Guarantors | 12 Months Ended |
Oct. 31, 2014 |
Guarantees [Abstract] | |
Guarantors | NOTE 19: Guarantors |
The following schedules set forth condensed consolidating financial information as required by Rule 3-10 of Securities and Exchange Commission Regulation S-X for fiscal 2014, 2013, and 2012 for (a) Esterline Technologies Corporation (the Parent); (b) on a combined basis, the current subsidiary guarantors (Guarantor Subsidiaries) of the secured credit facility, 2017 Notes (for periods prior to the ending of the fiscal quarter ended April 26, 2013), and 2020 Notes; and (c) on a combined basis, the subsidiaries that are not guarantors of the secured credit facility, 2017 Notes (for periods prior to the ending of the fiscal quarter ended April 26, 2013), and 2020 Notes (Non-Guarantor Subsidiaries). The Guarantor Subsidiaries previously guaranteed the Senior Subordinated Notes due 2013 that were repurchased or otherwise redeemed in August 2010. The Guarantor Subsidiaries are direct and indirect wholly-owned subsidiaries of Esterline Technologies Corporation and have fully and unconditionally, jointly and severally, guaranteed the secured credit facility, 2017 Notes (for periods prior to the ending of the fiscal quarter ended April 26, 2013), and the 2020 Notes. |
|
Condensed Consolidating Balance Sheet as of October 31, 2014 |
|
In Thousands | | | | | | | | | Non- | | | | | | | | | |
| | | | | Guarantor | | | Guarantor | | | | | | | | | |
| Parent | | | Subsidiaries | | | Subsidiaries | | | Eliminations | | | Total | |
ASSETS | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | $ | 14,634 | | | $ | 3,454 | | | $ | 220,056 | | | $ | - | | | $ | 238,144 | |
Cash in escrow | | - | | | | - | | | | - | | | | - | | | | - | |
Accounts receivable, net | | 610 | | | | 143,158 | | | | 236,121 | | | | - | | | | 379,889 | |
Inventories | | - | | | | 188,982 | | | | 244,613 | | | | - | | | | 433,595 | |
Income tax refundable | | - | | | | - | | | | 5,266 | | | | - | | | | 5,266 | |
Deferred income tax benefits | | 31,486 | | | | (1,191 | ) | | | 18,384 | | | | - | | | | 48,679 | |
Prepaid expenses | | 147 | | | | 6,703 | | | | 13,486 | | | | - | | | | 20,336 | |
Other current assets | | 80 | | | | 114 | | | | 1,955 | | | | - | | | | 2,149 | |
Current assets of businesses held for sale | | - | | | | 26,800 | | | | 14,646 | | | | - | | | | 41,446 | |
Total Current Assets | | 46,957 | | | | 368,020 | | | | 754,527 | | | | - | | | | 1,169,504 | |
| | | | | | | | | | | | | | | | | | | |
Property, Plant & Equipment, Net | | 1,489 | | | | 158,089 | | | | 159,764 | | | | - | | | | 319,342 | |
Goodwill | | - | | | | 347,700 | | | | 724,086 | | | | - | | | | 1,071,786 | |
Intangibles, net | | - | | | | 106,164 | | | | 365,213 | | | | - | | | | 471,377 | |
Debt issuance costs, net | | 4,134 | | | | - | | | | 161 | | | | - | | | | 4,295 | |
Deferred income tax benefits | | 20,455 | | | | 30 | | | | 50,822 | | | | - | | | | 71,307 | |
Other assets | | 130 | | | | 7,502 | | | | 6,547 | | | | - | | | | 14,179 | |
Non-current assets of businesses held | | - | | | | 40,737 | | | | 30,940 | | | | - | | | | 71,677 | |
for sale |
Amounts Due From (To) Subsidiaries | | - | | | | 797,342 | | | | - | | | | (797,342 | ) | | | - | |
Investment in Subsidiaries | | 3,307,454 | | | | 1,127,237 | | | | 20,768 | | | | (4,455,459 | ) | | | - | |
Total Assets | $ | 3,380,619 | | | $ | 2,952,821 | | | $ | 2,112,828 | | | $ | (5,252,801 | ) | | $ | 3,193,467 | |
| | | | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | | | | | | |
Accounts payable | $ | 1,751 | | | $ | 36,905 | | | $ | 76,628 | | | $ | - | | | $ | 115,284 | |
Accrued liabilities | | 20,178 | | | | 93,168 | | | | 149,190 | | | | - | | | | 262,536 | |
Current maturities of long-term debt | | 8,750 | | | | 349 | | | | 3,675 | | | | - | | | | 12,774 | |
Deferred income tax liabilities | | 76 | | | | 8 | | | | 1,689 | | | | - | | | | 1,773 | |
Federal and foreign income taxes | | (2,282 | ) | | | (2,643 | ) | | | 6,496 | | | | - | | | | 1,571 | |
Current liabilities of businesses held | | - | | | | 4,010 | | | | 10,181 | | | | - | | | | 14,191 | |
for sale |
Total Current Liabilities | | 28,473 | | | | 131,797 | | | | 247,859 | | | | - | | | | 408,129 | |
| | | | | | | | | | | | | | | | | | | |
Credit Facilities | | 100,000 | | | | - | | | | - | | | | - | | | | 100,000 | |
Long-Term Debt, Net | | 403,125 | | | | 55,176 | | | | 51,419 | | | | - | | | | 509,720 | |
Deferred Income Tax Liabilities | | 58,615 | | | | (17,333 | ) | | | 107,883 | | | | - | | | | 149,165 | |
Pension and Post-Retirement Obligations | | 18,683 | | | | 1,226 | | | | 42,784 | | | | - | | | | 62,693 | |
Other Liabilities | | 16,762 | | | | 3,944 | | | | 26,178 | | | | - | | | | 46,884 | |
Non-current liabilities of businesses held | | - | | | | 17,327 | | | | 1,549 | | | | - | | | | 18,876 | |
for sale |
Amounts Due To (From) Subsidiaries | | 856,961 | | | | - | | | | 456,861 | | | | (1,313,822 | ) | | | - | |
Shareholders' Equity | | 1,898,000 | | | | 2,760,684 | | | | 1,178,295 | | | | (3,938,979 | ) | | | 1,898,000 | |
Total Liabilities and Shareholders' Equity | $ | 3,380,619 | | | $ | 2,952,821 | | | $ | 2,112,828 | | | $ | (5,252,801 | ) | | $ | 3,193,467 | |
|
|
|
|
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 31, 2014 |
|
In Thousands | | | | | | | | | Non- | | | | | | | | | |
| | | | | Guarantor | | | Guarantor | | | | | | | | | |
| Parent | | | Subsidiaries | | | Subsidiaries | | | Eliminations | | | Total | |
| | | | | | | | | | | | | | | | | | | |
Net sales | $ | - | | | $ | 970,376 | | | $ | 1,086,313 | | | $ | (5,520 | ) | | $ | 2,051,169 | |
Cost of sales | | - | | | | 617,881 | | | | 718,184 | | | | (5,520 | ) | | | 1,330,545 | |
| | - | | | | 352,495 | | | | 368,129 | | | | - | | | | 720,624 | |
Expenses | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | - | | | | 146,474 | | | | 217,785 | | | | - | | | | 364,259 | |
Research, development & engineering | | - | | | | 45,965 | | | | 52,936 | | | | - | | | | 98,901 | |
Restructuring charges | | - | | | | 9,637 | | | | 4,005 | | | | - | | | | 13,642 | |
Gain on sale of product line | | - | | | | - | | | | - | | | | - | | | | - | |
Gain on settlement of contingency | | - | | | | - | | | | - | | | | - | | | | - | |
Goodwill impairment | | - | | | | - | | | | - | | | | - | | | | - | |
Other (income) expense | | - | | | | - | | | | - | | | | - | | | | - | |
Total Expenses | | - | | | | 202,076 | | | | 274,726 | | | | - | | | | 476,802 | |
| | | | | | | | | | | | | | | | | | | |
Operating Earnings from Continuing | | - | | | | 150,419 | | | | 93,403 | | | | - | | | | 243,822 | |
Operations |
Interest Income | | (15,486 | ) | | | (9,240 | ) | | | (55,840 | ) | | | 80,011 | | | | (555 | ) |
Interest Expense | | 24,190 | | | | 28,959 | | | | 59,872 | | | | (80,011 | ) | | | 33,010 | |
Loss on Extinguishment of Debt | | - | | | | - | | | | 533 | | | | - | | | | 533 | |
Earnings (Loss) from Continuing Operations | | (8,704 | ) | | | 130,700 | | | | 88,838 | | | | - | | | | 210,834 | |
Before Income Taxes |
Income Tax Expense (Benefit) | | (1,894 | ) | | | 27,922 | | | | 18,246 | | | | - | | | | 44,274 | |
Earnings (Loss) from Continuing Operations | | (6,810 | ) | | | 102,778 | | | | 70,592 | | | | - | | | | 166,560 | |
Including Noncontrolling Interests |
Earnings Attributable to Noncontrolling | | - | | | | - | | | | (553 | ) | | | - | | | | (553 | ) |
Interests |
Earnings (Loss) from Continuing Operations | | (6,810 | ) | | | 102,778 | | | | 70,039 | | | | - | | | | 166,007 | |
Attributable to Esterline, Net of Tax |
Loss from Discontinued Operations | | (719 | ) | | | (34,636 | ) | | | (28,234 | ) | | | - | | | | (63,589 | ) |
Attributable to Esterline, Net of Tax |
Equity in Net Earnings of Consolidated | | 109,947 | | | | 189 | | | | (301 | ) | | | (109,835 | ) | | | - | |
Subsidiaries |
| | | | | | | | | | | | | | | | | | | |
Net Earnings (Loss) Attributable to Esterline | $ | 102,418 | | | $ | 68,331 | | | $ | 41,504 | | | $ | (109,835 | ) | | $ | 102,418 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Comprehensive Income (Loss) | | | | | | | | | | | | | | | | | | | |
Net earnings (loss) | $ | 102,418 | | | $ | 68,331 | | | $ | 41,504 | | | $ | (109,835 | ) | | $ | 102,418 | |
Change in fair value of derivative financial | | - | | | | - | | | | (8,793 | ) | | | - | | | | (8,793 | ) |
instruments, net of tax |
Change in pension and post-retirement | | (4,915 | ) | | | - | | | | 947 | | | | - | | | | (3,968 | ) |
obligations, net of tax |
Foreign currency translation adjustment | | (96,532 | ) | | | (1,504 | ) | | | (77,029 | ) | | | 78,533 | | | | (96,532 | ) |
Comprehensive Income (Loss) | $ | 971 | | | $ | 66,827 | | | $ | (43,371 | ) | | $ | (31,302 | ) | | $ | (6,875 | ) |
|
|
|
|
Condensed Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2014 |
|
In Thousands | | | | | | | | | Non- | | | | | | | | | |
| | | | | Guarantor | | | Guarantor | | | | | | | | | |
| Parent | | | Subsidiaries | | | Subsidiaries | | | Eliminations | | | Total | |
| | | | | | | | | | | | | | | | | | | |
Cash Flows Provided (Used) by Operating Activities | | | | | | | | | | | | | | | | | |
Net earnings (loss) including | $ | 102,971 | | | $ | 68,331 | | | $ | 41,504 | | | $ | (109,835 | ) | | $ | 102,971 | |
noncontrolling interests |
Depreciation & amortization | | - | | | | 47,633 | | | | 68,394 | | | | - | | | | 116,027 | |
Deferred income taxes | | (5,274 | ) | | | (4 | ) | | | (9,615 | ) | | | - | | | | (14,893 | ) |
Share-based compensation | | - | | | | 5,706 | | | | 7,338 | | | | - | | | | 13,044 | |
Loss (gain) on disposal of capital assets | | - | | | | 2,580 | | | | 594 | | | | - | | | | 3,174 | |
Gain on settlement of contingency | | - | | | | - | | | | - | | | | - | | | | - | |
Goodwill impairment | | - | | | | - | | | | - | | | | - | | | | - | |
Loss on assets held for sale | | - | | | | 31,164 | | | | 18,308 | | | | - | | | | 49,472 | |
Working capital changes, net of effect | | | | | | | | | | | | | | | | | | | |
of acquisitions: |
Accounts receivable | | (294 | ) | | | 8,820 | | | | (25,901 | ) | | | - | | | | (17,375 | ) |
Inventories | | - | | | | (7,858 | ) | | | (13,633 | ) | | | - | | | | (21,491 | ) |
Prepaid expenses | | (30 | ) | | | (1,030 | ) | | | (2,177 | ) | | | - | | | | (3,237 | ) |
Other current assets | | 6 | | | | 1 | | | | 1,002 | | | | - | | | | 1,009 | |
Accounts payable | | 37 | | | | 4,186 | | | | (2,882 | ) | | | - | | | | 1,341 | |
Accrued liabilities | | (950 | ) | | | 8,613 | | | | 5,798 | | | | - | | | | 13,461 | |
Federal and foreign income taxes | | (4,690 | ) | | | 27,794 | | | | (34,279 | ) | | | - | | | | (11,175 | ) |
Other liabilities | | (5,951 | ) | | | 608 | | | | (8,509 | ) | | | - | | | | (13,852 | ) |
Other, net | | (14,802 | ) | | | (11,531 | ) | | | 24,221 | | | | - | | | | (2,112 | ) |
| | 71,023 | | | | 185,013 | | | | 70,163 | | | | (109,835 | ) | | | 216,364 | |
| | | | | | | | | | | | | | | | | | | |
Cash Flows Provided (Used) by Investing Activities | | | | | | | | | | | | | | | | | |
Purchases of capital assets | | (331 | ) | | | (16,674 | ) | | | (28,673 | ) | | | - | | | | (45,678 | ) |
Proceeds from sale of capital assets | | - | | | | 427 | | | | 145 | | | | - | | | | 572 | |
Acquisition of business, net of cash | | - | | | | (44,745 | ) | | | - | | | | - | | | | (44,745 | ) |
acquired |
| | (331 | ) | | | (60,992 | ) | | | (28,528 | ) | | | - | | | | (89,851 | ) |
|
|
|
|
Condensed Consolidating Statement of Cash Flows for the fiscal year ended October 31, 2014 |
|
|
In Thousands | | | | | | | | | Non- | | | | | | | | | |
| | | | | Guarantor | | | Guarantor | | | | | | | | | |
| Parent | | | Subsidiaries | | | Subsidiaries | | | Eliminations | | | Total | |
| | | | | | | | | | | | | | | | | | | |
Cash Flows Provided (Used) by Financing Activities | | | | | | | | | | | | | | | | | |
Proceeds provided by stock issuance | | 31,215 | | | | - | | | | - | | | | - | | | | 31,215 | |
under employee stock plans |
Excess tax benefits from stock option | | 7,090 | | | | - | | | | - | | | | - | | | | 7,090 | |
exercises |
Shares repurchased | | (30,262 | ) | | | - | | | | - | | | | - | | | | (30,262 | ) |
Repayment of long-term credit facilities | | (55,000 | ) | | | - | | | | - | | | | - | | | | (55,000 | ) |
Repayment of long-term debt | | (8,750 | ) | | | (390 | ) | | | (26,670 | ) | | | - | | | | (35,810 | ) |
Proceeds from issuance of long-term | | 25,000 | | | | - | | | | - | | | | - | | | | 25,000 | |
credit facilities |
Proceeds from government assistance | | - | | | | - | | | | 3,337 | | | | - | | | | 3,337 | |
Dividends paid to noncontrolling interests | | - | | | | - | | | | (778 | ) | | | - | | | | (778 | ) |
Debt and other issuance costs | | - | | | | - | | | | - | | | | - | | | | - | |
Net change in intercompany financing | | (33,112 | ) | | | (125,071 | ) | | | 48,348 | | | | 109,835 | | | | - | |
| | (63,819 | ) | | | (125,461 | ) | | | 24,237 | | | | 109,835 | | | | (55,208 | ) |
| | | | | | | | | | | | | | | | | | | |
Effect of Foreign Exchange Rates on Cash | | (65 | ) | | | 18 | | | | (12,292 | ) | | | - | | | | (12,339 | ) |
and Cash Equivalents |
| | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Cash and | | 6,808 | | | | (1,422 | ) | | | 53,580 | | | | - | | | | 58,966 | |
Cash Equivalents |
Cash and Cash Equivalents - | | 7,826 | | | | 4,876 | | | | 166,476 | | | | - | | | | 179,178 | |
Beginning of Period |
| | | | | | | | | | | | | | | | | | | |
Cash and Cash Equivalents - End of Period | $ | 14,634 | | | $ | 3,454 | | | $ | 220,056 | | | $ | - | | | $ | 238,144 | |
|
|
|
|
Condensed Consolidating Balance Sheet as of October 25, 2013 |
|
In Thousands | | | | | | | | | Non- | | | | | | | | | |
| | | | | Guarantor | | | Guarantor | | | | | | | | | |
| Parent | | | Subsidiaries | | | Subsidiaries | | | Eliminations | | | Total | |
ASSETS | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Current Assets | | | | | | | | | | | | | | | | | | | |
Cash and cash equivalents | $ | 7,826 | | | $ | 4,876 | | | $ | 166,476 | | | $ | - | | | $ | 179,178 | |
Cash in escrow | | 4,018 | | | | - | | | | - | | | | - | | | | 4,018 | |
Accounts receivable, net | | 316 | | | | 154,492 | | | | 228,858 | | | | - | | | | 383,666 | |
Inventories | | - | | | | 190,830 | | | | 256,833 | | | | - | | | | 447,663 | |
Income tax refundable | | - | | | | 6,526 | | | | - | | | | - | | | | 6,526 | |
Deferred income tax benefits | | 26,731 | | | | 171 | | | | 20,375 | | | | - | | | | 47,277 | |
Prepaid expenses | | 117 | | | | 5,510 | | | | 12,556 | | | | - | | | | 18,183 | |
Other current assets | | 86 | | | | 115 | | | | 5,003 | | | | - | | | | 5,204 | |
Current assets of businesses held for sale | | - | | | | - | | | | - | | | | - | | | | - | |
Total Current Assets | | 39,094 | | | | 362,520 | | | | 690,101 | | | | - | | | | 1,091,715 | |
| | | | | | | | | | | | | | | | | | | |
Property, Plant & Equipment, Net | | 1,754 | | | | 175,402 | | | | 194,041 | | | | - | | | | 371,197 | |
Goodwill | | - | | | | 344,995 | | | | 783,982 | | | | - | | | | 1,128,977 | |
Intangibles, net | | - | | | | 144,222 | | | | 436,727 | | | | - | | | | 580,949 | |
Debt issuance costs, net | | 5,252 | | | | - | | | | 959 | | | | - | | | | 6,211 | |
Deferred income tax benefits | | 16,782 | | | | - | | | | 55,058 | | | | - | | | | 71,840 | |
Other assets | | 18 | | | | 3,692 | | | | 7,513 | | | | - | | | | 11,223 | |
Non-current assets of businesses held | | - | | | | - | | | | - | | | | - | | | | - | |
for sale |
Amounts Due From (To) Subsidiaries | | - | | | | 549,307 | | | | - | | | | (549,307 | ) | | | - | |
Investment in Subsidiaries | | 2,588,478 | | | | 979,123 | | | | 349,104 | | | | (3,916,705 | ) | | | - | |
Total Assets | $ | 2,651,378 | | | $ | 2,559,261 | | | $ | 2,517,485 | | | $ | (4,466,012 | ) | | $ | 3,262,112 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Current Liabilities | | | | | | | | | | | | | | | | | | | |
Accounts payable | $ | 1,714 | | | $ | 29,064 | | | $ | 92,819 | | | $ | - | | | $ | 123,597 | |
Accrued liabilities | | 21,652 | | | | 87,826 | | | | 144,083 | | | | - | | | | 253,561 | |
Current maturities of long-term debt | | 8,750 | | | | 237 | | | | 12,292 | | | | - | | | | 21,279 | |
Deferred income tax liabilities | | 568 | | | | 24 | | | | 1,715 | | | | - | | | | 2,307 | |
Federal and foreign income taxes | | 2,408 | | | | (27,399 | ) | | | 32,339 | | | | - | | | | 7,348 | |
Current liabilities of businesses held | | - | | | | - | | | | - | | | | - | | | | - | |
for sale |
Total Current Liabilities | | 35,092 | | | | 89,752 | | | | 283,248 | | | | - | | | | 408,092 | |
| | | | | | | | | | | | | | | | | | | |
Credit Facilities | | 130,000 | | | | - | | | | - | | | | - | | | | 130,000 | |
Long-Term Debt, Net | | 411,875 | | | | 55,562 | | | | 70,422 | | | | - | | | | 537,859 | |
Deferred Income Tax Liabilities | | 57,757 | | | | (7 | ) | | | 135,369 | | | | - | | | | 193,119 | |
Pension and Post-Retirement Obligations | | 17,500 | | | | 618 | | | | 49,984 | | | | - | | | | 68,102 | |
Other Liabilities | | 12,298 | | | | 194 | | | | 27,696 | | | | - | | | | 40,188 | |
Non-current liabilities of businesses held | | - | | | | - | | | | - | | | | - | | | | - | |
for sale |
Amounts Due To (From) Subsidiaries | | 102,104 | | | | - | | | | 405,018 | | | | (507,122 | ) | | | - | |
Shareholders' Equity | | 1,884,752 | | | | 2,413,142 | | | | 1,545,748 | | | | (3,958,890 | ) | | | 1,884,752 | |
Total Liabilities and Shareholders' Equity | $ | 2,651,378 | | | $ | 2,559,261 | | | $ | 2,517,485 | | | $ | (4,466,012 | ) | | $ | 3,262,112 | |
|
|
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 25, 2013 |
|
|
In Thousands | | | | | | | | | Non- | | | | | | | | | |
| | | | | Guarantor | | | Guarantor | | | | | | | | | |
| Parent | | | Subsidiaries | | | Subsidiaries | | | Eliminations | | | Total | |
| | | | | | | | | | | | | | | | | | | |
Net sales | $ | - | | | $ | 912,572 | | | $ | 980,512 | | | $ | (4,307 | ) | | $ | 1,888,777 | |
Cost of sales | | - | | | | 567,432 | | | | 620,943 | | | | (4,307 | ) | | | 1,184,068 | |
| | - | | | | 345,140 | | | | 359,569 | | | | - | | | | 704,709 | |
Expenses | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | - | | | | 147,893 | | | | 218,748 | | | | - | | | | 366,641 | |
Research, development & engineering | | - | | | | 46,999 | | | | 43,215 | | | | - | | | | 90,214 | |
Restructuring charges | | - | | | | - | | | | - | | | | - | | | | - | |
Gain on sale of product line | | - | | | | (2,264 | ) | | | - | | | | - | | | | (2,264 | ) |
Gain on settlement of contingency | | - | | | | - | | | | - | | | | - | | | | - | |
Goodwill impairment | | - | | | | - | | | | 3,454 | | | | - | | | | 3,454 | |
Other (income) expense | | - | | | | - | | | | - | | | | - | | | | - | |
Total Expenses | | - | | | | 192,628 | | | | 265,417 | | | | - | | | | 458,045 | |
| | | | | | | | | | | | | | | | | | | |
Operating Earnings from Continuing | | - | | | | 152,512 | | | | 94,152 | | | | - | | | | 246,664 | |
Operations |
Interest Income | | (15,639 | ) | | | (7,704 | ) | | | (54,602 | ) | | | 77,410 | | | | (535 | ) |
Interest Expense | | 30,050 | | | | 26,868 | | | | 60,130 | | | | (77,410 | ) | | | 39,638 | |
Loss on Extinguishment of Debt | | 946 | | | | - | | | | - | | | | - | | | | 946 | |
Earnings (Loss) from Continuing Operations | | (15,357 | ) | | | 133,348 | | | | 88,624 | | | | - | | | | 206,615 | |
Before Income Taxes |
Income Tax Expense (Benefit) | | (3,320 | ) | | | 27,312 | | | | 9,899 | | | | - | | | | 33,891 | |
Earnings (Loss) from Continuing Operations | | (12,037 | ) | | | 106,036 | | | | 78,725 | | | | - | | | | 172,724 | |
Including Noncontrolling Interests |
Earnings Attributable to Noncontrolling | | - | | | | - | | | | (1,730 | ) | | | - | | | | (1,730 | ) |
Interests |
Earnings (Loss) from Continuing Operations | | (12,037 | ) | | | 106,036 | | | | 76,995 | | | | - | | | | 170,994 | |
Attributable to Esterline, Net of Tax |
Loss from Discontinued Operations | | (1,300 | ) | | | (2,685 | ) | | | (2,275 | ) | | | - | | | | (6,260 | ) |
Attributable to Esterline, Net of Tax |
Equity in Net Earnings of Consolidated | | 178,071 | | | | 1,697 | | | | 3,705 | | | | (183,473 | ) | | | - | |
Subsidiaries |
| | | | | | | | | | | | | | | | | | | |
Net Earnings (Loss) Attributable to Esterline | $ | 164,734 | | | $ | 105,048 | | | $ | 78,425 | | | $ | (183,473 | ) | | $ | 164,734 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Comprehensive Income (Loss) | | | | | | | | | | | | | | | | | | | |
Net earnings (loss) | $ | 164,734 | | | $ | 105,048 | | | $ | 78,425 | | | $ | (183,473 | ) | | $ | 164,734 | |
Change in fair value of derivative financial | | - | | | | - | | | | (3,119 | ) | | | - | | | | (3,119 | ) |
instruments, net of tax |
Change in pension and post-retirement | | 36,669 | | | | - | | | | 6,325 | | | | - | | | | 42,994 | |
obligations, net of tax |
Foreign currency translation adjustment | | 23,125 | | | | 100 | | | | 40,442 | | | | (40,542 | ) | | | 23,125 | |
Comprehensive Income (Loss) | $ | 224,528 | | | $ | 105,148 | | | $ | 122,073 | | | $ | (224,015 | ) | | $ | 227,734 | |
|
|
|
Condensed Consolidating Statement of Cash Flows for the fiscal year ended October 25, 2013 |
|
|
In Thousands | | | | | | | | | Non- | | | | | | | | | |
| | | | | Guarantor | | | Guarantor | | | | | | | | | |
| Parent | | | Subsidiaries | | | Subsidiaries | | | Eliminations | | | Total | |
| | | | | | | | | | | | | | | | | | | |
Cash Flows Provided (Used) by Operating Activities | | | | | | | | | | | | | | | | | |
Net earnings (loss) including | $ | 166,464 | | | $ | 105,048 | | | $ | 78,425 | | | $ | (183,473 | ) | | $ | 166,464 | |
noncontrolling interests |
Depreciation & amortization | | - | | | | 43,539 | | | | 68,593 | | | | - | | | | 112,132 | |
Deferred income taxes | | 8,274 | | | | (11,067 | ) | | | (19,019 | ) | | | - | | | | (21,812 | ) |
Share-based compensation | | - | | | | 4,163 | | | | 5,412 | | | | - | | | | 9,575 | |
Loss (gain) on disposal of capital assets | | - | | | | (1,013 | ) | | | (1,290 | ) | | | - | | | | (2,303 | ) |
Gain on settlement of contingency | | - | | | | - | | | | - | | | | - | | | | - | |
Goodwill impairment | | - | | | | - | | | | 3,454 | | | | - | | | | 3,454 | |
Loss on assets held for sale | | - | | | | - | | | | - | | | | - | | | | - | |
Working capital changes, net of effect | | | | | | | | | | | | | | | | | | | |
of acquisitions: |
Accounts receivable | | (135 | ) | | | (4,976 | ) | | | 10,126 | | | | - | | | | 5,015 | |
Inventories | | - | | | | (16,652 | ) | | | (11,665 | ) | | | - | | | | (28,317 | ) |
Prepaid expenses | | (41 | ) | | | 1,775 | | | | 1,870 | | | | - | | | | 3,604 | |
Other current assets | | 1,332 | | | | 437 | | | | (3,327 | ) | | | - | | | | (1,558 | ) |
Accounts payable | | (230 | ) | | | 362 | | | | 8,876 | | | | - | | | | 9,008 | |
Accrued liabilities | | 5,955 | | | | 6,725 | | | | (15,800 | ) | | | - | | | | (3,120 | ) |
Federal and foreign income taxes | | 4,445 | | | | (10,800 | ) | | | 9,534 | | | | - | | | | 3,179 | |
Other liabilities | | 3,271 | | | | (185 | ) | | | (10,688 | ) | | | - | | | | (7,602 | ) |
Other, net | | (89 | ) | | | 2,329 | | | | 813 | | | | - | | | | 3,053 | |
| | 189,246 | | | | 119,685 | | | | 125,314 | | | | (183,473 | ) | | | 250,772 | |
| | | | | | | | | | | | | | | | | | | |
Cash Flows Provided (Used) by Investing Activities | | | | | | | | | | | | | | | | | |
Purchases of capital assets | | (105 | ) | | | (15,937 | ) | | | (39,293 | ) | | | - | | | | (55,335 | ) |
Proceeds from sale of capital assets | | - | | | | 1,013 | | | | 1,290 | | | | - | | | | 2,303 | |
Acquisition of business, net of cash | | - | | | | - | | | | (40,689 | ) | | | - | | | | (40,689 | ) |
acquired |
| | (105 | ) | | | (14,924 | ) | | | (78,692 | ) | | | - | | | | (93,721 | ) |
|
|
|
|
Condensed Consolidating Statement of Cash Flows for the fiscal year ended October 25, 2013 |
|
|
In Thousands | | | | | | | | | Non- | | | | | | | | | |
| | | | | Guarantor | | | Guarantor | | | | | | | | | |
| Parent | | | Subsidiaries | | | Subsidiaries | | | Eliminations | | | Total | |
| | | | | | | | | | | | | | | | | | | |
Cash Flows Provided (Used) by Financing Activities | | | | | | | | | | | | | | | | | |
Proceeds provided by stock issuance | | 22,854 | | | | - | | | | - | | | | - | | | | 22,854 | |
under employee stock plans |
Excess tax benefits from stock option | | 2,961 | | | | - | | | | - | | | | - | | | | 2,961 | |
exercises |
Shares repurchased | | | | | | | | | | | | | | | | | | - | |
Repayment of long-term credit facilities | | (110,000 | ) | | | - | | | | - | | | | - | | | | (110,000 | ) |
Repayment of long-term debt | | (179,375 | ) | | | (326 | ) | | | (55,727 | ) | | | - | | | | (235,428 | ) |
Proceeds from issuance of long-term | | 175,000 | | | | - | | | | - | | | | - | | | | 175,000 | |
credit facilities |
Proceeds from government assistance | | - | | | | - | | | | 5,092 | | | | - | | | | 5,092 | |
Dividends paid to noncontrolling interests | | - | | | | - | | | | (1,048 | ) | | | - | | | | (1,048 | ) |
Debt and other issuance costs | | (454 | ) | | | - | | | | - | | | | - | | | | (454 | ) |
Net change in intercompany financing | | (109,094 | ) | | | (100,893 | ) | | | 26,514 | | | | 183,473 | | | | - | |
| | (198,108 | ) | | | (101,219 | ) | | | (25,169 | ) | | | 183,473 | | | | (141,023 | ) |
| | | | | | | | | | | | | | | | | | | |
Effect of Foreign Exchange Rates on Cash | | 23 | | | | 10 | | | | 2,442 | | | | - | | | | 2,475 | |
and Cash Equivalents |
| | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Cash and | | (8,944 | ) | | | 3,552 | | | | 23,895 | | | | - | | | | 18,503 | |
Cash Equivalents |
Cash and Cash Equivalents - | | 16,770 | | | | 1,324 | | | | 142,581 | | | | - | | | | 160,675 | |
Beginning of Period |
| | | | | | | | | | | | | | | | | | | |
Cash and Cash Equivalents - End of Period | $ | 7,826 | | | $ | 4,876 | | | $ | 166,476 | | | $ | - | | | $ | 179,178 | |
|
|
|
|
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the fiscal year ended October 26, 2012 |
|
|
In Thousands | | | | | | | | | Non- | | | | | | | | | |
| | | | | Guarantor | | | Guarantor | | | | | | | | | |
| Parent | | | Subsidiaries | | | Subsidiaries | | | Eliminations | | | Total | |
| | | | | | | | | | | | | | | | | | | |
Net sales | $ | - | | | $ | 846,062 | | | $ | 1,035,764 | | | $ | (4,005 | ) | | $ | 1,877,821 | |
Cost of sales | | - | | | | 530,401 | | | | 673,537 | | | | (4,005 | ) | | | 1,199,933 | |
| | - | | | | 315,661 | | | | 362,227 | | | | - | | | | 677,888 | |
Expenses | | | | | | | | | | | | | | | | | | | |
Selling, general and administrative | | - | | | | 127,022 | | | | 223,200 | | | | - | | | | 350,222 | |
Research, development & engineering | | - | | | | 45,506 | | | | 55,371 | | | | - | | | | 100,877 | |
Restructuring charges | | - | | | | - | | | | - | | | | - | | | | - | |
Gain on sale of product line | | - | | | | - | | | | - | | | | - | | | | - | |
Gain on settlement of contingency | | - | | | | - | | | | (11,891 | ) | | | - | | | | (11,891 | ) |
Goodwill impairment | | - | | | | - | | | | 52,169 | | | | - | | | | 52,169 | |
Other (income) expense | | - | | | | - | | | | (1,263 | ) | | | - | | | | (1,263 | ) |
Total Expenses | | - | | | | 172,528 | | | | 317,586 | | | | - | | | | 490,114 | |
| | | | | | | | | | | | | | | | | | | |
Operating Earnings from Continuing | | - | | | | 143,133 | | | | 44,641 | | | | - | | | | 187,774 | |
Operations |
Interest Income | | (14,178 | ) | | | (16,141 | ) | | | (60,297 | ) | | | 90,153 | | | | (463 | ) |
Interest Expense | | 34,948 | | | | 27,210 | | | | 74,222 | | | | (90,153 | ) | | | 46,227 | |
Loss on Extinguishment of Debt | | - | | | | - | | | | - | | | | - | | | | - | |
Earnings (Loss) from Continuing Operations | | (20,770 | ) | | | 132,064 | | | | 30,716 | | | | - | | | | 142,010 | |
Before Income Taxes |
Income Tax Expense (Benefit) | | (5,591 | ) | | | 28,711 | | | | 4,696 | | | | - | | | | 27,816 | |
Earnings (Loss) from Continuing Operations | | (15,179 | ) | | | 103,353 | | | | 26,020 | | | | - | | | | 114,194 | |
Including Noncontrolling Interests |
Earnings Attributable to Noncontrolling | | - | | | | - | | | | (1,040 | ) | | | - | | | | (1,040 | ) |
Interests |
Earnings (Loss) from Continuing Operations | | (15,179 | ) | | | 103,353 | | | | 24,980 | | | | - | | | | 113,154 | |
Attributable to Esterline, Net of Tax |
Loss from Discontinued Operations | | - | | | | 6,977 | | | | (7,596 | ) | | | - | | | | (619 | ) |
Attributable to Esterline, Net of Tax |
Equity in Net Earnings of Consolidated | | 127,714 | | | | 17,659 | | | | (145 | ) | | | (145,228 | ) | | | - | |
Subsidiaries |
| | | | | | | | | | | | | | | | | | | |
Net Earnings (Loss) Attributable to Esterline | $ | 112,535 | | | $ | 127,989 | | | $ | 17,239 | | | $ | (145,228 | ) | | $ | 112,535 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | |
Comprehensive Income (Loss) | | | | | | | | | | | | | | | | | | | |
Net earnings (loss) | $ | 112,535 | | | $ | 127,989 | | | $ | 17,239 | | | $ | (145,228 | ) | | $ | 112,535 | |
Change in fair value of derivative financial | | - | | | | - | | | | (2,399 | ) | | | - | | | | (2,399 | ) |
instruments, net of tax |
Change in pension and post-retirement | | (15,727 | ) | | | - | | | | (7,981 | ) | | | - | | | | (23,708 | ) |
obligations, net of tax |
Foreign currency translation adjustment | | (56,365 | ) | | | 172 | | | | (58,746 | ) | | | 58,574 | | | | (56,365 | ) |
Comprehensive Income (Loss) | $ | 40,443 | | | $ | 128,161 | | | $ | (51,887 | ) | | $ | (86,654 | ) | | $ | 30,063 | |
|
|
|
|
Condensed Consolidating Statement of Cash Flows for the fiscal year ended October 26, 2012 |
|
|
In Thousands | | | | | | | | | Non- | | | | | | | | | |
| | | | | Guarantor | | | Guarantor | | | | | | | | | |
| Parent | | | Subsidiaries | | | Subsidiaries | | | Eliminations | | | Total | |
| | | | | | | | | | | | | | | | | | | |
Cash Flows Provided (Used) by Operating Activities | | | | | | | | | | | | | | | | | |
Net earnings (loss) including | $ | 113,575 | | | $ | 127,989 | | | $ | 17,239 | | | $ | (145,228 | ) | | $ | 113,575 | |
noncontrolling interests |
Depreciation & amortization | | - | | | | 39,405 | | | | 68,387 | | | | - | | | | 107,792 | |
Deferred income taxes | | 18,013 | | | | (16,390 | ) | | | (22,823 | ) | | | - | | | | (21,200 | ) |
Share-based compensation | | - | | | | 4,246 | | | | 5,297 | | | | - | | | | 9,543 | |
Loss (gain) on disposal of capital assets | | - | | | | (410 | ) | | | (534 | ) | | | - | | | | (944 | ) |
Gain on settlement of contingency | | - | | | | - | | | | (11,891 | ) | | | - | | | | (11,891 | ) |
Goodwill impairment | | - | | | | - | | | | 52,169 | | | | - | | | | 52,169 | |
Loss on assets held for sale | | - | | | | - | | | | - | | | | - | | | | - | |
Working capital changes, net of effect | | | | | | | | | | | | | | | | | | - | |
of acquisitions: |
Accounts receivable | | (23 | ) | | | (2,704 | ) | | | (19,654 | ) | | | - | | | | (22,381 | ) |
Inventories | | - | | | | (15,707 | ) | | | (3,596 | ) | | | - | | | | (19,303 | ) |
Prepaid expenses | | (17 | ) | | | (385 | ) | | | (2,104 | ) | | | - | | | | (2,506 | ) |
Other current assets | | 6 | | | | (208 | ) | | | (800 | ) | | | - | | | | (1,002 | ) |
Accounts payable | | 1,132 | | | | (174 | ) | | | (7,440 | ) | | | - | | | | (6,482 | ) |
Accrued liabilities | | (1,929 | ) | | | (156 | ) | | | 16,964 | | | | - | | | | 14,879 | |
Federal and foreign income taxes | | (4,345 | ) | | | (7,707 | ) | | | 4,984 | | | | - | | | | (7,068 | ) |
Other liabilities | | (20,618 | ) | | | 12,196 | | | | (6,280 | ) | | | - | | | | (14,702 | ) |
Other, net | | (1,418 | ) | | | 580 | | | | 4,530 | | | | - | | | | 3,692 | |
| | 104,376 | | | | 140,575 | | | | 94,448 | | | | (145,228 | ) | | | 194,171 | |
| | | | | | | | | | | | | | | | | | | |
Cash Flows Provided (Used) by Investing Activities | | | | | | | | | | | | | | | | | |
Purchases of capital assets | | (1,503 | ) | | | (23,553 | ) | | | (24,390 | ) | | | - | | | | (49,446 | ) |
Proceeds from sale of capital assets | | - | | | | 410 | | | | 534 | | | | - | | | | 944 | |
Acquisition of business, net of cash | | - | | | | - | | | | - | | | | - | | | | - | |
acquired |
| | (1,503 | ) | | | (23,143 | ) | | | (23,856 | ) | | | - | | | | (48,502 | ) |
|
|
|
Condensed Consolidating Statement of Cash Flows for the fiscal year ended October 26, 2012 |
|
|
In Thousands | | | | | | | | | Non- | | | | | | | | | |
| | | | | Guarantor | | | Guarantor | | | | | | | | | |
| Parent | | | Subsidiaries | | | Subsidiaries | | | Eliminations | | | Total | |
| | | | | | | | | | | | | | | | | | | |
Cash Flows Provided (Used) by Financing Activities | | | | | | | | | | | | | | | | | |
Proceeds provided by stock issuance | | 7,658 | | | | - | | | | - | | | | - | | | | 7,658 | |
under employee stock plans |
Excess tax benefits from stock option | | 382 | | | | - | | | | - | | | | - | | | | 382 | |
exercises |
Shares repurchased | | | | | | | | | | | | | | | | | | - | |
Repayment of long-term credit facilities | | (150,000 | ) | | | - | | | | - | | | | - | | | | (150,000 | ) |
Repayment of long-term debt | | - | | | | (405 | ) | | | (72,740 | ) | | | - | | | | (73,145 | ) |
Proceeds from issuance of long-term | | 30,000 | | | | - | | | | - | | | | - | | | | 30,000 | |
credit facilities |
Proceeds from government assistance | | - | | | | - | | | | 17,285 | | | | - | | | | 17,285 | |
Dividends paid to noncontrolling interests | | - | | | | - | | | | - | | | | - | | | | - | |
Debt and other issuance costs | | - | | | | - | | | | - | | | | - | | | | - | |
Net change in intercompany financing | | (24,731 | ) | | | (129,158 | ) | | | 8,661 | | | | 145,228 | | | | - | |
| | (136,691 | ) | | | (129,563 | ) | | | (46,794 | ) | | | 145,228 | | | | (167,820 | ) |
| | | | | | | | | | | | | | | | | | | |
Effect of Foreign Exchange Rates on Cash | | 751 | | | | 5 | | | | (2,965 | ) | | | - | | | | (2,209 | ) |
and Cash Equivalents |
| | | | | | | | | | | | | | | | | | | |
Net Increase (Decrease) in Cash and | | (33,067 | ) | | | (12,126 | ) | | | 20,833 | | | | - | | | | (24,360 | ) |
Cash Equivalents |
Cash and Cash Equivalents - | | 49,837 | | | | 13,450 | | | | 121,748 | | | | - | | | | 185,035 | |
Beginning of Period |
| | | | | | | | | | | | | | | | | | | |
Cash and Cash Equivalents - End of Period | $ | 16,770 | | | $ | 1,324 | | | $ | 142,581 | | | $ | - | | | $ | 160,675 | |
|