Discount (Premium), Net | 0 | 0 | |
Short-term borrowings—trade receivable securitization facility, Gross | 350 | 350 | |
Short-term borrowings—trade receivable securitization facility | [1] | $ 350 | $ 349 |
[1] | The carrying amount of the debt instrument is presented net of debt issuance costs, premium and discount. Refer to Note 9, "Debt," for gross carrying amounts. |
DEBT - Narratives (Details)
DEBT - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 02, 2021 | Sep. 30, 2020 | |
Debt Instrument [Line Items] | ||
Interest Payable, Current | $ 185 | $ 177.6 |
Gross Amount | 19,835 | 19,834 |
Term loans | ||
Debt Instrument [Line Items] | ||
Gross Amount | 7,429 | 7,449 |
Senior Subordinated Notes | 4.625% Senior Subordinated Notes Due 2029 [Member] | ||
Debt Instrument [Line Items] | ||
Gross Amount | $ 1,200 | |
Debt Instrument, Redemption Price, Percentage | 100.00% | |
Interest rate | 4.625% | |
Government Refundable Advances [Member] | ||
Debt Instrument [Line Items] | ||
Government refundable advances | $ 29.8 | 28.4 |
Capital Lease Obligations [Member] | ||
Debt Instrument [Line Items] | ||
Capital Lease Obligations | $ 75.6 | $ 56.8 |
INCOME TAXES - Narratives (Deta
INCOME TAXES - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jan. 02, 2021 | Dec. 28, 2019 | Sep. 30, 2020 | |
Effective income tax rate | 5.50% | 20.10% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||
Unrecognized tax benefits | $ 42.2 | $ 40.9 | |
Tax rate effect | 37 | $ 35.7 | |
Reduction in tax position in next 12 months | $ 22 |
FAIR VALUE MEASUREMENTS - Carry
FAIR VALUE MEASUREMENTS - Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Millions | Jan. 02, 2021 | Sep. 30, 2020 | Dec. 28, 2019 | Sep. 30, 2019 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash and cash equivalents | $ 4,907 | $ 4,717 | $ 4,194 | $ 1,467 | |
Short-term borrowings—trade receivable securitization facility | 350 | 349 | |||
Long-term Debt | 19,670 | 19,660 | |||
Prepaid Expenses and Other Current Assets | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Foreign Currency Contract, Asset | 3 | 0 | |||
Accrued Liabilities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Interest rate swap agreements | [1] | 66 | 56 | ||
Foreign Currency Contract, Liability | [1] | 0 | 1 | ||
Other Noncurrent Liabilities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Interest rate swap agreements | [2] | 302 | 328 | ||
Term loans | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | [3] | 7,363 | 7,378 | ||
Government Refundable Advances [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 30 | 28 | |||
Capital Lease Obligations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 76 | 57 | |||
Level 1 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Cash and cash equivalents, Fair Value | 4,907 | 4,717 | |||
Level 2 | Prepaid Expenses and Other Current Assets | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Foreign Currency Contract, Asset | 3 | 0 | |||
Level 2 | Accrued Liabilities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Interest rate swap agreements, Fair Value | [1] | 66 | 56 | ||
Foreign Currency Contract, Liability | [1] | 0 | 1 | ||
Level 2 | Other Noncurrent Liabilities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Interest rate swap agreements, Fair Value | [2] | 302 | 328 | ||
Level 2 | Term loans | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion, Fair Value | [3] | 7,223 | 7,004 | ||
Level 2 | Government Refundable Advances [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion, Fair Value | 30 | 28 | |||
Level 2 | Capital Lease Obligations [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion, Fair Value | 76 | 57 | |||
6.50% Senior Subordinated Notes Due 2024 [Member] | Senior Subordinated Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | [3] | 1,196 | 1,195 | ||
6.50% Senior Subordinated Notes Due 2024 [Member] | Level 1 | Senior Subordinated Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion, Fair Value | [3] | 1,218 | 1,194 | ||
Senior Secured Notes Due 2025 8.00% [Member] | Senior Subordinated Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | [3] | 750 | 750 | ||
Senior Secured Notes Due 2025 8.00% [Member] | Level 1 | Senior Subordinated Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion, Fair Value | [3] | 772 | 743 | ||
Senior Secured Notes $1.1B due 2025 8% [Member] | Secured Debt [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | 1,091 | 1,091 | |||
Senior Secured Notes $1.1B due 2025 8% [Member] | Level 1 | Secured Debt [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion, Fair Value | 1,209 | 1,194 | |||
Senior Subordinated Notes Due 2026 6.375% [Member] | Senior Subordinated Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | [3] | 944 | 944 | ||
Senior Subordinated Notes Due 2026 6.375% [Member] | Level 1 | Senior Subordinated Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion, Fair Value | [3] | 983 | 948 | ||
Senior subordinated notes due 2026 6.875% [Member] | Senior Subordinated Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | [3] | 493 | 493 | ||
Senior subordinated notes due 2026 6.875% [Member] | Level 1 | Senior Subordinated Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion, Fair Value | [3] | 526 | 500 | ||
Senior Secured Notes $4.4B Due 2026 6.25% [Member] | Secured Debt [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | [3] | 4,352 | 4,350 | ||
Senior Secured Notes $4.4B Due 2026 6.25% [Member] | Level 1 | Secured Debt [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion, Fair Value | [3] | 4,686 | 4,604 | ||
Senior Subordinated Notes $550M Due 2027 7.50% [Member] | Senior Subordinated Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | [3] | 546 | 545 | ||
Senior Subordinated Notes $550M Due 2027 7.50% [Member] | Level 1 | Senior Subordinated Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion, Fair Value | [3] | 587 | 569 | ||
Senior Subordinated Notes $2650M Due 2027 5.50% [Member] | Senior Subordinated Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | [3] | 2,629 | 2,629 | ||
Senior Subordinated Notes $2650M Due 2027 5.50% [Member] | Level 1 | Senior Subordinated Notes | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion, Fair Value | [3] | 2,763 | 2,554 | ||
Asset-backed Securities | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term borrowings—trade receivable securitization facility | [3] | 350 | 349 | ||
Asset-backed Securities | Level 2 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Short-term borrowings - trade receivable securitization facility, Fair Value | [3] | 350 | 349 | ||
Revolving Credit Facility [Member] | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term Debt | [3] | 200 | 200 | ||
Revolving Credit Facility [Member] | Level 2 | |||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||
Long-term debt, including current portion, Fair Value | [3] | $ 200 | $ 200 | ||
[1] | Included in accrued and other current liabilities on the condensed consolidated balance sheets. | ||||
[2] | Included in other non-current liabilities on the condensed consolidated balance sheets. | ||||
[3] | The carrying amount of the debt instrument is presented net of debt issuance costs, premium and discount. Refer to Note 9, "Debt," for gross carrying amounts. |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES - Schedule of Notional Amounts of Outstanding Derivatives (Details) $ in Millions | Jan. 02, 2021USD ($) |
Tranche F | Interest rate swap June 28, 2016 [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 1,000 |
Tranche F | Interest rate swap beginning June 30, 2021 [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 1,400 |
Tranche F | Interest rate cap agreements beginning June 30, 2016 [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 400 |
Tranche E | Interest rate swap beginning June 29, 2018 [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 500 |
Tranche E | Interest rate swap beginning June 30, 2020 [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 750 |
Tranche E | Interest rate swap beginning June 30, 2022 [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 1,500 |
Tranche E | Interest rate cap beginning June 30, 2020 [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 750 |
Tranche G [Member] | Interest rate swap beginning December 30, 2016 | |
Derivative [Line Items] | |
Derivative, Notional Amount | 500 |
Tranche G [Member] | Interest rate swap beginning September 30, 2017 [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 400 |
Tranche G [Member] | Interest rate swap beginning December 31, 2021 [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 900 |
Tranche G [Member] | Interest rate swap beginning September 30, 2022 [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 400 |
Tranche G [Member] | Interest rate cap beginning December 30, 2016 | |
Derivative [Line Items] | |
Derivative, Notional Amount | $ 400 |
DERIVATIVES AND HEDGING ACTIV_4
DERIVATIVES AND HEDGING ACTIVITIES - Schedule of Interest Rate Derivatives (Details) - Interest Rate Swap - USD ($) $ in Millions | Jan. 02, 2021 | Sep. 30, 2020 | |
Derivative [Line Items] | |||
Derivative Asset, Fair Value, Gross Asset | [1] | $ 0 | $ 0 |
Derivative Liability, Fair Value, Gross Liability | [1] | $ 368 | $ 384 |
[1] | Refer to Note 11, "Fair Value Measurements," for the condensed consolidated balance sheet classification of our interest rate swap agreements. |
DERIVATIVES AND HEDGING ACTIV_5
DERIVATIVES AND HEDGING ACTIVITIES - Narratives (Details) $ in Millions | 3 Months Ended |
Jan. 02, 2021USD ($) | |
Interest Rate Swap and Cap | |
Derivative [Line Items] | |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 13.7 |
Foreign Exchange Forward [Member] | |
Derivative [Line Items] | |
Derivative, Notional Amount | 123.6 |
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Gross Amount to be Transferred | $ 5.8 |
SEGMENTS - Narratives (Details)
SEGMENTS - Narratives (Details) | 3 Months Ended |
Jan. 02, 2021Segment | |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
SEGMENTS - Net Sales by Reporta
SEGMENTS - Net Sales by Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Segment Reporting Information [Line Items] | ||
NET SALES | $ 1,108 | $ 1,465 |
Operating Segments | Power & Control | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 601 | 752 |
Operating Segments | Airframe | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 464 | 674 |
Operating Segments | Non- aviation | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 43 | 39 |
Commercial OEM [Member] | Operating Segments | Power & Control | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 126 | 184 |
Commercial OEM [Member] | Operating Segments | Airframe | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 142 | 230 |
Commercial Aftermarket [Member] | Operating Segments | Power & Control | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 132 | 220 |
Commercial Aftermarket [Member] | Operating Segments | Airframe | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 112 | 245 |
Defense [Member] | Operating Segments | Power & Control | ||
Segment Reporting Information [Line Items] | ||
NET SALES | 343 | 348 |
Defense [Member] | Operating Segments | Airframe | ||
Segment Reporting Information [Line Items] | ||
NET SALES | $ 210 | $ 199 |
SEGMENTS - EBITDA Defined by Se
SEGMENTS - EBITDA Defined by Segment to Consolidated Income Before Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | $ 474 | $ 681 |
Interest expense, net | 267 | 248 |
Stock compensation expense | 49 | 26 |
Refinancing costs | 0 | 22 |
Income from continuing operations before income taxes | 53 | 293 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | 496 | 703 |
Operating Segments | Power & Control | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | 304 | 385 |
Operating Segments | Airframe | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | 177 | 305 |
Operating Segments | Non- aviation | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | 15 | 13 |
Corporate, Non-Segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | 22 | 22 |
Segment Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Depreciation and amortization expense | 58 | 69 |
Interest expense, net | (267) | (248) |
Acquisition-related costs | 4 | 7 |
Stock compensation expense | 49 | 26 |
Refinancing costs | 0 | 22 |
COVID-19 pandemic restructuring costs | 21 | 0 |
Other, net | $ 22 | $ 16 |
SEGMENTS - Total Assets by Segm
SEGMENTS - Total Assets by Segment (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Sep. 30, 2020 |
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 18,557 | $ 18,395 |
Operating Segments | Power & Control | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 7,022 | 7,005 |
Operating Segments | Airframe | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 6,603 | 6,575 |
Operating Segments | Non- aviation | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 241 | 251 |
Corporate, Non-Segment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 4,691 | $ 4,564 |
RETIREMENT BENEFITS Tables (Det
RETIREMENT BENEFITS Tables (Details) - Pension Plan [Member] - USD ($) $ in Millions | 3 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
UNITED STATES | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Service Cost | $ 2 | $ 2 |
Defined Benefit Plan, Interest Cost | 2 | 3 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (5) | (5) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 0 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | (1) | 0 |
Foreign Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Service Cost | 1 | 1 |
Defined Benefit Plan, Interest Cost | 1 | 1 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (2) | (1) |
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 1 | 0 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 1 | $ 1 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Narratives (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Other Comprehensive Loss, Derivatives Qualifying as Hedges, Tax | $ (5) | $ (9.8) |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Loss (Details) $ in Millions | 3 Months Ended | |
Jan. 02, 2021USD ($) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | $ (401) | |
Current-period other comprehensive income | 124 | |
Balance at end of period | (277) | |
Unrealized gains on derivatives designated and qualifying as cash flow hedges (1) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (302) | [1] |
Current-period other comprehensive income | 13 | [1] |
Balance at end of period | (289) | [1] |
Defined benefit pension plan activity (2) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (8) | [2] |
Current-period other comprehensive income | 0 | [2] |
Balance at end of period | (8) | [2] |
Currency translation adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Balance at beginning of period | (91) | |
Current-period other comprehensive income | 111 | |
Balance at end of period | $ 20 | |
[1] | Unrealized gains represents derivative instruments, net of taxes of $(5.0) million and $(9.8) million for the thirteen week periods ended January 2, 2021 and December 28, 2019, respectively | |
[2] | There were no material pension liability adjustments, net of taxes, for the thirteen week periods ended January 2, 2021 and December 28, 2019. |
LEASES Components of Lease Expe
LEASES Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Lease, Cost | $ 9 | $ 9 |
Operating Expense [Member] | ||
Leases [Abstract] | ||
Operating Lease, Cost | 7 | 7 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Cost | 7 | 7 |
Cost of Sales [Member] | ||
Leases [Abstract] | ||
Finance Lease, Right-of-Use Asset, Amortization | 1 | 1 |
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Right-of-Use Asset, Amortization | 1 | 1 |
Interest Expense [Member] | ||
Leases [Abstract] | ||
Finance Lease, Interest Expense | 1 | 1 |
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Interest Expense | $ 1 | $ 1 |
LEASES Supplemental Cash Flow I
LEASES Supplemental Cash Flow Information Related To Leases (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Leases [Abstract] | ||
Operating Lease, Payments | $ 7 | $ 7 |
Finance Lease, Principal Payments | 1 | 1 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 4 | 10 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 19 | $ 0 |
LEASES Supplemental Balance She
LEASES Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Sep. 30, 2020 |
Leases [Abstract] | ||
Operating Lease, Liability | $ 97 | $ 109 |
Finance Lease, Liability | $ 76 | 57 |
Operating Lease, Weighted Average Remaining Lease Term | 5 years 9 months 18 days | |
Finance Lease, Weighted Average Remaining Lease Term | 19 years 10 months 24 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 6.20% | |
Finance Lease, Weighted Average Discount Rate, Percent | 7.20% | |
Other Assets | ||
Leases [Abstract] | ||
Operating Lease, Right-of-Use Asset | $ 93 | 103 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | 93 | 103 |
Accrued Liabilities | ||
Leases [Abstract] | ||
Operating Lease, Liability, Current | 22 | 22 |
Finance Lease, Liability, Current | 2 | 2 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Liability, Current | 22 | 22 |
Finance Lease, Liability, Current | 2 | 2 |
Other Noncurrent Liabilities | ||
Leases [Abstract] | ||
Operating Lease, Liability, Noncurrent | 75 | 87 |
Finance Lease, Liability, Noncurrent | 74 | 55 |
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Liability, Noncurrent | 75 | 87 |
Finance Lease, Liability, Noncurrent | 74 | 55 |
Property, Plant and Equipment [Member] | ||
Leases [Abstract] | ||
Finance Lease, Right-of-Use Asset | 87 | 67 |
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Right-of-Use Asset | $ 87 | $ 67 |
LEASES Maturities of Lease Liab
LEASES Maturities of Lease Liabilities Operating and Financing (Details) - USD ($) $ in Millions | Jan. 02, 2021 | Sep. 30, 2020 |
Leases [Abstract] | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 21 | |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 7 | |
Finance Lease, Liability, to be Paid, Year One | 7 | |
Lessee, Operating Lease, Liability, to be Paid, Year One | 23 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 18 | |
Capital Leases, Future Minimum Payments Due in Two Years | 7 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 15 | |
Capital Leases, Future Minimum Payments Due in Three Years | 7 | |
Operating Leases, Future Minimum Payments, Due Thereafter | 28 | |
Capital Leases, Future Minimum Payments Due Thereafter | 117 | |
Operating Leases, Future Minimum Payments Due | 117 | |
Capital Leases, Future Minimum Payments Due | 152 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 20 | |
Capital Leases, Future Minimum Payments, Interest Included in Payments | 76 | |
Operating Lease, Liability | 97 | $ 109 |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 76 | $ 57 |
Lessee, Lease, Description [Line Items] | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 12 | |
Capital Leases, Future Minimum Payments Due in Four Years | $ 7 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 3 Months Ended |
Jan. 02, 2021USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Insurance deductible | $ 1 |
Insurance Recoveries | $ 27 |
DISCONTINUED OPERATIONS Schedul
DISCONTINUED OPERATIONS Schedule of Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jan. 02, 2021 | Dec. 28, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenues | $ 1,108 | $ 1,465 |
Income (loss) from discontinued operations before gain or loss on disposal net of tax | 9 | |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 62 | |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ 0 | 71 |
Souriau Sunbank [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenues | 79 | |
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 13 | |
Discontinued Operation, Tax Effect of Discontinued Operation | 4 | |
Income (loss) from discontinued operations before gain or loss on disposal net of tax | 9 | |
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 62 | |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ 71 |
DISCONTINUED OPERATIONS Narrati
DISCONTINUED OPERATIONS Narrative (Details) - USD ($) $ in Millions | Dec. 20, 2019 | Jan. 02, 2021 | Dec. 28, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income (loss) from discontinued operations before gain or loss on disposal net of tax | $ 9 | ||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 62 | ||
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX | $ 0 | 71 | |
Souriau Sunbank [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Divestiture, Sale Price | $ 920 | ||
Income (loss) from discontinued operations before gain or loss on disposal net of tax | 9 | ||
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax | 62 | ||
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX | $ 71 |