Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 01, 2016 | Aug. 05, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 1, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ESL | |
Entity Registrant Name | ESTERLINE TECHNOLOGIES CORP | |
Entity Central Index Key | 33,619 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,396,333 |
CONSOLIDATED BALANCE SHEET (Una
CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands | Jul. 01, 2016 | Oct. 02, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 237,845 | $ 191,355 |
Cash in escrow | 1,125 | 0 |
Accounts receivable, net of allowances of $8,608 and $10,050 | 393,632 | 380,748 |
Inventories | ||
Raw materials and purchased parts | 180,957 | 169,153 |
Work in progress | 176,316 | 181,187 |
Finished goods | 109,702 | 96,428 |
Inventories | 466,975 | 446,768 |
Income tax refundable | 4,957 | 12,575 |
Deferred income tax benefits | 0 | 41,082 |
Prepaid expenses | 20,611 | 23,008 |
Other current assets | 5,370 | 5,427 |
Current assets of businesses held for sale | 18,034 | 27,851 |
Total Current Assets | 1,148,549 | 1,128,814 |
Property, Plant and Equipment | 778,044 | 729,317 |
Accumulated depreciation | 451,269 | 419,918 |
Total Property, Plant and Equipment | 326,775 | 309,399 |
Other Non-Current Assets | ||
Goodwill | 1,027,873 | 1,041,991 |
Intangibles, net | 405,531 | 452,040 |
Deferred income tax benefits | 69,259 | 28,979 |
Other assets | 15,395 | 14,348 |
Non-current assets of businesses held for sale | 10,735 | 24,917 |
Total Assets | 3,004,117 | 3,000,488 |
Current Liabilities | ||
Accounts payable | 128,635 | 117,976 |
Accrued liabilities | 246,967 | 259,734 |
Current maturities of long-term debt | 16,340 | 13,376 |
Federal and foreign income taxes | 6,322 | 2,404 |
Current liabilities of businesses held for sale | 12,283 | 17,106 |
Total Current Liabilities | 410,547 | 410,596 |
Long-Term Liabilities | ||
Credit facilities | 170,000 | 160,000 |
Long-term debt, net of current maturities | 688,753 | 701,457 |
Deferred income tax liabilities | 57,690 | 73,849 |
Pension and post-retirement obligations | 73,653 | 75,019 |
Other liabilities | 24,868 | 29,367 |
Non-current liabilities of businesses held for sale | 1,222 | 2,409 |
Shareholders' Equity | ||
Common stock, par value $.20 per share, authorized 60,000,000 shares, issued 32,532,260 and 32,378,185 shares | 6,506 | 6,476 |
Additional paid-in capital | 700,124 | 682,479 |
Treasury stock at cost, repurchased 3,135,927 and 2,831,350 shares | (308,514) | (289,780) |
Retained earnings | 1,496,533 | 1,447,120 |
Accumulated other comprehensive loss | (328,101) | (308,828) |
Total Esterline Shareholders' Equity | 1,566,548 | 1,537,467 |
Noncontrolling interests | 10,836 | 10,324 |
Total Shareholders' Equity | 1,577,384 | 1,547,791 |
Total Liabilities and Shareholders' Equity | $ 3,004,117 | $ 3,000,488 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Jul. 01, 2016 | Oct. 02, 2015 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 8,608 | $ 10,050 |
Common stock, par value | $ 0.20 | $ 0.20 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 32,532,260 | 32,378,185 |
Treasury stock, shares repurchased | 3,135,927 | 2,831,350 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jul. 01, 2016 | Jun. 26, 2015 | [1] | Jul. 01, 2016 | Jun. 26, 2015 | [1] | |
Income Statement [Abstract] | ||||||
Net Sales | $ 517,092 | $ 484,723 | $ 1,448,879 | $ 1,457,544 | ||
Cost of Sales | 343,508 | 319,433 | 981,403 | 963,996 | ||
Gross Profit | 173,584 | 165,290 | 467,476 | 493,548 | ||
Expenses | ||||||
Selling, general & administrative | 96,769 | 92,028 | 293,283 | 289,549 | ||
Research, development and engineering | 22,211 | 26,401 | 72,760 | 75,075 | ||
Restructuring charges | 559 | 1,135 | 2,430 | 6,062 | ||
Other (income) expense | 0 | 0 | 0 | (12,744) | ||
Total Expenses | 119,539 | 119,564 | 368,473 | 357,942 | ||
Operating Earnings from Continuing Operations | 54,045 | 45,726 | 99,003 | 135,606 | ||
Interest Income | (30) | (87) | (211) | (406) | ||
Interest Expense | 7,659 | 10,393 | 22,169 | 24,409 | ||
Loss on Extinguishment of Debt | 0 | 329 | 0 | 329 | ||
Earnings from Continuing Operations Before Income Taxes | 46,416 | 35,091 | 77,045 | 111,274 | ||
Income Tax Expense (Benefit) | 7,975 | 6,744 | 11,358 | 23,430 | ||
Earnings from Continuing Operations Including Noncontrolling Interests | 38,441 | 28,347 | 65,687 | 87,844 | ||
Loss (Earnings) Attributable to Noncontrolling Interests | (395) | (125) | (781) | (216) | ||
Earnings from Continuing Operations Attributable to Esterline, Net of Tax | 38,046 | 28,222 | 64,906 | 87,628 | ||
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | (8,690) | (558) | [2] | (15,493) | (21,034) | [2] |
Net Earnings Attributable to Esterline | $ 29,356 | $ 27,664 | $ 49,413 | $ 66,594 | ||
Earnings (Loss) Per Share Attributable to Esterline - Basic: | ||||||
Continuing operations | $ 1.30 | $ 0.92 | $ 2.19 | $ 2.81 | ||
Discontinued operations | (0.30) | (0.02) | (0.52) | (0.67) | ||
Earnings (Loss) Per Share - Basic | 1 | 0.90 | 1.67 | 2.14 | ||
Earnings (Loss) Per Share Attributable to Esterline - Diluted: | ||||||
Continuing operations | 1.28 | 0.90 | 2.18 | 2.76 | ||
Discontinued operations | (0.29) | (0.02) | (0.52) | (0.66) | ||
Earnings (Loss) Per Share - Diluted | $ 0.99 | $ 0.88 | $ 1.66 | $ 2.10 | ||
Net Earnings | $ 29,356 | $ 27,664 | $ 49,413 | $ 66,594 | ||
Change in Fair Value of Derivative Financial Instruments | 888 | 13,408 | 16,989 | (5,339) | ||
Income Tax Expense (Benefit) | 68 | 3,234 | 4,562 | (2,448) | ||
Change in Fair Value of Derivative Financial Instruments, Net of Tax | 820 | 10,174 | 12,427 | (2,891) | ||
Change in Pension and Post-Retirement Obligations | 1,163 | 19 | 3,351 | (607) | ||
Income Tax Expense (Benefit) | (47) | 137 | 793 | (175) | ||
Change in Pension and Post-Retirement Obligations, Net of Tax | 1,210 | (118) | 2,558 | (432) | ||
Currency Translation Adjustment | (26,044) | 31,598 | (34,259) | (140,998) | ||
Comprehensive Income (Loss) | $ 5,342 | $ 69,318 | $ 30,139 | $ (77,727) | ||
[1] | (Recast) | |||||
[2] | recast |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | ||
Jul. 01, 2016 | Jun. 26, 2015 | [1] | |
Cash Flows Provided (Used) by Operating Activities | |||
Net earnings including noncontrolling interests | $ 50,194 | $ 66,810 | |
Adjustments to reconcile net earnings including noncontrolling interests to net cash provided (used) by operating activities: | |||
Depreciation and amortization | 73,272 | 76,118 | |
Deferred income taxes | (17,545) | (15,701) | |
Share-based compensation | 12,501 | 8,744 | |
Gain on release of non-income tax liability | 0 | (15,656) | |
Loss on assets held for sale | 7,895 | 15,763 | [2] |
Working capital changes, net of effect of acquisitions: | |||
Accounts receivable | (14,435) | (731) | |
Inventories | (18,249) | (14,781) | |
Prepaid expenses | 1,886 | (1,055) | |
Other current assets | 8 | (587) | |
Accounts payable | 9,554 | (3,566) | |
Accrued liabilities | (11,296) | 14,128 | |
Federal and foreign income taxes | 11,264 | 2,370 | |
Other liabilities | 737 | 1,971 | |
Other, net | 12,826 | (16,601) | |
Net Cash Provided (Used) by Operating Activities | 118,612 | 117,226 | |
Cash Flows Provided (Used) by Investing Activities | |||
Purchase of capital assets | (58,547) | (36,355) | |
Escrow deposit | (1,125) | 0 | |
Proceeds from sale of discontinued operations | 3,654 | 9,791 | |
Acquisition of businesses, net of cash acquired | 0 | (171,070) | |
Net Cash Provided (Used) by Investing Activities | (56,018) | (197,634) | |
Cash Flows Provided (Used) by Financing Activities | |||
Proceeds provided by stock issuance under employee stock plans | 4,679 | 15,114 | |
Excess tax benefits from stock option exercises | 496 | 2,459 | |
Shares repurchased | (18,735) | (185,164) | |
Repayment of long-term credit facilities | (20,000) | (330,000) | |
Repayment of long-term debt | (9,331) | (169,284) | |
Proceeds from issuance of long-term credit facilities | 30,000 | 365,000 | |
Proceeds from issuance of long-term debt | 0 | 356,532 | |
Proceeds from government assistance | 0 | 3,239 | |
Net Cash Provided (Used) by Financing Activities | (12,891) | 57,896 | |
Effect of Foreign Exchange Rates on Cash and Cash Equivalents | (3,213) | (14,228) | |
Net Increase (Decrease) in Cash and Cash Equivalents | 46,490 | (36,740) | |
Cash and Cash Equivalents - Beginning of Year | 191,355 | 213,251 | |
Cash and Cash Equivalents - End of Period | 237,845 | 176,511 | |
Supplemental Cash Flow Information: | |||
Cash paid for interest | 23,684 | 13,815 | |
Cash paid for taxes | $ 13,521 | $ 27,054 | |
[1] | (Recast) | ||
[2] | recast |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jul. 01, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation The consolidated balance sheet as of July 1, 2016, the consolidated statement of operations and comprehensive income (loss) for the three and nine month periods ended July 1, 2016, and June 26, 2015, and the consolidated statement of cash flows for the nine month periods ended July 1, 2016, and June 26, 2015, are unaudited but, in the opinion of management, all of the necessary adjustments, consisting of normal recurring accruals, have been made to present fairly the financial statements referred to above in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the above statements do not include all of the footnotes required for complete financial statements. The results of operations and cash flows for the interim periods presented are not necessarily indicative of results that can be expected for the full year. The notes to the consolidated financial statements in the Company’s Transition Report on Form 10-K for the eleven months ended October 2, 2015, provide a summary of significant accounting policies and additional financial information that should be read in conjunction with this Form 10-Q. The timing of the Company’s revenues is impacted by the purchasing patterns of customers and, as a result, revenues are not generated evenly throughout the year. Moreover, the Company’s first fiscal quarter, October through December, includes significant holiday periods in both Europe and North America. |
Change in Fiscal Year End
Change in Fiscal Year End | 9 Months Ended |
Jul. 01, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Change in Fiscal Year End | Note 2 – Change in Fiscal Year End On June 5, 2014, the Company’s board of directors authorized a change in the Company’s fiscal year end to the last Friday of September from the last Friday in October. The Company reported its financial results for the 11-month transition period of November 1, 2014, through October 2, 2015, on the Transition Report on Form 10-K and thereafter will file its annual report for each 12-month period ending the last Friday of September of each year, beginning with the 12-month period ending September 30, 2016. Refer to the Transition Report on Form 10-K for the eleven months ended October 2, 2015, for additional information regarding the Company’s fiscal year change. The prior year Consolidated Statement of Operations and Comprehensive Income (Loss) for the three and nine month period ended June 26, 2015, and the Consolidated Statement of Cash Flows for the nine month period ended June 26, 2015, have been recast to align to the Company’s new quarter end. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Jul. 01, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Note 3 – Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued new guidance simplifying certain aspects of accounting for share-based payments. The key provision of the new standard requires that excess tax benefits and shortfalls be recorded as income tax benefit or expense in the income statement, rather than in equity. The Company is evaluating the effect the updated standard will have on the Company’s consolidated financial statements and related disclosures. The new guidance is effective for the Company in fiscal year 2018, with early adoption permitted. In February 2016, the FASB issued a new lease accounting standard, which provides revised guidance on accounting for lease arrangements by both lessors and lessees. The central requirement of the new standard is that lessees must recognize lease related assets and liabilities for all leases with a term longer than 12 months. The Company is evaluating the effect the standard will have on the Company’ consolidated financial statements and related disclosures. The new standard is effective for the Company in fiscal year 2020, with early adoption permitted. In November 2015, the FASB issued new guidance requiring all deferred tax assets and liabilities to be classified as noncurrent on the balance sheet instead of separating those balances into current and noncurrent amounts. The new guidance is effective for the Company in fiscal year 2018, with early adoption permitted. The Company adopted this guidance prospectively on April 1, 2016, and reclassified the current portion of net deferred tax assets and liabilities to net noncurrent deferred tax assets and liabilities. No prior periods were retrospectively adjusted. In May 2014, the FASB amended requirements for an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, and permits the use of either the retrospective or cumulative effect transition method. Early adoption is permitted. The updated standard becomes effective for the Company in the first fiscal quarter of 2019. The Company has not yet selected a transition method, and is currently evaluating the effect that the updated standard will have on consolidated financial statements and related disclosures. |
Earnings Per Share and Sharehol
Earnings Per Share and Shareholders Equity | 9 Months Ended |
Jul. 01, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Shareholders Equity | Note 4 – Earnings Per Share and Shareholders’ Equity Basic earnings per share is computed on the basis of the weighted average number of shares outstanding during the year. Diluted earnings per share includes the dilutive effect of stock options, restricted stock units and share units related to the Company’s performance share plan to the extent that performance share plan objectives are met. Common shares issuable from stock options excluded from the calculation of diluted earnings per share because they were anti-dilutive were 858,000 and 745,067 in the three and nine month periods ending July 1, 2016, respectively. Common shares issuable from stock options excluded from the calculation of diluted earnings per share because they were anti-dilutive were 261,150 and 218,633 in the three and nine month periods ending June 26, 2015, respectively. Shares used for calculating earnings per share are disclosed in the following table: In Thousands Three Months Ended Nine Months Ended July 1, June 26, July 1, June 26, 2016 2015 2016 2015 (Recast) (Recast) Shares used for basic earnings per share 29,381 30,831 29,517 31,183 Shares used for diluted earnings per share 29,601 31,322 29,788 31,702 The authorized capital stock of the Company consists of 25,000 shares of preferred stock ($100 par value), 475,000 shares of serial preferred stock ($1.00 par value), each issuable in series, and 60,000,000 shares of common stock ($.20 par value). As of July 1, 2016, and October 2, 2015, there were no shares of preferred stock or serial preferred stock outstanding. On June 19, 2014, the Company’s board of directors approved a $200 million share repurchase program. In March 2015, the Company’s board of directors approved an additional $200 million for the share repurchase program. Under the program, the Company is authorized to repurchase up to $400 million of outstanding shares of common stock from time to time, depending on market conditions, share price and other factors. Repurchases may be made in the open market or through private transactions, in accordance with SEC requirements. The Company may enter into a Rule 10(b)5-1 plan designed to facilitate the repurchase of all or a portion of the repurchase amount. The program does not require the Company to acquire a specific number of shares. Common stock repurchased can be reissued, and accordingly, the Company accounts for repurchased stock under the cost method of accounting. During the three months ended July 1, 2016, the Company repurchased 102,267 shares under this program at an average price per share of $65.10, for an aggregate purchase price of $6.7 million. During the three months ended June 26, 2015, the Company repurchased 581,977 shares under this program at an average price per share of $99.22, for an aggregate purchase price of $57.7 million. During the nine months ended July 1, 2016, the Company repurchased 304,577 shares under this program at an average price paid per share of $61.51, for an aggregate purchase price of $18.7 million. During the nine months ended June 26, 2015, the Company repurchased 1,749,709 shares under this program at an average price paid per share of $105.83, for an aggregate purchase price of $185.2 million. Since the program began, the Company has repurchased 3,135,927 shares for an aggregate purchase price of $308.5 million, leaving $91.5 million for shares to be repurchased in the future. Changes in issued and outstanding common shares are summarized as follows: Nine Months Ended Year Ended July 1, October 2, 2016 2015 Shares Issued: Balance, beginning of year 32,378,185 32,123,717 Shares issued under share-based compensation plans 154,075 254,468 Balance, end of current period 32,532,260 32,378,185 Treasury Stock: Balance, beginning of year (2,831,350 ) (269,228 ) Shares purchased (304,577 ) (2,562,122 ) Balance, end of current period (3,135,927 ) (2,831,350 ) Shares outstanding, end of period 29,396,333 29,546,835 The components of Accumulated Other Comprehensive Gain (Loss): In Thousands July 1, October 2, 2016 2015 Unrealized gain (loss) on derivative contracts $ (5,952 ) $ (22,941 ) Tax effect 1,474 6,036 (4,478 ) (16,905 ) Pension and post-retirement obligations (96,373 ) (99,724 ) Tax effect 32,982 33,775 (63,391 ) (65,949 ) Currency translation adjustment (260,232 ) (225,974 ) Accumulated other comprehensive gain (loss) $ (328,101 ) $ (308,828 ) |
Retirement Benefits
Retirement Benefits | 9 Months Ended |
Jul. 01, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Benefits | Note 5 – Retirement Benefits The Company’s pension plans principally include a U.S. pension plan maintained by Esterline and a non-U.S. plan maintained by CMC Electronics, Inc. (CMC). The Company also sponsors a number of other non-U.S. defined benefit pension plans, primarily in Belgium, France and Germany. In fiscal 2014, the Company offered vested terminated participants of its U.S. pension plan a one-time opportunity to elect a lump-sum payment from the plan in lieu of a lifetime annuity. In the first fiscal quarter of 2015, the Company made a $16.6 million lump-sum payment to vested terminated pension plan participants from the plan, which resulted in an actuarial settlement charge of $3.0 million. The charge was recorded in selling, general and administrative expenses. Components of periodic pension cost consisted of the following: In Thousands Three Months Ended Nine Months Ended July 1, June 26, July 1, June 26, 2016 2015 2016 2015 (Recast) (Recast) Components of Net Periodic Cost Service cost $ 2,871 $ 2,841 $ 8,773 $ 8,286 Interest cost 4,412 4,192 13,052 12,643 Expected return on plan assets (6,060 ) (6,407 ) (17,964 ) (19,123 ) Settlement - - - 2,991 Amortization of prior service cost 119 17 345 51 Amortization of actuarial (gain) loss 1,580 1,135 4,639 3,451 Net periodic cost (benefit) $ 2,922 $ 1,778 $ 8,845 $ 8,299 The Company amortizes prior service cost and actuarial gains and losses from accumulated other comprehensive income to expense over the remaining service period. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jul. 01, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 6 – Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value. An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The hierarchy of fair value measurements is described below: Level 1 – Valuations are based on quoted prices that the Company has the ability to obtain in actively traded markets for identical assets and liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market or exchange traded market, a valuation of these instruments does not require a significant degree of judgment. Level 2 – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuations are based on model-based techniques for which some or all of the assumptions are obtained from indirect market information that is significant to the overall fair value measurement and which require a significant degree of management judgment. The following table sets forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis by level within the fair value hierarchy at July 1, 2016, and October 2, 2015. In Thousands Level 2 July 1, October 2, 2016 2015 Assets: Derivative contracts designated as hedging instruments $ 3,882 $ 1,386 Derivative contracts not designated as hedging instruments 67 189 Embedded derivatives 2,035 3,992 Liabilities: Derivative contracts designated as hedging instruments $ 10,173 $ 24,660 Derivative contracts not designated as hedging instruments 7,699 2,324 Embedded derivatives 2,116 380 In Thousands Level 3 July 1, October 2, 2016 2015 Liabilities: Contingent purchase obligation $ - $ 3,750 The Company’s embedded derivatives are the result of entering into sales or purchase contracts that are denominated in a currency other than the Company’s functional currency or the supplier’s or customer’s functional currency. The fair value is determined by calculating the difference between quoted exchange rates at the time the contract was entered into and the period-end exchange rate. These contracts are categorized as Level 2 in the fair value hierarchy. From time to time, the Company’s derivative contracts consist of foreign currency exchange contracts and interest rate swap 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 Company’s contingent purchase obligation consisted of additional contingent consideration in connection with the acquisition of Sunbank Family of Companies, LLC (Sunbank) of $3.75 million as of October 2, 2015, which was paid in the second fiscal quarter of 2016 upon achievement of the performance objectives. The value recorded on the balance sheet at October 2, 2015, was derived from the estimated probability that the performance objectives will be met. The contingent purchase obligation was categorized as Level 3 in the fair value hierarchy. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Jul. 01, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 7 – Derivative Financial Instruments The Company uses derivative financial instruments in the form of foreign currency forward exchange contracts and interest rate swap contracts for the purpose of minimizing exposure to changes in foreign currency exchange rates on business transactions and interest rates, respectively. The Company’s policy is to execute such instruments with banks the Company believes to be creditworthy and not to enter into derivative financial instruments for speculative purposes. 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. All derivative financial instruments are recorded at fair value in the Consolidated Balance Sheet. 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 Consolidated Balance Sheet in Accumulated Other Comprehensive Income (AOCI) 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 AOCI is reclassified into earnings in the same period during which the underlying hedged transaction affects earnings. The fair value of derivative instruments is presented on a gross basis, as the Company does not have any derivative contracts which are subject to master netting arrangements. At July 1, 2016, and October 2, 2015, the Company did not have any hedges with credit-risk-related contingent features or that required the posting of collateral. The cash flows from derivative contracts are recorded in operating activities in the Consolidated Statement of Cash Flows. 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 July 1, 2016, and October 2, 2015, the Company had outstanding foreign currency forward exchange contracts principally to sell U.S. dollars with notional amounts of $449.9 million and $402.9 million, respectively. These notional values consist primarily of contracts for the European euro, British pound sterling and Canadian dollar, and are stated in U.S. dollar equivalents at spot exchange rates at the respective dates. Interest Rate Swaps The Company manages its exposure to interest rate risk by maintaining an appropriate mix of fixed and variable rate debt, which over time should moderate the costs of debt financing. When considered necessary, the Company may use financial instruments in the form of interest rate swaps to help meet this objective. Embedded Derivative Instruments The Company’s embedded derivatives are the result of entering into sales or purchase contracts that are denominated in a currency other than the Company’s functional currency or the supplier’s or customer’s functional currency. Net Investment Hedge In April 2015, the Company issued €330.0 million in 3.625% Senior Notes due April 2023 (2023 Notes) and requiring semi-annual interest payments in April and October each year until maturity. The Company designated the 2023 Notes and accrued interest as a hedge of the investment of certain foreign business units. The foreign currency gain or loss that is effective as a hedge is reported as a component of other comprehensive income (loss) in shareholders’ equity. To the extent that this hedge is ineffective, the foreign currency gain or loss is recorded in earnings. There was no ineffectiveness of the hedge since inception. Fair Value of Derivative Instruments Fair value of derivative instruments in the Consolidated Balance Sheet at July 1, 2016, and October 2, 2015, consisted of: In Thousands Fair Value July 1, October 2, Classification 2016 2015 Foreign Currency Forward Exchange Contracts: Other current assets $ 1,586 $ 1,527 Other assets 2,363 48 Accrued liabilities 13,968 20,688 Other liabilities 3,904 6,296 Embedded Derivative Instruments: Other current assets $ 1,589 $ 2,913 Other assets 446 1,079 Accrued liabilities 1,694 351 Other liabilities 422 29 The effect of derivative instruments on the Consolidated Statement of Operations and Comprehensive Income (Loss) for the three and nine month periods ended July 1, 2016, and June 26, 2015, consisted of: Fair Value Hedges and Embedded Derivatives We recognized the following gains (losses) on contracts designated as fair value hedges and embedded derivatives: In Thousands Three Months Ended Nine Months Ended Gain (Loss) July 1, June 26, July 1, June 26, 2016 2015 2016 2015 (Recast) (Recast) Embedded derivatives: Recognized in sales $ 818 $ (3,928 ) $ (2,858 ) $ 1,715 Cash Flow Hedges We recognized the following gains (losses) on contracts designated as cash flow hedges: In Thousands Three Months Ended Nine Months Ended Gain (Loss) July 1, June 26, July 1, June 26, 2016 2015 2016 2015 (Recast) (Recast) Foreign currency forward exchange contracts: Recognized in AOCI (effective portion) $ 3,528 $ 19,238 $ 32,212 $ 11,835 Reclassified from AOCI into sales (2,640 ) (5,830 ) (15,223 ) (17,174 ) Net Investment Hedges We recognized the following gains (losses) on contracts designated as net investment hedges: In Thousands Three Months Ended Nine Months Ended Gain (Loss) July 1, June 26, July 1, June 26, 2016 2015 2016 2015 (Recast) (Recast) 2023 Notes and Accrued Interest: Recognized in AOCI $ 8,336 $ (11,991 ) $ 2,084 $ (11,991 ) During the first nine months of fiscal 2016 and 2015, the Company recorded a loss of $7.6 million and a gain of $0.1 million, respectively, on foreign currency forward exchange contracts that have not been designated as accounting hedges. These foreign currency exchange gains and losses are included in selling, general and administrative expense. There was no significant impact to the Company’s earnings related to the ineffective portion of any hedging instruments during the first nine months of fiscal 2016 and 2015. In addition, there was no significant impact to the Company’s earnings when a hedged firm commitment no longer qualified as a fair value hedge or when a hedged forecasted transaction no longer qualified as a cash flow hedge during the first nine months of fiscal 2016 and 2015. Amounts included in AOCI are reclassified into earnings when the hedged transaction settles. The Company expects to reclassify approximately $8.0 million of net loss into earnings over the next 12 months. The maximum duration of the Company’s foreign currency cash flow hedge contracts at July 1, 2016, is 24 months. |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 01, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 8 – Income Taxes The effective tax rates for the three and nine months ended July 1, 2016, were 17.2% and 14.7%, respectively. The effective tax rates for the three and nine months ended June 26, 2015, were 19.2% and 21.1%, respectively. The effective tax rates were lower than the U.S. federal statutory rate due to various tax credits, certain foreign interest expense deductions and lower income tax rates on permanently invested foreign sourced income. The decrease in the three and nine months ended July 1, 2016, effective tax rate compared to prior year periods was primarily due to an adjustment for non-deductible expense from the Consent Agreement with DDTC. As noted in Note 10 – Commitments and Contingencies, the Consent Agreement required a payment of $20 million, $10 million of which was suspended and eligible for offset credit based on verified expenditures for past and future remedial compliance measures. The $10 million penalty and qualifying expenditures up to $10 million were non-deductible for income tax purposes. In the three months ended June 26, 2015, the Company recognized a $0.7 million tax expense related to non-deductible compliance expense. In the nine months ended June 26, 2015, the Company recognized a $2.0 million tax expense related to non-deductible compliance expense and a return to provision adjustment of $1.6 million expense. It is reasonably possible that within the next twelve months approximately $2.7 million of tax benefits that are currently unrecognized could be recognized as a result of settlement of examinations and/or the expiration of applicable statutes of limitations. The release is not expected to have a material impact on the statement of financial position or operations. |
Debt
Debt | 9 Months Ended |
Jul. 01, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Note 9 – Debt U.S. Credit Facility On April 9, 2015, the Company amended its secured credit facility to extend the maturity to April 9, 2020, increase the amount available for borrowing under the secured revolving credit facility to $500 million, and provide for a delayed-draw term loan facility of $250 million (U.S. Term Loan, due 2020). The Company recorded $2.3 million in debt issuance costs. The credit facility is secured by substantially all the Company’s assets, and interest is based on standard inter-bank offering rates. The interest rate ranges from LIBOR plus 1.25% to LIBOR plus 2.00%. At July 1, 2016, the Company had $165.0 million outstanding under the secured credit facility at an interest rate of LIBOR plus 1.75%, which was 2.2%. Additionally, the Company had $5.0 million outstanding under the secured credit facility at an initial interest rate of prime plus 0.75%, which was 4.25%. Subsequent to July 1, 2016, the interest rate on the $5.0 million borrowing was reduced to LIBOR plus 1.75%. U.S. Term Loan, due July 2016 In April 2013, the Company amended the secured credit facility to provide for a $175.0 million term loan (U.S. Term Loan, due 2016). On April 8, 2015, the Company paid off the U.S. Term Loan, due 2016. In connection with the repayment, the Company wrote off $0.3 million in unamortized debt issuance costs as a loss on extinguishment of debt in the third fiscal quarter of 2015. U.S. Term Loan, due April 2020 On August 3, 2015, the Company borrowed $250 million under the U.S. Term Loan, due 2020, provided for under the amended secured credit facility. The interest rate on the U.S. Term Loan, due 2020, ranges from LIBOR plus 1.25% to LIBOR plus 2.00%. At July 1, 2016, the interest rate was LIBOR plus 1.75%, which equaled 2.2%. The loan amortizes at 1.25% of the original principal balance quarterly through March 2020, with the remaining balance due in April 2020. 7% Senior Notes, due August 2020 In August 2010, the Company issued $250.0 million in 7% Senior Notes, due August 2020 (2020 Notes) and which require semi-annual interest payments in March and September of each year until maturity. On August 4, 2015, the proceeds from the U.S. Term Loan, due August 2020, were used to redeem all of the 7% 2020 Notes. As part of the redemption, the Company incurred an $8.75 million redemption premium and wrote off $2.4 million in unamortized debt issuance costs as a loss on extinguishment of debt in the fourth fiscal quarter of 2015. 3.625% Senior Notes, due April 2023 In April 2015, the Company issued €330.0 million in 3.625% Notes, due 2023 requiring semi-annual interest payments in April and October of each year until maturity. The net proceeds from the sale of the notes, after deducting $5.9 million of debt issuance costs, were $350.8 million. The 2023 Notes are general unsecured senior obligations of the Company. The 2023 Notes are unconditionally guaranteed on a senior basis by the Company and certain subsidiaries of the Company that are guarantors under the Company’s existing secured credit facility. The 2023 Notes are subject to redemption at the option of the Company at any time prior to April 15, 2018, at a price equal to 100% of the principal amount, plus any accrued interest to the date of redemption and a make-whole provision. The Company may also redeem up to 35% of the 2023 Notes before April 15, 2018, with the net cash proceeds from equity offerings. The 2023 Notes are also subject to redemption at the option of the Company, in whole or in part, on or after April 15, 2018, at redemption prices starting at 102.719% of the principal amount plus accrued interest during the period beginning April 15, 2018, and declining annually to 100% of principal and accrued interest on or after April 15, 2021. Based on quoted market prices, the fair value of the Company’s 2023 Notes was $346.5 million as of July 1, 2016, and $347.7 million as of October 2, 2015. The carrying amount of the secured credit facility and the U.S. Term Loan, due 2020, approximate fair value. The estimate of fair value for the 2023 Notes is based on Level 2 inputs as defined in the fair value hierarchy described. 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 beginning in 2014. Imputed interest on the advance was 3.7% at July 1, 2016. The debt recognized was $45.3 million and $43.3 million as of July 1, 2016, and October 2, 2015, respectively. In April 2015, FASB amended requirements related to the presentation of debt issuance costs. The updated standard requires debt issuance costs related to a recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. The recognition and measurement of debt issuance costs are not affected by this amendment. The Company adopted this updated standard during the first fiscal quarter of 2016. The Company reclassified $6.5 million of debt issuance costs from other non-current assets to a reduction of the Company’s current maturities of long-term debt of $0.2 million and a reduction of the Company’s long-term debt of $6.3 million as of October 2, 2015. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jul. 01, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 10 – Commitments and Contingencies The Company is party to various lawsuits and claims, both as a plaintiff and defendant, and has contingent liabilities arising from the conduct of business, none of which, in the opinion of management, is expected to have a material effect on the Company’s financial position or results of operations. The Company believes that it has made appropriate and adequate provisions for contingent liabilities. As of July 1, 2016, and October 2, 2015, the Company had a liability of $0.7 million and $1.6 million, respectively, related to environmental remediation at a previously sold business for which the Company provided indemnification. On March 5, 2014, the Company entered into a Consent Agreement with the U.S. Department of State’s Directorate of Defense Trade Controls Office of Defense Trade Controls Compliance (DTCC) to resolve alleged International Traffic in Arms Regulations (ITAR) civil violations. The Consent Agreement settled the pending ITAR compliance matter with the DTCC previously reported by the Company that resulted from voluntary reports the Company filed with DTCC that disclosed possible technical and administrative violations of the ITAR. The Consent Agreement has a three-year term and provided for: (i) a payment of $20 million, $10 million of which is suspended and eligible for offset credit based on verified expenditures for past and future remedial compliance measures; (ii) the appointment of an external Special Compliance Official to oversee compliance with the Consent Agreement and the ITAR; (iii) two external audits of the Company’s ITAR compliance program; and (iv) continued implementation of ongoing remedial compliance measures and additional remedial compliance measures related to automated systems and ITAR compliance policies, procedures and training. The $10 million portion of the settlement that is not subject to suspension is to be paid in installments, with $8 million already paid over fiscal years 2014, 2015 and 2016, and the remaining $2 million to be paid in March 2017. As of the quarter ended July 1, 2016, the DTCC approved costs incurred by the Company for the remedial compliance measures to fully offset the $10 million suspended payment. |
Employee Stock Plans
Employee Stock Plans | 9 Months Ended |
Jul. 01, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Plans | Note 11 – Employee Stock Plans As of July 1, 2016, the Company had three share-based compensation plans, which are described below. The compensation cost that has been charged against income for those plans was $12.5 million and $8.7 million for the first nine months of fiscal 2016 and 2015, respectively. During the first nine months of fiscal 2016 and 2015, the Company issued 154,075 and 300,235 shares, respectively, under its share-based compensation plans. During the third fiscal quarter of 2016 and 2015, the Company issued 50,446 and 69,235 shares, respectively. Employee Stock Purchase Plan (ESPP) The ESPP is a “safe-harbor” designed plan whereby shares are purchased by participants at a discount of 5% of the market value on the purchase date and, therefore, compensation cost is not recorded. Employee Sharesave Scheme The Company offers shares under its employee sharesave scheme for U.K. employees. This plan allows participants the option to purchase shares at a 5% discount of the market price of the stock as of the beginning of the offering period. The term of these options is three years. The sharesave scheme is not a “safe-harbor” design, and therefore, compensation cost is recognized on this plan. Under the sharesave scheme, option exercise prices are equal to the fair market value of the Company’s common stock on the date of grant. The Company granted 70,673 and 25,984 options in the nine month periods ended July 1, 2016, and June 26, 2015, respectively. The weighted-average grant date fair value of options granted during the nine month periods ended July 1, 2016, and June 26, 2015, was $16.65 and $24.31 per share, respectively. The fair value of the awards under the employee share-save scheme was estimated using a Black-Scholes pricing model which uses the assumptions noted in the following table. The risk-free rate for the contractual life of the options is based on the U.S. Treasury zero coupon issues in effect at the time of grant. Nine Months Ended July 1, June 26, 2016 2015 Volatility 33.21 % 25.80 % Risk-free interest rate 1.19 % 0.93 % Expected life (years) 3 3 Dividends 0 0 Equity Incentive Plan Under the equity incentive plan, option exercise prices are equal to the fair market value of the Company’s common stock on the date of grant. The Company granted 221,200 and 192,700 options to purchase shares in the nine month periods ended July 1, 2016, and June 26, 2015, respectively. The weighted-average grant date fair value of options granted during the nine month periods ended July 1, 2016, and June 26, 2015, was $35.69 and $48.48 per share, respectively. The fair value of each option granted by the Company was estimated using a Black-Scholes pricing model, which uses the assumptions noted in the following table. The Company uses historical data to estimate volatility of the Company’s common stock and option exercise and employee termination assumptions. The risk-free rate for the contractual life of the option is based on the U.S. Treasury zero coupon issues in effect at the time of the grant. Nine Months Ended July 1, June 26, 2016 2015 Volatility 33.06 - 40.52% 40.73 - 41.89% Risk-free interest rate 1.61 - 2.24% 1.43 - 2.00% Expected life (years) 5 - 9 5 - 9 Dividends 0 0 The Company granted 36,000 and 22,000 restricted stock units in the nine month periods ended July 1, 2016, and June 26, 2015, respectively. The weighted-average grant date fair value of restricted stock units granted during the nine month periods ended July 1, 2016, and June 26, 2015, was $85.33 and $112.53 per share, respectively. The fair value of each restricted stock unit granted by the Company is equal to the fair market value of the Company’s common stock on the date of grant. The Company granted 56,200 and 34,000 performance share plan shares in the nine month periods ended July 1, 2016, and June 26, 2015, respectively. The total shares granted in each period equaled the number of shares participants would receive if the Company achieves target performance over the relevant period and is therefore at risk if the Company does not achieve the target level of the performance. The grant date fair value of performance share plan shares granted during the nine month periods ended July 1, 2016, and June 26, 2015, was $79.31 and $117.53, respectively. The fair value of each performance share plan share granted by the Company is equal to the fair market value of the Company’s common stock on the date of grant. |
Acquisitions
Acquisitions | 9 Months Ended |
Jul. 01, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Note 12 – Acquisitions On January 31, 2015, the Company acquired the defense, aerospace and training display (DAT) business of Belgium-based Barco N.V. (Barco) for €150 million, or approximately $171 million, in cash before a working capital adjustment of approximately $15 million. The Company incurred a $2.9 million foreign currency exchange loss in the funding of the acquisition in fiscal 2015. Acquisition related costs of $3.4 million were recognized as selling, general and administrative expense in fiscal 2015. The Company financed the acquisition primarily using international cash reserves, with the balance funded by borrowings under its existing credit facility. The DAT business develops and manufactures visualization solutions for a variety of demanding defense and commercial aerospace applications and is included in our Avionics & Controls segment. The following summarizes the allocation of the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition. The fair value adjustment for inventory was $7.0 million, which was recognized as cost of goods sold over eight months, the estimated inventory turnover. The fair value of acquired programs represented the value of visualization solutions sold under long-term supply agreements with aerospace companies, military contractors, and OEM manufacturers using similar technology. The valuation of the program included the values of program-specific technology, the backlog of contracts, and the relationship with customers which lead to potential future contracts. The valuation of the programs was based upon the discounted cash flow at a market-based discount rate. The purchase price includes the value of existing technologies, the introduction of new technologies, and the addition of new customers. These factors resulted in recording goodwill of $46.6 million. A substantial portion of the amount allocated to goodwill is not deductible for income tax purposes. In Thousands As of January 31, 2015 Current assets $ 82,319 Property, plant and equipment 6,206 Intangible assets subject to amortization Programs (15 year average useful life) 56,455 Programs (3 year average useful life) 677 Trade name (3 year average useful life) 226 Goodwill 46,618 Other assets 3,401 Total assets acquired 195,902 Current liabilities assumed 34,006 Long-term liabilities assumed 5,921 Net assets acquired $ 155,975 To take advantage of synergies across the Company, DAT will be further integrated with existing businesses. As a result of these integration activities, the Company incurred $2.8 million and $10.5 million of integration expenses in the three and nine months ended July 1, 2016, respectively. |
Restructuring
Restructuring | 9 Months Ended |
Jul. 01, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | Note 13 – Restructuring On December 5, 2013, the Company announced the acceleration of its plans to consolidate certain facilities and create cost efficiencies through shared services in sales, general and administrative and support functions. The costs are for exit and relocation of facilities, losses on the write off of certain property, plant and equipment, and severance. In the third fiscal quarter of 2016, restructuring expense totaled $1.5 million. In the first nine months of fiscal 2016, restructuring expense totaled $4.9 million, as more fully described in the following table: In Thousands Write Off of Exit & Property, Relocation Plant & of Facilities Equipment Severance Total Cost of sales $ 2,258 $ 27 $ 150 $ 2,435 Restructuring charges 2,011 - 419 2,430 Total $ 4,269 $ 27 $ 569 $ 4,865 In the recast third fiscal quarter of 2015, restructuring expense totaled $2.5 million. In the recast first nine months of fiscal 2015, restructuring expense totaled $11.7 million, as more fully described in the following table: In Thousands Write Off of Exit & Property, Relocation Plant & of Facilities Equipment Severance Total Cost of sales $ 4,359 $ 791 $ 529 $ 5,679 Restructuring charges 4,255 43 1,764 6,062 Total $ 8,614 $ 834 $ 2,293 $ 11,741 The Company has recorded an accrued liability of $5.8 million and $5.2 million for these activities as of July 1, 2016, and October 2, 2015, respectively. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Jul. 01, 2016 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | Note 14 – Discontinued Operations The Company’s board of directors previously approved the plan to sell certain non-core business units including Eclipse Electronic Systems, Inc. (Eclipse), a manufacturer of embedded communication intercept receivers for signal intelligence applications; Wallop Defence Systems, Ltd. (Wallop), a manufacturer of flare countermeasure devices; Pacific Aerospace and Electronics Inc. (PA&E), a manufacturer of hermetically sealed electrical connectors; a small distribution business and a small manufacturing business. On June 5, 2015, the Company sold Eclipse for $7.9 million and retained ownership of the land, building and building improvements, which are held for sale. In addition, on July 20, 2015, the Company sold PA&E for $23.4 million. Under the terms of the stock purchase agreements for the sale of Eclipse and PA&E, the Company agreed to indemnify the buyer for certain breaches of the Company’s representations and warranties and certain other items for up to $2.8 million and $3.9 million, respectively. An escrow account in the amount of $1.1 million was established at closing of the sale of PA&E to partially cover the Company’s indemnification obligations. A claim against the escrow amount, if paid, would result in a corresponding decrease in the purchase price for the sale of PA&E. During the third fiscal quarter of 2016 and 2015, the Company incurred a loss of $8.7 million and $0.6 million, respectively, on discontinued operations. Included in the loss of $8.7 million for the third fiscal quarter of 2016 is a loss on assets held for sale at Avionics & Controls and Advanced Materials of $2.4 million and $1.9 million, respectively. The loss at Avionics & Controls was principally due to a reduction of estimated selling price. The loss at Advanced Materials was principally due to the effect of changes in foreign currency exchange rates on the estimated sale price and Wallop’s assets held for sale. Principal assumptions used in measuring the estimated loss on assets held for sale included estimated selling price of the discontinued business and discount rates. During the first nine months of fiscal 2016 and 2015, the Company incurred a loss of $15.5 million and $21.0 million, respectively. Included in the loss of $15.5 million for the first nine months of fiscal 2016 is a loss on assets held for sale at Advanced Materials and Avionics & Controls of $5.5 million and $2.4 million, respectively. The loss at Advanced Materials was principally due to the effect of changes in foreign currency exchange rates on the estimated sale price and Wallop’s assets held for sale. The loss at Avionics & Controls was principally due to a reduction of estimated selling price. Principal assumptions used in measuring the estimated loss on assets held for sale included estimated selling price of the discontinued business and discount rates. During the first nine months of fiscal 2015, the Company recorded a $1.7 million increase in a liability related to environmental remediation at a previously sold business for which the Company provided indemnification. A loss of $1.1 million, net of tax, is reflected in discontinued operations. The operating results of the discontinued operations for the three month period ended July 1, 2016, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 3,577 $ - $ 456 $ - $ 4,033 Operating earnings (loss) (1,184 ) (71 ) (5,908 ) (251 ) (7,414 ) Tax expense (benefit) 570 (83 ) 876 (87 ) 1,276 Income (loss) from discontinued operations $ (1,754 ) $ 12 $ (6,784 ) $ (164 ) $ (8,690 ) Included in Operating Earnings (Loss): Loss on net assets held for sale $ (2,411 ) $ - $ (1,912 ) $ - $ (4,323 ) The operating results of the discontinued operations for the nine month period ended July 1, 2016, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 13,638 $ - $ 5,229 $ - $ 18,867 Operating earnings (loss) 785 (378 ) (14,775 ) (262 ) (14,630 ) Tax expense (benefit) 1,256 (83 ) (223 ) (87 ) 863 Income (loss) from discontinued operations $ (471 ) $ (295 ) $ (14,552 ) $ (175 ) $ (15,493 ) Included in Operating Earnings (Loss): Loss on net assets held for sale $ (2,355 ) $ - $ (5,540 ) $ - $ (7,895 ) The operating results of the discontinued operations for the recast three month period ended June 26, 2015, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 11,248 $ 7,577 $ 2,583 $ - $ 21,408 Operating earnings (loss) (1,196 ) 1,352 (1,687 ) 9 (1,522 ) Tax expense (benefit) (869 ) (56 ) (39 ) - (964 ) Income (loss) from discontinued operations $ (327 ) $ 1,408 $ (1,648 ) $ 9 $ (558 ) Included in Operating Earnings (Loss): Gain (loss) on net assets held for sale $ 323 $ (622 ) $ (1,017 ) $ - $ (1,316 ) The operating results of the discontinued operations for the recast nine month period ended June 26, 2015, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 38,839 $ 19,834 $ 8,733 $ - $ 67,406 Operating earnings (loss) (12,591 ) 3,101 (12,908 ) (1,683 ) (24,081 ) Tax expense (benefit) (958 ) 616 (2,115 ) (590 ) (3,047 ) Income (loss) from discontinued operations $ (11,633 ) $ 2,485 $ (10,793 ) $ (1,093 ) $ (21,034 ) Included in Operating Earnings (Loss): Loss on net assets held for sale $ (11,116 ) $ (622 ) $ (4,025 ) $ - $ (15,763 ) Assets and Liabilities Held for Sale within the Consolidated Balance Sheet at July 1, 2016, are comprised of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Total Accounts receivable, net $ 3,032 $ - $ 4,309 $ 7,341 Inventories 8,956 - 295 9,251 Prepaid expenses 145 - 202 347 Deferred income tax benefits - - - - Income tax refundable - - 1,095 1,095 Current Assets of Businesses Held for Sale 12,133 - 5,901 18,034 Net property, plant and equipment 5,349 - 2,689 8,038 Intangibles, net - - 1,759 1,759 Deferred income tax benefits (392 ) - - (392 ) Other assets - - 1,330 1,330 Non-Current Assets of Businesses Held for Sale 4,957 - 5,778 10,735 Accounts payable 251 - 1,486 1,737 Accrued liabilities 7,666 - 2,880 10,546 Current Liabilities of Businesses Held for Sale 7,917 - 4,366 12,283 Deferred income tax liabilities - - 902 902 Other liabilities - - 320 320 Non-Current Liabilities of Businesses Held for Sale - - 1,222 1,222 Net Assets of Businesses Held for Sale $ 9,173 $ - $ 6,091 $ 15,264 Assets and Liabilities Held for Sale within the Consolidated Balance Sheet at October 2, 2015, were comprised of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Total Accounts receivable, net $ 5,360 $ - $ 1,546 $ 6,906 Inventories 14,763 - 5,841 20,604 Prepaid expenses 156 - 185 341 Current Assets of Businesses Held for Sale 20,279 - 7,572 27,851 Net property, plant and equipment 5,474 - 12,199 17,673 Intangibles, net 945 - 4,928 5,873 Deferred income tax benefits (147 ) - - (147 ) Other assets - - 1,518 1,518 Non-Current Assets of Businesses Held for Sale 6,272 - 18,645 24,917 Accounts payable 1,878 - 4,837 6,715 Accrued liabilities 8,340 - 2,051 10,391 Current Liabilities of Businesses Held for Sale 10,218 - 6,888 17,106 Deferred income tax liabilities - - 194 194 Other liabilities 2,215 - - 2,215 Non-Current Liabilities of Businesses Held for Sale 2,215 - 194 2,409 Net Assets of Businesses Held for Sale $ 14,118 $ - $ 19,135 $ 33,253 |
Business Segment Information
Business Segment Information | 9 Months Ended |
Jul. 01, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 15 – Business Segment Information Business segment information for continuing operations includes the segments of Avionics & Controls, Sensors & Systems and Advanced Materials. In Thousands Three Months Ended Nine Months Ended July 1, June 26, July 1, June 26, 2016 2015 2016 2015 (Recast) (Recast) Sales Avionics & Controls $ 222,583 $ 200,078 $ 607,493 $ 594,025 Sensors & Systems 186,337 175,544 514,836 529,976 Advanced Materials 108,172 109,101 326,550 333,543 $ 517,092 $ 484,723 $ 1,448,879 $ 1,457,544 Earnings from Continuing Operations Before Income Taxes Avionics & Controls $ 28,517 $ 16,836 $ 40,579 $ 62,096 Sensors & Systems 27,942 22,968 61,670 56,682 Advanced Materials 15,512 24,514 51,710 65,538 Segment Earnings 71,971 64,318 153,959 184,316 Corporate expense (17,926 ) (18,592 ) (54,956 ) (61,454 ) Other income - - - 12,744 Interest income 30 87 211 406 Interest expense (7,659 ) (10,393 ) (22,169 ) (24,409 ) Loss on extinguishment of debt - (329 ) - (329 ) $ 46,416 $ 35,091 $ 77,045 $ 111,274 |
Recent Accounting Pronounceme21
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Jul. 01, 2016 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | In March 2016, the Financial Accounting Standards Board (FASB) issued new guidance simplifying certain aspects of accounting for share-based payments. The key provision of the new standard requires that excess tax benefits and shortfalls be recorded as income tax benefit or expense in the income statement, rather than in equity. The Company is evaluating the effect the updated standard will have on the Company’s consolidated financial statements and related disclosures. The new guidance is effective for the Company in fiscal year 2018, with early adoption permitted. In February 2016, the FASB issued a new lease accounting standard, which provides revised guidance on accounting for lease arrangements by both lessors and lessees. The central requirement of the new standard is that lessees must recognize lease related assets and liabilities for all leases with a term longer than 12 months. The Company is evaluating the effect the standard will have on the Company’ consolidated financial statements and related disclosures. The new standard is effective for the Company in fiscal year 2020, with early adoption permitted. In November 2015, the FASB issued new guidance requiring all deferred tax assets and liabilities to be classified as noncurrent on the balance sheet instead of separating those balances into current and noncurrent amounts. The new guidance is effective for the Company in fiscal year 2018, with early adoption permitted. The Company adopted this guidance prospectively on April 1, 2016, and reclassified the current portion of net deferred tax assets and liabilities to net noncurrent deferred tax assets and liabilities. No prior periods were retrospectively adjusted. In May 2014, the FASB amended requirements for an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective, and permits the use of either the retrospective or cumulative effect transition method. Early adoption is permitted. The updated standard becomes effective for the Company in the first fiscal quarter of 2019. The Company has not yet selected a transition method, and is currently evaluating the effect that the updated standard will have on consolidated financial statements and related disclosures. |
Earnings Per Share and Shareh22
Earnings Per Share and Shareholders Equity (Tables) | 9 Months Ended |
Jul. 01, 2016 | |
Earnings Per Share [Abstract] | |
Shares Used for Calculating Earnings Per Share | Shares used for calculating earnings per share are disclosed in the following table: In Thousands Three Months Ended Nine Months Ended July 1, June 26, July 1, June 26, 2016 2015 2016 2015 (Recast) (Recast) Shares used for basic earnings per share 29,381 30,831 29,517 31,183 Shares used for diluted earnings per share 29,601 31,322 29,788 31,702 |
Schedule of Changes in Issued and Outstanding Common Shares and Treasury Stock | Changes in issued and outstanding common shares are summarized as follows: Nine Months Ended Year Ended July 1, October 2, 2016 2015 Shares Issued: Balance, beginning of year 32,378,185 32,123,717 Shares issued under share-based compensation plans 154,075 254,468 Balance, end of current period 32,532,260 32,378,185 Treasury Stock: Balance, beginning of year (2,831,350 ) (269,228 ) Shares purchased (304,577 ) (2,562,122 ) Balance, end of current period (3,135,927 ) (2,831,350 ) Shares outstanding, end of period 29,396,333 29,546,835 |
Schedule of Components of Accumulated Other Comprehensive Loss | The components of Accumulated Other Comprehensive Gain (Loss): In Thousands July 1, October 2, 2016 2015 Unrealized gain (loss) on derivative contracts $ (5,952 ) $ (22,941 ) Tax effect 1,474 6,036 (4,478 ) (16,905 ) Pension and post-retirement obligations (96,373 ) (99,724 ) Tax effect 32,982 33,775 (63,391 ) (65,949 ) Currency translation adjustment (260,232 ) (225,974 ) Accumulated other comprehensive gain (loss) $ (328,101 ) $ (308,828 ) |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 9 Months Ended |
Jul. 01, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Net Periodic Pension Cost | The Company’s pension plans principally include a U.S. pension plan maintained by Esterline and a non-U.S. plan maintained by CMC Electronics, Inc. (CMC). The Company also sponsors a number of other non-U.S. defined benefit pension plans, primarily in Belgium, France and Germany. In fiscal 2014, the Company offered vested terminated participants of its U.S. pension plan a one-time opportunity to elect a lump-sum payment from the plan in lieu of a lifetime annuity. In the first fiscal quarter of 2015, the Company made a $16.6 million lump-sum payment to vested terminated pension plan participants from the plan, which resulted in an actuarial settlement charge of $3.0 million. The charge was recorded in selling, general and administrative expenses. Components of periodic pension cost consisted of the following: In Thousands Three Months Ended Nine Months Ended July 1, June 26, July 1, June 26, 2016 2015 2016 2015 (Recast) (Recast) Components of Net Periodic Cost Service cost $ 2,871 $ 2,841 $ 8,773 $ 8,286 Interest cost 4,412 4,192 13,052 12,643 Expected return on plan assets (6,060 ) (6,407 ) (17,964 ) (19,123 ) Settlement - - - 2,991 Amortization of prior service cost 119 17 345 51 Amortization of actuarial (gain) loss 1,580 1,135 4,639 3,451 Net periodic cost (benefit) $ 2,922 $ 1,778 $ 8,845 $ 8,299 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jul. 01, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis by level within the fair value hierarchy at July 1, 2016, and October 2, 2015. In Thousands Level 2 July 1, October 2, 2016 2015 Assets: Derivative contracts designated as hedging instruments $ 3,882 $ 1,386 Derivative contracts not designated as hedging instruments 67 189 Embedded derivatives 2,035 3,992 Liabilities: Derivative contracts designated as hedging instruments $ 10,173 $ 24,660 Derivative contracts not designated as hedging instruments 7,699 2,324 Embedded derivatives 2,116 380 In Thousands Level 3 July 1, October 2, 2016 2015 Liabilities: Contingent purchase obligation $ - $ 3,750 |
Derivative Financial Instrume25
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jul. 01, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments In Consolidated Balance Sheet | Fair value of derivative instruments in the Consolidated Balance Sheet at July 1, 2016, and October 2, 2015, consisted of: In Thousands Fair Value July 1, October 2, Classification 2016 2015 Foreign Currency Forward Exchange Contracts: Other current assets $ 1,586 $ 1,527 Other assets 2,363 48 Accrued liabilities 13,968 20,688 Other liabilities 3,904 6,296 Embedded Derivative Instruments: Other current assets $ 1,589 $ 2,913 Other assets 446 1,079 Accrued liabilities 1,694 351 Other liabilities 422 29 |
Effect of Derivative Instruments on Consolidated Statement of Operations | The effect of derivative instruments on the Consolidated Statement of Operations and Comprehensive Income (Loss) for the three and nine month periods ended July 1, 2016, and June 26, 2015, consisted of: Fair Value Hedges and Embedded Derivatives We recognized the following gains (losses) on contracts designated as fair value hedges and embedded derivatives: In Thousands Three Months Ended Nine Months Ended Gain (Loss) July 1, June 26, July 1, June 26, 2016 2015 2016 2015 (Recast) (Recast) Embedded derivatives: Recognized in sales $ 818 $ (3,928 ) $ (2,858 ) $ 1,715 Cash Flow Hedges We recognized the following gains (losses) on contracts designated as cash flow hedges: In Thousands Three Months Ended Nine Months Ended Gain (Loss) July 1, June 26, July 1, June 26, 2016 2015 2016 2015 (Recast) (Recast) Foreign currency forward exchange contracts: Recognized in AOCI (effective portion) $ 3,528 $ 19,238 $ 32,212 $ 11,835 Reclassified from AOCI into sales (2,640 ) (5,830 ) (15,223 ) (17,174 ) Net Investment Hedges We recognized the following gains (losses) on contracts designated as net investment hedges: In Thousands Three Months Ended Nine Months Ended Gain (Loss) July 1, June 26, July 1, June 26, 2016 2015 2016 2015 (Recast) (Recast) 2023 Notes and Accrued Interest: Recognized in AOCI $ 8,336 $ (11,991 ) $ 2,084 $ (11,991 ) |
Employee Stock Plans (Tables)
Employee Stock Plans (Tables) | 9 Months Ended |
Jul. 01, 2016 | |
Employee Share-save Scheme | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Fair Value of Option Granted using Black-Scholes Pricing Model | The fair value of the awards under the employee share-save scheme was estimated using a Black-Scholes pricing model which uses the assumptions noted in the following table. Nine Months Ended July 1, June 26, 2016 2015 Volatility 33.21 % 25.80 % Risk-free interest rate 1.19 % 0.93 % Expected life (years) 3 3 Dividends 0 0 |
Equity Incentive Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Fair Value of Option Granted using Black-Scholes Pricing Model | The fair value of each option granted by the Company was estimated using a Black-Scholes pricing model, which uses the assumptions noted in the following table. Nine Months Ended July 1, June 26, 2016 2015 Volatility 33.06 - 40.52% 40.73 - 41.89% Risk-free interest rate 1.61 - 2.24% 1.43 - 2.00% Expected life (years) 5 - 9 5 - 9 Dividends 0 0 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jul. 01, 2016 | |
Business Combinations [Abstract] | |
Allocation of Estimated Fair Value of Assets Acquired and Liabilities Assumed | In Thousands As of January 31, 2015 Current assets $ 82,319 Property, plant and equipment 6,206 Intangible assets subject to amortization Programs (15 year average useful life) 56,455 Programs (3 year average useful life) 677 Trade name (3 year average useful life) 226 Goodwill 46,618 Other assets 3,401 Total assets acquired 195,902 Current liabilities assumed 34,006 Long-term liabilities assumed 5,921 Net assets acquired $ 155,975 |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Jul. 01, 2016 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | In the third fiscal quarter of 2016, restructuring expense totaled $1.5 million. In the first nine months of fiscal 2016, restructuring expense totaled $4.9 million, as more fully described in the following table: In Thousands Write Off of Exit & Property, Relocation Plant & of Facilities Equipment Severance Total Cost of sales $ 2,258 $ 27 $ 150 $ 2,435 Restructuring charges 2,011 - 419 2,430 Total $ 4,269 $ 27 $ 569 $ 4,865 In Thousands Write Off of Exit & Property, Relocation Plant & of Facilities Equipment Severance Total Cost of sales $ 4,359 $ 791 $ 529 $ 5,679 Restructuring charges 4,255 43 1,764 6,062 Total $ 8,614 $ 834 $ 2,293 $ 11,741 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Jul. 01, 2016 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The operating results of the discontinued operations for the three month period ended July 1, 2016, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 3,577 $ - $ 456 $ - $ 4,033 Operating earnings (loss) (1,184 ) (71 ) (5,908 ) (251 ) (7,414 ) Tax expense (benefit) 570 (83 ) 876 (87 ) 1,276 Income (loss) from discontinued operations $ (1,754 ) $ 12 $ (6,784 ) $ (164 ) $ (8,690 ) Included in Operating Earnings (Loss): Loss on net assets held for sale $ (2,411 ) $ - $ (1,912 ) $ - $ (4,323 ) The operating results of the discontinued operations for the nine month period ended July 1, 2016, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 13,638 $ - $ 5,229 $ - $ 18,867 Operating earnings (loss) 785 (378 ) (14,775 ) (262 ) (14,630 ) Tax expense (benefit) 1,256 (83 ) (223 ) (87 ) 863 Income (loss) from discontinued operations $ (471 ) $ (295 ) $ (14,552 ) $ (175 ) $ (15,493 ) Included in Operating Earnings (Loss): Loss on net assets held for sale $ (2,355 ) $ - $ (5,540 ) $ - $ (7,895 ) The operating results of the discontinued operations for the recast three month period ended June 26, 2015, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 11,248 $ 7,577 $ 2,583 $ - $ 21,408 Operating earnings (loss) (1,196 ) 1,352 (1,687 ) 9 (1,522 ) Tax expense (benefit) (869 ) (56 ) (39 ) - (964 ) Income (loss) from discontinued operations $ (327 ) $ 1,408 $ (1,648 ) $ 9 $ (558 ) Included in Operating Earnings (Loss): Gain (loss) on net assets held for sale $ 323 $ (622 ) $ (1,017 ) $ - $ (1,316 ) The operating results of the discontinued operations for the recast nine month period ended June 26, 2015, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 38,839 $ 19,834 $ 8,733 $ - $ 67,406 Operating earnings (loss) (12,591 ) 3,101 (12,908 ) (1,683 ) (24,081 ) Tax expense (benefit) (958 ) 616 (2,115 ) (590 ) (3,047 ) Income (loss) from discontinued operations $ (11,633 ) $ 2,485 $ (10,793 ) $ (1,093 ) $ (21,034 ) Included in Operating Earnings (Loss): Loss on net assets held for sale $ (11,116 ) $ (622 ) $ (4,025 ) $ - $ (15,763 ) Assets and Liabilities Held for Sale within the Consolidated Balance Sheet at July 1, 2016, are comprised of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Total Accounts receivable, net $ 3,032 $ - $ 4,309 $ 7,341 Inventories 8,956 - 295 9,251 Prepaid expenses 145 - 202 347 Deferred income tax benefits - - - - Income tax refundable - - 1,095 1,095 Current Assets of Businesses Held for Sale 12,133 - 5,901 18,034 Net property, plant and equipment 5,349 - 2,689 8,038 Intangibles, net - - 1,759 1,759 Deferred income tax benefits (392 ) - - (392 ) Other assets - - 1,330 1,330 Non-Current Assets of Businesses Held for Sale 4,957 - 5,778 10,735 Accounts payable 251 - 1,486 1,737 Accrued liabilities 7,666 - 2,880 10,546 Current Liabilities of Businesses Held for Sale 7,917 - 4,366 12,283 Deferred income tax liabilities - - 902 902 Other liabilities - - 320 320 Non-Current Liabilities of Businesses Held for Sale - - 1,222 1,222 Net Assets of Businesses Held for Sale $ 9,173 $ - $ 6,091 $ 15,264 Assets and Liabilities Held for Sale within the Consolidated Balance Sheet at October 2, 2015, were comprised of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Total Accounts receivable, net $ 5,360 $ - $ 1,546 $ 6,906 Inventories 14,763 - 5,841 20,604 Prepaid expenses 156 - 185 341 Current Assets of Businesses Held for Sale 20,279 - 7,572 27,851 Net property, plant and equipment 5,474 - 12,199 17,673 Intangibles, net 945 - 4,928 5,873 Deferred income tax benefits (147 ) - - (147 ) Other assets - - 1,518 1,518 Non-Current Assets of Businesses Held for Sale 6,272 - 18,645 24,917 Accounts payable 1,878 - 4,837 6,715 Accrued liabilities 8,340 - 2,051 10,391 Current Liabilities of Businesses Held for Sale 10,218 - 6,888 17,106 Deferred income tax liabilities - - 194 194 Other liabilities 2,215 - - 2,215 Non-Current Liabilities of Businesses Held for Sale 2,215 - 194 2,409 Net Assets of Businesses Held for Sale $ 14,118 $ - $ 19,135 $ 33,253 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Jul. 01, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information for Continuing Operations | Business segment information for continuing operations includes the segments of Avionics & Controls, Sensors & Systems and Advanced Materials. In Thousands Three Months Ended Nine Months Ended July 1, June 26, July 1, June 26, 2016 2015 2016 2015 (Recast) (Recast) Sales Avionics & Controls $ 222,583 $ 200,078 $ 607,493 $ 594,025 Sensors & Systems 186,337 175,544 514,836 529,976 Advanced Materials 108,172 109,101 326,550 333,543 $ 517,092 $ 484,723 $ 1,448,879 $ 1,457,544 Earnings from Continuing Operations Before Income Taxes Avionics & Controls $ 28,517 $ 16,836 $ 40,579 $ 62,096 Sensors & Systems 27,942 22,968 61,670 56,682 Advanced Materials 15,512 24,514 51,710 65,538 Segment Earnings 71,971 64,318 153,959 184,316 Corporate expense (17,926 ) (18,592 ) (54,956 ) (61,454 ) Other income - - - 12,744 Interest income 30 87 211 406 Interest expense (7,659 ) (10,393 ) (22,169 ) (24,409 ) Loss on extinguishment of debt - (329 ) - (329 ) $ 46,416 $ 35,091 $ 77,045 $ 111,274 |
Earnings Per Share and Shareh31
Earnings Per Share and Shareholders Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 11 Months Ended | 24 Months Ended | ||||
Jul. 01, 2016 | Jun. 26, 2015 | Jul. 01, 2016 | Jun. 26, 2015 | Oct. 02, 2015 | Jul. 01, 2016 | Mar. 31, 2015 | Jun. 19, 2014 | |
Earnings Per Share And Shareholders Equity [Line Items] | ||||||||
Anti-dilutive shares excluded from computation of earnings per share | 858,000 | 261,150 | 745,067 | 218,633 | ||||
Preferred stock shares authorized | 25,000 | 25,000 | 25,000 | |||||
Preferred stock, par value | $ 100 | $ 100 | $ 100 | |||||
Common stock, shares authorized | 60,000,000 | 60,000,000 | 60,000,000 | 60,000,000 | ||||
Common stock, par value | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | ||||
Preferred stock shares outstanding | 0 | 0 | 0 | 0 | ||||
Approved and authorized amount under the stock repurchase program | $ 400,000,000 | $ 200,000,000 | ||||||
Additional approved and authorized amount under the stock repurchase program | $ 200,000,000 | |||||||
Stock repurchased during period, shares | 102,267 | 581,977 | 304,577 | 1,749,709 | 2,562,122 | 3,135,927 | ||
Treasury Stock Acquired, Average Cost Per Share | $ 65.10 | $ 99.22 | $ 61.51 | $ 105.83 | ||||
Aggregate value of repurchased stock | $ 6,700,000 | $ 57,700,000 | $ 18,700,000 | $ 185,200,000 | $ 308,500,000 | |||
Stock repurchase program, remaining authorized amount to be repurchased in future | $ 91,500,000 | $ 91,500,000 | $ 91,500,000 | |||||
Series B Preferred Stock | ||||||||
Earnings Per Share And Shareholders Equity [Line Items] | ||||||||
Preferred stock shares authorized | 475,000 | 475,000 | 475,000 | |||||
Preferred stock, par value | $ 1 | $ 1 | $ 1 | |||||
Preferred stock shares outstanding | 0 | 0 | 0 | 0 |
Shares Used for Calculating Ear
Shares Used for Calculating Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2016 | Jun. 26, 2015 | Jul. 01, 2016 | Jun. 26, 2015 | |
Earnings Per Share [Abstract] | ||||
Shares used for basic earnings per share | 29,381 | 30,831 | 29,517 | 31,183 |
Shares used for diluted earnings per share | 29,601 | 31,322 | 29,788 | 31,702 |
Schedule of Changes in Issued a
Schedule of Changes in Issued and Outstanding Common Shares and Treasury Stock (Detail) - shares | 3 Months Ended | 9 Months Ended | 11 Months Ended | 24 Months Ended | ||
Jul. 01, 2016 | Jun. 26, 2015 | Jul. 01, 2016 | Jun. 26, 2015 | Oct. 02, 2015 | Jul. 01, 2016 | |
Equity [Abstract] | ||||||
Balance, beginning of year | 32,378,185 | 32,123,717 | ||||
Shares issued under share-based compensation plans | 154,075 | 254,468 | ||||
Balance, end of current period | 32,532,260 | 32,532,260 | 32,378,185 | 32,532,260 | ||
Balance, beginning of year | (2,831,350) | (269,228) | ||||
Shares purchased | (102,267) | (581,977) | (304,577) | (1,749,709) | (2,562,122) | (3,135,927) |
Balance, end of current period | (3,135,927) | (3,135,927) | (2,831,350) | (3,135,927) | ||
Shares outstanding, end of period | 29,396,333 | 29,396,333 | 29,546,835 | 29,396,333 |
Schedule of Components of Accum
Schedule of Components of Accumulated Other Comprehensive Gain (Loss) (Detail) - USD ($) $ in Thousands | Jul. 01, 2016 | Oct. 02, 2015 |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||
Unrealized gain (loss) on derivative contracts | $ (5,952) | $ (22,941) |
Tax effect | 1,474 | 6,036 |
Unrealized gain (loss) on derivative contracts, Total | (4,478) | (16,905) |
Pension and post-retirement obligations | (96,373) | (99,724) |
Tax effect | 32,982 | 33,775 |
Pension and post-retirement obligations, Total | (63,391) | (65,949) |
Currency translation adjustment | (260,232) | (225,974) |
Accumulated other comprehensive gain (loss) | $ (328,101) | $ (308,828) |
Retirement Benefits - Additiona
Retirement Benefits - Additional Information (Detail) - Esterline Plans $ in Millions | 3 Months Ended |
Jan. 30, 2015USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Contractual termination | $ 16.6 |
Settlement | $ 3 |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension Cost (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2016 | Jun. 26, 2015 | Jul. 01, 2016 | Jun. 26, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 2,871 | $ 2,841 | $ 8,773 | $ 8,286 |
Interest cost | 4,412 | 4,192 | 13,052 | 12,643 |
Expected return on plan assets | (6,060) | (6,407) | (17,964) | (19,123) |
Settlement | 0 | 0 | 0 | 2,991 |
Amortization of prior service cost | 119 | 17 | 345 | 51 |
Amortization of actuarial (gain) loss | 1,580 | 1,135 | 4,639 | 3,451 |
Net periodic cost (benefit) | $ 2,922 | $ 1,778 | $ 8,845 | $ 8,299 |
Schedule of Financial Assets an
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jul. 01, 2016 | Oct. 02, 2015 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative contracts designated as hedging instruments, Assets | $ 3,882 | $ 1,386 |
Derivative contracts not designated as hedging instruments, Assets | 67 | 189 |
Embedded derivatives, Assets | 2,035 | 3,992 |
Derivative contracts designated as hedging instruments, Liabilities | 10,173 | 24,660 |
Derivative contracts not designated as hedging instruments, Liabilities | 7,699 | 2,324 |
Embedded derivatives, Liabilities | 2,116 | 380 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Contingent purchase obligation | $ 0 | $ 3,750 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) $ in Thousands | Oct. 02, 2015USD ($) |
Sunbank Family Of Companies LLC. | |
Fair Value Measurements [Line Items] | |
Business Acquisition Contingent Consideration Payable | $ 3,750 |
Derivative Financial Instrume39
Derivative Financial Instruments - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 9 Months Ended | ||
Apr. 30, 2015EUR (€) | Jul. 01, 2016USD ($) | Jun. 26, 2015USD ($) | Oct. 02, 2015USD ($) | |
Derivative [Line Items] | ||||
Gain (loss) on foreign currency forward exchange contracts not designated as an accounting hedge | $ (7.6) | $ 0.1 | ||
Net Gain (Loss) expected to be reclassified into earnings over next 12 months | $ (8) | |||
Maturities of forecasted transactions using forward exchange contracts | 24 months | |||
3.625% Senior Notes, Due April 2023 | ||||
Derivative [Line Items] | ||||
Debt instrument, interest rate | 3.625% | |||
Debt instruments maturity date | Apr. 30, 2023 | |||
3.625% Senior Notes, Due April 2023 | Net Investment Hedges | ||||
Derivative [Line Items] | ||||
Derivative notional amount | € | € 330 | |||
Foreign Exchange Forward | ||||
Derivative [Line Items] | ||||
Derivative notional amount | $ 449.9 | $ 402.9 |
Fair Value of Derivative Instru
Fair Value of Derivative Instruments in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jul. 01, 2016 | Oct. 02, 2015 |
Foreign Exchange Forward | Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | $ 1,586 | $ 1,527 |
Foreign Exchange Forward | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | 2,363 | 48 |
Foreign Exchange Forward | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | 3,904 | 6,296 |
Foreign Exchange Forward | Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | 13,968 | 20,688 |
Embedded Derivative Financial Instruments | Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | 1,589 | 2,913 |
Embedded Derivative Financial Instruments | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | 446 | 1,079 |
Embedded Derivative Financial Instruments | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | 422 | 29 |
Embedded Derivative Financial Instruments | Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | $ 1,694 | $ 351 |
Effect of Derivative Instrument
Effect of Derivative Instruments on Consolidated Statement of Operations and Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 01, 2016 | Jun. 26, 2015 | Jul. 01, 2016 | Jun. 26, 2015 | |
Net Investment Hedges | 2023 Notes and Accrued Interest | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Recognized in AOCI | $ 8,336 | $ (11,991) | $ 2,084 | $ (11,991) |
Embedded Derivatives | Fair Value Hedging | Sales | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Embedded derivatives | 818 | (3,928) | (2,858) | 1,715 |
Foreign Exchange Forward | Cash Flow Hedging | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) recognized in AOCI (effective portion) | 3,528 | 19,238 | 32,212 | 11,835 |
Gain (loss) reclassified from AOCI into sales | $ (2,640) | $ (5,830) | $ (15,223) | $ (17,174) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jul. 01, 2016 | Jun. 26, 2015 | Jul. 01, 2016 | Jun. 26, 2015 | Mar. 05, 2014 | |
Income Taxes [Line Items] | |||||
Effective tax rates | 17.20% | 19.20% | 14.70% | 21.10% | |
Payment required for the Consent Agreement by DDTC compliance | $ 20,000,000 | $ 20,000,000 | $ 20,000,000 | ||
Penalty suspended and eligible for offset credit | 10,000,000 | 10,000,000 | $ 10,000,000 | ||
Non-deductible penalty | 10,000,000 | ||||
Non-deductible compliance expense | $ 700,000 | $ 2,000,000 | |||
Income tax provision adjustment | $ 1,600,000 | ||||
Change in unrecognized tax benefit within the next twelve months | $ 2,700,000 | 2,700,000 | |||
Maximum | |||||
Income Taxes [Line Items] | |||||
Non-deductible qualified expenditures | $ 10,000,000 |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Millions | Aug. 05, 2016 | Aug. 03, 2015USD ($) | Apr. 09, 2015USD ($) | Apr. 30, 2015USD ($) | Oct. 02, 2015USD ($) | Jul. 31, 2015USD ($) | Jul. 01, 2016USD ($) | Oct. 02, 2015USD ($) | Aug. 04, 2015USD ($) | Apr. 30, 2015EUR (€) | Apr. 30, 2013USD ($) | Aug. 31, 2010USD ($) |
Debt Instrument [Line Items] | ||||||||||||
Credit facilities | $ 160,000,000 | $ 170,000,000 | $ 160,000,000 | |||||||||
Imputed interest on advance | 3.70% | |||||||||||
Government refundable advances | 43,300,000 | $ 45,300,000 | 43,300,000 | |||||||||
Debt issuance cost being netted against current maturities of long term debt | 200,000 | |||||||||||
Debt issuance cost being netted against long term debt | 6,300,000 | |||||||||||
Accounting Standards Update 2015-03 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Reclassification of debt issuance costs from other non-current assets to long-term debt | 6,500,000 | 6,500,000 | ||||||||||
U.S. Term Loan, due April 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Funds borrowed under the delayed-draw term Loan | $ 250,000,000 | |||||||||||
Loan amortization rate | 1.25% | |||||||||||
Loan amortization end date | Mar. 31, 2020 | |||||||||||
7% Senior Notes, due August 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instruments maturity date | Apr. 30, 2020 | |||||||||||
Debt instrument, face amount | $ 250,000,000 | |||||||||||
Debt instrument, interest rate | 7.00% | |||||||||||
Senior Notes Due Twenty Twenty | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Write off of unamortized Debt Issuance cost | 2,400,000 | |||||||||||
Debt instrument, interest rate | 7.00% | |||||||||||
Debt instrument, redemption premium | $ 8,750,000 | |||||||||||
3.625% Senior Notes, Due April 2023 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt issuance costs | $ 5,900,000 | |||||||||||
Debt instruments maturity date | Apr. 30, 2023 | |||||||||||
Debt instrument, face amount | € | € 330 | |||||||||||
Debt instrument, interest rate | 3.625% | |||||||||||
Net proceeds from issuance of debt | $ 350,800,000 | |||||||||||
Fair market value of long-term debt and short-term borrowings | $ 347,700,000 | $ 346,500,000 | $ 347,700,000 | |||||||||
3.625% Senior Notes, Due April 2023 | Debt Redemption Prior April 15, 2018 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument redemption price percentage plus accrued interest | 100.00% | |||||||||||
Debt instrument redemption allowed percentage of principal amount redeemed | 35.00% | |||||||||||
3.625% Senior Notes, Due April 2023 | Debt Redemption After April 15, 2018 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument redemption price percentage plus accrued interest | 102.719% | |||||||||||
3.625% Senior Notes, Due April 2023 | Debt Redemption After April 15, 2021 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Debt instrument redemption price percentage plus accrued interest | 100.00% | |||||||||||
London Interbank Offered Rate (LIBOR) | U.S. Term Loan, due April 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate, basis spread on variable rate | 1.75% | |||||||||||
Interest rate | 2.20% | |||||||||||
London Interbank Offered Rate (LIBOR) | Minimum | U.S. Term Loan, due April 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate, basis spread on variable rate | 1.25% | |||||||||||
London Interbank Offered Rate (LIBOR) | Maximum | U.S. Term Loan, due April 2020 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate, basis spread on variable rate | 2.00% | |||||||||||
Secured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facility maturity date | Apr. 9, 2020 | |||||||||||
Debt issuance costs | $ 2,300,000 | |||||||||||
Credit facilities | $ 165,000,000 | |||||||||||
Secured Debt | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate, basis spread on variable rate | 1.75% | |||||||||||
Interest rate | 2.20% | |||||||||||
Secured Debt | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate, basis spread on variable rate | 1.25% | |||||||||||
Secured Debt | London Interbank Offered Rate (LIBOR) | Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate, basis spread on variable rate | 2.00% | |||||||||||
Secured Debt | Prime Rate | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate, basis spread on variable rate | 0.75% | |||||||||||
Interest rate | 4.25% | |||||||||||
Credit facilities | $ 5,000,000 | |||||||||||
Secured Debt | Subsequent Event | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Interest rate, basis spread on variable rate | 1.75% | |||||||||||
Secured Debt | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facility maximum borrowing capacity | $ 500,000,000 | |||||||||||
Secured Debt | Delayed-Draw Term Loan Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Credit facility maximum borrowing capacity | $ 250,000,000 | |||||||||||
U S Term Loan | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Term Loan | $ 175,000,000 | |||||||||||
Write off of unamortized Debt Issuance cost | $ 300,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Jul. 01, 2016 | Oct. 02, 2015 | Mar. 05, 2014 | |
Commitments And Contingencies Disclosure [Abstract] | |||
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | $ 0.7 | $ 1.6 | |
Consent agreement term | The Consent Agreement has a three-year term and provided for: (i) a payment of $20 million, $10 million of which is suspended and eligible for offset credit based on verified expenditures for past and future remedial compliance measures; (ii) the appointment of an external Special Compliance Official to oversee compliance with the Consent Agreement and the ITAR; (iii) two external audits of the Company’s ITAR compliance program; and (iv) continued | ||
Total penalty proposed by DDTC Office of Compliance | $ 20 | $ 20 | |
Penalty suspended and eligible for offset credit | 10 | $ 10 | |
Estimated and recorded charge | 10 | ||
Paid and recorded over fiscal years 2014, 2015 and 2016 | 8 | ||
Estimated and to be paid March 2017 | 2 | ||
Penalty suspended and approved for offset credit | $ 10 |
Employee Stock Plans - Addition
Employee Stock Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 01, 2016 | Jun. 26, 2015 | Jul. 01, 2016 | Jun. 26, 2015 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation | $ 12,501 | $ 8,744 | [1] | ||
Shares issued under share-based compensation plans | 50,446 | 69,235 | 154,075 | 300,235 | |
Restricted Stock Units (RSUs) | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted | 36,000 | 22,000 | |||
Weighted Average Grant Date Fair Value | $ 85.33 | $ 112.53 | |||
Performance Share Plan Shares | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted | 56,200 | 34,000 | |||
Grant Date Fair Value | $ 79.31 | $ 117.53 | |||
Employee Share-save Scheme | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Discount rate of market value on purchase date | 5.00% | ||||
The term of options, years | 3 years | ||||
Number of options granted | 70,673 | 25,984 | |||
Weighted-average grant date fair value of options granted | $ 16.65 | $ 24.31 | |||
Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of options granted | 221,200 | 192,700 | |||
Weighted-average grant date fair value of options granted | $ 35.69 | $ 48.48 | |||
Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Discount rate of market value on purchase date | 5.00% | ||||
[1] | (Recast) |
Schedule of Fair Value of Optio
Schedule of Fair Value of Option Granted using Black-Scholes Pricing Model (Detail) - USD ($) | 9 Months Ended | |
Jul. 01, 2016 | Jun. 26, 2015 | |
Employee Share-save Scheme | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Volatility | 33.21% | 25.80% |
Risk-free interest rate | 1.19% | 0.93% |
Expected life (years) | 3 years | 3 years |
Dividends | $ 0 | $ 0 |
Equity Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Volatility, minimum | 33.06% | 40.73% |
Volatility, maximum | 40.52% | 41.89% |
Risk-free interest rate, minimum | 1.61% | 1.43% |
Risk-free interest rate, maximum | 2.24% | 2.00% |
Dividends | $ 0 | $ 0 |
Equity Incentive Plan | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life (years) | 5 years | 5 years |
Equity Incentive Plan | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life (years) | 9 years | 9 years |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands, € in Millions | Jan. 31, 2015USD ($) | Jan. 31, 2015EUR (€) | Jul. 01, 2016USD ($) | Jul. 01, 2016USD ($) | Oct. 02, 2015USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,027,873 | $ 1,027,873 | $ 1,041,991 | ||
Integration expenses | $ 2,800 | $ 10,500 | |||
Belgium-based | Barco N V | |||||
Business Acquisition [Line Items] | |||||
Business acquired | $ 171,000 | € 150 | |||
Foreign currency exchange loss | (2,900) | ||||
Business acquisition working capital adjustment | 15,000 | ||||
Acquisition-related costs | $ 3,400 | ||||
Estimated fair value adjustment for inventory, will be recognized as cost of goods sold | $ 7,000 | ||||
Fair value adjustment for inventory, cost of goods sold period, months | 8 months | 8 months | |||
Goodwill | $ 46,618 |
Allocation of Estimated Fair Va
Allocation of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Jul. 01, 2016 | Oct. 02, 2015 | Jan. 31, 2015 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,027,873 | $ 1,041,991 | |
Belgium-based | Barco N V | |||
Business Acquisition [Line Items] | |||
Current assets | $ 82,319 | ||
Property, plant and equipment | 6,206 | ||
Goodwill | 46,618 | ||
Other assets | 3,401 | ||
Total assets acquired | 195,902 | ||
Current liabilities assumed | 34,006 | ||
Long-term liabilities assumed | 5,921 | ||
Net assets acquired | 155,975 | ||
Belgium-based | Programs | Barco N V | |||
Business Acquisition [Line Items] | |||
Intangible assets subject to amortization | 56,455 | ||
Belgium-based | Programs Two | Barco N V | |||
Business Acquisition [Line Items] | |||
Intangible assets subject to amortization | 677 | ||
Belgium-based | Trade Name | Barco N V | |||
Business Acquisition [Line Items] | |||
Intangible assets subject to amortization | $ 226 |
Allocation of Estimated Fair 49
Allocation of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) - Belgium-based - Barco N V | Jan. 31, 2015 |
Programs | |
Business Acquisition [Line Items] | |
Weighted average useful life, year | 15 years |
Programs Two | |
Business Acquisition [Line Items] | |
Weighted average useful life, year | 3 years |
Trade Name | |
Business Acquisition [Line Items] | |
Weighted average useful life, year | 3 years |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jul. 01, 2016 | Jun. 26, 2015 | Jul. 01, 2016 | Jun. 26, 2015 | Oct. 02, 2015 | |
Restructuring And Related Activities [Abstract] | |||||
Restructuring expense | $ 1.5 | $ 2.5 | $ 4.9 | $ 11.7 | |
Accrued restructuring | $ 5.8 | $ 5.8 | $ 5.2 |
Schedule of Restructuring and R
Schedule of Restructuring and Related Costs (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 01, 2016 | Jun. 26, 2015 | |
Restructuring Cost And Reserve [Line Items] | ||
Exit & Relocation of Facilities | $ 4,269 | $ 8,614 |
Write-Off of Property, Plant & Equipment | 27 | 834 |
Severance | 569 | 2,293 |
Restructuring charges | 4,865 | 11,741 |
Cost of Sales | ||
Restructuring Cost And Reserve [Line Items] | ||
Exit & Relocation of Facilities | 2,258 | 4,359 |
Write-Off of Property, Plant & Equipment | 27 | 791 |
Severance | 150 | 529 |
Restructuring charges | 2,435 | 5,679 |
Restructuring Charges | ||
Restructuring Cost And Reserve [Line Items] | ||
Exit & Relocation of Facilities | 2,011 | 4,255 |
Write-Off of Property, Plant & Equipment | 0 | 43 |
Severance | 419 | 1,764 |
Restructuring charges | $ 2,430 | $ 6,062 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) | Jul. 20, 2015 | Jun. 05, 2015 | Jul. 01, 2016 | Jun. 26, 2015 | Jul. 01, 2016 | Jun. 26, 2015 | Oct. 02, 2015 | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | $ (8,690,000) | $ (558,000) | [1],[2] | $ (15,493,000) | $ (21,034,000) | [1],[2] | |||
Gain (loss) on net assets held for sale | (4,323,000) | (1,316,000) | [2] | (7,895,000) | (15,763,000) | [1],[2] | |||
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | 700,000 | 700,000 | $ 1,600,000 | ||||||
Previously Sold Business | |||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | (1,100,000) | ||||||||
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | 1,700,000 | 1,700,000 | |||||||
Avionics & Controls | |||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | (1,754,000) | (327,000) | [2] | (471,000) | (11,633,000) | [2] | |||
Gain (loss) on net assets held for sale | (2,411,000) | 323,000 | [2] | (2,355,000) | (11,116,000) | [2] | |||
Advanced Materials | |||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | (6,784,000) | (1,648,000) | [2] | (14,552,000) | (10,793,000) | [2] | |||
Gain (loss) on net assets held for sale | $ (1,912,000) | $ (1,017,000) | [2] | $ (5,540,000) | $ (4,025,000) | [2] | |||
Eclipse | |||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Sale of discontinued operation | $ 7,900,000 | ||||||||
Eclipse | Maximum | |||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Indemnification for certain representations and warranty obligations | $ 2,800,000 | ||||||||
PA&E | |||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Sale of discontinued operation | 23,400,000 | ||||||||
Escrow deposits related to property sales | 1,100,000 | ||||||||
PA&E | Maximum | |||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||
Indemnification for certain representations and warranty obligations | $ 3,900,000 | ||||||||
[1] | (Recast) | ||||||||
[2] | recast |
Discontinued Operations Income
Discontinued Operations Income (Loss) Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jul. 01, 2016 | Jun. 26, 2015 | [1] | Jul. 01, 2016 | Jun. 26, 2015 | [1] | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Net Sales | $ 4,033 | $ 21,408 | $ 18,867 | $ 67,406 | ||
Operating earnings (loss) | (7,414) | (1,522) | (14,630) | (24,081) | ||
Tax expense (benefit) | 1,276 | (964) | 863 | (3,047) | ||
Income (loss) from discontinued operations | (8,690) | (558) | [2] | (15,493) | (21,034) | [2] |
Included in Operating Earnings (Loss): | ||||||
Gain (loss) on net assets held for sale | (4,323) | (1,316) | (7,895) | (15,763) | [2] | |
Avionics & Controls | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Net Sales | 3,577 | 11,248 | 13,638 | 38,839 | ||
Operating earnings (loss) | (1,184) | (1,196) | 785 | (12,591) | ||
Tax expense (benefit) | 570 | (869) | 1,256 | (958) | ||
Income (loss) from discontinued operations | (1,754) | (327) | (471) | (11,633) | ||
Included in Operating Earnings (Loss): | ||||||
Gain (loss) on net assets held for sale | (2,411) | 323 | (2,355) | (11,116) | ||
Sensors & Systems | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Net Sales | 0 | 7,577 | 0 | 19,834 | ||
Operating earnings (loss) | (71) | 1,352 | (378) | 3,101 | ||
Tax expense (benefit) | (83) | (56) | (83) | 616 | ||
Income (loss) from discontinued operations | 12 | 1,408 | (295) | 2,485 | ||
Included in Operating Earnings (Loss): | ||||||
Gain (loss) on net assets held for sale | 0 | (622) | 0 | (622) | ||
Advanced Materials | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Net Sales | 456 | 2,583 | 5,229 | 8,733 | ||
Operating earnings (loss) | (5,908) | (1,687) | (14,775) | (12,908) | ||
Tax expense (benefit) | 876 | (39) | (223) | (2,115) | ||
Income (loss) from discontinued operations | (6,784) | (1,648) | (14,552) | (10,793) | ||
Included in Operating Earnings (Loss): | ||||||
Gain (loss) on net assets held for sale | (1,912) | (1,017) | (5,540) | (4,025) | ||
Other | ||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||
Net Sales | 0 | 0 | 0 | 0 | ||
Operating earnings (loss) | (251) | 9 | (262) | (1,683) | ||
Tax expense (benefit) | (87) | 0 | (87) | (590) | ||
Income (loss) from discontinued operations | (164) | 9 | (175) | (1,093) | ||
Included in Operating Earnings (Loss): | ||||||
Gain (loss) on net assets held for sale | $ 0 | $ 0 | $ 0 | $ 0 | ||
[1] | recast | |||||
[2] | (Recast) |
Discontinued Operations Assets
Discontinued Operations Assets and Liabilities Held for Sale (Detail) - USD ($) $ in Thousands | Jul. 01, 2016 | Oct. 02, 2015 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | $ 7,341 | $ 6,906 |
Inventories | 9,251 | 20,604 |
Prepaid expenses | 347 | 341 |
Deferred income tax benefits | 0 | |
Income tax refundable | 1,095 | |
Current Assets of Businesses Held for Sale | 18,034 | 27,851 |
Net property, plant and equipment | 8,038 | 17,673 |
Intangibles, net | 1,759 | 5,873 |
Deferred income tax benefits | (392) | (147) |
Other assets | 1,330 | 1,518 |
Non-Current Assets of Businesses Held for Sale | 10,735 | 24,917 |
Accounts payable | 1,737 | 6,715 |
Accrued liabilities | 10,546 | 10,391 |
Current Liabilities of Businesses Held for Sale | 12,283 | 17,106 |
Deferred income tax liabilities | 902 | 194 |
Other liabilities | 320 | 2,215 |
Non-Current Liabilities of Businesses Held for Sale | 1,222 | 2,409 |
Net Assets of Businesses Held for Sale | 15,264 | 33,253 |
Avionics & Controls | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 3,032 | 5,360 |
Inventories | 8,956 | 14,763 |
Prepaid expenses | 145 | 156 |
Deferred income tax benefits | 0 | |
Income tax refundable | 0 | |
Current Assets of Businesses Held for Sale | 12,133 | 20,279 |
Net property, plant and equipment | 5,349 | 5,474 |
Intangibles, net | 0 | 945 |
Deferred income tax benefits | (392) | (147) |
Other assets | 0 | 0 |
Non-Current Assets of Businesses Held for Sale | 4,957 | 6,272 |
Accounts payable | 251 | 1,878 |
Accrued liabilities | 7,666 | 8,340 |
Current Liabilities of Businesses Held for Sale | 7,917 | 10,218 |
Deferred income tax liabilities | 0 | 0 |
Other liabilities | 0 | 2,215 |
Non-Current Liabilities of Businesses Held for Sale | 0 | 2,215 |
Net Assets of Businesses Held for Sale | 9,173 | 14,118 |
Sensors & Systems | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 0 | 0 |
Inventories | 0 | 0 |
Prepaid expenses | 0 | 0 |
Deferred income tax benefits | 0 | |
Income tax refundable | 0 | |
Current Assets of Businesses Held for Sale | 0 | 0 |
Net property, plant and equipment | 0 | 0 |
Intangibles, net | 0 | 0 |
Deferred income tax benefits | 0 | 0 |
Other assets | 0 | 0 |
Non-Current Assets of Businesses Held for Sale | 0 | 0 |
Accounts payable | 0 | 0 |
Accrued liabilities | 0 | 0 |
Current Liabilities of Businesses Held for Sale | 0 | 0 |
Deferred income tax liabilities | 0 | 0 |
Other liabilities | 0 | 0 |
Non-Current Liabilities of Businesses Held for Sale | 0 | 0 |
Net Assets of Businesses Held for Sale | 0 | 0 |
Advanced Materials | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 4,309 | 1,546 |
Inventories | 295 | 5,841 |
Prepaid expenses | 202 | 185 |
Deferred income tax benefits | 0 | |
Income tax refundable | 1,095 | |
Current Assets of Businesses Held for Sale | 5,901 | 7,572 |
Net property, plant and equipment | 2,689 | 12,199 |
Intangibles, net | 1,759 | 4,928 |
Deferred income tax benefits | 0 | 0 |
Other assets | 1,330 | 1,518 |
Non-Current Assets of Businesses Held for Sale | 5,778 | 18,645 |
Accounts payable | 1,486 | 4,837 |
Accrued liabilities | 2,880 | 2,051 |
Current Liabilities of Businesses Held for Sale | 4,366 | 6,888 |
Deferred income tax liabilities | 902 | 194 |
Other liabilities | 320 | 0 |
Non-Current Liabilities of Businesses Held for Sale | 1,222 | 194 |
Net Assets of Businesses Held for Sale | $ 6,091 | $ 19,135 |
Business Segment Information fo
Business Segment Information for Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jul. 01, 2016 | Jun. 26, 2015 | Jul. 01, 2016 | Jun. 26, 2015 | |||
Segment Reporting Information [Line Items] | ||||||
Sales | $ 517,092 | $ 484,723 | [1] | $ 1,448,879 | $ 1,457,544 | [1] |
Other income | 0 | 0 | [1] | 0 | 12,744 | [1] |
Interest income | 30 | 87 | [1] | 211 | 406 | [1] |
Interest expense | (7,659) | (10,393) | [1] | (22,169) | (24,409) | [1] |
Loss on extinguishment of debt | 0 | (329) | [1] | 0 | (329) | [1] |
Earnings from Continuing Operations Before Income Taxes | 46,416 | 35,091 | [1] | 77,045 | 111,274 | [1] |
Avionics & Controls | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 222,583 | 200,078 | 607,493 | 594,025 | ||
Sensors & Systems | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 186,337 | 175,544 | 514,836 | 529,976 | ||
Advanced Materials | ||||||
Segment Reporting Information [Line Items] | ||||||
Sales | 108,172 | 109,101 | 326,550 | 333,543 | ||
Operating Segments | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment Earnings | 71,971 | 64,318 | 153,959 | 184,316 | ||
Operating Segments | Avionics & Controls | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment Earnings | 28,517 | 16,836 | 40,579 | 62,096 | ||
Operating Segments | Sensors & Systems | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment Earnings | 27,942 | 22,968 | 61,670 | 56,682 | ||
Operating Segments | Advanced Materials | ||||||
Segment Reporting Information [Line Items] | ||||||
Segment Earnings | 15,512 | 24,514 | 51,710 | 65,538 | ||
Corporate Non Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Corporate expense | $ (17,926) | $ (18,592) | $ (54,956) | $ (61,454) | ||
[1] | (Recast) |