Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Sep. 30, 2016 | Nov. 21, 2016 | Apr. 01, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | ESL | ||
Entity Registrant Name | ESTERLINE TECHNOLOGIES CORP | ||
Entity Central Index Key | 33,619 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 29,574,501 | ||
Entity Public Float | $ 1,890,571,487 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||||||
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | [2] | Oct. 31, 2014 | ||||
Income Statement [Abstract] | ||||||||
Net Sales | $ 1,774,449 | [1] | $ 1,992,631 | [1] | $ 2,002,793 | $ 2,029,471 | [1] | |
Cost of Sales | 1,185,056 | 1,331,386 | 1,323,405 | 1,314,762 | ||||
Gross Profit | 589,393 | 661,245 | 679,388 | 714,709 | ||||
Expenses | ||||||||
Selling, general & administrative | 346,781 | 395,274 | 384,156 | 361,190 | ||||
Research, development and engineering | 91,491 | 95,939 | 100,426 | 97,591 | ||||
Restructuring charges | 6,639 | 4,873 | 8,143 | 13,642 | ||||
Insurance recovery | 0 | (5,000) | 0 | 0 | ||||
Other income | (12,503) | 0 | (12,503) | 0 | ||||
Total Expenses | 432,408 | 491,086 | 480,222 | 472,423 | ||||
Operating Earnings from Continuing Operations | 156,985 | 170,159 | 199,166 | 242,286 | ||||
Interest Income | (578) | (367) | (632) | (555) | ||||
Interest Expense | 30,090 | 30,091 | 33,114 | 33,010 | ||||
Loss on Extinguishment of Debt | 11,451 | 0 | 11,451 | 533 | ||||
Earnings from Continuing Operations Before Income Taxes | 116,022 | 140,435 | 155,233 | 209,298 | ||||
Income Tax Expense | 18,956 | 22,535 | 26,911 | 43,716 | ||||
Earnings from Continuing Operations Including Noncontrolling Interests | 97,066 | 117,900 | 128,322 | 165,582 | ||||
Earnings Attributable to Noncontrolling Interests | (401) | (949) | (427) | (553) | ||||
Earnings from Continuing Operations Attributable to Esterline, Net of Tax | 96,665 | 116,951 | 127,895 | 165,029 | ||||
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | (37,053) | (15,266) | (40,319) | (62,611) | ||||
Net Earnings Attributable to Esterline | $ 59,612 | $ 101,685 | $ 87,576 | $ 102,418 | ||||
Earnings (Loss) Per Share Attributable to Esterline - Basic: | ||||||||
Continuing operations | $ 3.15 | $ 3.97 | $ 4.16 | $ 5.19 | ||||
Discontinued operations | (1.21) | (0.52) | (1.31) | (1.97) | ||||
Earnings (Loss) Per Share - Basic | 1.94 | 3.45 | 2.85 | 3.22 | ||||
Earnings (Loss) Per Share Attributable to Esterline - Diluted: | ||||||||
Continuing operations | 3.10 | 3.93 | 4.10 | 5.09 | ||||
Discontinued operations | (1.19) | (0.51) | (1.29) | (1.93) | ||||
Earnings (Loss) Per Share - Diluted | $ 1.91 | $ 3.42 | $ 2.81 | $ 3.16 | ||||
[1] | Based on country from which the sale originated and the sale was recorded. | |||||||
[2] | (Recast) |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income (Loss) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |||
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | [1] | Oct. 31, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||||
Net earnings | $ 59,612 | $ 101,685 | $ 87,576 | $ 102,418 | |
Change in Fair Value of Derivative Financial Instruments | (8,763) | 18,394 | (10,456) | (12,327) | |
Income Tax Expense (Benefit) | 2,147 | (4,959) | 3,294 | 3,534 | |
Change in Fair Value of Derivative Financial Instruments, Net of Tax | (6,616) | 13,435 | (7,162) | (8,793) | |
Change in Pension and Post-Retirement Obligations | (9,499) | (16,622) | (20,199) | (6,009) | |
Income Tax Expense (Benefit) | 3,703 | 6,029 | 7,246 | 2,041 | |
Change in Pension and Post-Retirement Obligations, Net of Tax | (5,796) | (10,593) | (12,953) | (3,968) | |
Foreign currency translation adjustment | (164,839) | (42,871) | (175,222) | (96,532) | |
Comprehensive Income (Loss) | $ (117,639) | $ 61,656 | $ (107,761) | $ (6,875) | |
[1] | (Recast) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Thousands | Sep. 30, 2016 | Oct. 02, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 258,520 | $ 191,355 |
Cash in escrow | 1,125 | 0 |
Accounts receivable, net of allowances of $17,028 and $10,050 | 422,073 | 380,748 |
Inventories | 450,206 | 446,768 |
Income tax refundable | 5,183 | 12,575 |
Deferred income tax benefits | 0 | 41,082 |
Prepaid expenses | 17,909 | 23,008 |
Other current assets | 5,322 | 5,427 |
Current assets of businesses held for sale | 15,450 | 27,851 |
Total Current Assets | 1,175,788 | 1,128,814 |
Property, Plant and Equipment | ||
Land | 28,152 | 28,361 |
Buildings | 240,878 | 225,237 |
Machinery and equipment | 526,760 | 475,719 |
Property, Plant and Equipment, Gross, Total | 795,790 | 729,317 |
Accumulated depreciation | 457,756 | 419,918 |
Total Property, Plant and Equipment | 338,034 | 309,399 |
Other Non-Current Assets | ||
Goodwill | 1,024,667 | 1,041,991 |
Intangibles, net | 393,035 | 452,040 |
Deferred income tax benefits | 75,409 | 28,979 |
Other assets | 13,698 | 14,348 |
Non-current assets of businesses held for sale | 11,400 | 24,917 |
Total Assets | 3,032,031 | 3,000,488 |
Current Liabilities | ||
Accounts payable | 121,816 | 117,976 |
Accrued liabilities | 238,163 | 259,734 |
Current maturities of long-term debt | 16,774 | 13,376 |
Federal and foreign income taxes | 10,932 | 2,404 |
Current liabilities of businesses held for sale | 10,813 | 17,106 |
Total Current Liabilities | 398,498 | 410,596 |
Long-Term Liabilities | ||
Credit facilities | 155,000 | 160,000 |
Long-term debt, net of current maturities | 698,796 | 701,457 |
Deferred income tax liabilities | 53,798 | 73,849 |
Pension and post-retirement obligations | 92,520 | 75,019 |
Other liabilities | 21,968 | 29,367 |
Non-current liabilities of businesses held for sale | 320 | 2,409 |
Shareholders' Equity | ||
Common stock, par value $.20 per share, authorized 60,000,000 shares, issued 32,564,252 and 32,378,185 shares | 6,513 | 6,476 |
Additional paid-in capital | 702,610 | 682,479 |
Treasury stock at cost, repurchased 3,135,927 and 2,831,350 shares | (308,514) | (289,780) |
Retained earnings | 1,548,805 | 1,447,120 |
Accumulated other comprehensive loss | (348,857) | (308,828) |
Total Esterline shareholders' equity | 1,600,557 | 1,537,467 |
Noncontrolling interests | 10,574 | 10,324 |
Total Shareholders' Equity | 1,611,131 | 1,547,791 |
Total Liabilities and Shareholders' Equity | $ 3,032,031 | $ 3,000,488 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2016 | Oct. 02, 2015 | Oct. 31, 2014 | Oct. 25, 2013 |
Statement Of Financial Position [Abstract] | ||||
Accounts receivable, allowances | $ 17,028 | $ 10,050 | $ 10,023 | $ 9,215 |
Common stock, par value | $ 0.20 | $ 0.20 | ||
Common stock, shares authorized | 60,000,000 | 60,000,000 | ||
Common stock, shares issued | 32,564,252 | 32,378,185 | 32,123,717 | |
Treasury stock, shares repurchased | 3,135,927 | 2,831,350 | 269,228 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |||
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | Oct. 31, 2014 | ||
Cash Flows Provided (Used) by Operating Activities | |||||
Net earnings including noncontrolling interests | $ 60,013 | $ 102,634 | $ 88,003 | [1] | $ 102,971 |
Adjustments to reconcile net earnings including noncontrolling interests to net cash provided (used) by operating activities: | |||||
Depreciation and amortization | 90,575 | 100,258 | 103,357 | [1] | 116,027 |
Deferred income taxes | (17,976) | (22,166) | (18,165) | [1] | (14,893) |
Share-based compensation | 10,771 | 13,462 | 12,106 | [1] | 13,044 |
Loss (gain) on disposal of capital assets | 0 | 0 | 0 | [1] | 3,174 |
Gain on release of non-income tax liability | (15,656) | 0 | (15,656) | [1] | 0 |
Loss on assets held for sale | 31,154 | 8,448 | 30,792 | [1] | 49,472 |
Working capital changes, net of effect of acquisitions: | |||||
Accounts receivable | 10,188 | (44,759) | (13,757) | [1] | (17,375) |
Inventories | (7,746) | 551 | 5,189 | [1] | (21,491) |
Prepaid expenses | (4,268) | 4,875 | (2,965) | [1] | (3,237) |
Other current assets | (3,567) | 373 | (2,068) | [1] | 1,009 |
Accounts payable | (10,476) | 1,445 | 6,749 | [1] | 1,341 |
Accrued liabilities | 10,880 | (7,876) | 18,894 | [1] | 13,461 |
Federal and foreign income taxes | (12,821) | 14,878 | (21,027) | [1] | (11,175) |
Other liabilities | 8,994 | (3,639) | 7,964 | [1] | (13,852) |
Other, net | (5,770) | (1,326) | (5,750) | [1] | (2,112) |
Net Cash Provided (Used) by Operating Activities | 144,295 | 167,158 | 193,666 | [1] | 216,364 |
Cash Flows Provided (Used) by Investing Activities | |||||
Purchase of capital assets | (49,341) | (68,472) | (55,407) | [1] | (45,678) |
Escrow deposit | 0 | (1,125) | 0 | [1] | 0 |
Proceeds from sale of discontinued operations | 30,156 | 3,654 | 30,156 | [1] | 0 |
Proceeds from sale of capital assets | 1,592 | 0 | 1,592 | [1] | 572 |
Acquisition of business, net of cash acquired | (155,975) | 0 | (155,975) | [1] | (44,745) |
Net Cash Provided (Used) by Investing Activities | (173,568) | (65,943) | (179,634) | [1] | (89,851) |
Cash Flows Provided (Used) by Financing Activities | |||||
Proceeds provided by stock issuance under employee stock plans | 14,063 | 6,139 | 16,573 | [1] | 31,215 |
Excess tax benefits from stock option exercises | 1,973 | 567 | 2,613 | [1] | 7,090 |
Shares repurchased | (259,518) | (18,734) | (269,257) | [1] | (30,262) |
Repayment of long-term credit facilities | (405,000) | (50,000) | (415,000) | [1] | (55,000) |
Repayment of long-term debt | (416,827) | (12,360) | (418,999) | [1] | (35,810) |
Proceeds from long-term credit facilities | 465,000 | 45,000 | 465,000 | [1] | 25,000 |
Proceeds from issuance of long-term debt | 606,532 | 0 | 606,532 | [1] | 0 |
Proceeds from government assistance | 3,007 | 0 | 3,083 | [1] | 3,337 |
Dividends paid to noncontrolling interests | 0 | 0 | 0 | [1] | (778) |
Debt and other issuance costs | (8,263) | 0 | (8,263) | [1] | 0 |
Net Cash Provided (Used) by Financing Activities | 967 | (29,388) | (17,718) | [1] | (55,208) |
Effect of Foreign Exchange Rates on Cash and Cash Equivalents | (18,483) | (4,662) | (18,210) | [1] | (12,339) |
Net Increase (Decrease) in Cash and Cash Equivalents | (46,789) | 67,165 | (21,896) | [1] | 58,966 |
Cash and Cash Equivalents - Beginning of Year | 238,144 | 191,355 | 213,251 | 179,178 | |
Cash and Cash Equivalents - End of Year | 191,355 | 258,520 | 191,355 | 238,144 | |
Supplemental Cash Flow Information: | |||||
Cash paid for interest | 26,638 | 27,679 | 28,075 | [1] | 28,593 |
Cash paid for taxes | 34,550 | 24,803 | 43,543 | [1] | 65,147 |
Supplemental Non-cash Investing and Financing Activities: | |||||
Capital asset and lease obligation additions | $ 0 | $ 11,260 | $ 0 | [1] | $ 2,753 |
[1] | (Recast) |
Consolidated Statement of Share
Consolidated Statement of Shareholders' Equity, Noncontrolling Interests and Comprehensive Income (Loss) - USD ($) $ in Thousands | Total | Common Stock, Par Value $.20 Per Share | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests |
Beginning of year at Oct. 25, 2013 | $ 6,288 | $ 604,511 | $ 0 | $ 1,285,090 | $ (22,284) | $ 11,147 | |
Shares issued under employee stock plans | 137 | 38,168 | |||||
Share-based compensation expense | 13,044 | ||||||
Shares repurchased | (30,262) | ||||||
Net earnings | $ 102,418 | 102,418 | |||||
Change in fair value of derivative financial instruments, net of tax | (8,793) | ||||||
Change in pension and post-retirement obligations, net of tax | (3,968) | ||||||
Foreign currency translation adjustment | (96,532) | (96,532) | |||||
Net changes in equity attributable to noncontrolling interest | (964) | ||||||
End of year at Oct. 31, 2014 | 1,898,000 | 6,425 | 655,723 | (30,262) | 1,387,508 | (131,577) | 10,183 |
Shares issued under employee stock plans | 51 | 15,985 | |||||
Share-based compensation expense | 10,771 | ||||||
Shares repurchased | (259,518) | ||||||
Net earnings | 59,612 | 59,612 | |||||
Change in fair value of derivative financial instruments, net of tax | (6,616) | ||||||
Change in pension and post-retirement obligations, net of tax | (5,796) | ||||||
Foreign currency translation adjustment | (164,839) | (164,839) | |||||
Net changes in equity attributable to noncontrolling interest | 141 | ||||||
End of year at Oct. 02, 2015 | 1,547,791 | 6,476 | 682,479 | (289,780) | 1,447,120 | (308,828) | 10,324 |
Shares issued under employee stock plans | 37 | 6,669 | |||||
Share-based compensation expense | 13,462 | ||||||
Shares repurchased | (18,734) | (18,734) | |||||
Net earnings | 101,685 | 101,685 | |||||
Change in fair value of derivative financial instruments, net of tax | 13,435 | ||||||
Change in pension and post-retirement obligations, net of tax | (10,593) | ||||||
Foreign currency translation adjustment | (42,871) | (42,871) | |||||
Net changes in equity attributable to noncontrolling interest | 250 | ||||||
End of year at Sep. 30, 2016 | $ 1,611,131 | $ 6,513 | $ 702,610 | $ (308,514) | $ 1,548,805 | $ (348,857) | $ 10,574 |
Consolidated Statement of Shar8
Consolidated Statement of Shareholders' Equity Noncontrolling Interest, and Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 31, 2014 | |
Common stock, par value | $ 0.20 | $ 0.20 | |
Change in fair value of derivative financial instruments, net of tax (expense) benefit | $ 2,147 | $ (4,959) | $ 3,534 |
Change in pension and post-retirement obligations net of tax benefit | $ 3,703 | $ 6,029 | $ 2,041 |
Common Stock, Par Value $.20 Per Share | |||
Common stock, par value | $ 0.20 | $ 0.20 | $ 0.20 |
Accumulated Other Comprehensive Income (Loss) | |||
Change in fair value of derivative financial instruments, net of tax (expense) benefit | $ 2,147 | $ (4,959) | $ 3,534 |
Change in pension and post-retirement obligations net of tax benefit | $ 3,703 | $ 6,029 | $ 2,041 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Accounting Policies | NOTE 1: Accounting Policies Nature of Operations Esterline Technologies Corporation (the Company) designs, manufactures and markets highly engineered products. The Company serves the aerospace and defense industry, primarily in the United States and Europe. The Company also serves the industrial/commercial and medical markets. Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and all subsidiaries. All significant intercompany accounts and transactions have been eliminated. Classifications have been changed for certain amounts in prior periods to conform with the current year’s presentation. 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 effective beginning with the year-ended on September 30, 2016. The Company reported our 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 the Company will file an annual report for the twelve-month period ending the last Friday of September of each year, beginning with the twelve-month period ending September 30, 2016. Prior year results have been recast on a calendar quarter basis. Refer to the Transition Report on Form 10-K for the eleven months ended October 2, 2015, for additional information regarding our fiscal year change. Management Estimates To prepare financial statements in conformity with U.S. generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Concentration of Risks The Company’s products are principally focused on the aerospace and defense industry, which includes military and commercial aircraft original equipment manufacturers and their suppliers, commercial airlines, and the United States and foreign governments. Sales directly to the U.S. government or indirectly through subcontractors to the U.S. government account for approximately 18% and 19% of sales in fiscal 2016 and 2015, respectively. Accordingly, the Company’s current and future financial performance is dependent on the economic condition of the aerospace and defense industry. The commercial aerospace and defense markets have historically been subject to cyclical downturns during periods of weak economic conditions or material changes arising from domestic or international events. Management believes that the Company’s sales are balanced across its customer base, which includes not only aerospace and defense customers but also medical and industrial commercial customers. Revenue Recognition The Company recognizes revenue when the title and risk of loss have passed to the customer, there is persuasive evidence of an agreement, delivery has occurred or services have been rendered, the price is determinable, and the collectability is reasonably assured. The Company recognizes product revenues at the point of shipment or delivery in accordance with the terms of sale. Sales are net of returns and allowances. Returns and allowances are generally not significant because products are manufactured to customer specification and are covered by the terms of the product warranty. Revenues and profits on fixed-price contracts with significant engineering as well as production requirements are recorded based on the achievement of contractual milestones and the ratio of total actual incurred costs to date to total estimated costs for each contract (cost-to-cost method). Types of milestones include design review and prototype completion. The Company reviews cost performance and estimates to complete on its ongoing contracts at least quarterly. The impact of revisions of profit estimates are recognized on a cumulative catch-up basis in the period in which the revisions are made. Provisions for anticipated losses on contracts are recorded in the period they become evident. When change orders have been approved by both the company and the customer for both scope and price and realization is deemed probable, the original contract price is adjusted and revenues are recognized on contract performance (as determined by the achievement of contractual milestones and the cost-to-cost method). For partially approved change orders, costs attributable to unpriced change orders are treated as costs of the contract performance in the period the costs are incurred. Claims are also recognized as contract revenue when approved by both the company and the customer, based on contract performance. Research and Development Expenditures for internally-funded research and development are expensed as incurred. Customer-funded research and development projects performed under contracts are accounted for as work in process as work is performed and recognized as cost of sales and sales under the proportional performance method. Research and development expenditures are net of government assistance and tax subsidies, which are not contingent upon paying income tax. In addition, government assistance for research and development is recorded as a reduction of research and development expense when repayment royalties are contingent upon sales generated directly from the funded research and development. If reimbursement is not tied directly to sales generated from the funded research and development, the assistance is accounted for as a loan until the criteria for forgiveness has been met. Financial Instruments Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, short-term borrowings, long-term debt, foreign currency forward contracts, and from time to time interest rate swap agreements. The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate their respective fair values because of the short-term maturities or expected settlement dates of these instruments. The fair market value of the Company’s long-term debt and short-term borrowings was estimated at $870.5 million and $859.0 million at the end of fiscal 2016 and 2015, respectively. These estimates were derived using discounted cash flows with interest rates and quoted market prices currently available to the Company for issuance of debt with similar terms and remaining maturities. Foreign Currency Exchange Risk Management The Company is subject to risks associated with fluctuations in foreign currency exchange rates from the sale of products in currencies other than its functional currency. Furthermore, the Company has assets denominated in foreign currencies that are not offset by liabilities in such foreign currencies. The Company has significant operations in Canada, France, and the United Kingdom, and accordingly, the Company may experience gains or losses due to foreign exchange fluctuations. The Company’s policy is to hedge a portion of its forecasted transactions and a portion of its net monetary assets including the embedded derivatives in its backlog using forward exchange contracts in general, with maturities up to 24 months. These forward contracts have been designated as cash flow hedges. The portion of the net gain or loss on a derivative instrument that is effective as a hedge is reported as a component of other comprehensive income in shareholders’ equity and is reclassified into earnings in the same period during which the hedged transaction affects earnings. The remaining net gain or loss on the derivative in excess of the present value of the expected cash flows of the hedged transaction is recorded in earnings immediately. If a derivative does not qualify for hedge accounting, or a portion of the hedge is deemed ineffective, the change in fair value is recorded in earnings. The amount of hedge ineffectiveness has not been material in any of the three fiscal periods ended September 30, 2016. At September 30, 2016, and October 2, 2015, the notional value of foreign currency forward contracts accounted for as a cash flow hedge was $308.2 million and $306.4 million, respectively. The notional value of the Companies foreign currency forward contracts include $70 million related to the hedge of a portion of its net monetary assets including the embedded derivatives in our backlog. The fair value of these contracts was a liability of $4.9 million and $23.3 million at September 30, 2016, and October 2, 2015, respectively. The Company does not enter into any forward contracts for trading purposes. 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 in 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 since inception of the hedge. Depending on the interest rate environment, the Company may enter into interest rate swap agreements to convert the variable interest rates on notes payable to fixed interest rates. Foreign Currency Translation Foreign currency assets and liabilities are translated into their U.S. dollar equivalents based on year-end exchange rates. Revenue and expense accounts are translated at average exchange rates. Aggregate exchange gains and losses arising from the translation of foreign assets and liabilities are included in shareholders’ equity as a component of comprehensive income. Accumulated loss on foreign currency translation adjustment was $268.8 million, $226.0 million, and $61.1 million as of the fiscal period ended September 30, 2016, October 2, 2015, and October 31, 2014, respectively. Foreign Currency Transaction Gains and Losses Foreign currency transaction gains and losses are included in results of operations and are primarily the result of revaluing assets and liabilities denominated in a currency other than the functional currency, the impact of changes in exchange rates, gains and losses on forward exchange contracts, and the change in value of foreign currency embedded derivatives in backlog. These foreign currency transactions resulted in a $19.8 million loss in fiscal 2016, a $1.3 million gain in fiscal 2015, and a $0.9 million gain in fiscal 2014. Cash Equivalents Cash equivalents consist of highly liquid investments with original maturities of three months or less at the date of purchase. Fair value of cash equivalents approximates carrying value. Accounts Receivable Accounts receivable are recorded at the net invoice price for sales billed to customers. Accounts receivable are considered past due when outstanding more than normal trade terms allow. An allowance for doubtful accounts is established when losses are expected to be incurred. Accounts receivable are written off to the allowance for doubtful accounts when the balance is considered to be uncollectible. Inventories Inventories are stated at the lower of cost or market using the first-in, first-out (FIFO) or average cost method. Inventory cost includes material, labor and factory overhead. The Company defers pre-production engineering costs as work-in-process inventory in connection with long-term supply arrangements that include contractual guarantees for reimbursement from the customer. Inventory cost adjustments are recorded when inventory is considered to be excess or obsolete based upon an analysis of actual on-hand quantities on a part level basis to forecasted product demand and historical usage. Property, Plant and Equipment, and Depreciation Property, plant and equipment is carried at cost and includes expenditures for major improvements. Depreciation is generally provided on the straight-line method based upon estimated useful lives ranging from 15 to 30 years for buildings and 3 to 10 years for machinery and equipment. Depreciation expense was $49.5 million, $50.7 million, and $56.2 million for fiscal 2016, 2015, and 2014, respectively. Depreciation expense included in discontinued operations was $0.7 million and $5.0 million in fiscal 2015 and 2014, respectively. Assets under capital leases were $48.2 million, $40.7 million, and $43.1 million for fiscal 2016, 2015, and 2014, respectively. Amortization expense of assets accounted for as capital leases is included with depreciation expense. The fair value of liabilities related to the retirement of property is recorded when there is a legal or contractual obligation to incur asset retirement costs and the costs can be estimated. The Company records the asset retirement cost by increasing the carrying cost of the underlying property by the amount of the asset retirement obligation. The asset retirement cost is depreciated over the estimated useful life of the underlying property. Debt Issuance Costs Costs incurred to issue debt are deferred and amortized as interest expense over the term of the related debt using a method that approximates the effective interest method. Long-lived Asset Impairments The carrying amount of long-lived assets is reviewed periodically for impairment. An asset (other than goodwill and indefinite-lived intangible assets) is considered impaired when estimated future undiscounted cash flows are less than the carrying amount of the asset. In the event the carrying amount of such asset is not deemed recoverable, the asset is adjusted to its estimated fair value. Fair value is generally determined based upon estimated discounted future cash flows. Assets of Business Held for Sale Assets held for sale are to be reported at lower of its carrying amount or fair value less cost to sell. Judgment is required in estimating the sales price of assets held for sale and the time required to sell the assets. These estimates are based upon available market data and operating cash flows of the assets held for sale. Contingencies The Company is party to various lawsuits and claims, both as plaintiff and defendant, and has contingent liabilities arising from the conduct of business. The Company is covered by insurance for general liability, product liability, workers’ compensation and certain environmental exposures, subject to certain deductible limits. The Company is self-insured for amounts less than our deductible and where no insurance is available. An estimated loss from a contingency should be accrued by a charge to income if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. The Company evaluates, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. Goodwill and Intangibles Goodwill is not amortized, but is tested for impairment at least annually or when circumstances require. A reporting unit is generally defined at the operating segment level or at the component level one level below the operating segment, if said component constitutes a business. Goodwill is allocated to reporting units based upon the purchase price of the acquired unit, the valuation of acquired tangible and intangible assets, and liabilities assumed. When a reporting unit’s carrying value exceeds its estimated fair value, an impairment test is required. This test involves allocating the fair value of the reporting unit to all of the assets and liabilities of that unit, with the excess of fair value over allocated net assets representing the fair value of goodwill. An impairment loss is measured as the amount by which the carrying value of goodwill exceeds the estimated fair value of goodwill. Intangible assets are amortized over their estimated period of benefit, ranging from 2 to 20 years. Amortization expense is reflected in selling, general and administrative expense on the Consolidated Statement of Operations. The Company periodically evaluates the recoverability of intangible assets and takes into account events or circumstances that warrant revised estimates of useful lives or that indicate that an impairment exists. Indefinite-lived intangible assets (other than goodwill) are tested annually for impairment or more frequently on an interim basis if circumstances require. Environmental Environmental exposures are provided for at the time they are known to exist or are considered probable and reasonably estimable. No provision has been recorded for environmental remediation costs which could result from changes in laws or other circumstances currently not known by the Company. Costs provided for future expenditures on environmental remediation are not discounted to present value. Pension Plan and Post-Retirement Benefit Plan Obligations The Company accounts for pension expense using the end of the fiscal year as its measurement date. Management selects appropriate assumptions including discount rate, rate of increase in future compensation levels and assumed long-term rate of return on plan assets and expected annual increases in costs of medical and other health care benefits in regard to the Company’s post-retirement benefit obligations. These assumptions are based upon historical results, the current economic environment and reasonable expectations of future events. Actual results which vary from assumptions are accumulated and amortized over future periods, and accordingly, are recognized in expense in these periods. Significant differences between our assumptions and actual experience or significant changes in assumptions could impact the pension costs and the pension obligation. Legal Expenses The Company recognizes legal costs related to loss contingencies when the expense is incurred. Share-Based Compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. Product Warranties Estimated product warranty expenses are recorded when the covered products are shipped to customers and recognized as revenue. Product warranty expense is estimated based upon the terms of the warranty program. Income Taxes The Company recognizes the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns. Earnings Per Share Basic earnings per share is computed on the basis of the weighted average number of common shares outstanding during the year. Diluted earnings per share also includes the dilutive effect of stock options and restricted stock units. Common shares issuable from stock options that are excluded from the calculation of diluted earnings per share because they were anti-dilutive were 602,900, 409,050, and 136,200 for fiscal 2016, 2015, and 2014, respectively. The weighted average number of shares outstanding used to compute basic earnings per share was 29,490,000, 30,729,000, and 31,840,000 for fiscal years 2016, 2015, and 2014, respectively. The weighted average number of shares outstanding used to compute diluted earnings per share was 29,764,000, 31,215,000, and 32,448,000 for fiscal years 2016, 2015, and 2014, respectively. Recent Accounting Pronouncements In October 2016, the Financial Accounting Standards Board (FASB), issued new guidance regarding income taxes. The new guidance will require the tax effects of intercompany transactions, other than sales of inventory, to be recognized currently, eliminating an exception under current Generally Accepted Accounting Principles (GAAP) in which the tax effects of intra-entity asset transfers are deferred until the transferred asset is sold to a third party or otherwise recovered through use. The Company is evaluating the effect the updated standard will have on the Company’s consolidated financial statements and related disclosures. The guidance will be effective for the company in fiscal year 2019, with early adoption permitted. In August 2016, the FASB issued new guidance addressing how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The Company is evaluating the effect the updated standard will have on the Company’s consolidated financial statements and related disclosures. The guidance will be effective for the Company in fiscal year 2019, with early adoption permitted. In June 2016, the FASB issued a new standard on the measurement of credit losses, which will impact the Company's measurement of trade receivables. The new standard replaces the current incurred loss model with a forward-looking expected loss model that is likely to result in earlier recognition of losses. The Company is evaluating the effect the updated standard will have on the Company’s consolidated financial statements and related disclosures. In March 2016, the 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. The Company is evaluating the effect the updated standard will have on the Company’s consolidated financial statements and related disclosures. |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts | 12 Months Ended |
Sep. 30, 2016 | |
Financing Receivable Additional Disclosures [Abstract] | |
Allowance for Doubtful Accounts | NOTE 2: Allowance for Doubtful Accounts The allowance for doubtful accounts reflects the best estimate of probable losses inherent in the accounts receivable balance and is based on known troubled accounts, historical experience and other currently available evidence. Activity in the allowance for doubtful accounts was as follows: In Thousands 2016 2015 2014 Beginning balance $ 10,050 $ 10,023 $ 9,215 Charged to expense 9,690 1,502 860 Other 1 - 378 349 Write-offs (2,712 ) (1,853 ) (401 ) $ 17,028 $ 10,050 $ 10,023 1 |
Inventories
Inventories | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | NOTE 3: Inventories Inventories at the end of fiscal 2016 and 2015 consisted of the following: In Thousands 2016 2015 Raw materials and purchased parts $ 177,069 $ 169,153 Work in progress 158,671 162,434 Inventory costs under long-term contracts 12,844 18,753 Finished goods 101,622 96,428 $ 450,206 $ 446,768 |
Goodwill
Goodwill | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill | NOTE 4: Goodwill The following table summarizes the changes in goodwill by segment for fiscal 2016 and 2015: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Total Balance, October 31, 2014 $ 440,015 $ 425,353 $ 206,418 $ 1,071,786 Goodwill from acquisitions 48,537 - - 48,537 Goodwill adjustments (841 ) (3,295 ) - (4,136 ) Goodwill write off on assets held for sale (2,043 ) - - (2,043 ) Foreign currency translation adjustment (35,069 ) (34,351 ) (2,733 ) (72,153 ) Balance, October 2, 2015 450,599 387,707 203,685 1,041,991 Goodwill adjustments (1,732 ) - - (1,732 ) Foreign currency translation adjustment (6,073 ) (2,140 ) (7,379 ) (15,592 ) Balance, September 30, 2016 $ 442,794 $ 385,567 $ 196,306 $ 1,024,667 On September 3, 2014, the Board of Directors approved a plan to sell certain non-core business units. These business units are reported as discontinued operations. In fiscal 2015, based upon the estimated fair values, the Company recorded and estimated after-tax loss of $31.2 million on the assets held for sale in discontinued operations, of which $2.0 million was recorded against goodwill. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | NOTE 5: Intangible Assets Intangible assets at the end of fiscal 2016 and 2015 were as follows: In Thousands 2016 2015 Weighted Gross Gross Average Years Carrying Accum. Carrying Accum. Useful Life Amount Amort. Amount Amort. Amortized Intangible Assets: Programs 16 $ 607,276 $ 293,223 $ 635,761 $ 270,830 Core technology 12 15,926 11,778 15,926 10,273 Patents and other 12 86,286 51,250 87,506 45,402 Total $ 709,488 $ 356,251 $ 739,193 $ 326,505 Indefinite-lived Intangible Assets: Trademark $ 39,798 $ 39,352 Programs represent the valuation of systems or components sold under long-term supply agreements with aerospace companies, military contractors, and OEM manufacturers using similar technology. The valuation of the program includes the values of the program-specific technology, the backlog of contracts, and the relationship with customers which lead to potential future contracts. The valuation of the program is based upon its discounted cash flow at a market-based discount rate. Amortization of intangible assets from continuing operations was $49.4 million, $44.0 million, and $49.4 million in fiscal years 2016, 2015, and 2014, respectively. Amortization of intangible assets related to discontinued operations was $1.2 million and $9.1 million in fiscal years 2015 and 2014, respectively. Estimated amortization expense related to intangible assets for each of the next five fiscal years is as follows: In Thousands Fiscal Year 2017 $ 46,049 2018 45,121 2019 43,783 2020 41,580 2021 40,137 |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Sep. 30, 2016 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | NOTE 6: Accrued Liabilities Accrued liabilities at the end of fiscal 2016 and 2015 consisted of the following: In Thousands 2016 2015 Payroll and other compensation $ 107,132 $ 107,912 Commissions 5,901 5,373 Casualty and medical 14,933 14,881 Interest 6,397 6,999 Warranties 13,365 14,658 State and other tax accruals 4,737 3,986 Customer deposits 22,302 32,566 Deferred revenue 26,618 19,647 Contract reserves 8,822 13,008 Forward foreign exchange contracts 12,036 20,932 Litigation reserves 4,006 6,657 Environmental reserves 646 646 Rent and future lease obligations 1,925 1,958 Other 9,343 10,511 $ 238,163 $ 259,734 Accrued liabilities are recorded to reflect the Company’s contractual obligations relating to warranty commitments to customers. Warranty coverage of various lengths and terms is provided to customers depending on standard offerings and negotiated contractual agreements. An estimate for warranty expense is recorded at the time of sale based on the length of the warranty and historical warranty return rates and repair costs. Changes in the carrying amount of accrued product warranty costs are summarized as follows: In Thousands 2016 2015 Balance, beginning of year $ 14,658 $ 16,243 Warranty costs incurred (2,423 ) (1,917 ) Reclassification to liabilities held for sale - (108 ) Product warranty accrual 6,850 7,762 Release of reserves (5,700 ) (6,702 ) Acquisitions - 1,024 Foreign currency translation adjustment (20 ) (1,644 ) Balance, end of year $ 13,365 $ 14,658 |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Sep. 30, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Benefits | NOTE 7: Retirement Benefits Approximately 41% of U.S. employees have a defined benefit earned under the Esterline pension plan. Under the Esterline plan, pension benefits are based on years of service and five-year average compensation for the highest five consecutive years’ compensation during the last ten years of employment. Esterline amended its defined benefit plan to add the cash balance formula with annual pay credits ranging from 2% to 6% effective January 1, 2003. Participants elected either to continue earning benefits under the current plan formula or to earn benefits under the cash balance formula. Effective January 1, 2003, all new participants are enrolled in the cash balance formula. Esterline also has an unfunded supplemental retirement plan for key executives providing for periodic payments upon retirement. CMC Electronics, Inc. (CMC) sponsors defined benefit pension plans and other retirement benefit plans for its non-U.S. employees. Pension benefits are based upon years of service and final average salary. Other retirement benefit plans are non-contributory health care and life insurance plans. The Company sponsors a number of other non-U.S. defined benefit pension plans primarily in Belgium, France and Germany. These defined benefit plans generally provide benefits to employees based on formulas recognizing length of service and earnings. The Company accounts for pension expense using the end of the fiscal year as its measurement date. In addition, the Company makes actuarially computed contributions to these plans as necessary to adequately fund benefits. The Company’s funding policy is consistent with the minimum funding requirements of ERISA. The accumulated benefit obligation and projected benefit obligation for the Esterline plans are $307.0 million and $318.7 million, respectively, with plan assets of $270.9 million as of September 30, 2016. The underfunded status for the Esterline plans is $47.8 million at September 30, 2016. Contributions to the Esterline plans totaled $1.4 million and $1.2 million in fiscal years 2016 and 2015, respectively. There is no funding requirement for fiscal 2017 for the U.S. pension plans maintained by Esterline. The accumulated benefit obligation and projected benefit obligation for the CMC plans are $137.6 million and $138.3 million, respectively, with plan assets of $133.7 million as of September 30, 2016. The underfunded status for these CMC plans is $4.6 million at September 30, 2016. Contributions to the CMC plans totaled $5.6 million and $6.3 million in fiscal 2016 and 2015, respectively. The expected funding requirement for fiscal 2017 for the CMC plans is $3.7 million. The accumulated benefit obligation and projected benefit obligation for the other non-U.S. plans are $37.5 million and $48.4 million, respectively, with plan assets of $21.2 million as of September 30, 2016. The underfunded status for these other non-U.S. plans is $27.1 million at September 30, 2016. Contributions to the other non-U.S. plans totaled $5.0 million and $1.7 million in fiscal 2016 and 2015, respectively. The expected funding requirement for fiscal 2017 for the other non-U.S. plans is $0.7 million. Principal assumptions of the Esterline, CMC and Other Non-U.S. plans are as follows: Esterline CMC Other Non-U.S. Defined Benefit Defined Benefit Defined Benefit Pension Plans Pension Plans Pension Plans 2016 2015 2016 2015 2016 2015 Principal assumptions as of year end: Discount rate 3.60% 4.40% 3.22% 4.00% 0.90 - 7.75% 1.80 - 8.25% Rate of increase in future compensation levels 4.28% 4.22% 2.75% 3.00% 2.96 - 10.13% 4.50 - 8.90% Assumed long-term rate of return on plan assets 7.00% 7.00% 5.66% 5.70% 3.25 - 8.00% 3.25 - 8.00% Esterline CMC Post-Retirement Post-Retirement Pension Plans Pension Plans 2016 2015 2016 2015 Principal assumptions as of year end: Discount rate 3.60% 4.40% 3.16% 4.00% Initial weighted average health care trend rate 6.00% 6.00% 6.00% 3.70% Ultimate weighted average health care trend rate 6.00% 6.00% 4.20% 3.10% The Company uses a discount rate for expected returns that is a spot rate developed from a yield curve established from high-quality corporate bonds and matched to plan-specific projected benefit payments. Although future changes to the discount rate are unknown, had the discount rate increased or decreased by 25 basis points, pension liabilities in total would have decreased $14.5 million or increased $15.2 million, respectively. If all other assumptions are held constant, the estimated effect on fiscal 2016 pension expense from a hypothetical 25 basis points increase or decrease in both the discount rate and expected long-term rate of return on plan assets would not have a material effect on our pension expense. Management is not aware of any legislative or other initiatives or circumstances that will significantly impact the Company’s pension obligations in fiscal 2017. The assumed health care trend rate can have a significant impact on the Company’s post-retirement benefit obligations. The Company’s health care trend rate was based on the experience of its plan and expectations for the future. A 100 basis points increase in the health care trend rate would increase the post-retirement benefit obligation by $1.1 million. A 100 basis points decrease in the health care trend rate would decrease the post-retirement benefit obligation by $0.9 million. Assuming all other assumptions are held constant, the estimated effect on fiscal 2016 post-retirement benefit expense from a hypothetical 100 basis points increase or decrease in the health care trend rate would not have a material effect on our post-retirement benefit expense. Plan assets are invested in a diversified portfolio of equity and debt securities consisting primarily of common stocks, bonds and government securities. The objective of these investments is to maintain sufficient liquidity to fund current benefit payments and achieve targeted risk-adjusted returns. Management periodically reviews allocations of plan assets by investment type and evaluates external sources of information regarding the long-term historical returns and expected future returns for each investment type, and accordingly, the 3.25% to 8.00% assumed long-term rate of return on plan assets is considered to be appropriate. Allocations by investment type are as follows: Actual Target 2016 2015 Plan assets allocation as of fiscal year end: Equity securities 35 - 70% 56.4 % 56.8 % Debt securities 30 - 65% 37.1 % 38.2 % Cash 0% 6.5 % 5.0 % Total 100.0 % 100.0 % The following table presents the fair value of the Company’s Pension Plan assets as of September 30, 2016, by asset category segregated by level within the fair value hierarchy, as described in Note 8. In Thousands Fair Value Hierarchy Level 1 Level 2 Total Asset category: Equity Funds: Registered Investment Company Funds - U.S. Equity $ 104,075 $ - $ 104,075 Commingled Trust Funds - U.S. Equity - - - U.S. Equity Securities 55,196 - 55,196 Non-U.S. Equity Securities 28,031 - 28,031 Commingled Trust Funds - Non-U.S. Securities - 52,973 52,973 Fixed Income Securities: Commingled Trust Funds - Fixed Income - 82,627 82,627 Non-U.S. Foreign Commercial and Government Bonds - 75,414 75,414 Cash and Cash Equivalents 27,465 - 27,465 Total $ 214,767 $ 211,014 $ 425,781 The following table presents the fair value of the Company’s Pension Plan assets as of October 2, 2015, by asset category segregated by level within the fair value hierarchy, as described in Note 8. In Thousands Fair Value Hierarchy Level 1 Level 2 Total Asset category: Equity Funds: Registered Investment Company Funds - U.S. Equity $ 95,481 $ - $ 95,481 Commingled Trust Funds - U.S. Equity - 25,307 25,307 U.S. Equity Securities 30,868 - 30,868 Non-U.S. Equity Securities 20,898 - 20,898 Commingled Trust Funds - Non-U.S. Securities - 48,592 48,592 Fixed Income Securities: Commingled Trust Funds - Fixed Income - 80,424 80,424 Non-U.S. Foreign Commercial and Government Bonds - 68,390 68,390 Cash and Cash Equivalents 19,501 - 19,501 Total $ 166,748 $ 222,713 $ 389,461 Valuation Techniques Level 1 Equity Securities are actively traded on U.S. and non-U.S. exchanges and are either valued using the market approach at quoted market prices on the measurement date or at the net asset value of the shares held by the plan on the measurement date based on quoted market prices. Level 2 fixed income securities are primarily valued using the market approach at either quoted market prices, pricing models that use observable market data, or bids provided by independent investment brokerage firms. Level 2 primarily consists of commingled trust funds that are primarily valued at the net asset value provided by the fund manager. Net asset value is based on the fair value of the underlying investments. Cash and cash equivalents include cash which is used to pay benefits and cash invested in a short-term investment fund that holds securities with values based on quoted market prices, but for which the funds are not valued on quoted market basis. Net periodic pension cost for the Company’s defined benefit plans at the end of each fiscal year consisted of the following: In Thousands Defined Benefit Post-Retirement Pension Plans Benefit Plans 2016 2015 2014 2016 2015 2014 Components of Net Periodic Cost Service cost $ 12,861 $ 11,811 $ 11,367 $ 342 $ 359 $ 489 Interest cost 18,095 16,159 19,387 473 464 685 Expected return on plan assets (24,491 ) (23,872 ) (25,999 ) - - - Contractual termination - - 94 - - - Curtailment - - 23 - - (1,747 ) Settlement 2 3,522 - - - - Amortization of prior service cost 487 404 107 (17 ) (63 ) (151 ) Amortization of actuarial (gain) loss 6,590 5,165 6,052 - - 38 Net periodic cost (benefit) $ 13,544 $ 13,189 $ 11,031 $ 798 $ 760 $ (686 ) The funded status of the defined benefit pension and post-retirement plans at the end of fiscal 2016 and 2015 were as follows: In Thousands Defined Benefit Post-Retirement Pension Plans Benefit Plans 2016 2015 2016 2015 Benefit Obligations Beginning balance $ 453,283 $ 473,348 $ 12,187 $ 13,797 Currency translation adjustment 268 (23,642 ) 26 (1,923 ) Service cost 12,861 11,811 342 359 Interest cost 18,095 16,159 473 464 Plan participants contributions 376 256 - - Amendment - 3,407 - - Acquisitions - 13,982 - - Actuarial (gain) loss 44,136 (2,552 ) 738 (67 ) Other adjustments (859 ) (1,096 ) - - Benefits paid (22,862 ) (38,390 ) (530 ) (443 ) Ending balance $ 505,298 $ 453,283 $ 13,236 $ 12,187 Plan Assets - Fair Value Beginning balance $ 389,461 $ 427,474 $ - $ - Currency translation adjustment 341 (19,977 ) - - Realized and unrealized gain (loss) on plan assets 45,817 2,021 - - Plan participants contributions 376 256 - - Company contribution 12,041 9,185 530 443 Acquisitions - 9,988 - - Other adjustments 1,466 - - - Expenses paid (859 ) (1,096 ) - - Benefits paid (22,862 ) (38,390 ) (530 ) (443 ) Ending balance $ 425,781 $ 389,461 $ - $ - Funded Status Fair value of plan assets $ 425,781 $ 389,461 $ - $ - Benefit obligations (505,298 ) (453,283 ) (13,236 ) (12,187 ) Net amount recognized $ (79,517 ) $ (63,822 ) $ (13,236 ) $ (12,187 ) Amount Recognized in the Consolidated Balance Sheet Non-current asset $ 2,395 $ 2,172 $ - $ - Current liability (1,912 ) (2,463 ) (716 ) (699 ) Non-current liability (80,000 ) (63,531 ) (12,520 ) (11,488 ) Net amount recognized $ (79,517 ) $ (63,822 ) $ (13,236 ) $ (12,187 ) Amounts Recognized in Accumulated Other Comprehensive Income Net actuarial loss (gain) $ 112,420 $ 96,073 $ 975 $ 232 Prior service cost 2,951 3,436 - (17 ) Ending balance $ 115,371 $ 99,509 $ 975 $ 215 The accumulated benefit obligation for all pension plans was $482.2 million at September 30, 2016, and $433.1 million at October 2, 2015. Estimated future benefit payments expected to be paid from the plan or from the Company’s assets are as follows: In Thousands Fiscal Year 2017 $ 26,816 2018 27,595 2019 29,247 2020 30,328 2021 32,418 2022 - 2026 170,693 Employees may participate in certain defined contribution plans. The Company’s contribution expense under these plans totaled $10.7 million, $9.5 million, and $10.3 million in fiscal 2016, 2015, and 2014, respectively. The Company contributes a matching amount that varies by participating company and employee group based on the first 6% of earnings contributed. The three formulas used are: 25% of the first 6%; or 50% of the first 6%; or 100% of the first 2% and 50% on the next 4%. In fiscal 2014, the Company offered vested terminated participants in the Esterline 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 paid $16.6 million in lump-sum payments to vested terminated pension plan participants from the plan, which resulted in an actuarial settlement charge of $3.0 million. During the remainder of fiscal 2015, an additional $1.4 million in lump-sum payments was distributed to cash balance participants under the ongoing terms of the plan, which resulted in an additional settlement charge of $0.5 million in fiscal 2015. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 8: 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 the end of fiscal 2016 and 2015: In Thousands Level 2 2016 2015 Assets: Derivative contracts designated as hedging instruments $ 2,948 $ 1,386 Derivative contracts not designated as hedging instruments 143 189 Embedded derivatives 2,485 3,992 Liabilities: Derivative contracts designated as hedging instruments $ 7,828 $ 24,660 Derivative contracts not designated as hedging instruments 6,720 2,324 Embedded derivatives 985 380 In Thousands Level 3 2016 2015 Assets: Estimated value of assets held for sale $ 26,850 $ 52,768 Liabilities: Estimated value of liabilities held for sale $ 11,133 $ 19,515 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. The Company’s derivative contracts consist of foreign currency exchange contracts and, from time to time, 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. In the fourth quarter of fiscal 2014, the Company’s board of directors approved the plan to sell certain non-core business units. Based upon the estimated fair values, the Company adjusted the carrying value of the assets and liabilities of the businesses to fair value. Principle assumptions used in measuring the estimated value of assets and liabilities held for sale included estimated selling price of the discontinued business, discount rates, industry growth rates, and pricing of comparable transactions in the market. The Company’s contingent purchase obligations consist 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 fiscal 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 | 12 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 9: Derivative Financial Instruments The Company may use 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 credit worthy 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 values of derivative instruments are presented on a gross basis, as the Company does not have any derivative contracts which are subject to master netting arrangements. The Company does not have any derivative instruments with credit-risk-related contingent features or that required the posting of collateral as of September 30, 2016. 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. As of September 30, 2016, and October 2, 2015, the Company had outstanding foreign currency forward exchange contracts principally to sell U.S. dollars with notional amounts of $450.9 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 in 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 since inception of the hedge. Fair Value of Derivative Instruments Fair values of derivative instruments in the Consolidated Balance Sheet at the end of fiscal 2016 and 2015 consisted of: In Thousands Fair Value Classification 2016 2015 Foreign Currency Forward Exchange Contracts: Other current assets $ 1,757 $ 1,527 Other assets 1,334 48 Accrued liabilities 11,168 20,688 Other liabilities 3,380 6,296 Embedded Derivative Instruments: Other current assets $ 1,864 $ 2,913 Other assets 621 1,079 Accrued liabilities 866 351 Other liabilities 119 29 The effect of derivative instruments on the Consolidated Statement of Operations for fiscal 2016 and 2015 consisted of: Fair Value Hedges The Company recognized the following gains (losses) on contracts designated as fair value hedges: In Thousands 2016 2015 Embedded derivatives: Gain (loss) recognized in sales $ (3,552 ) $ 1,433 Cash Flow Hedges The Company recognized the following gains (losses) on contracts designated as cash flow hedges: In Thousands 2016 2015 Foreign currency forward exchange contracts: Gain (loss) recognized in AOCI (effective portion) $ 37,969 $ 15,484 Gain (loss) reclassified from AOCI into sales (19,575 ) (24,246 ) Net Investment Hedges We recognized the following gains (losses) on contracts designated as net investment hedges: In Thousands 2016 2015 2023 Notes and Accrued Interest: Gain (loss) recognized in AOCI $ (1,256 ) $ (13,596 ) During fiscal years 2016 and 2015, the Company recorded a loss of $6.1 million and a loss of $0.7 million, respectively, on foreign currency forward exchange contracts that have not been designated as an accounting hedge. These foreign currency exchange gains (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 fiscal years 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 fiscal years 2016 and 2015. Amounts included in AOCI are reclassified into earnings when the hedged transaction settles. The Company expects to reclassify approximately $5.6 million of net loss into earnings in fiscal year 2017. The maximum duration of a foreign currency cash flow hedge contract at September 30, 2016, is 24 months. |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 10: Income Taxes Income tax expense from continuing operations for each of the fiscal years consisted of: In Thousands 2016 2015 2014 Current U.S. Federal $ 14,959 $ 11,045 $ 27,243 State (852 ) 492 1,732 Foreign 30,314 24,131 28,944 44,421 35,668 57,919 Deferred U.S. Federal (6,703 ) (7,686 ) (1,024 ) State 2,060 (195 ) (10 ) Foreign (17,243 ) (8,831 ) (13,169 ) (21,886 ) (16,712 ) (14,203 ) Income tax expense $ 22,535 $ 18,956 $ 43,716 U.S. and foreign components of earnings from continuing operations before income taxes for each of the fiscal years were: In Thousands 2016 2015 2014 U.S. $ 71,319 $ 43,592 $ 101,803 Foreign 69,116 72,430 107,495 Earnings from continuing operations before income taxes $ 140,435 $ 116,022 $ 209,298 Primary components of the Company’s deferred tax assets (liabilities) at the end of the fiscal years resulted from temporary tax differences associated with the following: In Thousands 2016 2015 Reserves and liabilities $ 53,119 $ 48,918 Loss carryforwards 51,760 49,667 Tax credit carryforwards 34,836 32,015 Employee benefits 13,853 12,316 Retirement benefits 22,703 17,055 Non-qualified stock options 13,571 11,908 Hedging activities 3,350 6,092 Other 1,003 2,187 Total deferred tax assets 194,195 180,158 Less valuation allowance (42,976 ) (42,694 ) Total deferred tax assets, net of valuation allowance 151,219 137,464 Depreciation and amortization (7,456 ) (9,352 ) Intangibles and amortization (116,620 ) (124,941 ) Deferred costs (3,907 ) (5,779 ) Other (1,625 ) (1,180 ) Total deferred tax liabilities (129,608 ) (141,252 ) Net deferred tax assets (liabilities) $ 21,611 $ (3,788 ) The tax credit carryforwards can be carried forward indefinitely. The Company operates in numerous taxing jurisdictions and is subject to regular examinations by various U.S. federal, state and foreign jurisdictions for various tax periods. Additionally, the Company has retained tax liabilities and the rights to tax refunds in connection with various acquisitions and divestitures of businesses in prior years. The Company’s income tax positions are based on research and interpretations of income tax laws and rulings in each of the jurisdictions in which the Company does business. Due to the subjectivity and complexity of the interpretations of the tax laws and rulings in each jurisdiction, the differences and interplay in the tax laws between those jurisdictions, as well as the inherent uncertainty in estimating the final resolution of complex tax audit matters, the Company’s estimates of income tax liabilities and assets may differ from actual payments, assessments or refunds. Management believes that it is more likely than not that the Company will realize the current and long-term deferred tax assets as a result of future taxable income. Significant factors management considered in determining the probability of the realization of the deferred tax assets include expected future earnings, the Company’s historical operating results, and the reversal of deferred tax liabilities. Accordingly, no valuation allowance has been recorded on the deferred tax assets other than certain capital and net operating losses. The majority of the losses will expire in fiscal 2020. U.S. and various state and foreign income tax returns are open to examination, and presently there are foreign income tax returns under examination. Such examinations could result in challenges to tax positions taken, and accordingly, the Company may record adjustments to provisions based on the outcomes of such matters. However, the Company believes that the resolution of these matters, after considering amounts accrued, will not have a material adverse effect on its consolidated financial statements. The incremental tax benefit received by the Company upon exercise of non-qualified employee stock options was $0.6 million, $2.0 million, and $7.1 million in fiscal years 2016, 2015, and 2014, respectively. A reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate for each of the fiscal years was as follows: 2016 2015 2014 U.S. statutory income tax rate 35.0 % 35.0 % 35.0 % Foreign taxes -9.8 % -10.7 % -7.6 % Difference in foreign tax rates -4.3 % -5.2 % -4.4 % Research & development credits -5.0 % -5.1 % -2.5 % Non-deductible under consent agreement 0.0 % 2.2 % 0.4 % Domestic manufacturing deduction -1.1 % -0.7 % -1.3 % Net change in tax reserves -0.6 % -0.2 % 0.1 % State income taxes 0.2 % 0.2 % 0.5 % Other, net 1.6 % 0.8 % 0.7 % Effective income tax rate 16.0 % 16.3 % 20.9 % No provision for federal income taxes has been made on accumulated earnings of foreign subsidiaries, since such earnings are considered indefinitely reinvested. The amount of undistributed foreign earnings which are considered to be indefinitely reinvested at September 30, 2016, is approximately $533.5 million. Furthermore, the Company determined it was not practical to estimate the deferred taxes on these earnings. The amount of deferred income taxes is not practical to compute due to the complexity of the Company’s international holding company structure, layers of regulatory requirements that have to be evaluated to determine the amount of allowable dividends, numerous potential repatriation scenarios that could be created to facilitate the repatriation of earnings to the U.S., and the complexity of computing foreign tax credits. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: In Thousands Unrecognized tax benefits as of October 2, 2015 $ 10,583 Unrecognized gross benefit change: Gross decrease due to prior period adjustments (475 ) Gross increase due to current period adjustments 1,475 Gross decrease due to settlements with taxing authorities (2,068 ) Gross decrease due to a lapse with taxing authorities (2,889 ) Total change in unrecognized gross benefit (3,957 ) Unrecognized tax benefits as of September 30, 2016 $ 6,626 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 6,626 Statement of operations: Total amount of interest income (expense) included in income tax expense $ (308 ) Recognized in the statement of financial position: Total amount of accrued interest included in income taxes payable $ 583 During the next 12 months, it is reasonably possible that approximately $1.4 million of previously unrecognized tax benefits related to operating losses and tax credits could decrease as a result of settlement of examinations and/or the expiration of statutes of limitations. The Company recognizes interest related to unrecognized tax benefits in income tax expense. The Company is no longer subject to income tax examinations by tax authorities in its major tax jurisdictions as follows: Years No Longer Tax Jurisdiction Subject to Audit U.S. Federal 2012 and prior Canada 2007 and prior France 2012 and prior United Kingdom 2013 and prior |
Debt
Debt | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Debt | NOTE 11: Debt Long-term debt at the end of fiscal 2016 and 2015 consisted of the following: In Thousands 2016 2015 U.S. credit facility $ 155,000 $ 160,000 U.S. Term Loan, due April 2020 237,500 250,000 3.625% Senior Notes, due April 2023 370,920 370,062 Government refundable advances 44,994 43,326 Debt issuance costs (5,609 ) (6,542 ) Obligation under capital leases 67,765 57,987 870,570 874,833 Less current maturities 16,774 13,376 Carrying amount of long-term debt $ 853,796 $ 861,457 U.S. Credit Facility On April 9, 2015, the Company amended the secured credit facility to extend the expiration to April 9, 2020, increase the revolving credit facility to $500 million, and provide for a delayed-draw term loan facility of $250 million. 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%, depending on the leverage ratios at the time the funds are drawn. At September 30, 2016, the Company had $155.0 million outstanding under the secured credit facility at an interest rate of LIBOR plus 1.75%, which ranged from 2.27% to 2.29%. An additional $27.8 million of unsecured foreign currency credit facilities have been extended by foreign banks for a total of $527.8 million available companywide. Available credit under the above credit facilities was $353.2 million at fiscal 2016 year end, when reduced by outstanding borrowings of $155.0 million and letters of credit of $19.6 million. U.S. Term Loan, due April 2020 On August 3, 2015, the Company borrowed $250 million under the delayed-draw term loan provided for under the amended credit facility (U.S. Term Loan, due 2020). The interest rate on the U.S. Term Loan, due 2020, ranges from LIBOR plus 1.25% to LIBOR plus 2.00%, depending on the leverage ratios at the time the funds are drawn. At September 20, 2016, the interest rate was LIBOR plus 1.75%, which equaled 2.28%. The loan amortizes at 1.25% of the original principal balance quarterly through March 2020, with the remaining balance due in April 2020. 3.625% Senior Notes, due April 2023 In April 2015, the Company issued €330.0 million in 3.625% Senior Notes, due April 2023 (2023 Notes) 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 $365.3 million and $347.7 million as of September 30, 2016, and October 2, 2015, respectively. The carrying amounts 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 was based on Level 2 inputs as defined in the fair value hierarchy. In connection with the redemption of debt in fiscal 2015, the Company incurred an $8.75 million redemption premium and wrote off $2.7 million in unamortized debt issuance costs as a loss on extinguishment of debt. Government Refundable Advances Government refundable advances consist of payments received from the Canadian government to assist in research and development related to commercial aviation. The repayment of this advance is based on year-over-year commercial aviation revenue growth at CMC beginning in 2014. Imputed interest on the advance was 3.4% at September 30, 2016. The debt recognized was $45.0 million and $43.3 million as of September 30, 2016, and October 2, 2015, respectively. Obligation Under Capital Lease The Company leases building and equipment under capital leases. The present value of the minimum capital lease payments, net of the current portion, totaled $66.2 million as of September 30, 2016. As of September 30, 2016, aggregate annual maturities of long-term debt and future non-cancelable minimum lease payments under capital lease obligations were as follows: In Thousands Fiscal Year 2017 $ 22,536 2018 19,515 2019 19,625 2020 362,219 2021 7,343 2022 and thereafter 518,987 Total 950,225 Less: debt issuance costs 5,609 amount representing interest on capital leases 74,046 Total long-term debt $ 870,570 A number of underlying agreements contain various covenant restrictions which include maintenance of net worth, payment of dividends, interest coverage, and limitations on additional borrowings. The Company was in compliance with these covenants at September 30, 2016. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | NOTE 12: Commitments and Contingencies Rental expense for operating leases for engineering, selling, administrative and manufacturing totaled $19.0 million, $18.6 million and $18.1 million in fiscal years 2016, 2015, and 2014, respectively. At September 30, 2016, the Company’s rental commitments for noncancelable operating leases with a duration in excess of one year were as follows: In Thousands Fiscal Year 2017 $ 13,431 2018 9,679 2019 8,007 2020 5,637 2021 4,348 2022 and thereafter 6,582 Total $ 47,684 The Company is subject to purchase obligations for goods and services. The purchase obligations include amounts under legally enforceable agreements for goods and services with defined terms as to quantity, price and timing of delivery. As of September 30, 2016, the Company’s purchase obligations were as follows: In Thousands Less than 1‒3 4‒5 After 5 Total 1 year years years years Purchase obligations $ 657,396 $ 621,660 $ 29,288 $ 5,313 $ 1,135 The Company is a party to various lawsuits and claims, both as 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. At the end of fiscal 2016 and fiscal 2015, the Company had a $0.8 million and $1.6 million liability, 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 provides 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 compliance measures and additional remedial compliance measures related to automated systems and ITAR compliance policies, procedures, and training. The Company expects to be released from the Consent Agreement in fiscal 2017, depending upon the Company’s satisfactory completion of the remaining requirements under the agreement and the timing of final approval by the DTCC. The $10 million portion of the settlement that is not subject to suspension will be paid in installments, with $8 million paid over fiscal years 2014, 2015, and 2016 and $2 million is payable in March 2017. In fiscal 2016, the DTCC approved costs the Company incurred to implement compliance measures to fully offset the $10 million suspended payment. During fiscal 2015, the Company recognized a $15.7 million gain in other income and a $2.4 million reduction in interest expense upon the lapse of a statutory period related to a liability for a non-income tax position of an acquired company. In addition, the Company incurred a $2.9 million loss in other income on foreign currency exchange resulting from the funding of the acquisition of DAT. During the fourth quarter of fiscal 2016, the Company received a $5 million insurance recovery due to an energetic incident at one of our countermeasure operations, which occurred in the third quarter of fiscal 2016. Approximately 554 U.S.-based employees or 12% of total U.S.-based employees were represented by various labor unions. The Company’s non-U.S. operations are subject to union and national trade union agreements and to local regulations governing employment. |
Employee Stock Plans
Employee Stock Plans | 12 Months Ended |
Sep. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Plans | NOTE 13: Employee Stock Plans The Company has three share-based compensation plans, which are described below. The compensation cost that has been charged against income for those plans for fiscal 2016, 2015, and 2014 was $13.5 million, $10.8 million, and $13.0 million, respectively. The total income tax benefit recognized in the income statement for the share-based compensation arrangement for fiscal 2016, 2015, and 2014 was $3.6 million, $2.7 million, and $3.0 million, respectively. Employee Stock Purchase Plan The Company offers an employee stock purchase plan to its employees. The plan qualifies as a noncompensatory employee stock purchase plan under Section 423 of the Internal Revenue Code. Employees are eligible to participate through payroll deductions subject to certain limitations. The plan has a safe harbor design where shares are purchased by participants at 95% of the fair market value on the purchase date and, therefore, compensation cost is not recorded. During fiscal 2016, employees purchased 24,441 shares at a fair market value price of $71.44 per share. As of September 30, 2016, deductions aggregating $0.5 million were accrued for the purchase of shares on December 15, 2016. Employee Share-Save Scheme The Company offers shares under its employee share-save scheme for U.K. employees. This plan allows participants the option to purchase shares at 95% of the market price of the stock as of the beginning of the offering period. The term of these options is three years. At the end of fiscal 2016, the Company had reserved 142,030 shares for issuance under its employee share-save scheme for U.K. employees, leaving a balance of 465,087 shares available for issuance in the future. The share-save scheme is not a “safe-harbor” design, and, therefore, compensation cost is recognized on this plan. Under the employee share-save 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, 25,984 and 29,242 options in fiscal 2016, 2015, and 2014, respectively. The weighted-average grant date fair value of options granted in fiscal 2016 was $16.65 per share. During fiscal 2016, 1,813 options were exercised at a weighted average exercise price of $65.84. 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 option is based on the U.S. Treasury zero coupon issues in effect the time of grant. 2016 2015 2014 Volatility 33.21 % 25.80 % 33.69 % Risk-free interest rate 1.19 % 0.93 % 0.73 % Expected life (years) 3 3 3 Dividends 0 0 0 Equity Incentive Plan The Company also provides an equity incentive plan for officers and key employees. At the end of fiscal 2016, the Company had 1,693,557 shares reserved for issuance to officers and key employees, of which 866,158 shares were available to be granted in the future. Stock Options The Board of Directors authorized the Compensation Committee to administer awards granted under the equity incentive plan and to establish the terms of such awards. Awards under the equity incentive plan may be granted to eligible employees of the Company over the 10-year period ending March 5, 2023. Options granted generally become exercisable ratably over a period of four years following the date of grant and expire on the tenth anniversary of the grant. Option exercise prices are equal to the fair market value of the Company’s common stock on the date of grant. The weighted-average grant date fair value of the options granted in fiscal 2016 and 2015 was $35.69 per share and $47.85 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 range of the expected term reflects the results from certain groups of employees exhibiting different behavior. The risk-free rate for the periods within the contractual life of the grant is based upon the U.S. Treasury zero coupon issues in effect at the time of the grant. 2016 2015 2014 Volatility 33.06 - 40.52% 40.73 - 41.89% 41.87 - 43.17% Risk-free interest rate 1.61 - 2.24% 1.43 - 2.00% 1.73 - 2.99% Expected life (years) 5 - 9 5 - 9 5 - 9 Dividends 0 0 0 The following table summarizes the changes in outstanding options granted under the Company’s equity incentive plan: 2016 2015 2014 Weighted Weighted Weighted Shares Average Shares Average Shares Average Subject to Exercise Subject to Exercise Subject to Exercise Option Price Option Price Option Price Outstanding, beginning of year 1,363,921 $ 68.23 1,367,793 $ 60.23 1,829,488 $ 51.08 Granted 221,200 90.16 203,200 107.34 207,200 97.61 Exercised (112,790 ) 48.61 (182,322 ) 50.94 (618,645 ) 45.16 Forfeited/cancelled (73,375 ) 89.91 (24,750 ) 74.73 (50,250 ) 66.65 Outstanding, end of year 1,398,956 $ 72.14 1,363,921 $ 68.23 1,367,793 $ 60.23 Exercisable, end of year 922,706 $ 61.09 826,496 $ 55.63 752,943 $ 50.36 The aggregate intrinsic value of the option shares outstanding and exercisable at September 30, 2016, was $17.8 million and $17.2 million, respectively. The number of option shares vested or that were expected to vest at September 30, 2016, was 1.3 million and the aggregate intrinsic value was $17.7 million. The weighted average exercise price and weighted average remaining contractual term of option shares vested or that were expected to vest at September 30, 2016, was $71.12 and 5.5 years, respectively. The weighted-average remaining contractual term of option shares currently exercisable is 4.4 years as of September 30, 2016. The table below presents stock activity related to stock options exercised in fiscal 2016 and 2015: In Thousands 2016 2015 Proceeds from stock options exercised $ 8,175 $ 11,420 Tax benefits related to stock options exercised 406 1,869 Intrinsic value of stock options exercised 3,195 10,861 Total unrecognized compensation expense for stock options that have not vested as of September 30, 2016, is $7.4 million, which will be recognized over a weighted average period of 1.8 years. The total fair value of option shares vested during the year ended September 30, 2016, was $2.4 million. The following table summarizes information for stock options outstanding at September 30, 2016: Options Outstanding Options Exercisable Weighted Average Weighted Weighted Remaining Average Average Range of Exercise Prices Shares Life (years) Price Shares Price $ 23.66 - 50.00 200,771 2.8 $ 39.95 200,771 $ 39.95 50.01 - 52.00 189,575 4.4 51.06 189,575 51.06 52.01 - 65.00 321,660 3.7 60.63 300,310 60.63 65.01 - 80.00 190,350 7.1 73.16 93,100 70.37 80.01 - 100.00 313,550 8.0 94.83 87,225 94.37 100.01 - 118.32 183,050 8.0 109.57 51,725 109.72 Restricted Stock Units The Company granted 37,000 and 28,150 restricted stock units (RSUs) during fiscal 2016 and 2015, respectively. The fair value of each RSU granted by the Company is equal to the fair market value of the Company’s common stock on the date of grant. RSUs granted generally have a three-year cliff vesting schedule. The following table summarizes the changes in RSUs granted under the Company’s equity incentive plan: 2016 2015 Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Non-vested, beginning of year 117,281 $ 85.95 103,971 $ 80.01 Granted 37,000 84.70 28,150 105.34 Vested (48,053 ) 75.35 (12,740 ) 79.84 Forfeited/cancelled (6,450 ) 94.58 (2,100 ) 88.99 Non-vested, end of year 99,778 $ 90.04 117,281 $ 85.95 Total unrecognized compensation expense for RSUs that have not vested as of September 30, 2016, is $3.4 million, which will be recognized over a weighted average period of 1.7 years. The table below presents stock activity related to restricted stock units vested in fiscal 2016 and 2015: In Thousands 2016 2015 Tax benefits related to restricted stock units vested $ 162 $ 104 Intrinsic value of restricted stock units vested 3,847 912 Performance Shares The Company granted 56,275 and 36,800 performance share plan (PSP) shares during fiscal 2016 and 2015, respectively. PSP shares will be paid out in shares of Esterline common stock at the end of the three year performance period. The actual number of shares that will be paid out upon completion of the performance period is based on actual performance and may range from 0% to 300% of the target number of shares. The following table summarizes the activity in the target PSP shares granted under the Company’s equity incentive plan: 2016 2015 Non-vested, beginning of year 34,700 - Granted 56,275 36,800 Vested - - Forfeited/cancelled (1,700 ) (2,100 ) Non-vested, end of year 89,275 34,700 |
Shareholder's Equity
Shareholder's Equity | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Shareholder's Equity | NOTE 14: Shareholder’s Equity 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). At the end of fiscal 2016, there were no shares of preferred stock or serial preferred stock outstanding. Changes in outstanding common shares are summarized as follows: 2016 2015 Shares Outstanding Shares issued, beginning of year 32,378,185 32,123,717 Shares issued under share-based compensation plans 186,067 254,468 Shares issued, end of year 32,564,252 32,378,185 Treasury stock purchased, beginning of year (2,831,350 ) (269,228 ) Treasury stock purchased (304,577 ) (2,562,122 ) Treasury stock purchased, end of year (3,135,927 ) (2,831,350 ) Shares outstanding, end of year 29,428,325 29,546,835 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. The Company purchased the following shares of common stock in fiscal 2016 under the above described repurchase plan: In Thousands, Except Shares Amounts Shares Amount First quarter - $ - Second quarter 202,310 12,077 Third quarter 102,267 6,657 Fourth quarter - - Total 304,577 $ 18,734 The components of Accumulated Other Comprehensive Loss: In Thousands 2016 2015 Unrealized gain (loss) on derivative contracts $ (4,547 ) $ (22,941 ) Tax effect 1,077 6,036 (3,470 ) (16,905 ) Pension and post-retirement obligations (116,346 ) (99,724 ) Tax effect 39,804 33,775 (76,542 ) (65,949 ) Currency translation adjustment (268,845 ) (225,974 ) Accumulated other comprehensive loss $ (348,857 ) $ (308,828 ) |
Acquisitions
Acquisitions | 12 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 15: 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 DAT acquisition contributed $155.7 million and $82.5 million in sales and $2.6 million in operating earnings and $16.0 million in operating losses in fiscal 2016 and 2015, respectively. 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 deductible for income tax purpose. 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 On December 20, 2013, the Company acquired Sunbank Family of Companies, LLC (Sunbank) for $51.7 million. Sunbank is a manufacturer of electrical cable accessories, connectors and flexible conduit systems. Sunbank is included in the Sensors & Systems segment. The above acquisitions were accounted for under the purchase method of accounting, and the results of operations were included from the effective date of each acquisition. |
Restructuring
Restructuring | 12 Months Ended |
Sep. 30, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | NOTE 16: 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 mainly for exit and relocation of facilities, losses on the write off of certain property, plant and equipment, and severance. In fiscal 2016, restructuring expense totaled $8.7 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 $ 3,364 $ 336 $ 150 $ 3,850 Restructuring charges 4,369 - 504 4,873 Total $ 7,733 $ 336 $ 654 $ 8,723 In 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 $ 4,274 $ 115 $ 694 $ 5,083 Restructuring charges 4,524 542 1,573 6,639 Total $ 8,798 $ 657 $ 2,267 $ 11,722 For fiscal 2015, unaudited and recast restructuring expense totaled $14.6 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 $ 5,486 $ 265 $ 687 $ 6,438 Restructuring charges 5,496 595 2,052 8,143 Total $ 10,982 $ 860 $ 2,739 $ 14,581 The Company has recorded an accrued liability of $1.9 million and $2.8 million for these activities as of September 30, 2016, and October 2, 2015, respectively. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | NOTE 17: Discontinued Operations In the fourth quarter of fiscal 2014, the Company’s board of directors 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. These businesses were not separate reporting units as defined under U.S. GAAP, and there was no indicator of impairment requiring an impairment test of their corresponding reporting units’ goodwill or these businesses’ long-lived assets. Based upon the estimated fair values, the Company incurred an estimated after-tax loss of $8.4 million, $30.8 million and $49.5 million in fiscal 2016, 2015 and 2014, respectively, on the assets held for sale in discontinued operations. Principle assumptions used in measuring the estimated after-tax loss included estimated selling price of the discontinued business, discount rates, industry growth rates, and pricing of comparable transactions in the market. The additional losses on the assets were due to either the finalization of the selling prices of the assets disposed or to update the estimated fair values of the assets which continued to be held for sale. The estimated fair values were impacted by current market conditions for the sale transactions based mainly upon the status of negotiations with the potential buyers. 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 $22.3 million. On May 4, 2016, the Company sold certain assets of Wallop for 2.5 million British pounds and deferred compensation up to a maximum payment of 9 million British pounds. The deferred compensation is payable based upon receipt of acceptable orders during a three-year period ending May 3, 2019, and is equal to the amount of the acceptable order times a specified percentage ranging from 26.5% to 31%. The earn-out payment is estimated to be 5.8 million British pounds at September 30, 2016. On June 6, 2016, the Company entered into an agreement to sell Wallop’s naval business for 1.25 million euros, a contingent payment for 1.25 million euros and deferred compensation. Deferred compensation is based upon the receipt of certain acceptable orders by October 31, 2019, and is equal to the amount of the order times 10%. Closing is contingent upon actions by third parties, including agreements to novate and enter into new supply contracts with, the buyer and customer validation of a specific raw material essential for the end products delivered to the customer. The Company recorded an expense related to environmental remediation at a previously sold business for which the Company provided indemnification of $0.8 million in fiscal 2016, $2.1 million in fiscal 2015, and $0.8 million in fiscal 2014. The liability for this environmental obligation was $0.8 million and $1.6 million at September 30, 2016, and October 2, 2015, respectively. Remediation costs paid in fiscal 2016, 2015 and 2014 were $1.5 million, $2.0 million and $0.7 million, respectively. The results of discontinued operations for the last three fiscal years were as follows: Avionics & Sensors & Advanced In Thousands Controls Systems Materials Other Total 2016 Net Sales $ 17,572 $ - $ 5,222 $ - $ 22,794 Operating earnings (loss) 1,350 (379 ) (15,761 ) (788 ) (15,578 ) Tax expense (benefit) 1,487 (83 ) (1,448 ) (268 ) (312 ) Income (loss) from discontinued operations $ (137 ) $ (296 ) $ (14,313 ) $ (520 ) $ (15,266 ) Included in Operating Earnings (Loss): Loss on net assets held for sale $ (2,457 ) $ - $ (5,991 ) $ - $ (8,448 ) Avionics & Sensors & Advanced In Thousands Controls Systems Materials Other Total 2015 (Unaudited, Recast) Net Sales $ 47,603 $ 21,221 $ 14,407 $ - $ 83,231 Operating earnings (loss) (24,004 ) 3,458 (22,424 ) (2,261 ) (45,231 ) Tax expense (benefit) (2,948 ) 814 (2,456 ) (322 ) (4,912 ) Income (loss) from discontinued operations $ (21,056 ) $ 2,644 $ (19,968 ) $ (1,939 ) $ (40,319 ) Included in Operating Earnings (Loss): Loss on net assets held for sale $ (16,763 ) $ (622 ) $ (13,407 ) $ - $ (30,792 ) Avionics & Sensors & Advanced In Thousands Controls Systems Materials Other Total 2015 Net Sales $ 40,835 $ 18,684 $ 12,883 $ - $ 72,402 Operating earnings (loss) (24,591 ) 3,041 (17,588 ) (2,120 ) (41,258 ) Tax expense (benefit) (3,002 ) 626 (1,104 ) (725 ) (4,205 ) Income (loss) from discontinued operations $ (21,589 ) $ 2,415 $ (16,484 ) $ (1,395 ) $ (37,053 ) Included in Operating Earnings (Loss): Loss on net assets held for sale $ (18,864 ) $ (229 ) $ (12,061 ) $ - $ (31,154 ) Avionics & Sensors & Advanced In Thousands Controls Systems Materials Other Total 2014 Net Sales $ 55,447 $ 22,479 $ 25,886 $ - $ 103,812 Operating earnings (loss) (24,035 ) (12,856 ) (29,945 ) (845 ) (67,681 ) Tax expense (benefit) (1,935 ) (523 ) (2,316 ) (296 ) (5,070 ) Income (loss) from discontinued operations $ (22,100 ) $ (12,333 ) $ (27,629 ) $ (549 ) $ (62,611 ) Included in Operating Earnings (Loss): Loss on net assets held for sale $ (18,489 ) $ (12,675 ) $ (18,308 ) $ - $ (49,472 ) Assets and Liabilities Held for Sale within the Consolidated Balance Sheet at September 30, 2016, are comprised of the following: Avionics & Sensors & Advanced In Thousands Controls Systems Materials Total Accounts receivable, net $ 2,588 $ - $ 4,093 $ 6,681 Inventories 8,070 - 398 8,468 Prepaid expenses 127 - 103 230 Income tax refundable - - 71 71 Current Assets of Businesses Held for Sale $ 10,785 $ - $ 4,665 $ 15,450 Net Property, plant and equipment $ 5,368 $ - $ 2,869 $ 8,237 Intangibles, net - - 1,856 1,856 Deferred income tax benefits (liabilities) (392 ) - 400 8 Other assets - - 1,299 1,299 Non-Current Assets of Businesses Held for Sale $ 4,976 $ - $ 6,424 $ 11,400 Accounts payable $ 441 $ - $ 1,463 $ 1,904 Accrued liabilities 7,000 - 1,909 8,909 Current Liabilities of Businesses Held for Sale $ 7,441 $ - $ 3,372 $ 10,813 Other liabilities $ - $ - $ 320 $ 320 Non-Current Liabilities of Businesses Held for Sale $ - $ - $ 320 $ 320 Net Assets of Businesses Held for Sale $ 8,320 $ - $ 7,397 $ 15,717 Assets and Liabilities Held for Sale within the Consolidated Balance Sheet at October 2, 2015, are comprised of the following: Avionics & Sensors & Advanced In Thousands 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 (liabilities) (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 | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information | NOTE 18: Business Segment Information The Company’s businesses are organized and managed in three reporting segments: Avionics & Controls, Sensors & Systems and Advanced Materials. Operating segments within each reporting segment are aggregated. Operations within the Avionics & Controls segment focus on integrated cockpit systems, technology interface systems for commercial and military aircraft, and similar devices for land- and sea-based military vehicles, visualization solutions for defense and commercial applications, secure communication systems, military audio and data products, specialized medical equipment and other industrial applications. Sensors & Systems includes operations that produce high-precision temperature and pressure sensors, electrical power switching, electrical interconnection systems, and other related systems principally for aerospace and defense customers. The Advanced Materials segment focuses on thermally engineered components for critical aerospace applications, high-performance elastomer products used in a wide range of commercial aerospace and military applications, and combustible ordnance and warfare countermeasure devices. All segments include sales to domestic, international, defense and commercial customers. Geographic sales information is based on product origin. The Company evaluates these segments based on segment profits prior to net interest, other income/expense, corporate expenses and federal/foreign income taxes. Details of the Company’s operations by business segment for the last three fiscal years were as follows: Eleven Months Twelve Months Ended Ended In Thousands 2016 2015 2014 2015 (Unaudited) (Recast) Sales Avionics & Controls $ 860,494 $ 826,044 $ 766,838 $ 727,801 Sensors & Systems 696,032 714,965 771,369 633,446 Advanced Materials 436,105 461,784 491,264 413,202 $ 1,992,631 $ 2,002,793 $ 2,029,471 $ 1,774,449 Earnings from Continuing Operations Avionics & Controls $ 78,356 $ 93,225 $ 119,649 $ 65,910 Sensors & Systems 87,768 84,235 86,101 71,787 Advanced Materials 74,515 91,334 104,833 80,951 Segment Earnings 240,639 268,794 310,583 218,648 Corporate expense (70,480 ) (82,131 ) (68,297 ) (74,166 ) Other income - 12,503 - 12,503 Interest income 367 632 555 578 Interest expense (30,091 ) (33,114 ) (33,010 ) (30,090 ) Loss on extinguishment of debt - (11,451 ) (533 ) (11,451 ) $ 140,435 $ 155,233 $ 209,298 $ 116,022 Eleven Months Twelve Months Ended Ended In Thousands 2016 2015 2014 2015 (Unaudited) (Recast) Capital Expenditures Avionics & Controls 1 $ 36,423 $ 14,537 $ 9,312 $ 13,074 Sensors & Systems 2 14,319 21,766 21,070 19,489 Advanced Materials 3 15,868 16,309 13,629 14,324 Discontinued Operations - 789 1,199 542 Corporate 1,862 2,006 468 1,912 $ 68,472 $ 55,407 $ 45,678 $ 49,341 Depreciation and Amortization Avionics & Controls $ 38,909 $ 38,070 $ 35,604 $ 33,415 Sensors & Systems 40,399 41,200 43,507 37,250 Advanced Materials 18,691 19,708 20,217 17,474 Discontinued Operations 12 1,877 14,588 496 Corporate 2,247 2,502 2,111 1,940 $ 100,258 $ 103,357 $ 116,027 $ 90,575 In Thousands 2016 2015 2014 Identifiable Assets Avionics & Controls $ 1,304,860 $ 1,276,678 $ 1,125,850 Sensors & Systems 1,140,624 1,116,282 1,240,153 Advanced Materials 498,442 493,968 498,984 Discontinued Operations 29,488 57,095 212,712 Corporate 4 58,617 56,465 115,768 $ 3,032,031 $ 3,000,488 $ 3,193,467 1 Excludes capital expenditures accounted for as a capitalized lease obligation of $2.8 million in fiscal 2014. 2 Excludes capital expenditures accounted for as a capitalized lease obligation of $8.0 million in fiscal 2016. 3 Excludes capital expenditures accounted for as a capitalized lease obligation of $3.3 million in fiscal 2016. 4 Primarily cash and deferred tax assets (see Note 10). The Company’s operations by geographic area for the last three fiscal years were as follows: Twelve Eleven Twelve Months Months Months Ended Ended Ended In Thousands 2016 2015 2014 Sales 1 Domestic Unaffiliated customers - U.S. $ 838,259 $ 706,586 $ 763,345 Unaffiliated customers - export 172,209 168,459 218,955 Intercompany 77,472 58,039 32,515 1,087,940 933,084 1,014,815 Canada Unaffiliated customers 182,690 173,394 231,937 Intercompany 3,378 4,013 7,544 186,068 177,407 239,481 France Unaffiliated customers 398,909 364,882 460,836 Intercompany 51,461 42,903 60,763 450,370 407,785 521,599 United Kingdom Unaffiliated customers 237,134 242,077 266,570 Intercompany 25,100 23,769 22,846 262,234 265,846 289,416 All other Foreign Unaffiliated customers 163,430 119,051 87,828 Intercompany 167,565 125,386 42,686 330,995 244,437 130,514 Eliminations (324,976 ) (254,110 ) (166,354 ) $ 1,992,631 $ 1,774,449 $ 2,029,471 Twelve Eleven Twelve Months Months Months Ended Ended Ended In Thousands 2016 2015 2014 Segment Earnings 2 Domestic $ 135,107 $ 121,052 $ 178,029 Canada 7,670 19,133 33,599 France 61,381 51,599 50,750 United Kingdom 25,646 28,826 38,686 All other foreign 10,835 (1,962 ) 9,519 $ 240,639 $ 218,648 $ 310,583 2016 2015 2014 Identifiable Assets 3 Domestic $ 1,055,567 $ 933,631 $ 1,028,879 Canada 452,466 458,635 514,520 France 770,625 747,660 839,467 United Kingdom 394,811 501,969 555,620 All other foreign 299,945 302,128 139,213 $ 2,973,414 $ 2,944,023 $ 3,077,699 1 Based on country from which the sale originated and the sale was recorded. 2 Before corporate expense, shown on page 80. 3 Excludes corporate, shown on page 81. The Company’s foreign operations consist of manufacturing facilities located in Belgium, Canada, China, the Dominican Republic, France, Germany, India, Mexico, Morocco, and the United Kingdom, and include sales and service operations located in Brazil, China, and Singapore. Intercompany sales are at prices comparable with sales to unaffiliated customers. U.S. government sales as a percent of Advanced Materials and Avionics & Controls sales were 9.8% and 2.0%, respectively, in fiscal 2016 and 3.1% of consolidated sales. In fiscal 2015, the U.S. government sales as a percent of Advanced Materials and Avionics & Controls sales were 9.9% and 1.1%, respectively, and 2.9% of consolidated sales. In fiscal 2014, the U.S. government sales as a percent of Advanced Materials and Avionics & Controls sales were 14.7% and 1.7%, respectively, and 4.0% of consolidated sales. Product lines contributing sales of 10% or more of total sales in any of the last three fiscal years were as follows: 2016 2015 2014 Connectors 16 % 16 % 18 % Avionics 9 % 10 % 10 % |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | NOTE 19: Quarterly Financial Data (Unaudited) The following is a summary of unaudited quarterly financial information: In Thousands, Except Per Share Amounts Fiscal Year 2016 Fourth Third Second First Net sales $ 543,752 $ 517,092 $ 490,310 $ 441,477 Gross profit 193,769 173,584 156,173 137,719 Earnings from continuing operations 52,045 38,046 16,996 9,864 Earnings (Loss) from discontinued operations 227 (8,690 ) (2,023 ) (4,780 ) Net earnings $ 52,272 $ 29,356 $ 14,973 $ 5,084 Earnings (loss) per share - basic Continuing operations $ 1.77 $ 1.30 $ 0.58 $ 0.33 Discontinued operations 0.01 (0.30 ) (0.07 ) (0.16 ) Earnings (loss) per share - basic $ 1.78 $ 1.00 $ 0.51 $ 0.17 Earnings (loss) per share - diluted Continuing operations $ 1.75 $ 1.28 $ 0.57 $ 0.33 Discontinued operations 0.01 (0.29 ) (0.07 ) (0.16 ) Earnings (loss) per share - diluted $ 1.76 $ 0.99 $ 0.50 $ 0.17 Fiscal Year 2015 (Recast) Fourth Third Second First Net sales $ 545,249 $ 484,723 $ 468,210 $ 504,611 Gross profit 185,840 165,290 150,017 178,241 Earnings from continuing operations 40,267 28,222 24,931 34,475 Loss from discontinued operations (19,285 ) (558 ) (14,600 ) (5,876 ) Net earnings $ 20,982 $ 27,664 $ 10,331 $ 28,599 Earnings (loss) per share - basic Continuing operations $ 1.36 $ 0.92 $ 0.80 $ 1.09 Discontinued operations (0.65 ) (0.02 ) (0.47 ) (0.19 ) Earnings (loss) per share - basic $ 0.71 $ 0.90 $ 0.33 $ 0.90 Earnings (loss) per share - diluted Continuing operations $ 1.34 $ 0.90 $ 0.79 $ 1.06 Discontinued operations (0.64 ) (0.02 ) (0.46 ) (0.18 ) Earnings (loss) per share - diluted $ 0.70 $ 0.88 $ 0.33 $ 0.88 Fiscal Year 2015 Fourth Third Second First Net sales $ 349,627 $ 490,022 $ 494,042 $ 440,758 Gross profit 114,165 168,606 162,590 144,032 Earnings from continuing operations 20,704 29,868 21,498 24,595 Loss from discontinued operations (17,718 ) (1,371 ) (1,688 ) (16,276 ) Net earnings $ 2,986 $ 28,497 $ 19,810 $ 8,319 Earnings (loss) per share - basic Continuing operations $ 0.70 $ 0.99 $ 0.69 $ 0.77 Discontinued operations (0.60 ) (0.05 ) (0.05 ) (0.51 ) Earnings (loss) per share - basic $ 0.10 $ 0.94 $ 0.64 $ 0.26 Earnings (loss) per share - diluted Continuing operations $ 0.69 $ 0.96 $ 0.68 $ 0.77 Discontinued operations (0.59 ) (0.04 ) (0.05 ) (0.51 ) Earnings (loss) per share - diluted $ 0.10 $ 0.92 $ 0.63 $ 0.26 The sum of the quarterly per share amounts may not equal per share amounts reported for year-to-date periods. This is due to changes in the number of weighted average shares outstanding and the effects of rounding for each period. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Nature Of Operations | Nature of Operations Esterline Technologies Corporation (the Company) designs, manufactures and markets highly engineered products. The Company serves the aerospace and defense industry, primarily in the United States and Europe. The Company also serves the industrial/commercial and medical markets. |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The consolidated financial statements include the accounts of the Company and all subsidiaries. All significant intercompany accounts and transactions have been eliminated. Classifications have been changed for certain amounts in prior periods to conform with the current year’s presentation. 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 effective beginning with the year-ended on September 30, 2016. The Company reported our 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 the Company will file an annual report for the twelve-month period ending the last Friday of September of each year, beginning with the twelve-month period ending September 30, 2016. Prior year results have been recast on a calendar quarter basis. Refer to the Transition Report on Form 10-K for the eleven months ended October 2, 2015, for additional information regarding our fiscal year change. |
Management Estimates | Management Estimates To prepare financial statements in conformity with U.S. generally accepted accounting principles, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Concentration of Risks | Concentration of Risks The Company’s products are principally focused on the aerospace and defense industry, which includes military and commercial aircraft original equipment manufacturers and their suppliers, commercial airlines, and the United States and foreign governments. Sales directly to the U.S. government or indirectly through subcontractors to the U.S. government account for approximately 18% and 19% of sales in fiscal 2016 and 2015, respectively. Accordingly, the Company’s current and future financial performance is dependent on the economic condition of the aerospace and defense industry. The commercial aerospace and defense markets have historically been subject to cyclical downturns during periods of weak economic conditions or material changes arising from domestic or international events. Management believes that the Company’s sales are balanced across its customer base, which includes not only aerospace and defense customers but also medical and industrial commercial customers. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when the title and risk of loss have passed to the customer, there is persuasive evidence of an agreement, delivery has occurred or services have been rendered, the price is determinable, and the collectability is reasonably assured. The Company recognizes product revenues at the point of shipment or delivery in accordance with the terms of sale. Sales are net of returns and allowances. Returns and allowances are generally not significant because products are manufactured to customer specification and are covered by the terms of the product warranty. Revenues and profits on fixed-price contracts with significant engineering as well as production requirements are recorded based on the achievement of contractual milestones and the ratio of total actual incurred costs to date to total estimated costs for each contract (cost-to-cost method). Types of milestones include design review and prototype completion. The Company reviews cost performance and estimates to complete on its ongoing contracts at least quarterly. The impact of revisions of profit estimates are recognized on a cumulative catch-up basis in the period in which the revisions are made. Provisions for anticipated losses on contracts are recorded in the period they become evident. When change orders have been approved by both the company and the customer for both scope and price and realization is deemed probable, the original contract price is adjusted and revenues are recognized on contract performance (as determined by the achievement of contractual milestones and the cost-to-cost method). For partially approved change orders, costs attributable to unpriced change orders are treated as costs of the contract performance in the period the costs are incurred. Claims are also recognized as contract revenue when approved by both the company and the customer, based on contract performance. |
Research and Development | Research and Development Expenditures for internally-funded research and development are expensed as incurred. Customer-funded research and development projects performed under contracts are accounted for as work in process as work is performed and recognized as cost of sales and sales under the proportional performance method. Research and development expenditures are net of government assistance and tax subsidies, which are not contingent upon paying income tax. In addition, government assistance for research and development is recorded as a reduction of research and development expense when repayment royalties are contingent upon sales generated directly from the funded research and development. If reimbursement is not tied directly to sales generated from the funded research and development, the assistance is accounted for as a loan until the criteria for forgiveness has been met. |
Financial Instruments | Financial Instruments Fair Value of Financial Instruments The Company’s financial instruments consist primarily of cash and cash equivalents, accounts receivable, accounts payable, short-term borrowings, long-term debt, foreign currency forward contracts, and from time to time interest rate swap agreements. The carrying amounts of cash and cash equivalents, accounts receivable, and accounts payable approximate their respective fair values because of the short-term maturities or expected settlement dates of these instruments. The fair market value of the Company’s long-term debt and short-term borrowings was estimated at $870.5 million and $859.0 million at the end of fiscal 2016 and 2015, respectively. These estimates were derived using discounted cash flows with interest rates and quoted market prices currently available to the Company for issuance of debt with similar terms and remaining maturities. Foreign Currency Exchange Risk Management The Company is subject to risks associated with fluctuations in foreign currency exchange rates from the sale of products in currencies other than its functional currency. Furthermore, the Company has assets denominated in foreign currencies that are not offset by liabilities in such foreign currencies. The Company has significant operations in Canada, France, and the United Kingdom, and accordingly, the Company may experience gains or losses due to foreign exchange fluctuations. The Company’s policy is to hedge a portion of its forecasted transactions and a portion of its net monetary assets including the embedded derivatives in its backlog using forward exchange contracts in general, with maturities up to 24 months. These forward contracts have been designated as cash flow hedges. The portion of the net gain or loss on a derivative instrument that is effective as a hedge is reported as a component of other comprehensive income in shareholders’ equity and is reclassified into earnings in the same period during which the hedged transaction affects earnings. The remaining net gain or loss on the derivative in excess of the present value of the expected cash flows of the hedged transaction is recorded in earnings immediately. If a derivative does not qualify for hedge accounting, or a portion of the hedge is deemed ineffective, the change in fair value is recorded in earnings. The amount of hedge ineffectiveness has not been material in any of the three fiscal periods ended September 30, 2016. At September 30, 2016, and October 2, 2015, the notional value of foreign currency forward contracts accounted for as a cash flow hedge was $308.2 million and $306.4 million, respectively. The notional value of the Companies foreign currency forward contracts include $70 million related to the hedge of a portion of its net monetary assets including the embedded derivatives in our backlog. The fair value of these contracts was a liability of $4.9 million and $23.3 million at September 30, 2016, and October 2, 2015, respectively. The Company does not enter into any forward contracts for trading purposes. 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 in 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 since inception of the hedge. Depending on the interest rate environment, the Company may enter into interest rate swap agreements to convert the variable interest rates on notes payable to fixed interest rates. |
Foreign Currency Translation | Foreign Currency Translation Foreign currency assets and liabilities are translated into their U.S. dollar equivalents based on year-end exchange rates. Revenue and expense accounts are translated at average exchange rates. Aggregate exchange gains and losses arising from the translation of foreign assets and liabilities are included in shareholders’ equity as a component of comprehensive income. Accumulated loss on foreign currency translation adjustment was $268.8 million, $226.0 million, and $61.1 million as of the fiscal period ended September 30, 2016, October 2, 2015, and October 31, 2014, respectively. |
Foreign Currency Transaction Gains and Losses | Foreign Currency Transaction Gains and Losses Foreign currency transaction gains and losses are included in results of operations and are primarily the result of revaluing assets and liabilities denominated in a currency other than the functional currency, the impact of changes in exchange rates, gains and losses on forward exchange contracts, and the change in value of foreign currency embedded derivatives in backlog. These foreign currency transactions resulted in a $19.8 million loss in fiscal 2016, a $1.3 million gain in fiscal 2015, and a $0.9 million gain in fiscal 2014. |
Cash Equivalents | Cash Equivalents Cash equivalents consist of highly liquid investments with original maturities of three months or less at the date of purchase. Fair value of cash equivalents approximates carrying value. |
Accounts Receivable | Accounts Receivable Accounts receivable are recorded at the net invoice price for sales billed to customers. Accounts receivable are considered past due when outstanding more than normal trade terms allow. An allowance for doubtful accounts is established when losses are expected to be incurred. Accounts receivable are written off to the allowance for doubtful accounts when the balance is considered to be uncollectible. |
Inventories | Inventories Inventories are stated at the lower of cost or market using the first-in, first-out (FIFO) or average cost method. Inventory cost includes material, labor and factory overhead. The Company defers pre-production engineering costs as work-in-process inventory in connection with long-term supply arrangements that include contractual guarantees for reimbursement from the customer. Inventory cost adjustments are recorded when inventory is considered to be excess or obsolete based upon an analysis of actual on-hand quantities on a part level basis to forecasted product demand and historical usage. |
Property, Plant and Equipment, and Depreciation | Property, Plant and Equipment, and Depreciation Property, plant and equipment is carried at cost and includes expenditures for major improvements. Depreciation is generally provided on the straight-line method based upon estimated useful lives ranging from 15 to 30 years for buildings and 3 to 10 years for machinery and equipment. Depreciation expense was $49.5 million, $50.7 million, and $56.2 million for fiscal 2016, 2015, and 2014, respectively. Depreciation expense included in discontinued operations was $0.7 million and $5.0 million in fiscal 2015 and 2014, respectively. Assets under capital leases were $48.2 million, $40.7 million, and $43.1 million for fiscal 2016, 2015, and 2014, respectively. Amortization expense of assets accounted for as capital leases is included with depreciation expense. The fair value of liabilities related to the retirement of property is recorded when there is a legal or contractual obligation to incur asset retirement costs and the costs can be estimated. The Company records the asset retirement cost by increasing the carrying cost of the underlying property by the amount of the asset retirement obligation. The asset retirement cost is depreciated over the estimated useful life of the underlying property. |
Debt Issuance Costs | Debt Issuance Costs Costs incurred to issue debt are deferred and amortized as interest expense over the term of the related debt using a method that approximates the effective interest method. |
Long-lived Asset Impairments | Long-lived Asset Impairments The carrying amount of long-lived assets is reviewed periodically for impairment. An asset (other than goodwill and indefinite-lived intangible assets) is considered impaired when estimated future undiscounted cash flows are less than the carrying amount of the asset. In the event the carrying amount of such asset is not deemed recoverable, the asset is adjusted to its estimated fair value. Fair value is generally determined based upon estimated discounted future cash flows. |
Assets of Business Held for Sale | Assets of Business Held for Sale Assets held for sale are to be reported at lower of its carrying amount or fair value less cost to sell. Judgment is required in estimating the sales price of assets held for sale and the time required to sell the assets. These estimates are based upon available market data and operating cash flows of the assets held for sale. |
Contingencies | Contingencies The Company is party to various lawsuits and claims, both as plaintiff and defendant, and has contingent liabilities arising from the conduct of business. The Company is covered by insurance for general liability, product liability, workers’ compensation and certain environmental exposures, subject to certain deductible limits. The Company is self-insured for amounts less than our deductible and where no insurance is available. An estimated loss from a contingency should be accrued by a charge to income if it is probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. The Company evaluates, among other factors, the degree of probability of an unfavorable outcome and the ability to make a reasonable estimate of the amount of loss. |
Goodwill and Intangibles | Goodwill and Intangibles Goodwill is not amortized, but is tested for impairment at least annually or when circumstances require. A reporting unit is generally defined at the operating segment level or at the component level one level below the operating segment, if said component constitutes a business. Goodwill is allocated to reporting units based upon the purchase price of the acquired unit, the valuation of acquired tangible and intangible assets, and liabilities assumed. When a reporting unit’s carrying value exceeds its estimated fair value, an impairment test is required. This test involves allocating the fair value of the reporting unit to all of the assets and liabilities of that unit, with the excess of fair value over allocated net assets representing the fair value of goodwill. An impairment loss is measured as the amount by which the carrying value of goodwill exceeds the estimated fair value of goodwill. Intangible assets are amortized over their estimated period of benefit, ranging from 2 to 20 years. Amortization expense is reflected in selling, general and administrative expense on the Consolidated Statement of Operations. The Company periodically evaluates the recoverability of intangible assets and takes into account events or circumstances that warrant revised estimates of useful lives or that indicate that an impairment exists. Indefinite-lived intangible assets (other than goodwill) are tested annually for impairment or more frequently on an interim basis if circumstances require. |
Environmental | Environmental Environmental exposures are provided for at the time they are known to exist or are considered probable and reasonably estimable. No provision has been recorded for environmental remediation costs which could result from changes in laws or other circumstances currently not known by the Company. Costs provided for future expenditures on environmental remediation are not discounted to present value. |
Pension Plan and Post-Retirement Benefit Plan Obligations | Pension Plan and Post-Retirement Benefit Plan Obligations The Company accounts for pension expense using the end of the fiscal year as its measurement date. Management selects appropriate assumptions including discount rate, rate of increase in future compensation levels and assumed long-term rate of return on plan assets and expected annual increases in costs of medical and other health care benefits in regard to the Company’s post-retirement benefit obligations. These assumptions are based upon historical results, the current economic environment and reasonable expectations of future events. Actual results which vary from assumptions are accumulated and amortized over future periods, and accordingly, are recognized in expense in these periods. Significant differences between our assumptions and actual experience or significant changes in assumptions could impact the pension costs and the pension obligation. |
Legal Expenses | Legal Expenses The Company recognizes legal costs related to loss contingencies when the expense is incurred. |
Share-Based Compensation | Share-Based Compensation The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. |
Product Warranties | Product Warranties Estimated product warranty expenses are recorded when the covered products are shipped to customers and recognized as revenue. Product warranty expense is estimated based upon the terms of the warranty program. |
Income Taxes | Income Taxes The Company recognizes the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in our financial statements or tax returns. |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed on the basis of the weighted average number of common shares outstanding during the year. Diluted earnings per share also includes the dilutive effect of stock options and restricted stock units. Common shares issuable from stock options that are excluded from the calculation of diluted earnings per share because they were anti-dilutive were 602,900, 409,050, and 136,200 for fiscal 2016, 2015, and 2014, respectively. The weighted average number of shares outstanding used to compute basic earnings per share was 29,490,000, 30,729,000, and 31,840,000 for fiscal years 2016, 2015, and 2014, respectively. The weighted average number of shares outstanding used to compute diluted earnings per share was 29,764,000, 31,215,000, and 32,448,000 for fiscal years 2016, 2015, and 2014, respectively. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In October 2016, the Financial Accounting Standards Board (FASB), issued new guidance regarding income taxes. The new guidance will require the tax effects of intercompany transactions, other than sales of inventory, to be recognized currently, eliminating an exception under current Generally Accepted Accounting Principles (GAAP) in which the tax effects of intra-entity asset transfers are deferred until the transferred asset is sold to a third party or otherwise recovered through use. The Company is evaluating the effect the updated standard will have on the Company’s consolidated financial statements and related disclosures. The guidance will be effective for the company in fiscal year 2019, with early adoption permitted. In August 2016, the FASB issued new guidance addressing how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The Company is evaluating the effect the updated standard will have on the Company’s consolidated financial statements and related disclosures. The guidance will be effective for the Company in fiscal year 2019, with early adoption permitted. In June 2016, the FASB issued a new standard on the measurement of credit losses, which will impact the Company's measurement of trade receivables. The new standard replaces the current incurred loss model with a forward-looking expected loss model that is likely to result in earlier recognition of losses. The Company is evaluating the effect the updated standard will have on the Company’s consolidated financial statements and related disclosures. In March 2016, the 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. The Company is evaluating the effect the updated standard will have on the Company’s consolidated financial statements and related disclosures. |
Allowance for Doubtful Accoun29
Allowance for Doubtful Accounts (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Financing Receivable Additional Disclosures [Abstract] | |
Allowance for Doubtful Accounts | Activity in the allowance for doubtful accounts was as follows: In Thousands 2016 2015 2014 Beginning balance $ 10,050 $ 10,023 $ 9,215 Charged to expense 9,690 1,502 860 Other 1 - 378 349 Write-offs (2,712 ) (1,853 ) (401 ) $ 17,028 $ 10,050 $ 10,023 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories at the end of fiscal 2016 and 2015 consisted of the following: In Thousands 2016 2015 Raw materials and purchased parts $ 177,069 $ 169,153 Work in progress 158,671 162,434 Inventory costs under long-term contracts 12,844 18,753 Finished goods 101,622 96,428 $ 450,206 $ 446,768 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill by Segment | The following table summarizes the changes in goodwill by segment for fiscal 2016 and 2015: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Total Balance, October 31, 2014 $ 440,015 $ 425,353 $ 206,418 $ 1,071,786 Goodwill from acquisitions 48,537 - - 48,537 Goodwill adjustments (841 ) (3,295 ) - (4,136 ) Goodwill write off on assets held for sale (2,043 ) - - (2,043 ) Foreign currency translation adjustment (35,069 ) (34,351 ) (2,733 ) (72,153 ) Balance, October 2, 2015 450,599 387,707 203,685 1,041,991 Goodwill adjustments (1,732 ) - - (1,732 ) Foreign currency translation adjustment (6,073 ) (2,140 ) (7,379 ) (15,592 ) Balance, September 30, 2016 $ 442,794 $ 385,567 $ 196,306 $ 1,024,667 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible assets at the end of fiscal 2016 and 2015 were as follows: In Thousands 2016 2015 Weighted Gross Gross Average Years Carrying Accum. Carrying Accum. Useful Life Amount Amort. Amount Amort. Amortized Intangible Assets: Programs 16 $ 607,276 $ 293,223 $ 635,761 $ 270,830 Core technology 12 15,926 11,778 15,926 10,273 Patents and other 12 86,286 51,250 87,506 45,402 Total $ 709,488 $ 356,251 $ 739,193 $ 326,505 Indefinite-lived Intangible Assets: Trademark $ 39,798 $ 39,352 |
Estimated Amortization Expense Related to Intangible Assets | Estimated amortization expense related to intangible assets for each of the next five fiscal years is as follows: In Thousands Fiscal Year 2017 $ 46,049 2018 45,121 2019 43,783 2020 41,580 2021 40,137 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Payables And Accruals [Abstract] | |
Accrued Liabilities | Accrued liabilities at the end of fiscal 2016 and 2015 consisted of the following: In Thousands 2016 2015 Payroll and other compensation $ 107,132 $ 107,912 Commissions 5,901 5,373 Casualty and medical 14,933 14,881 Interest 6,397 6,999 Warranties 13,365 14,658 State and other tax accruals 4,737 3,986 Customer deposits 22,302 32,566 Deferred revenue 26,618 19,647 Contract reserves 8,822 13,008 Forward foreign exchange contracts 12,036 20,932 Litigation reserves 4,006 6,657 Environmental reserves 646 646 Rent and future lease obligations 1,925 1,958 Other 9,343 10,511 $ 238,163 $ 259,734 |
Changes in Carrying Amount of Accrued Product Warranty Costs | Changes in the carrying amount of accrued product warranty costs are summarized as follows: In Thousands 2016 2015 Balance, beginning of year $ 14,658 $ 16,243 Warranty costs incurred (2,423 ) (1,917 ) Reclassification to liabilities held for sale - (108 ) Product warranty accrual 6,850 7,762 Release of reserves (5,700 ) (6,702 ) Acquisitions - 1,024 Foreign currency translation adjustment (20 ) (1,644 ) Balance, end of year $ 13,365 $ 14,658 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Principal Assumptions of Esterline and CMC Plans | Principal assumptions of the Esterline, CMC and Other Non-U.S. plans are as follows: Esterline CMC Other Non-U.S. Defined Benefit Defined Benefit Defined Benefit Pension Plans Pension Plans Pension Plans 2016 2015 2016 2015 2016 2015 Principal assumptions as of year end: Discount rate 3.60% 4.40% 3.22% 4.00% 0.90 - 7.75% 1.80 - 8.25% Rate of increase in future compensation levels 4.28% 4.22% 2.75% 3.00% 2.96 - 10.13% 4.50 - 8.90% Assumed long-term rate of return on plan assets 7.00% 7.00% 5.66% 5.70% 3.25 - 8.00% 3.25 - 8.00% Esterline CMC Post-Retirement Post-Retirement Pension Plans Pension Plans 2016 2015 2016 2015 Principal assumptions as of year end: Discount rate 3.60% 4.40% 3.16% 4.00% Initial weighted average health care trend rate 6.00% 6.00% 6.00% 3.70% Ultimate weighted average health care trend rate 6.00% 6.00% 4.20% 3.10% |
Allocations By Investment Type | Allocations by investment type are as follows: Actual Target 2016 2015 Plan assets allocation as of fiscal year end: Equity securities 35 - 70% 56.4 % 56.8 % Debt securities 30 - 65% 37.1 % 38.2 % Cash 0% 6.5 % 5.0 % Total 100.0 % 100.0 % |
Net Periodic Pension Cost for Defined Benefit Plans | Net periodic pension cost for the Company’s defined benefit plans at the end of each fiscal year consisted of the following: In Thousands Defined Benefit Post-Retirement Pension Plans Benefit Plans 2016 2015 2014 2016 2015 2014 Components of Net Periodic Cost Service cost $ 12,861 $ 11,811 $ 11,367 $ 342 $ 359 $ 489 Interest cost 18,095 16,159 19,387 473 464 685 Expected return on plan assets (24,491 ) (23,872 ) (25,999 ) - - - Contractual termination - - 94 - - - Curtailment - - 23 - - (1,747 ) Settlement 2 3,522 - - - - Amortization of prior service cost 487 404 107 (17 ) (63 ) (151 ) Amortization of actuarial (gain) loss 6,590 5,165 6,052 - - 38 Net periodic cost (benefit) $ 13,544 $ 13,189 $ 11,031 $ 798 $ 760 $ (686 ) |
Funded Status of Defined Benefit Pension and Post-Retirement Plans | The funded status of the defined benefit pension and post-retirement plans at the end of fiscal 2016 and 2015 were as follows: In Thousands Defined Benefit Post-Retirement Pension Plans Benefit Plans 2016 2015 2016 2015 Benefit Obligations Beginning balance $ 453,283 $ 473,348 $ 12,187 $ 13,797 Currency translation adjustment 268 (23,642 ) 26 (1,923 ) Service cost 12,861 11,811 342 359 Interest cost 18,095 16,159 473 464 Plan participants contributions 376 256 - - Amendment - 3,407 - - Acquisitions - 13,982 - - Actuarial (gain) loss 44,136 (2,552 ) 738 (67 ) Other adjustments (859 ) (1,096 ) - - Benefits paid (22,862 ) (38,390 ) (530 ) (443 ) Ending balance $ 505,298 $ 453,283 $ 13,236 $ 12,187 Plan Assets - Fair Value Beginning balance $ 389,461 $ 427,474 $ - $ - Currency translation adjustment 341 (19,977 ) - - Realized and unrealized gain (loss) on plan assets 45,817 2,021 - - Plan participants contributions 376 256 - - Company contribution 12,041 9,185 530 443 Acquisitions - 9,988 - - Other adjustments 1,466 - - - Expenses paid (859 ) (1,096 ) - - Benefits paid (22,862 ) (38,390 ) (530 ) (443 ) Ending balance $ 425,781 $ 389,461 $ - $ - Funded Status Fair value of plan assets $ 425,781 $ 389,461 $ - $ - Benefit obligations (505,298 ) (453,283 ) (13,236 ) (12,187 ) Net amount recognized $ (79,517 ) $ (63,822 ) $ (13,236 ) $ (12,187 ) Amount Recognized in the Consolidated Balance Sheet Non-current asset $ 2,395 $ 2,172 $ - $ - Current liability (1,912 ) (2,463 ) (716 ) (699 ) Non-current liability (80,000 ) (63,531 ) (12,520 ) (11,488 ) Net amount recognized $ (79,517 ) $ (63,822 ) $ (13,236 ) $ (12,187 ) Amounts Recognized in Accumulated Other Comprehensive Income Net actuarial loss (gain) $ 112,420 $ 96,073 $ 975 $ 232 Prior service cost 2,951 3,436 - (17 ) Ending balance $ 115,371 $ 99,509 $ 975 $ 215 |
Estimated Future Benefit Payments Expected to be Paid from Plan or from Assets | Estimated future benefit payments expected to be paid from the plan or from the Company’s assets are as follows: In Thousands Fiscal Year 2017 $ 26,816 2018 27,595 2019 29,247 2020 30,328 2021 32,418 2022 - 2026 170,693 |
Pension Plan | |
Allocations By Investment Type | The following table presents the fair value of the Company’s Pension Plan assets as of September 30, 2016, by asset category segregated by level within the fair value hierarchy, as described in Note 8. In Thousands Fair Value Hierarchy Level 1 Level 2 Total Asset category: Equity Funds: Registered Investment Company Funds - U.S. Equity $ 104,075 $ - $ 104,075 Commingled Trust Funds - U.S. Equity - - - U.S. Equity Securities 55,196 - 55,196 Non-U.S. Equity Securities 28,031 - 28,031 Commingled Trust Funds - Non-U.S. Securities - 52,973 52,973 Fixed Income Securities: Commingled Trust Funds - Fixed Income - 82,627 82,627 Non-U.S. Foreign Commercial and Government Bonds - 75,414 75,414 Cash and Cash Equivalents 27,465 - 27,465 Total $ 214,767 $ 211,014 $ 425,781 The following table presents the fair value of the Company’s Pension Plan assets as of October 2, 2015, by asset category segregated by level within the fair value hierarchy, as described in Note 8. In Thousands Fair Value Hierarchy Level 1 Level 2 Total Asset category: Equity Funds: Registered Investment Company Funds - U.S. Equity $ 95,481 $ - $ 95,481 Commingled Trust Funds - U.S. Equity - 25,307 25,307 U.S. Equity Securities 30,868 - 30,868 Non-U.S. Equity Securities 20,898 - 20,898 Commingled Trust Funds - Non-U.S. Securities - 48,592 48,592 Fixed Income Securities: Commingled Trust Funds - Fixed Income - 80,424 80,424 Non-U.S. Foreign Commercial and Government Bonds - 68,390 68,390 Cash and Cash Equivalents 19,501 - 19,501 Total $ 166,748 $ 222,713 $ 389,461 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 30, 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 the end of fiscal 2016 and 2015: In Thousands Level 2 2016 2015 Assets: Derivative contracts designated as hedging instruments $ 2,948 $ 1,386 Derivative contracts not designated as hedging instruments 143 189 Embedded derivatives 2,485 3,992 Liabilities: Derivative contracts designated as hedging instruments $ 7,828 $ 24,660 Derivative contracts not designated as hedging instruments 6,720 2,324 Embedded derivatives 985 380 In Thousands Level 3 2016 2015 Assets: Estimated value of assets held for sale $ 26,850 $ 52,768 Liabilities: Estimated value of liabilities held for sale $ 11,133 $ 19,515 Contingent purchase obligation - 3,750 |
Derivative Financial Instrume36
Derivative Financial Instruments (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Values of Derivative Instruments In Consolidated Balance Sheet | Fair values of derivative instruments in the Consolidated Balance Sheet at the end of fiscal 2016 and 2015 consisted of: In Thousands Fair Value Classification 2016 2015 Foreign Currency Forward Exchange Contracts: Other current assets $ 1,757 $ 1,527 Other assets 1,334 48 Accrued liabilities 11,168 20,688 Other liabilities 3,380 6,296 Embedded Derivative Instruments: Other current assets $ 1,864 $ 2,913 Other assets 621 1,079 Accrued liabilities 866 351 Other liabilities 119 29 |
Effect of Derivative Instruments on Consolidated Statement of Operations | The effect of derivative instruments on the Consolidated Statement of Operations for fiscal 2016 and 2015 consisted of: Fair Value Hedges The Company recognized the following gains (losses) on contracts designated as fair value hedges: In Thousands 2016 2015 Embedded derivatives: Gain (loss) recognized in sales $ (3,552 ) $ 1,433 Cash Flow Hedges The Company recognized the following gains (losses) on contracts designated as cash flow hedges: In Thousands 2016 2015 Foreign currency forward exchange contracts: Gain (loss) recognized in AOCI (effective portion) $ 37,969 $ 15,484 Gain (loss) reclassified from AOCI into sales (19,575 ) (24,246 ) Net Investment Hedges We recognized the following gains (losses) on contracts designated as net investment hedges: In Thousands 2016 2015 2023 Notes and Accrued Interest: Gain (loss) recognized in AOCI $ (1,256 ) $ (13,596 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Expense from Continuing Operations | Income tax expense from continuing operations for each of the fiscal years consisted of: In Thousands 2016 2015 2014 Current U.S. Federal $ 14,959 $ 11,045 $ 27,243 State (852 ) 492 1,732 Foreign 30,314 24,131 28,944 44,421 35,668 57,919 Deferred U.S. Federal (6,703 ) (7,686 ) (1,024 ) State 2,060 (195 ) (10 ) Foreign (17,243 ) (8,831 ) (13,169 ) (21,886 ) (16,712 ) (14,203 ) Income tax expense $ 22,535 $ 18,956 $ 43,716 |
U.S. and Foreign Components of Earnings from Continuing Operations Before Income Taxes | U.S. and foreign components of earnings from continuing operations before income taxes for each of the fiscal years were: In Thousands 2016 2015 2014 U.S. $ 71,319 $ 43,592 $ 101,803 Foreign 69,116 72,430 107,495 Earnings from continuing operations before income taxes $ 140,435 $ 116,022 $ 209,298 |
Components of Deferred Tax Assets (Liabilities) | Primary components of the Company’s deferred tax assets (liabilities) at the end of the fiscal years resulted from temporary tax differences associated with the following: In Thousands 2016 2015 Reserves and liabilities $ 53,119 $ 48,918 Loss carryforwards 51,760 49,667 Tax credit carryforwards 34,836 32,015 Employee benefits 13,853 12,316 Retirement benefits 22,703 17,055 Non-qualified stock options 13,571 11,908 Hedging activities 3,350 6,092 Other 1,003 2,187 Total deferred tax assets 194,195 180,158 Less valuation allowance (42,976 ) (42,694 ) Total deferred tax assets, net of valuation allowance 151,219 137,464 Depreciation and amortization (7,456 ) (9,352 ) Intangibles and amortization (116,620 ) (124,941 ) Deferred costs (3,907 ) (5,779 ) Other (1,625 ) (1,180 ) Total deferred tax liabilities (129,608 ) (141,252 ) Net deferred tax assets (liabilities) $ 21,611 $ (3,788 ) |
Reconciliation of U.S. Federal Statutory Income Tax Rate to Effective Income Tax Rate | A reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate for each of the fiscal years was as follows: 2016 2015 2014 U.S. statutory income tax rate 35.0 % 35.0 % 35.0 % Foreign taxes -9.8 % -10.7 % -7.6 % Difference in foreign tax rates -4.3 % -5.2 % -4.4 % Research & development credits -5.0 % -5.1 % -2.5 % Non-deductible under consent agreement 0.0 % 2.2 % 0.4 % Domestic manufacturing deduction -1.1 % -0.7 % -1.3 % Net change in tax reserves -0.6 % -0.2 % 0.1 % State income taxes 0.2 % 0.2 % 0.5 % Other, net 1.6 % 0.8 % 0.7 % Effective income tax rate 16.0 % 16.3 % 20.9 % |
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: In Thousands Unrecognized tax benefits as of October 2, 2015 $ 10,583 Unrecognized gross benefit change: Gross decrease due to prior period adjustments (475 ) Gross increase due to current period adjustments 1,475 Gross decrease due to settlements with taxing authorities (2,068 ) Gross decrease due to a lapse with taxing authorities (2,889 ) Total change in unrecognized gross benefit (3,957 ) Unrecognized tax benefits as of September 30, 2016 $ 6,626 Unrecognized tax benefits that, if recognized, would impact the effective tax rate $ 6,626 Statement of operations: Total amount of interest income (expense) included in income tax expense $ (308 ) Recognized in the statement of financial position: Total amount of accrued interest included in income taxes payable $ 583 During the next 12 months, it is reasonably possible that approximately $1.4 million of previously unrecognized tax benefits related to operating losses and tax credits could decrease as a result of settlement of examinations and/or the expiration of statutes of limitations. The Company recognizes interest related to unrecognized tax benefits in income tax expense. |
Income Tax Examinations by Tax Authorities in its Major Tax Jurisdictions | The Company is no longer subject to income tax examinations by tax authorities in its major tax jurisdictions as follows: Years No Longer Tax Jurisdiction Subject to Audit U.S. Federal 2012 and prior Canada 2007 and prior France 2012 and prior United Kingdom 2013 and prior |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt at the end of fiscal 2016 and 2015 consisted of the following: In Thousands 2016 2015 U.S. credit facility $ 155,000 $ 160,000 U.S. Term Loan, due April 2020 237,500 250,000 3.625% Senior Notes, due April 2023 370,920 370,062 Government refundable advances 44,994 43,326 Debt issuance costs (5,609 ) (6,542 ) Obligation under capital leases 67,765 57,987 870,570 874,833 Less current maturities 16,774 13,376 Carrying amount of long-term debt $ 853,796 $ 861,457 |
Long-Term Debt and Future Non-Cancelable Minimum Lease Payments Under Capital Lease Obligations | As of September 30, 2016, aggregate annual maturities of long-term debt and future non-cancelable minimum lease payments under capital lease obligations were as follows: In Thousands Fiscal Year 2017 $ 22,536 2018 19,515 2019 19,625 2020 362,219 2021 7,343 2022 and thereafter 518,987 Total 950,225 Less: debt issuance costs 5,609 amount representing interest on capital leases 74,046 Total long-term debt $ 870,570 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Rental Commitments For Noncancelable Operating Leases | At September 30, 2016, the Company’s rental commitments for noncancelable operating leases with a duration in excess of one year were as follows: In Thousands Fiscal Year 2017 $ 13,431 2018 9,679 2019 8,007 2020 5,637 2021 4,348 2022 and thereafter 6,582 Total $ 47,684 |
Purchase Obligations | As of September 30, 2016, the Company’s purchase obligations were as follows: In Thousands Less than 1‒3 4‒5 After 5 Total 1 year years years years Purchase obligations $ 657,396 $ 621,660 $ 29,288 $ 5,313 $ 1,135 |
Employee Stock Plans (Tables)
Employee Stock Plans (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Changes in Outstanding Options Granted Under Equity Incentive Plans | The following table summarizes the changes in outstanding options granted under the Company’s equity incentive plan: 2016 2015 2014 Weighted Weighted Weighted Shares Average Shares Average Shares Average Subject to Exercise Subject to Exercise Subject to Exercise Option Price Option Price Option Price Outstanding, beginning of year 1,363,921 $ 68.23 1,367,793 $ 60.23 1,829,488 $ 51.08 Granted 221,200 90.16 203,200 107.34 207,200 97.61 Exercised (112,790 ) 48.61 (182,322 ) 50.94 (618,645 ) 45.16 Forfeited/cancelled (73,375 ) 89.91 (24,750 ) 74.73 (50,250 ) 66.65 Outstanding, end of year 1,398,956 $ 72.14 1,363,921 $ 68.23 1,367,793 $ 60.23 Exercisable, end of year 922,706 $ 61.09 826,496 $ 55.63 752,943 $ 50.36 |
Stock Activity Related to Stock Options Exercised | The table below presents stock activity related to stock options exercised in fiscal 2016 and 2015: In Thousands 2016 2015 Proceeds from stock options exercised $ 8,175 $ 11,420 Tax benefits related to stock options exercised 406 1,869 Intrinsic value of stock options exercised 3,195 10,861 |
Stock Options Outstanding | The following table summarizes information for stock options outstanding at September 30, 2016: Options Outstanding Options Exercisable Weighted Average Weighted Weighted Remaining Average Average Range of Exercise Prices Shares Life (years) Price Shares Price $ 23.66 - 50.00 200,771 2.8 $ 39.95 200,771 $ 39.95 50.01 - 52.00 189,575 4.4 51.06 189,575 51.06 52.01 - 65.00 321,660 3.7 60.63 300,310 60.63 65.01 - 80.00 190,350 7.1 73.16 93,100 70.37 80.01 - 100.00 313,550 8.0 94.83 87,225 94.37 100.01 - 118.32 183,050 8.0 109.57 51,725 109.72 |
Summary of Changes in RSUs Granted Under Company's Equity Incentive Plan | The following table summarizes the changes in RSUs granted under the Company’s equity incentive plan: 2016 2015 Weighted Weighted Average Average Grant Date Grant Date Shares Fair Value Shares Fair Value Non-vested, beginning of year 117,281 $ 85.95 103,971 $ 80.01 Granted 37,000 84.70 28,150 105.34 Vested (48,053 ) 75.35 (12,740 ) 79.84 Forfeited/cancelled (6,450 ) 94.58 (2,100 ) 88.99 Non-vested, end of year 99,778 $ 90.04 117,281 $ 85.95 |
Summary of Activity in Target PSP Shares Granted Under Equity Incentive Plan | The following table summarizes the activity in the target PSP shares granted under the Company’s equity incentive plan: 2016 2015 Non-vested, beginning of year 34,700 - Granted 56,275 36,800 Vested - - Forfeited/cancelled (1,700 ) (2,100 ) Non-vested, end of year 89,275 34,700 |
Stock Options | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Fair Value of Option Granted using Black-Scholes Pricing Model | 2016 2015 2014 Volatility 33.06 - 40.52% 40.73 - 41.89% 41.87 - 43.17% Risk-free interest rate 1.61 - 2.24% 1.43 - 2.00% 1.73 - 2.99% Expected life (years) 5 - 9 5 - 9 5 - 9 Dividends 0 0 0 |
Restricted Stock Units | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Stock Activity Related to Stock Options Exercised | The table below presents stock activity related to restricted stock units vested in fiscal 2016 and 2015: In Thousands 2016 2015 Tax benefits related to restricted stock units vested $ 162 $ 104 Intrinsic value of restricted stock units vested 3,847 912 |
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 | 2016 2015 2014 Volatility 33.21 % 25.80 % 33.69 % Risk-free interest rate 1.19 % 0.93 % 0.73 % Expected life (years) 3 3 3 Dividends 0 0 0 |
Shareholder's Equity (Tables)
Shareholder's Equity (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Schedule of Changes in Outstanding Common Shares | Changes in outstanding common shares are summarized as follows: 2016 2015 Shares Outstanding Shares issued, beginning of year 32,378,185 32,123,717 Shares issued under share-based compensation plans 186,067 254,468 Shares issued, end of year 32,564,252 32,378,185 Treasury stock purchased, beginning of year (2,831,350 ) (269,228 ) Treasury stock purchased (304,577 ) (2,562,122 ) Treasury stock purchased, end of year (3,135,927 ) (2,831,350 ) Shares outstanding, end of year 29,428,325 29,546,835 |
Schedule of Shares of Common Stock Purchased under Repurchase Plan | The Company purchased the following shares of common stock in fiscal 2016 under the above described repurchase plan: In Thousands, Except Shares Amounts Shares Amount First quarter - $ - Second quarter 202,310 12,077 Third quarter 102,267 6,657 Fourth quarter - - Total 304,577 $ 18,734 |
Schedule of Components of Accumulated Other Comprehensive Loss | The components of Accumulated Other Comprehensive Loss: In Thousands 2016 2015 Unrealized gain (loss) on derivative contracts $ (4,547 ) $ (22,941 ) Tax effect 1,077 6,036 (3,470 ) (16,905 ) Pension and post-retirement obligations (116,346 ) (99,724 ) Tax effect 39,804 33,775 (76,542 ) (65,949 ) Currency translation adjustment (268,845 ) (225,974 ) Accumulated other comprehensive loss $ (348,857 ) $ (308,828 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Sep. 30, 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) | 12 Months Ended |
Sep. 30, 2016 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | In Thousands Write Off of Exit & Property, Relocation Plant & of Facilities Equipment Severance Total Cost of sales $ 3,364 $ 336 $ 150 $ 3,850 Restructuring charges 4,369 - 504 4,873 Total $ 7,733 $ 336 $ 654 $ 8,723 In Thousands Write Off of Exit & Property, Relocation Plant & of Facilities Equipment Severance Total Cost of sales $ 4,274 $ 115 $ 694 $ 5,083 Restructuring charges 4,524 542 1,573 6,639 Total $ 8,798 $ 657 $ 2,267 $ 11,722 In Thousands Write Off of Exit & Property, Relocation Plant & of Facilities Equipment Severance Total Cost of sales $ 5,486 $ 265 $ 687 $ 6,438 Restructuring charges 5,496 595 2,052 8,143 Total $ 10,982 $ 860 $ 2,739 $ 14,581 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The results of discontinued operations for the last three fiscal years were as follows: Avionics & Sensors & Advanced In Thousands Controls Systems Materials Other Total 2016 Net Sales $ 17,572 $ - $ 5,222 $ - $ 22,794 Operating earnings (loss) 1,350 (379 ) (15,761 ) (788 ) (15,578 ) Tax expense (benefit) 1,487 (83 ) (1,448 ) (268 ) (312 ) Income (loss) from discontinued operations $ (137 ) $ (296 ) $ (14,313 ) $ (520 ) $ (15,266 ) Included in Operating Earnings (Loss): Loss on net assets held for sale $ (2,457 ) $ - $ (5,991 ) $ - $ (8,448 ) Avionics & Sensors & Advanced In Thousands Controls Systems Materials Other Total 2015 (Unaudited, Recast) Net Sales $ 47,603 $ 21,221 $ 14,407 $ - $ 83,231 Operating earnings (loss) (24,004 ) 3,458 (22,424 ) (2,261 ) (45,231 ) Tax expense (benefit) (2,948 ) 814 (2,456 ) (322 ) (4,912 ) Income (loss) from discontinued operations $ (21,056 ) $ 2,644 $ (19,968 ) $ (1,939 ) $ (40,319 ) Included in Operating Earnings (Loss): Loss on net assets held for sale $ (16,763 ) $ (622 ) $ (13,407 ) $ - $ (30,792 ) Avionics & Sensors & Advanced In Thousands Controls Systems Materials Other Total 2015 Net Sales $ 40,835 $ 18,684 $ 12,883 $ - $ 72,402 Operating earnings (loss) (24,591 ) 3,041 (17,588 ) (2,120 ) (41,258 ) Tax expense (benefit) (3,002 ) 626 (1,104 ) (725 ) (4,205 ) Income (loss) from discontinued operations $ (21,589 ) $ 2,415 $ (16,484 ) $ (1,395 ) $ (37,053 ) Included in Operating Earnings (Loss): Loss on net assets held for sale $ (18,864 ) $ (229 ) $ (12,061 ) $ - $ (31,154 ) Avionics & Sensors & Advanced In Thousands Controls Systems Materials Other Total 2014 Net Sales $ 55,447 $ 22,479 $ 25,886 $ - $ 103,812 Operating earnings (loss) (24,035 ) (12,856 ) (29,945 ) (845 ) (67,681 ) Tax expense (benefit) (1,935 ) (523 ) (2,316 ) (296 ) (5,070 ) Income (loss) from discontinued operations $ (22,100 ) $ (12,333 ) $ (27,629 ) $ (549 ) $ (62,611 ) Included in Operating Earnings (Loss): Loss on net assets held for sale $ (18,489 ) $ (12,675 ) $ (18,308 ) $ - $ (49,472 ) Assets and Liabilities Held for Sale within the Consolidated Balance Sheet at September 30, 2016, are comprised of the following: Avionics & Sensors & Advanced In Thousands Controls Systems Materials Total Accounts receivable, net $ 2,588 $ - $ 4,093 $ 6,681 Inventories 8,070 - 398 8,468 Prepaid expenses 127 - 103 230 Income tax refundable - - 71 71 Current Assets of Businesses Held for Sale $ 10,785 $ - $ 4,665 $ 15,450 Net Property, plant and equipment $ 5,368 $ - $ 2,869 $ 8,237 Intangibles, net - - 1,856 1,856 Deferred income tax benefits (liabilities) (392 ) - 400 8 Other assets - - 1,299 1,299 Non-Current Assets of Businesses Held for Sale $ 4,976 $ - $ 6,424 $ 11,400 Accounts payable $ 441 $ - $ 1,463 $ 1,904 Accrued liabilities 7,000 - 1,909 8,909 Current Liabilities of Businesses Held for Sale $ 7,441 $ - $ 3,372 $ 10,813 Other liabilities $ - $ - $ 320 $ 320 Non-Current Liabilities of Businesses Held for Sale $ - $ - $ 320 $ 320 Net Assets of Businesses Held for Sale $ 8,320 $ - $ 7,397 $ 15,717 Assets and Liabilities Held for Sale within the Consolidated Balance Sheet at October 2, 2015, are comprised of the following: Avionics & Sensors & Advanced In Thousands 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 (liabilities) (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) | 12 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Business Segment Information for Continuing Operations | Details of the Company’s operations by business segment for the last three fiscal years were as follows: Eleven Months Twelve Months Ended Ended In Thousands 2016 2015 2014 2015 (Unaudited) (Recast) Sales Avionics & Controls $ 860,494 $ 826,044 $ 766,838 $ 727,801 Sensors & Systems 696,032 714,965 771,369 633,446 Advanced Materials 436,105 461,784 491,264 413,202 $ 1,992,631 $ 2,002,793 $ 2,029,471 $ 1,774,449 Earnings from Continuing Operations Avionics & Controls $ 78,356 $ 93,225 $ 119,649 $ 65,910 Sensors & Systems 87,768 84,235 86,101 71,787 Advanced Materials 74,515 91,334 104,833 80,951 Segment Earnings 240,639 268,794 310,583 218,648 Corporate expense (70,480 ) (82,131 ) (68,297 ) (74,166 ) Other income - 12,503 - 12,503 Interest income 367 632 555 578 Interest expense (30,091 ) (33,114 ) (33,010 ) (30,090 ) Loss on extinguishment of debt - (11,451 ) (533 ) (11,451 ) $ 140,435 $ 155,233 $ 209,298 $ 116,022 Eleven Months Twelve Months Ended Ended In Thousands 2016 2015 2014 2015 (Unaudited) (Recast) Capital Expenditures Avionics & Controls 1 $ 36,423 $ 14,537 $ 9,312 $ 13,074 Sensors & Systems 2 14,319 21,766 21,070 19,489 Advanced Materials 3 15,868 16,309 13,629 14,324 Discontinued Operations - 789 1,199 542 Corporate 1,862 2,006 468 1,912 $ 68,472 $ 55,407 $ 45,678 $ 49,341 Depreciation and Amortization Avionics & Controls $ 38,909 $ 38,070 $ 35,604 $ 33,415 Sensors & Systems 40,399 41,200 43,507 37,250 Advanced Materials 18,691 19,708 20,217 17,474 Discontinued Operations 12 1,877 14,588 496 Corporate 2,247 2,502 2,111 1,940 $ 100,258 $ 103,357 $ 116,027 $ 90,575 In Thousands 2016 2015 2014 Identifiable Assets Avionics & Controls $ 1,304,860 $ 1,276,678 $ 1,125,850 Sensors & Systems 1,140,624 1,116,282 1,240,153 Advanced Materials 498,442 493,968 498,984 Discontinued Operations 29,488 57,095 212,712 Corporate 4 58,617 56,465 115,768 $ 3,032,031 $ 3,000,488 $ 3,193,467 1 Excludes capital expenditures accounted for as a capitalized lease obligation of $2.8 million in fiscal 2014. 2 Excludes capital expenditures accounted for as a capitalized lease obligation of $8.0 million in fiscal 2016. 3 Excludes capital expenditures accounted for as a capitalized lease obligation of $3.3 million in fiscal 2016. 4 Primarily cash and deferred tax assets (see Note 10). |
Revenue from External Customers Attributed to Foreign Countries by Geographic Area | The Company’s operations by geographic area for the last three fiscal years were as follows: Twelve Eleven Twelve Months Months Months Ended Ended Ended In Thousands 2016 2015 2014 Sales 1 Domestic Unaffiliated customers - U.S. $ 838,259 $ 706,586 $ 763,345 Unaffiliated customers - export 172,209 168,459 218,955 Intercompany 77,472 58,039 32,515 1,087,940 933,084 1,014,815 Canada Unaffiliated customers 182,690 173,394 231,937 Intercompany 3,378 4,013 7,544 186,068 177,407 239,481 France Unaffiliated customers 398,909 364,882 460,836 Intercompany 51,461 42,903 60,763 450,370 407,785 521,599 United Kingdom Unaffiliated customers 237,134 242,077 266,570 Intercompany 25,100 23,769 22,846 262,234 265,846 289,416 All other Foreign Unaffiliated customers 163,430 119,051 87,828 Intercompany 167,565 125,386 42,686 330,995 244,437 130,514 Eliminations (324,976 ) (254,110 ) (166,354 ) $ 1,992,631 $ 1,774,449 $ 2,029,471 Twelve Eleven Twelve Months Months Months Ended Ended Ended In Thousands 2016 2015 2014 Segment Earnings 2 Domestic $ 135,107 $ 121,052 $ 178,029 Canada 7,670 19,133 33,599 France 61,381 51,599 50,750 United Kingdom 25,646 28,826 38,686 All other foreign 10,835 (1,962 ) 9,519 $ 240,639 $ 218,648 $ 310,583 2016 2015 2014 Identifiable Assets 3 Domestic $ 1,055,567 $ 933,631 $ 1,028,879 Canada 452,466 458,635 514,520 France 770,625 747,660 839,467 United Kingdom 394,811 501,969 555,620 All other foreign 299,945 302,128 139,213 $ 2,973,414 $ 2,944,023 $ 3,077,699 1 Based on country from which the sale originated and the sale was recorded. 2 Before corporate expense, shown on page 80. 3 Excludes corporate, shown on page 81. |
Product Lines Contributing Sales of Ten Percent or More | Product lines contributing sales of 10% or more of total sales in any of the last three fiscal years were as follows: 2016 2015 2014 Connectors 16 % 16 % 18 % Avionics 9 % 10 % 10 % |
Quarterly Financial Data (Una46
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Sep. 30, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Unaudited Quarterly Financial Information | The following is a summary of unaudited quarterly financial information: In Thousands, Except Per Share Amounts Fiscal Year 2016 Fourth Third Second First Net sales $ 543,752 $ 517,092 $ 490,310 $ 441,477 Gross profit 193,769 173,584 156,173 137,719 Earnings from continuing operations 52,045 38,046 16,996 9,864 Earnings (Loss) from discontinued operations 227 (8,690 ) (2,023 ) (4,780 ) Net earnings $ 52,272 $ 29,356 $ 14,973 $ 5,084 Earnings (loss) per share - basic Continuing operations $ 1.77 $ 1.30 $ 0.58 $ 0.33 Discontinued operations 0.01 (0.30 ) (0.07 ) (0.16 ) Earnings (loss) per share - basic $ 1.78 $ 1.00 $ 0.51 $ 0.17 Earnings (loss) per share - diluted Continuing operations $ 1.75 $ 1.28 $ 0.57 $ 0.33 Discontinued operations 0.01 (0.29 ) (0.07 ) (0.16 ) Earnings (loss) per share - diluted $ 1.76 $ 0.99 $ 0.50 $ 0.17 Fiscal Year 2015 (Recast) Fourth Third Second First Net sales $ 545,249 $ 484,723 $ 468,210 $ 504,611 Gross profit 185,840 165,290 150,017 178,241 Earnings from continuing operations 40,267 28,222 24,931 34,475 Loss from discontinued operations (19,285 ) (558 ) (14,600 ) (5,876 ) Net earnings $ 20,982 $ 27,664 $ 10,331 $ 28,599 Earnings (loss) per share - basic Continuing operations $ 1.36 $ 0.92 $ 0.80 $ 1.09 Discontinued operations (0.65 ) (0.02 ) (0.47 ) (0.19 ) Earnings (loss) per share - basic $ 0.71 $ 0.90 $ 0.33 $ 0.90 Earnings (loss) per share - diluted Continuing operations $ 1.34 $ 0.90 $ 0.79 $ 1.06 Discontinued operations (0.64 ) (0.02 ) (0.46 ) (0.18 ) Earnings (loss) per share - diluted $ 0.70 $ 0.88 $ 0.33 $ 0.88 Fiscal Year 2015 Fourth Third Second First Net sales $ 349,627 $ 490,022 $ 494,042 $ 440,758 Gross profit 114,165 168,606 162,590 144,032 Earnings from continuing operations 20,704 29,868 21,498 24,595 Loss from discontinued operations (17,718 ) (1,371 ) (1,688 ) (16,276 ) Net earnings $ 2,986 $ 28,497 $ 19,810 $ 8,319 Earnings (loss) per share - basic Continuing operations $ 0.70 $ 0.99 $ 0.69 $ 0.77 Discontinued operations (0.60 ) (0.05 ) (0.05 ) (0.51 ) Earnings (loss) per share - basic $ 0.10 $ 0.94 $ 0.64 $ 0.26 Earnings (loss) per share - diluted Continuing operations $ 0.69 $ 0.96 $ 0.68 $ 0.77 Discontinued operations (0.59 ) (0.04 ) (0.05 ) (0.51 ) Earnings (loss) per share - diluted $ 0.10 $ 0.92 $ 0.63 $ 0.26 |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Detail) $ in Thousands, € in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended | |
Apr. 30, 2015EUR (€) | Oct. 02, 2015USD ($)shares | Sep. 30, 2016USD ($)shares | Oct. 31, 2014USD ($)shares | |
Accounting Policies [Line Items] | ||||
Fair market value of long-term debt and short-term borrowings | $ 859,000 | $ 870,500 | ||
Maturities of forecasted transactions using forward exchange contracts | 24 months | |||
Accumulated loss on foreign currency translation adjustment | 225,974 | $ 268,845 | $ 61,100 | |
Gain (loss) on foreign currency transactions | 1,300 | (19,800) | 900 | |
Depreciation expense | 50,700 | 49,500 | 56,200 | |
Depreciation expense included in discontinued operations | 700 | 5,000 | ||
Assets under capital leases | $ 40,700 | $ 48,200 | $ 43,100 | |
Anti-dilutive shares excluded from computation of earnings per share | shares | 409,050 | 602,900 | 136,200 | |
Weighted average number of shares outstanding used to compute basic earnings per share | shares | 30,729,000 | 29,490,000 | 31,840,000 | |
Weighted average number of shares outstanding used to compute diluted earnings per share | shares | 31,215,000 | 29,764,000 | 32,448,000 | |
Minimum | ||||
Accounting Policies [Line Items] | ||||
Estimated amortization of intangible assets | 2 years | |||
Minimum | Building | ||||
Accounting Policies [Line Items] | ||||
Estimated useful lives of property, plant and equipment | 15 years | |||
Minimum | Machinery and Equipment | ||||
Accounting Policies [Line Items] | ||||
Estimated useful lives of property, plant and equipment | 3 years | |||
Maximum | ||||
Accounting Policies [Line Items] | ||||
Estimated amortization of intangible assets | 20 years | |||
Maximum | Building | ||||
Accounting Policies [Line Items] | ||||
Estimated useful lives of property, plant and equipment | 30 years | |||
Maximum | Machinery and Equipment | ||||
Accounting Policies [Line Items] | ||||
Estimated useful lives of property, plant and equipment | 10 years | |||
3.625% Senior Notes, due April 2023 | ||||
Accounting Policies [Line Items] | ||||
Fair market value of long-term debt and short-term borrowings | $ 347,700 | $ 365,300 | ||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | |
Debt instruments maturity date | Apr. 30, 2023 | Apr. 30, 2023 | Apr. 30, 2023 | |
Net Investment Hedges | 3.625% Senior Notes, due April 2023 | ||||
Accounting Policies [Line Items] | ||||
Derivative notional amount | € | € 330 | |||
Foreign Exchange Forward | ||||
Accounting Policies [Line Items] | ||||
Derivative notional amount | $ 402,900 | $ 450,900 | ||
Fair value of foreign currency forwards contracts, liabilities | 23,300 | 4,900 | ||
Foreign Exchange Forward | Cash Flow Hedging | ||||
Accounting Policies [Line Items] | ||||
Derivative notional amount | $ 306,400 | 308,200 | ||
Foreign Exchange Forward Contracts Related to Net Monetary Assets | Cash Flow Hedging | ||||
Accounting Policies [Line Items] | ||||
Derivative notional amount | $ 70,000 | |||
U.S. Government | ||||
Accounting Policies [Line Items] | ||||
Sales revenue percentage | 19.00% | 18.00% |
Allowance for Doubtful Accoun48
Allowance for Doubtful Accounts (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 31, 2014 | ||
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | ||||
Balance at Beginning of Year | $ 10,023 | $ 10,050 | $ 9,215 | |
Charged to expense | 1,502 | 9,690 | 860 | |
Other | [1] | 378 | 0 | 349 |
Write-offs | (1,853) | (2,712) | (401) | |
Balance at End of Year | $ 10,050 | $ 17,028 | $ 10,023 | |
[1] | Other includes balances acquired and balances reclassified to assets held for sale. |
Inventories (Detail)
Inventories (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Oct. 02, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials and purchased parts | $ 177,069 | $ 169,153 |
Work in progress | 158,671 | 162,434 |
Inventory costs under long-term contracts | 12,844 | 18,753 |
Finished goods | 101,622 | 96,428 |
Total Inventories | $ 450,206 | $ 446,768 |
Changes in Goodwill by Segment
Changes in Goodwill by Segment (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Oct. 02, 2015 | Sep. 30, 2016 | |
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | $ 1,071,786 | $ 1,041,991 |
Goodwill from acquisitions | 48,537 | |
Goodwill adjustments | (4,136) | (1,732) |
Goodwill write off on assets held for sale | (2,043) | |
Foreign currency translation adjustment | (72,153) | (15,592) |
Goodwill, Ending Balance | 1,041,991 | 1,024,667 |
Avionics & Controls | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 440,015 | 450,599 |
Goodwill from acquisitions | 48,537 | |
Goodwill adjustments | (841) | (1,732) |
Goodwill write off on assets held for sale | (2,043) | |
Foreign currency translation adjustment | (35,069) | (6,073) |
Goodwill, Ending Balance | 450,599 | 442,794 |
Sensors & Systems | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 425,353 | 387,707 |
Goodwill from acquisitions | 0 | |
Goodwill adjustments | (3,295) | 0 |
Goodwill write off on assets held for sale | 0 | |
Foreign currency translation adjustment | (34,351) | (2,140) |
Goodwill, Ending Balance | 387,707 | 385,567 |
Advanced Materials | ||
Goodwill [Line Items] | ||
Goodwill, Beginning Balance | 206,418 | 203,685 |
Goodwill from acquisitions | 0 | |
Goodwill adjustments | 0 | 0 |
Goodwill write off on assets held for sale | 0 | |
Foreign currency translation adjustment | (2,733) | (7,379) |
Goodwill, Ending Balance | $ 203,685 | $ 196,306 |
Goodwill - Additional Informati
Goodwill - Additional Information (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||||
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | [1] | Sep. 30, 2015 | Oct. 31, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||||||
Loss on assets held for sale | $ 31,154 | $ 8,448 | $ 30,792 | $ 30,792 | $ 49,472 | |
Estimated net Loss against goodwill | $ 2,000 | |||||
[1] | (Recast) |
Intangible Assets (Detail)
Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Intangible Assets By Major Class [Line Items] | ||
Amortized Intangible Assets, Gross Carrying Amount | $ 709,488 | $ 739,193 |
Accumulated Amortization | 356,251 | 326,505 |
Trademark | ||
Intangible Assets By Major Class [Line Items] | ||
Indefinite-lived Intangible Assets, Gross Carrying Amount | $ 39,798 | 39,352 |
Programs | ||
Intangible Assets By Major Class [Line Items] | ||
Amortized Intangible Assets, Weighted Average Years Useful Life | 16 years | |
Amortized Intangible Assets, Gross Carrying Amount | $ 607,276 | 635,761 |
Accumulated Amortization | $ 293,223 | 270,830 |
Core Technology | ||
Intangible Assets By Major Class [Line Items] | ||
Amortized Intangible Assets, Weighted Average Years Useful Life | 12 years | |
Amortized Intangible Assets, Gross Carrying Amount | $ 15,926 | 15,926 |
Accumulated Amortization | $ 11,778 | 10,273 |
Patents and Other | ||
Intangible Assets By Major Class [Line Items] | ||
Amortized Intangible Assets, Weighted Average Years Useful Life | 12 years | |
Amortized Intangible Assets, Gross Carrying Amount | $ 86,286 | 87,506 |
Accumulated Amortization | $ 51,250 | $ 45,402 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Oct. 31, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 49.4 | $ 44 | $ 49.4 |
Amortization of intangible assets discontinued operations | $ 1.2 | $ 9.1 |
Estimated Amortization Expense
Estimated Amortization Expense Related to Intangible Assets (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Goodwill And Intangible Assets Disclosure [Abstract] | |
2,017 | $ 46,049 |
2,018 | 45,121 |
2,019 | 43,783 |
2,020 | 41,580 |
2,021 | $ 40,137 |
Accrued Liabilities (Detail)
Accrued Liabilities (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Oct. 02, 2015 | Oct. 31, 2014 |
Accrued Liabilities Current [Abstract] | |||
Payroll and other compensation | $ 107,132 | $ 107,912 | |
Commissions | 5,901 | 5,373 | |
Casualty and medical | 14,933 | 14,881 | |
Interest | 6,397 | 6,999 | |
Warranties | 13,365 | 14,658 | $ 16,243 |
State and other tax accruals | 4,737 | 3,986 | |
Customer deposits | 22,302 | 32,566 | |
Deferred revenue | 26,618 | 19,647 | |
Contract reserves | 8,822 | 13,008 | |
Forward foreign exchange contracts | 12,036 | 20,932 | |
Litigation reserves | 4,006 | 6,657 | |
Environmental reserves | 646 | 646 | |
Rent and future lease obligations | 1,925 | 1,958 | |
Other | 9,343 | 10,511 | |
Total accrued liabilities | $ 238,163 | $ 259,734 |
Changes in Carrying Amount of A
Changes in Carrying Amount of Accrued Product Warranty Costs (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Oct. 02, 2015 | Sep. 30, 2016 | |
Payables And Accruals [Abstract] | ||
Balance, beginning of year | $ 16,243 | $ 14,658 |
Warranty costs incurred | (1,917) | (2,423) |
Reclassification to liabilities held for sale | (108) | |
Product warranty accrual | 7,762 | 6,850 |
Release of reserves | (6,702) | (5,700) |
Acquisitions | 1,024 | |
Foreign currency translation adjustment | (1,644) | (20) |
Balance, end of year | $ 14,658 | $ 13,365 |
Retirement Benefits - Additiona
Retirement Benefits - Additional Information (Detail) - USD ($) | 3 Months Ended | 8 Months Ended | 11 Months Ended | 12 Months Ended | |
Jan. 30, 2015 | Oct. 02, 2015 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | $ 433,100,000 | $ 433,100,000 | $ 482,200,000 | ||
Company contribution expense | 9,500,000 | $ 10,700,000 | $ 10,300,000 | ||
Increase/decrease discount rate basis points | 0.25% | ||||
Decrease in pension liability based on basis points | $ 14,500,000 | ||||
Increase in pension liability based on basis points | $ 15,200,000 | ||||
Increase/decrease health care trend rate basis points | 1.00% | ||||
Increase in Post Retirement Benefit Obligation based on basis points | $ 1,100,000 | ||||
Decrease in Post Retirement Benefit Obligation based on basis points | $ 900,000 | ||||
Employer matching contribution percent | 6.00% | ||||
Defined contribution plan description | The three formulas used are: 25% of the first 6%; or 50% of the first 6%; or 100% of the first 2% and 50% on the next 4%. | ||||
Other Non-U.S Defined Benefit Pension Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | $ 37,500,000 | ||||
Defined benefit plan, plan assets | 21,200,000 | ||||
Pension and post-retirement obligations | 27,100,000 | ||||
Company contribution expense | 1,700,000 | 5,000,000 | |||
Expected funding requirement for fiscal 2017 | 700,000 | ||||
Defined benefit plan projected benefit obligation | 48,400,000 | ||||
CMC Defined Pension Benefit Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Accumulated benefit obligation | 137,600,000 | ||||
Defined benefit plan, plan assets | 133,700,000 | ||||
Pension and post-retirement obligations | 4,600,000 | ||||
Company contribution expense | 6,300,000 | 5,600,000 | |||
Expected funding requirement for fiscal 2017 | 3,700,000 | ||||
Defined benefit plan projected benefit obligation | $ 138,300,000 | ||||
Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan expected future investment return | 3.25% | ||||
Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan expected future investment return | 8.00% | ||||
Esterline Plans | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan participation, percentage | 41.00% | ||||
Defined benefit plan pension benefits based on average compensation, years | 5 years | ||||
Defined benefit plan, service period related to benefit, years | 5 years | ||||
Defined benefit plans based on compensation during last years of employment | 10 years | ||||
Defined benefit plan amendment date | Jan. 1, 2003 | ||||
Defined benefit plan projected benefit obligation | $ 318,700,000 | ||||
Accumulated benefit obligation | 307,000,000 | ||||
Defined benefit plan, plan assets | 270,900,000 | ||||
Pension and post-retirement obligations | 47,800,000 | ||||
Company contribution expense | 1,200,000 | 1,400,000 | |||
Expected funding requirement for fiscal 2017 | $ 0 | ||||
Contractual termination | $ 16,600,000 | $ 1,400,000 | |||
Settlement | $ 3,000,000 | $ 500,000 | |||
Esterline Plans | Minimum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan annual pay credits | 2.00% | ||||
Esterline Plans | Maximum | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined benefit plan annual pay credits | 6.00% |
Principal Assumptions of Esterl
Principal Assumptions of Esterline, CMC and Other Non-U.S. Plans (Detail) | 11 Months Ended | 12 Months Ended |
Oct. 02, 2015 | Sep. 30, 2016 | |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assumed long-term rate of return on plan assets | 3.25% | |
Maximum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Assumed long-term rate of return on plan assets | 8.00% | |
Pension Plan | Minimum | Other Non-U.S Defined Benefit Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 1.80% | 0.90% |
Rate of increase in future compensation levels | 4.50% | 2.96% |
Assumed long-term rate of return on plan assets | 3.25% | 3.25% |
Pension Plan | Maximum | Other Non-U.S Defined Benefit Pension Plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 8.25% | 7.75% |
Rate of increase in future compensation levels | 8.90% | 10.13% |
Assumed long-term rate of return on plan assets | 8.00% | 8.00% |
Esterline Plans | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.40% | 3.60% |
Rate of increase in future compensation levels | 4.22% | 4.28% |
Assumed long-term rate of return on plan assets | 7.00% | 7.00% |
Esterline Plans | Other Postretirement Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.40% | 3.60% |
Initial weighted average health care trend rate | 6.00% | 6.00% |
Ultimate weighted average health care trend rate | 6.00% | 6.00% |
CMC Plans | Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.00% | 3.22% |
Rate of increase in future compensation levels | 3.00% | 2.75% |
Assumed long-term rate of return on plan assets | 5.70% | 5.66% |
CMC Plans | Other Postretirement Benefit Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.00% | 3.16% |
Initial weighted average health care trend rate | 3.70% | 6.00% |
Ultimate weighted average health care trend rate | 3.10% | 4.20% |
Allocation by Investment Type (
Allocation by Investment Type (Detail) | 12 Months Ended | |
Sep. 30, 2016 | Oct. 02, 2015 | |
Retirement Benefits | ||
Actual, Allocation Percentage | 100.00% | 100.00% |
Equity Securities | ||
Retirement Benefits | ||
Target, Allocation Percentage, Range minimum | 35.00% | |
Target, Allocation Percentage, Range maximum | 70.00% | |
Actual, Allocation Percentage | 56.40% | 56.80% |
Debt Securities | ||
Retirement Benefits | ||
Target, Allocation Percentage, Range minimum | 30.00% | |
Target, Allocation Percentage, Range maximum | 65.00% | |
Actual, Allocation Percentage | 37.10% | 38.20% |
Cash | ||
Retirement Benefits | ||
Target, Allocation Percentage | 0.00% | |
Actual, Allocation Percentage | 6.50% | 5.00% |
Fair Value of Pension Plan Asse
Fair Value of Pension Plan Assets (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Oct. 02, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 425,781 | $ 389,461 |
Funds - U.S. Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 104,075 | 95,481 |
Commingled Trust Funds - U.S. Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 25,307 |
U.S. Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 55,196 | 30,868 |
Non-U.S. Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 28,031 | 20,898 |
Commingled Trust Fund - Non-U.S. Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 52,973 | 48,592 |
Commingled Trust Fund - Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 82,627 | 80,424 |
Non-U.S. Foreign Commercial And Government Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 75,414 | 68,390 |
Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 27,465 | 19,501 |
Level 1 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 214,767 | 166,748 |
Level 1 | Funds - U.S. Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 104,075 | 95,481 |
Level 1 | Commingled Trust Funds - U.S. Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 1 | U.S. Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 55,196 | 30,868 |
Level 1 | Non-U.S. Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 28,031 | 20,898 |
Level 1 | Commingled Trust Fund - Non-U.S. Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 1 | Commingled Trust Fund - Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 1 | Non-U.S. Foreign Commercial And Government Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 1 | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 27,465 | 19,501 |
Level 2 | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 211,014 | 222,713 |
Level 2 | Funds - U.S. Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 2 | Commingled Trust Funds - U.S. Equity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 25,307 |
Level 2 | U.S. Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 2 | Non-U.S. Equity Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 |
Level 2 | Commingled Trust Fund - Non-U.S. Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 52,973 | 48,592 |
Level 2 | Commingled Trust Fund - Fixed Income | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 82,627 | 80,424 |
Level 2 | Non-U.S. Foreign Commercial And Government Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | 75,414 | 68,390 |
Level 2 | Cash and Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined Benefit Plan, Fair Value of Plan Assets | $ 0 | $ 0 |
Net Periodic Pension Cost for D
Net Periodic Pension Cost for Defined Benefit Plans (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 31, 2014 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 11,811 | $ 12,861 | $ 11,367 |
Interest cost | 16,159 | 18,095 | 19,387 |
Expected return on plan assets | (23,872) | (24,491) | (25,999) |
Contractual termination | 0 | 0 | 94 |
Curtailment | 0 | 0 | 23 |
Settlement | 3,522 | 2 | 0 |
Amortization of prior service cost | 404 | 487 | 107 |
Amortization of actuarial (gain) loss | 5,165 | 6,590 | 6,052 |
Net periodic cost (benefit) | 13,189 | 13,544 | 11,031 |
Other Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 359 | 342 | 489 |
Interest cost | 464 | 473 | 685 |
Expected return on plan assets | 0 | 0 | 0 |
Contractual termination | 0 | 0 | 0 |
Curtailment | 0 | 0 | (1,747) |
Settlement | 0 | 0 | 0 |
Amortization of prior service cost | (63) | (17) | (151) |
Amortization of actuarial (gain) loss | 0 | 0 | 38 |
Net periodic cost (benefit) | $ 760 | $ 798 | $ (686) |
Benefit Obligations of Defined
Benefit Obligations of Defined Benefit Pension and Post-Retirement Plans (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 31, 2014 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | $ 11,811 | $ 12,861 | $ 11,367 |
Interest cost | 16,159 | 18,095 | 19,387 |
Pension Plan | Benefit Obligation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | 473,348 | 453,283 | |
Currency translation adjustment | (23,642) | 268 | |
Service cost | 11,811 | 12,861 | |
Interest cost | 16,159 | 18,095 | |
Plan participants contributions | 256 | 376 | |
Amendment | 3,407 | 0 | |
Acquisitions | 13,982 | 0 | |
Actuarial (gain) loss | (2,552) | 44,136 | |
Other adjustments | (1,096) | (859) | |
Benefits paid | (38,390) | (22,862) | |
Ending balance | 453,283 | 505,298 | 473,348 |
Pension Plan | Plan Assets - Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan participants contributions | 256 | 376 | |
Other adjustments | 0 | 1,466 | |
Benefits paid | (38,390) | (22,862) | |
Pension Plan | Funded Status | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | 453,283 | ||
Ending balance | 453,283 | 505,298 | |
Other Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Service cost | 359 | 342 | 489 |
Interest cost | 464 | 473 | 685 |
Other Postretirement Benefit Plan | Benefit Obligation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | 13,797 | 12,187 | |
Currency translation adjustment | (1,923) | 26 | |
Service cost | 359 | 342 | |
Interest cost | 464 | 473 | |
Plan participants contributions | 0 | 0 | |
Amendment | 0 | 0 | |
Acquisitions | 0 | 0 | |
Actuarial (gain) loss | (67) | 738 | |
Other adjustments | 0 | 0 | |
Benefits paid | (443) | (530) | |
Ending balance | 12,187 | 13,236 | $ 13,797 |
Other Postretirement Benefit Plan | Plan Assets - Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan participants contributions | 0 | 0 | |
Other adjustments | 0 | 0 | |
Benefits paid | (443) | (530) | |
Other Postretirement Benefit Plan | Funded Status | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | 12,187 | ||
Ending balance | $ 12,187 | $ 13,236 |
Schedule of Amounts Recognized
Schedule of Amounts Recognized in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Oct. 02, 2015 |
Amount Recognized in the Consolidated Balance Sheet | ||
Non-current liability | $ (92,520) | $ (75,019) |
Amounts Recognized in Accumulated Other Comprehensive Income | ||
Ending balance | 116,346 | 99,724 |
Pension Plan | ||
Amount Recognized in the Consolidated Balance Sheet | ||
Non-current asset | 2,395 | 2,172 |
Current liability | (1,912) | (2,463) |
Non-current liability | (80,000) | (63,531) |
Net amount recognized | (79,517) | (63,822) |
Amounts Recognized in Accumulated Other Comprehensive Income | ||
Net actuarial loss (gain) | 112,420 | 96,073 |
Prior service cost | 2,951 | 3,436 |
Ending balance | 115,371 | 99,509 |
Other Postretirement Benefit Plan | ||
Amount Recognized in the Consolidated Balance Sheet | ||
Non-current asset | 0 | 0 |
Current liability | (716) | (699) |
Non-current liability | (12,520) | (11,488) |
Net amount recognized | (13,236) | (12,187) |
Amounts Recognized in Accumulated Other Comprehensive Income | ||
Net actuarial loss (gain) | 975 | 232 |
Prior service cost | 0 | (17) |
Ending balance | $ 975 | $ 215 |
Fair Value of Plan Assets of De
Fair Value of Plan Assets of Defined Benefit Pension and Post-Retirement Plans (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 31, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | $ 389,461 | ||
Company contribution expense | $ 9,500 | 10,700 | $ 10,300 |
Ending balance | 389,461 | 425,781 | |
Pension Plan | Benefit Obligation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan participants contributions | 256 | 376 | |
Other adjustments | (1,096) | (859) | |
Benefits paid | (38,390) | (22,862) | |
Pension Plan | Plan Assets - Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | 427,474 | 389,461 | |
Currency translation adjustment | (19,977) | 341 | |
Realized and unrealized gain (loss) on plan assets | 2,021 | 45,817 | |
Plan participants contributions | 256 | 376 | |
Company contribution expense | 9,185 | 12,041 | |
Acquisitions | 9,988 | 0 | |
Other adjustments | 0 | 1,466 | |
Expenses paid | (1,096) | (859) | |
Benefits paid | (38,390) | (22,862) | |
Ending balance | 389,461 | 425,781 | 427,474 |
Pension Plan | Funded Status | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | 389,461 | ||
Ending balance | 389,461 | 425,781 | |
Other Postretirement Benefit Plan | Benefit Obligation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plan participants contributions | 0 | 0 | |
Other adjustments | 0 | 0 | |
Benefits paid | (443) | (530) | |
Other Postretirement Benefit Plan | Plan Assets - Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | 0 | 0 | |
Currency translation adjustment | 0 | 0 | |
Realized and unrealized gain (loss) on plan assets | 0 | 0 | |
Plan participants contributions | 0 | 0 | |
Company contribution expense | 443 | 530 | |
Acquisitions | 0 | 0 | |
Other adjustments | 0 | 0 | |
Expenses paid | 0 | 0 | |
Benefits paid | (443) | (530) | |
Ending balance | 0 | 0 | $ 0 |
Other Postretirement Benefit Plan | Funded Status | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Beginning balance | 0 | ||
Ending balance | $ 0 | $ 0 |
Funded Status of Defined Benefi
Funded Status of Defined Benefit Pension and Post-Retirement Plans (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Oct. 02, 2015 | Oct. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | $ 425,781 | $ 389,461 | |
Pension Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net amount recognized | (79,517) | (63,822) | |
Pension Plan | Benefit Obligation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligations | (505,298) | (453,283) | $ (473,348) |
Pension Plan | Plan Assets - Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 425,781 | 389,461 | 427,474 |
Pension Plan | Funded Status | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 425,781 | 389,461 | |
Benefit obligations | (505,298) | (453,283) | |
Net amount recognized | (79,517) | (63,822) | |
Other Postretirement Benefit Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Net amount recognized | (13,236) | (12,187) | |
Other Postretirement Benefit Plan | Benefit Obligation | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Benefit obligations | (13,236) | (12,187) | (13,797) |
Other Postretirement Benefit Plan | Plan Assets - Fair Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | $ 0 |
Other Postretirement Benefit Plan | Funded Status | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Fair Value of Plan Assets | 0 | 0 | |
Benefit obligations | (13,236) | (12,187) | |
Net amount recognized | $ (13,236) | $ (12,187) |
Estimated Future Benefit Paymen
Estimated Future Benefit Payments Expected to be Paid from the Plan or from the Company's Assets (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Retirement Benefits | |
Fiscal Year, 2017 | $ 26,816 |
Fiscal Year, 2018 | 27,595 |
Fiscal Year, 2019 | 29,247 |
Fiscal Year, 2020 | 30,328 |
Fiscal Year, 2021 | 32,418 |
Fiscal Year, 2022 - 2026 | $ 170,693 |
Schedule of Financial Assets an
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 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 | $ 2,948 | $ 1,386 |
Derivative contracts not designated as hedging instruments, Assets | 143 | 189 |
Embedded derivatives, Assets | 2,485 | 3,992 |
Derivative contracts designated as hedging instruments, Liabilities | 7,828 | 24,660 |
Derivative contracts not designated as hedging instruments, Liabilities | 6,720 | 2,324 |
Embedded derivatives, Liabilities | 985 | 380 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated value of assets held for sale | 26,850 | 52,768 |
Estimated value of liabilities held for sale | 11,133 | 19,515 |
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 Instrume69
Derivative Financial Instruments - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 11 Months Ended | 12 Months Ended |
Apr. 30, 2015EUR (€) | Oct. 02, 2015USD ($) | Sep. 30, 2016USD ($) | |
Derivative [Line Items] | |||
Gain (loss) on foreign currency forward exchange contracts not designated as an accounting hedge | $ (0.7) | $ (6.1) | |
Net Gain (Loss) expected to be reclassified into earnings in fiscal year 2017 | $ (5.6) | ||
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% | 3.625% | 3.625% |
Debt instruments maturity date | Apr. 30, 2023 | Apr. 30, 2023 | 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 | $ 402.9 | $ 450.9 |
Fair Values of Derivative Instr
Fair Values of Derivative Instruments in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Oct. 02, 2015 |
Foreign Exchange Forward | Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | $ 1,757 | $ 1,527 |
Foreign Exchange Forward | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | 1,334 | 48 |
Foreign Exchange Forward | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | 3,380 | 6,296 |
Foreign Exchange Forward | Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | 11,168 | 20,688 |
Embedded Derivative Financial Instruments | Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | 1,864 | 2,913 |
Embedded Derivative Financial Instruments | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | 621 | 1,079 |
Embedded Derivative Financial Instruments | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | 119 | 29 |
Embedded Derivative Financial Instruments | Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | $ 866 | $ 351 |
Effect of Derivative Instrument
Effect of Derivative Instruments on Consolidated Statement of Operations and Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Oct. 02, 2015 | Sep. 30, 2016 | |
Net Investment Hedges | 2023 Notes and Accrued Interest | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain (loss) recognized in AOCI | $ (13,596) | $ (1,256) |
Embedded Derivatives | Fair Value Hedging | Sales | ||
Derivative Instruments Gain Loss [Line Items] | ||
Embedded derivatives | 1,433 | (3,552) |
Foreign Exchange Forward | Cash Flow Hedging | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gain (loss) recognized in AOCI (effective portion) | 15,484 | 37,969 |
Gain (loss) reclassified from AOCI into sales | $ (24,246) | $ (19,575) |
Income Tax Expense from Continu
Income Tax Expense from Continuing Operations (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |||
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | [1] | Oct. 31, 2014 | |
Current | |||||
U.S. Federal | $ 11,045 | $ 14,959 | $ 27,243 | ||
State | 492 | (852) | 1,732 | ||
Foreign | 24,131 | 30,314 | 28,944 | ||
Current Income Tax Expense (Benefit), Total | 35,668 | 44,421 | 57,919 | ||
Deferred | |||||
U.S. Federal | (7,686) | (6,703) | (1,024) | ||
State | (195) | 2,060 | (10) | ||
Foreign | (8,831) | (17,243) | (13,169) | ||
Deferred income tax | (16,712) | (21,886) | (14,203) | ||
Income tax expense | $ 18,956 | $ 22,535 | $ 26,911 | $ 43,716 | |
[1] | (Recast) |
U.S and Foreign Components of E
U.S and Foreign Components of Earnings from Continuing Operations Before Income Taxes (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |||
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | [1] | Oct. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||||
U.S. | $ 43,592 | $ 71,319 | $ 101,803 | ||
Foreign | 72,430 | 69,116 | 107,495 | ||
Earnings from Continuing Operations Before Income Taxes | $ 116,022 | $ 140,435 | $ 155,233 | $ 209,298 | |
[1] | (Recast) |
Components of Deferred Tax Asse
Components of Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Oct. 02, 2015 |
Income Tax Disclosure [Abstract] | ||
Reserves and liabilities | $ 53,119 | $ 48,918 |
Loss carryforwards | 51,760 | 49,667 |
Tax credit carryforwards | 34,836 | 32,015 |
Employee benefits | 13,853 | 12,316 |
Retirement benefits | 22,703 | 17,055 |
Non-qualified stock options | 13,571 | 11,908 |
Hedging activities | 3,350 | 6,092 |
Other | 1,003 | 2,187 |
Total deferred tax assets | 194,195 | 180,158 |
Less valuation allowance | (42,976) | (42,694) |
Total deferred tax assets, net of valuation allowance | 151,219 | 137,464 |
Depreciation and amortization | (7,456) | (9,352) |
Intangibles and amortization | (116,620) | (124,941) |
Deferred costs | (3,907) | (5,779) |
Other | (1,625) | (1,180) |
Total deferred tax liabilities | (129,608) | (141,252) |
Net deferred tax asset | $ 21,611 | |
Net deferred tax (liability) | $ (3,788) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 11 Months Ended | 12 Months Ended | |
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
Incremental tax benefit received upon exercise of non-qualified employee stock options | $ 2 | $ 0.6 | $ 7.1 |
Undistributed foreign earnings | 533.5 | ||
Change in unrecognized tax benefit within the next twelve months | $ 1.4 |
Reconciliation of U.S. Federal
Reconciliation of U.S. Federal Statutory Income Tax Rate to Effective Income Tax Rate (Detail) | 11 Months Ended | 12 Months Ended | |
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 31, 2014 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory income tax rate | 35.00% | 35.00% | 35.00% |
Foreign taxes | (10.70%) | (9.80%) | (7.60%) |
Difference in foreign tax rates | (5.20%) | (4.30%) | (4.40%) |
Research & development credits | (5.10%) | (5.00%) | (2.50%) |
Non-deductible under consent agreement | 2.20% | 0.00% | 0.40% |
Domestic manufacturing deduction | (0.70%) | (1.10%) | (1.30%) |
Net change in tax reserves | (0.20%) | (0.60%) | 0.10% |
State income taxes | 0.20% | 0.20% | 0.50% |
Other, net | 0.80% | 1.60% | 0.70% |
Effective income tax rate | 16.30% | 16.00% | 20.90% |
Reconciliation of Beginning and
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) $ in Thousands | 12 Months Ended |
Sep. 30, 2016USD ($) | |
Income Tax Disclosure [Abstract] | |
Unrecognized tax benefits as of October 2, 2015 | $ 10,583 |
Gross decrease due to prior period adjustments | (475) |
Gross increase due to current period adjustments | 1,475 |
Gross decrease due to settlements with taxing authorities | (2,068) |
Gross decrease due to a lapse with taxing authorities | (2,889) |
Total change in unrecognized gross benefit | (3,957) |
Unrecognized tax benefits as of September 30, 2016 | 6,626 |
Unrecognized tax benefits that, if recognized, would impact the effective tax rate | 6,626 |
Statement of operations: | |
Total amount of interest income (expense) included in income tax expense | (308) |
Recognized in the statement of financial position: | |
Total amount of accrued interest included in income taxes payable | $ 583 |
Income Tax Examinations by Tax
Income Tax Examinations by Tax Authorities in its Major Tax Jurisdictions (Detail) | 12 Months Ended |
Sep. 30, 2016 | |
U.S. Federal | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Years No Longer Subject To Audit | 2012 and prior |
Canada | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Years No Longer Subject To Audit | 2007 and prior |
France | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Years No Longer Subject To Audit | 2012 and prior |
United Kingdom | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Years No Longer Subject To Audit | 2013 and prior |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Oct. 02, 2015 |
Debt Instrument [Line Items] | ||
Credit facility | $ 155,000 | $ 160,000 |
Government refundable advances | 44,994 | 43,326 |
Debt issuance costs | (5,609) | (6,542) |
Obligation under capital leases | 67,765 | 57,987 |
Total long-term debt | 870,570 | 874,833 |
Less current maturities | 16,774 | 13,376 |
Carrying amount of long-term debt | 853,796 | 861,457 |
U.S. Credit Facility | ||
Debt Instrument [Line Items] | ||
Credit facility | 155,000 | 160,000 |
U.S. Term Loan, due April 2020 | ||
Debt Instrument [Line Items] | ||
Term Loan | 237,500 | 250,000 |
3.625% Senior Notes, due April 2023 | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 370,920 | $ 370,062 |
Long-Term Debt (Parenthetical)
Long-Term Debt (Parenthetical) (Detail) | 1 Months Ended | 11 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Oct. 02, 2015 | Sep. 30, 2016 | |
3.625% Senior Notes, due April 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt interest rate | 3.625% | 3.625% | 3.625% |
Debt instruments maturity date | Apr. 30, 2023 | Apr. 30, 2023 | Apr. 30, 2023 |
U.S. Term Loan, due April 2020 | |||
Debt Instrument [Line Items] | |||
Debt instruments maturity date | Apr. 30, 2020 | Apr. 30, 2020 |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Millions | Sep. 20, 2016 | Aug. 03, 2015USD ($) | Apr. 09, 2015USD ($) | Apr. 30, 2015USD ($) | Oct. 02, 2015USD ($) | Sep. 30, 2016USD ($) | Apr. 30, 2015EUR (€) |
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | $ 353,200,000 | ||||||
Credit facilities | $ 160,000,000 | 155,000,000 | |||||
Available credit under credit facilities | 527,800,000 | ||||||
Fair market value of long-term debt and short-term borrowings | 859,000,000 | $ 870,500,000 | |||||
Debt instrument, redemption premium | 8,750,000 | ||||||
Write off of unamortized Debt Issuance cost | 2,700,000 | ||||||
Imputed interest on advance | 3.40% | ||||||
Government refundable advances | $ 43,326,000 | $ 44,994,000 | |||||
Present value of minimum lease payment | $ 66,200,000 | ||||||
U.S. Term Loan, due April 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Loan amortization rate | 1.25% | ||||||
Loan amortization end date | Mar. 31, 2020 | ||||||
Debt instruments maturity date | Apr. 30, 2020 | Apr. 30, 2020 | |||||
3.625% Senior Notes, Due April 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Debt issuance costs | $ 5,900,000 | ||||||
Debt instruments maturity date | Apr. 30, 2023 | Apr. 30, 2023 | Apr. 30, 2023 | ||||
Debt instrument, face amount | € | € 330 | ||||||
Debt instrument, interest rate | 3.625% | 3.625% | 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 | $ 365,300,000 | |||||
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 | 2.28% | ||||||
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% | ||||||
Delayed-Draw Term Loan Facility | U.S. Term Loan, due April 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Funds borrowed under the delayed-draw term Loan | $ 250,000,000 | ||||||
Secured Debt | |||||||
Debt Instrument [Line Items] | |||||||
Credit facility maximum borrowing capacity | 27,800,000 | ||||||
Credit facility expiration date | Apr. 9, 2020 | ||||||
Debt issuance costs | $ 2,300,000 | ||||||
Credit facilities | 155,000,000 | ||||||
Outstanding letters of credit | $ 19,600,000 | ||||||
Secured Debt | London Interbank Offered Rate (LIBOR) | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, basis spread on variable rate | 1.75% | ||||||
Secured Debt | London Interbank Offered Rate (LIBOR) | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, basis spread on variable rate | 1.25% | ||||||
Interest rate | 2.27% | ||||||
Secured Debt | London Interbank Offered Rate (LIBOR) | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, basis spread on variable rate | 2.00% | ||||||
Interest rate | 2.29% | ||||||
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 |
Long-Term Debt and Future Non-C
Long-Term Debt and Future Non-Cancelable Minimum Lease Payments Under Capital Lease Obligations (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Oct. 02, 2015 |
Debt Disclosure [Abstract] | ||
2,017 | $ 22,536 | |
2,018 | 19,515 | |
2,019 | 19,625 | |
2,020 | 362,219 | |
2,021 | 7,343 | |
2022 and thereafter | 518,987 | |
Total | 950,225 | |
Less: debt issuance costs | 5,609 | $ 6,542 |
amount representing interest on capital leases | 74,046 | |
Total long-term debt | $ 870,570 | $ 874,833 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2016USD ($) | Jan. 31, 2015USD ($) | Oct. 02, 2015USD ($) | Sep. 30, 2016USD ($)Person | Dec. 31, 2015USD ($) | Oct. 02, 2015USD ($) | Oct. 31, 2014USD ($) | Mar. 05, 2014USD ($) | ||
Contingent Liabilities [Line Items] | |||||||||
Rental expense for operating leases for engineering, selling, administrative and manufacturing | $ 18,600 | $ 19,000 | $ 18,100 | ||||||
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | $ 800 | 1,600 | $ 800 | $ 1,600 | |||||
Consent agreement term | The Consent Agreement has a three-year term and provides 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 | $ 20,000 | ||||||||
Penalty suspended and eligible for offset credit | $ 10,000 | ||||||||
Estimated and recorded charge | 10,000 | $ 10,000 | |||||||
Paid and Recorded over fiscal years 2014, 2015, and 2016 | 8,000 | 8,000 | |||||||
Estimated and payable in March 2017 | 2,000 | 2,000 | |||||||
Penalty suspended and approved for offset credit | 10,000 | 10,000 | |||||||
Gain on release of non-income tax liability | $ 15,656 | $ 0 | $ 15,700 | $ 15,656 | [1] | $ 0 | |||
Reduction in interest expense | 2,400 | ||||||||
Insurance recovery received | $ 5,000 | ||||||||
Belgium-based | Barco N V | |||||||||
Contingent Liabilities [Line Items] | |||||||||
Foreign currency exchange loss | $ (2,900) | $ (2,900) | |||||||
US | |||||||||
Contingent Liabilities [Line Items] | |||||||||
Number of employees represented by various labor union | Person | 554 | ||||||||
Percentage of employees represented by labor unions | 12.00% | ||||||||
[1] | (Recast) |
Rental Commitments For Noncance
Rental Commitments For Noncancelable Operating Leases (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,017 | $ 13,431 |
2,018 | 9,679 |
2,019 | 8,007 |
2,020 | 5,637 |
2,021 | 4,348 |
2022 and thereafter | 6,582 |
Operating Leases, Future Minimum Payments Due, Total | $ 47,684 |
Purchase Obligations (Detail)
Purchase Obligations (Detail) $ in Thousands | Sep. 30, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
Purchase obligations, Total | $ 657,396 |
Purchase obligations, Less than 1 year | 621,660 |
Purchase obligations, 1-3 years | 29,288 |
Purchase obligations, 4-5 years | 5,313 |
Purchase obligations, After 5 years | $ 1,135 |
Employee Stock Plans - Addition
Employee Stock Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 11 Months Ended | 12 Months Ended | |||
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | Oct. 31, 2014 | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Share-based compensation | $ 10,771 | $ 13,462 | $ 12,106 | [1] | $ 13,044 |
Income tax benefit recognized | $ 2,700 | $ 3,600 | $ 3,000 | ||
Weighted-average grant date fair value of options granted | $ 47.85 | $ 35.69 | |||
Number of options exercised | 182,322 | 112,790 | 618,645 | ||
Weighted average exercise price of options exercised | $ 50.94 | $ 48.61 | $ 45.16 | ||
Aggregate intrinsic value of option shares outstanding | $ 17,800 | ||||
Aggregate intrinsic value of option shares exercisable | $ 17,200 | ||||
Number of option shares vested or expected to vest | 1,300,000 | ||||
Option shares vested or expected to vest aggregate intrinsic value | $ 17,700 | ||||
Weighted average exercise price of option shares vested or expected to vest | $ 71.12 | ||||
Weighted average remaining contractual term of option shares vested or expected to vest, years | 5 years 6 months | ||||
Weighted average remaining contractual term of option shares currently exercisable | 4 years 4 months 24 days | ||||
Total unrecognized compensation expense for options | $ 7,400 | ||||
Fair value of option shares vested | $ 2,400 | ||||
Stock Options | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Award period | 10 years | ||||
Award period end date | Mar. 5, 2023 | ||||
Vesting period | 4 years | ||||
Unrecognized compensation expense will be recognized over a weighted average period, years | 1 year 9 months 18 days | ||||
Restricted Stock Units | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Unrecognized compensation expense will be recognized over a weighted average period, years | 1 year 8 months 12 days | ||||
Granted | 28,150 | 37,000 | |||
Total unrecognized compensation expense for options | $ 3,400 | $ 3,400 | |||
Performance Shares | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Granted | 36,800 | 56,275 | |||
Performance period | 3 years | ||||
Performance Shares | Minimum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares paid out as percentage of target number of shares | 0.00% | ||||
Performance Shares | Maximum | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares paid out as percentage of target number of shares | 300.00% | ||||
Employee Stock Purchase Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Purchase price fair market value percentage | 95.00% | ||||
Number of shares purchased by employees | 24,441 | ||||
Employees purchase price per share fair market value | $ 71.44 | ||||
Employee Share-save Scheme | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Common stock reserved for issuance, shares | 142,030 | ||||
Accrued deductions for purchase of shares | $ 500 | ||||
Share purchase date | Dec. 15, 2016 | ||||
Discount rate of market value on purchase date | 95.00% | ||||
The term of options, years | 3 years | ||||
Remaining shares available for issuance | 465,087 | ||||
Number of options granted | 25,984 | 70,673 | 29,242 | ||
Weighted-average grant date fair value of options granted | $ 16.65 | ||||
Number of options exercised | 1,813 | ||||
Weighted average exercise price of options exercised | $ 65.84 | ||||
Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Remaining shares available for issuance | 866,158 | ||||
Shares reserved for issuance to officers and key employees | 1,693,557 | ||||
[1] | (Recast) |
Schedule of Fair Value of Optio
Schedule of Fair Value of Option Granted using Black-Scholes Pricing Model (Detail) - USD ($) | 11 Months Ended | 12 Months Ended | |
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 31, 2014 | |
Stock Options | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Volatility, minimum | 40.73% | 33.06% | 41.87% |
Volatility, maximum | 41.89% | 40.52% | 43.17% |
Risk-free interest rate, minimum | 1.43% | 1.61% | 1.73% |
Risk-free interest rate, maximum | 2.00% | 2.24% | 2.99% |
Dividends | $ 0 | $ 0 | $ 0 |
Stock Options | Minimum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected life (years) | 5 years | 5 years | 5 years |
Stock Options | Maximum | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Expected life (years) | 9 years | 9 years | 9 years |
Employee Share-save Scheme | |||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||
Volatility | 25.80% | 33.21% | 33.69% |
Risk-free interest rate | 0.93% | 1.19% | 0.73% |
Expected life (years) | 3 years | 3 years | 3 years |
Dividends | $ 0 | $ 0 | $ 0 |
Changes In Outstanding Options
Changes In Outstanding Options Granted Under Equity Incentive Plans (Detail) - $ / shares | 11 Months Ended | 12 Months Ended | |
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 31, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Outstanding, beginning of year, Shares Subject to Option | 1,367,793 | 1,363,921 | 1,829,488 |
Granted, Shares Subject to Option | 203,200 | 221,200 | 207,200 |
Exercised, Shares Subject to Options | (182,322) | (112,790) | (618,645) |
Forfeited/cancelled Shares Subject to Option | (24,750) | (73,375) | (50,250) |
Outstanding, end of year, Shares Subject to Option | 1,363,921 | 1,398,956 | 1,367,793 |
Exercisable, end of year, Shares Subject to Option | 826,496 | 922,706 | 752,943 |
Outstanding, beginning of year, Weighted Average Exercise Price | $ 60.23 | $ 68.23 | $ 51.08 |
Granted, Weighted Average Exercise Price | 107.34 | 90.16 | 97.61 |
Exercised, Weighted Average Exercise Price | 50.94 | 48.61 | 45.16 |
Forfeited/cancelled Weighted Average Exercise Price | 74.73 | 89.91 | 66.65 |
Outstanding, end of year, Weighted Average Exercise Price | 68.23 | 72.14 | 60.23 |
Exercisable, end of year, Weighted Average Exercise Price | $ 55.63 | $ 61.09 | $ 50.36 |
Stock Activity Related To Stock
Stock Activity Related To Stock Options Exercised (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | |
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 31, 2014 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Tax benefits related to stock options exercised | $ 2,000 | $ 600 | $ 7,100 |
Stock Options | |||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | |||
Proceeds from stock options exercised | 11,420 | 8,175 | |
Tax benefits related to stock options exercised | 1,869 | 406 | |
Intrinsic value of stock options exercised | $ 10,861 | $ 3,195 |
Stock Options Outstanding (Deta
Stock Options Outstanding (Detail) - $ / shares | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Oct. 31, 2014 | |
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |||
Options Exercisable, Shares | 922,706 | 826,496 | 752,943 |
$23.66 - $50.00 | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |||
Range of Exercise Prices, lower limit | $ 23.66 | ||
Range of Exercise Prices, upper limit | $ 50 | ||
Options Outstanding, Shares | 200,771 | ||
Options Outstanding Weighted Average Remaining Life (years) | 2 years 9 months 18 days | ||
Options Outstanding, Weighted Average Price | $ 39.95 | ||
Options Exercisable, Shares | 200,771 | ||
Options Exercisable, Weighted Average Price | $ 39.95 | ||
$50.01 - $52.00 | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |||
Range of Exercise Prices, lower limit | 50.01 | ||
Range of Exercise Prices, upper limit | $ 52 | ||
Options Outstanding, Shares | 189,575 | ||
Options Outstanding Weighted Average Remaining Life (years) | 4 years 4 months 24 days | ||
Options Outstanding, Weighted Average Price | $ 51.06 | ||
Options Exercisable, Shares | 189,575 | ||
Options Exercisable, Weighted Average Price | $ 51.06 | ||
$52.01 - $65.00 | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |||
Range of Exercise Prices, lower limit | 52.01 | ||
Range of Exercise Prices, upper limit | $ 65 | ||
Options Outstanding, Shares | 321,660 | ||
Options Outstanding Weighted Average Remaining Life (years) | 3 years 8 months 12 days | ||
Options Outstanding, Weighted Average Price | $ 60.63 | ||
Options Exercisable, Shares | 300,310 | ||
Options Exercisable, Weighted Average Price | $ 60.63 | ||
$65.01 - $80.00 | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |||
Range of Exercise Prices, lower limit | 65.01 | ||
Range of Exercise Prices, upper limit | $ 80 | ||
Options Outstanding, Shares | 190,350 | ||
Options Outstanding Weighted Average Remaining Life (years) | 7 years 1 month 6 days | ||
Options Outstanding, Weighted Average Price | $ 73.16 | ||
Options Exercisable, Shares | 93,100 | ||
Options Exercisable, Weighted Average Price | $ 70.37 | ||
$80.01 - $100.00 | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |||
Range of Exercise Prices, lower limit | 80.01 | ||
Range of Exercise Prices, upper limit | $ 100 | ||
Options Outstanding, Shares | 313,550 | ||
Options Outstanding Weighted Average Remaining Life (years) | 8 years | ||
Options Outstanding, Weighted Average Price | $ 94.83 | ||
Options Exercisable, Shares | 87,225 | ||
Options Exercisable, Weighted Average Price | $ 94.37 | ||
$100.01 - $118.32 | |||
Share Based Compensation Shares Authorized Under Stock Option Plans Exercise Price Range [Line Items] | |||
Range of Exercise Prices, lower limit | 100.01 | ||
Range of Exercise Prices, upper limit | $ 118.32 | ||
Options Outstanding, Shares | 183,050 | ||
Options Outstanding Weighted Average Remaining Life (years) | 8 years | ||
Options Outstanding, Weighted Average Price | $ 109.57 | ||
Options Exercisable, Shares | 51,725 | ||
Options Exercisable, Weighted Average Price | $ 109.72 |
Summary of Changes in RSUs Gran
Summary of Changes in RSUs Granted Under Equity Incentive Plan (Detail) - Restricted Stock Units - $ / shares | 11 Months Ended | 12 Months Ended |
Oct. 02, 2015 | Sep. 30, 2016 | |
Non-vested shares | ||
Non-vested, beginning of year | 103,971 | 117,281 |
Granted | 28,150 | 37,000 |
Vested | (12,740) | (48,053) |
Forfeited/cancelled | (2,100) | (6,450) |
Non-vested, end of year | 117,281 | 99,778 |
Weighted-Average Grant Date Fair Value per Share | ||
Weighted-Average grant date fair value per share Non-vested, beginning of year | $ 80.01 | $ 85.95 |
Weighted-Average grant date fair value per share Granted | 105.34 | 84.70 |
Weighted-Average grant date fair value per share Vested | 79.84 | 75.35 |
Weighted-Average grant date fair value per share Forfeited/cancelled | 88.99 | 94.58 |
Weighted-Average grant date fair value per share Non-vested, end of year | $ 85.95 | $ 90.04 |
Stock Activity Related to Restr
Stock Activity Related to Restricted Stock Units Vested (Detail) - Restricted Stock Units - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended |
Oct. 02, 2015 | Sep. 30, 2016 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Tax benefits related to restricted stock units vested | $ 104 | $ 162 |
Intrinsic value of restricted stock units vested | $ 912 | $ 3,847 |
Summary of Activity in Target P
Summary of Activity in Target PSP Shares Granted Under Equity Incentive Plan (Details) - Performance Shares - shares | 11 Months Ended | 12 Months Ended |
Oct. 02, 2015 | Sep. 30, 2016 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Non-vested, beginning of year | 0 | 34,700 |
Granted | 36,800 | 56,275 |
Vested | 0 | 0 |
Forfeited/cancelled | (2,100) | (1,700) |
Non-vested, end of year | 34,700 | 89,275 |
Shareholder's Equity - Addition
Shareholder's Equity - Additional Information (Detail) - USD ($) | Sep. 30, 2016 | Oct. 02, 2015 | Mar. 31, 2015 | Jun. 19, 2014 |
Class Of Stock [Line Items] | ||||
Preferred stock shares authorized | 25,000 | |||
Preferred stock, par value | $ 100 | |||
Common stock, shares authorized | 60,000,000 | 60,000,000 | ||
Common stock, par value | $ 0.20 | $ 0.20 | ||
Preferred stock shares outstanding | 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 | |||
Series B Preferred Stock | ||||
Class Of Stock [Line Items] | ||||
Preferred stock shares authorized | 475,000 | |||
Preferred stock, par value | $ 1 | |||
Preferred stock shares outstanding | 0 |
Schedule of Changes in Outstand
Schedule of Changes in Outstanding Common Shares and Treasury Stock (Detail) | 11 Months Ended | 12 Months Ended |
Oct. 02, 2015shares | Sep. 30, 2016shares | |
Equity [Abstract] | ||
Shares issued, beginning of year | 32,123,717 | 32,378,185 |
Shares issued under share-based compensation plans | 254,468 | 186,067 |
Shares issued, end of year | 32,378,185 | 32,564,252 |
Treasury stock purchased, beginning of year | (269,228) | (2,831,350) |
Treasury stock purchased | (2,562,122) | (304,577) |
Treasury stock purchased, end of year | (2,831,350) | (3,135,927) |
Shares outstanding, end of year | 29,546,835 | 29,428,325 |
Schedule of Shares of Common St
Schedule of Shares of Common Stock Purchased under Repurchase Plan (Detail) - USD ($) $ in Thousands | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||
Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Oct. 02, 2015 | Sep. 30, 2016 | |
Class Of Stock [Line Items] | ||||||
Number of shares repurchased | 2,562,122 | 304,577 | ||||
Common Stock, Par Value $.20 Per Share | ||||||
Class Of Stock [Line Items] | ||||||
Number of shares repurchased | 0 | 102,267 | 202,310 | 0 | 304,577 | |
Share repurchased amount | $ 0 | $ 6,657 | $ 12,077 | $ 0 | $ 18,734 |
Schedule of Components of Accum
Schedule of Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Oct. 02, 2015 | Oct. 31, 2014 |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |||
Unrealized gain (loss) on derivative contracts | $ (4,547) | $ (22,941) | |
Tax effect | 1,077 | 6,036 | |
Unrealized gain (loss) on derivative contracts, Total | (3,470) | (16,905) | |
Pension and post-retirement obligations | (116,346) | (99,724) | |
Tax effect | 39,804 | 33,775 | |
Pension and post-retirement obligations, Total | (76,542) | (65,949) | |
Currency translation adjustment | (268,845) | (225,974) | $ (61,100) |
Accumulated other comprehensive loss | $ (348,857) | $ (308,828) |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands, € in Millions | Jan. 31, 2015USD ($) | Jan. 31, 2015EUR (€) | Dec. 20, 2013USD ($) | Oct. 02, 2015USD ($) | Sep. 30, 2016USD ($) | Jul. 01, 2016USD ($) | Apr. 01, 2016USD ($) | Jan. 01, 2016USD ($) | Sep. 25, 2015USD ($) | Jul. 31, 2015USD ($) | Jun. 26, 2015USD ($) | May 01, 2015USD ($) | Mar. 27, 2015USD ($) | Jan. 31, 2015USD ($) | Jan. 30, 2015USD ($) | Dec. 26, 2014USD ($) | Oct. 02, 2015USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2015USD ($) | Oct. 02, 2015USD ($) | Sep. 30, 2015USD ($) | Oct. 31, 2014USD ($) | ||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Sales | $ 349,627 | $ 543,752 | $ 517,092 | $ 490,310 | $ 441,477 | $ 545,249 | $ 490,022 | $ 484,723 | $ 494,042 | $ 468,210 | $ 440,758 | $ 504,611 | $ 1,774,449 | [1] | $ 1,992,631 | [1] | $ 2,002,793 | [2] | $ 2,029,471 | [1] | ||||||
Goodwill | $ 1,041,991 | $ 1,024,667 | $ 1,041,991 | 1,024,667 | $ 1,041,991 | $ 1,071,786 | ||||||||||||||||||||
Sunbank Family Of Companies LLC. | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Business acquired | $ 51,700 | |||||||||||||||||||||||||
Belgium-based | Barco N V | ||||||||||||||||||||||||||
Business Acquisition [Line Items] | ||||||||||||||||||||||||||
Business acquired | $ 171,000 | € 150 | ||||||||||||||||||||||||
Foreign currency exchange loss | $ (2,900) | $ (2,900) | ||||||||||||||||||||||||
Business acquisition working capital adjustment | 15,000 | |||||||||||||||||||||||||
Acquisition-related costs | 3,400 | |||||||||||||||||||||||||
Sales | 155,700 | $ 82,500 | ||||||||||||||||||||||||
Operating earnings (loss) | $ 2,600 | $ (16,000) | ||||||||||||||||||||||||
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 | $ 46,618 | ||||||||||||||||||||||||
[1] | Based on country from which the sale originated and the sale was recorded. | |||||||||||||||||||||||||
[2] | (Recast) |
Allocation of Estimated Fair Va
Allocation of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Oct. 02, 2015 | Jan. 31, 2015 | Oct. 31, 2014 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,024,667 | $ 1,041,991 | $ 1,071,786 | |
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 Fair100
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 | 11 Months Ended | 12 Months Ended |
Oct. 02, 2015 | Sep. 30, 2016 | |
Restructuring Cost And Reserve [Line Items] | ||
Restructuring expense | $ 11.7 | $ 8.7 |
Accrued restructuring | 2.8 | $ 1.9 |
Unaudited and Recast | ||
Restructuring Cost And Reserve [Line Items] | ||
Restructuring expense | $ 14.6 |
Schedule of Restructuring and R
Schedule of Restructuring and Related Costs (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | [1] | |
Restructuring Cost And Reserve [Line Items] | ||||
Exit & Relocation of Facilities | $ 8,798 | $ 7,733 | $ 10,982 | |
Write-Off of Property, Plant & Equipment | 657 | 336 | 860 | |
Severance | 2,267 | 654 | 2,739 | |
Restructuring charges | 11,722 | 8,723 | 14,581 | |
Cost of Sales | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Exit & Relocation of Facilities | 4,274 | 3,364 | 5,486 | |
Write-Off of Property, Plant & Equipment | 115 | 336 | 265 | |
Severance | 694 | 150 | 687 | |
Restructuring charges | 5,083 | 3,850 | 6,438 | |
Restructuring Charges | ||||
Restructuring Cost And Reserve [Line Items] | ||||
Exit & Relocation of Facilities | 4,524 | 4,369 | 5,496 | |
Write-Off of Property, Plant & Equipment | 542 | 0 | 595 | |
Severance | 1,573 | 504 | 2,052 | |
Restructuring charges | $ 6,639 | $ 4,873 | $ 8,143 | |
[1] | unaudited and recast |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) € in Thousands, $ in Thousands, £ in Millions | Sep. 30, 2016GBP (£) | Jun. 06, 2016EUR (€) | May 04, 2016GBP (£) | Jul. 20, 2015USD ($) | Jun. 05, 2015USD ($) | Oct. 02, 2015USD ($) | Sep. 30, 2016USD ($) | Oct. 02, 2015USD ($) | Sep. 30, 2015USD ($) | Oct. 31, 2014USD ($) | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Loss on net assets held for sale | $ 31,154 | $ 8,448 | $ 30,792 | [1] | $ 30,792 | $ 49,472 | |||||
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | 1,600 | 800 | 1,600 | ||||||||
Discontinued Operations Previously Sold Business Unit | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Environmental remediation expense | 2,100 | 800 | 800 | ||||||||
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | 1,600 | 800 | $ 1,600 | ||||||||
Remediation costs | $ 2,000 | $ 1,500 | $ 700 | ||||||||
Eclipse | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Sale of discontinued operation | $ 7,900 | ||||||||||
PA&E | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Sale of discontinued operation | $ 22,300 | ||||||||||
Wallop | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Sale of discontinued operation | € 1,250 | £ 2.5 | |||||||||
Deferred compensation payments | € 1,250 | £ 9 | |||||||||
Deferred compensation payment date | Oct. 31, 2019 | May 3, 2019 | |||||||||
Deferred compensation payable acceptable orders percentage | 10.00% | ||||||||||
Payments for earn out | £ | £ 5.8 | ||||||||||
Wallop | Minimum | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Deferred compensation payable acceptable orders percentage | 26.50% | ||||||||||
Wallop | Maximum | |||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||||||
Deferred compensation payable acceptable orders percentage | 31.00% | ||||||||||
[1] | (Recast) |
Discontinued Operations Income
Discontinued Operations Income (Loss) Net of Tax (Detail) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||||||||
Oct. 02, 2015 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Sep. 25, 2015 | Jul. 31, 2015 | Jun. 26, 2015 | May 01, 2015 | Mar. 27, 2015 | Jan. 30, 2015 | Dec. 26, 2014 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | Sep. 30, 2015 | Oct. 31, 2014 | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||||||||
Net Sales | $ 72,402 | $ 22,794 | $ 83,231 | $ 103,812 | ||||||||||||||
Operating earnings (loss) | (41,258) | (15,578) | (45,231) | (67,681) | ||||||||||||||
Tax expense (benefit) | (4,205) | (312) | (4,912) | (5,070) | ||||||||||||||
Income (loss) from discontinued operations | $ (17,718) | $ 227 | $ (8,690) | $ (2,023) | $ (4,780) | $ (19,285) | $ (1,371) | $ (558) | $ (1,688) | $ (14,600) | $ (16,276) | $ (5,876) | (37,053) | (15,266) | (40,319) | [1] | (62,611) | |
Included in Operating Earnings (Loss): | ||||||||||||||||||
Loss on net assets held for sale | (31,154) | (8,448) | (30,792) | [1] | $ (30,792) | (49,472) | ||||||||||||
Avionics & Controls | ||||||||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||||||||
Net Sales | 40,835 | 17,572 | 47,603 | 55,447 | ||||||||||||||
Operating earnings (loss) | (24,591) | 1,350 | (24,004) | (24,035) | ||||||||||||||
Tax expense (benefit) | (3,002) | 1,487 | (2,948) | (1,935) | ||||||||||||||
Income (loss) from discontinued operations | (21,589) | (137) | (21,056) | (22,100) | ||||||||||||||
Included in Operating Earnings (Loss): | ||||||||||||||||||
Loss on net assets held for sale | (18,864) | (2,457) | (16,763) | (18,489) | ||||||||||||||
Sensors & Systems | ||||||||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||||||||
Net Sales | 18,684 | 0 | 21,221 | 22,479 | ||||||||||||||
Operating earnings (loss) | 3,041 | (379) | 3,458 | (12,856) | ||||||||||||||
Tax expense (benefit) | 626 | (83) | 814 | (523) | ||||||||||||||
Income (loss) from discontinued operations | 2,415 | (296) | 2,644 | (12,333) | ||||||||||||||
Included in Operating Earnings (Loss): | ||||||||||||||||||
Loss on net assets held for sale | (229) | 0 | (622) | (12,675) | ||||||||||||||
Advanced Materials | ||||||||||||||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||||||||||||||||
Net Sales | 12,883 | 5,222 | 14,407 | 25,886 | ||||||||||||||
Operating earnings (loss) | (17,588) | (15,761) | (22,424) | (29,945) | ||||||||||||||
Tax expense (benefit) | (1,104) | (1,448) | (2,456) | (2,316) | ||||||||||||||
Income (loss) from discontinued operations | (16,484) | (14,313) | (19,968) | (27,629) | ||||||||||||||
Included in Operating Earnings (Loss): | ||||||||||||||||||
Loss on net assets held for sale | (12,061) | (5,991) | (13,407) | (18,308) | ||||||||||||||
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) | (2,120) | (788) | (2,261) | (845) | ||||||||||||||
Tax expense (benefit) | (725) | (268) | (322) | (296) | ||||||||||||||
Income (loss) from discontinued operations | (1,395) | (520) | (1,939) | (549) | ||||||||||||||
Included in Operating Earnings (Loss): | ||||||||||||||||||
Loss on net assets held for sale | $ 0 | $ 0 | $ 0 | $ 0 | ||||||||||||||
[1] | (Recast) |
Discontinued Operations Assets
Discontinued Operations Assets and Liabilities Held for Sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2016 | Oct. 02, 2015 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | $ 6,681 | $ 6,906 |
Inventories | 8,468 | 20,604 |
Prepaid expenses | 230 | 341 |
Income tax refundable | 71 | |
Current Assets of Businesses Held for Sale | 15,450 | 27,851 |
Net Property, plant and equipment | 8,237 | 17,673 |
Intangibles, net | 1,856 | 5,873 |
Deferred income tax benefits (liabilities) | 8 | (147) |
Other assets | 1,299 | 1,518 |
Non-Current Assets of Businesses Held for Sale | 11,400 | 24,917 |
Accounts payable | 1,904 | 6,715 |
Accrued liabilities | 8,909 | 10,391 |
Current Liabilities of Businesses Held for Sale | 10,813 | 17,106 |
Deferred income tax liabilities | 194 | |
Other liabilities | 320 | 2,215 |
Non-Current Liabilities of Businesses Held for Sale | 320 | 2,409 |
Net Assets of Businesses Held for Sale | 15,717 | 33,253 |
Avionics & Controls | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 2,588 | 5,360 |
Inventories | 8,070 | 14,763 |
Prepaid expenses | 127 | 156 |
Income tax refundable | 0 | |
Current Assets of Businesses Held for Sale | 10,785 | 20,279 |
Net Property, plant and equipment | 5,368 | 5,474 |
Intangibles, net | 0 | 945 |
Deferred income tax benefits (liabilities) | (392) | (147) |
Other assets | 0 | 0 |
Non-Current Assets of Businesses Held for Sale | 4,976 | 6,272 |
Accounts payable | 441 | 1,878 |
Accrued liabilities | 7,000 | 8,340 |
Current Liabilities of Businesses Held for Sale | 7,441 | 10,218 |
Deferred income tax liabilities | 0 | |
Other liabilities | 0 | 2,215 |
Non-Current Liabilities of Businesses Held for Sale | 0 | 2,215 |
Net Assets of Businesses Held for Sale | 8,320 | 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 |
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 (liabilities) | 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 | |
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 | 4,093 | 1,546 |
Inventories | 398 | 5,841 |
Prepaid expenses | 103 | 185 |
Income tax refundable | 71 | |
Current Assets of Businesses Held for Sale | 4,665 | 7,572 |
Net Property, plant and equipment | 2,869 | 12,199 |
Intangibles, net | 1,856 | 4,928 |
Deferred income tax benefits (liabilities) | 400 | 0 |
Other assets | 1,299 | 1,518 |
Non-Current Assets of Businesses Held for Sale | 6,424 | 18,645 |
Accounts payable | 1,463 | 4,837 |
Accrued liabilities | 1,909 | 2,051 |
Current Liabilities of Businesses Held for Sale | 3,372 | 6,888 |
Deferred income tax liabilities | 194 | |
Other liabilities | 320 | 0 |
Non-Current Liabilities of Businesses Held for Sale | 320 | 194 |
Net Assets of Businesses Held for Sale | $ 7,397 | $ 19,135 |
Business Segment Information -
Business Segment Information - Additional Information (Detail) - Segment | 11 Months Ended | 12 Months Ended | |
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 31, 2014 | |
Segment Reporting Information [Line Items] | |||
Number of reporting segments | 3 | ||
U.S. Government | |||
Segment Reporting Information [Line Items] | |||
Sales as a percentage of segment sales | 2.90% | 3.10% | 4.00% |
Advanced Materials | Operating Segments | U.S. Government | |||
Segment Reporting Information [Line Items] | |||
Sales as a percentage of segment sales | 9.90% | 9.80% | 14.70% |
Avionics & Controls | Operating Segments | U.S. Government | |||
Segment Reporting Information [Line Items] | |||
Sales as a percentage of segment sales | 1.10% | 2.00% | 1.70% |
Business Segment Information fo
Business Segment Information for Continuing Operations (Detail) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||||||||||
Oct. 02, 2015 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Sep. 25, 2015 | Jul. 31, 2015 | Jun. 26, 2015 | May 01, 2015 | Mar. 27, 2015 | Jan. 30, 2015 | Dec. 26, 2014 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | Oct. 31, 2014 | |||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Sales | $ 349,627 | $ 543,752 | $ 517,092 | $ 490,310 | $ 441,477 | $ 545,249 | $ 490,022 | $ 484,723 | $ 494,042 | $ 468,210 | $ 440,758 | $ 504,611 | $ 1,774,449 | [1] | $ 1,992,631 | [1] | $ 2,002,793 | [2] | $ 2,029,471 | [1] |
Other income | 12,503 | 0 | 12,503 | [2] | 0 | |||||||||||||||
Interest income | 578 | 367 | 632 | [2] | 555 | |||||||||||||||
Interest expense | (30,090) | (30,091) | (33,114) | [2] | (33,010) | |||||||||||||||
Loss on extinguishment of debt | (11,451) | 0 | (11,451) | [2] | (533) | |||||||||||||||
Earnings from Continuing Operations Before Income Taxes | 116,022 | 140,435 | 155,233 | [2] | 209,298 | |||||||||||||||
Avionics & Controls | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Sales | 727,801 | 860,494 | 826,044 | 766,838 | ||||||||||||||||
Sensors & Systems | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Sales | 633,446 | 696,032 | 714,965 | 771,369 | ||||||||||||||||
Advanced Materials | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Sales | 413,202 | 436,105 | 461,784 | 491,264 | ||||||||||||||||
Operating Segments | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Segment Earnings | 218,648 | 240,639 | 268,794 | 310,583 | ||||||||||||||||
Operating Segments | Avionics & Controls | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Segment Earnings | 65,910 | 78,356 | 93,225 | 119,649 | ||||||||||||||||
Operating Segments | Sensors & Systems | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Segment Earnings | 71,787 | 87,768 | 84,235 | 86,101 | ||||||||||||||||
Operating Segments | Advanced Materials | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Segment Earnings | 80,951 | 74,515 | 91,334 | 104,833 | ||||||||||||||||
Corporate Non Segment | ||||||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||||||
Corporate expense | $ (74,166) | $ (70,480) | $ (82,131) | $ (68,297) | ||||||||||||||||
[1] | Based on country from which the sale originated and the sale was recorded. | |||||||||||||||||||
[2] | (Recast) |
Reconciliation of Assets from S
Reconciliation of Assets from Segment to Consolidated (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||||
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | Oct. 31, 2014 | |||
Segment Reporting Information [Line Items] | ||||||
Capital Expenditures | $ 49,341 | $ 68,472 | $ 55,407 | [1] | $ 45,678 | |
Depreciation and amortization | 90,575 | 100,258 | 103,357 | [1] | 116,027 | |
Identifiable Assets | 3,000,488 | 3,032,031 | 3,000,488 | 3,193,467 | ||
Discontinued Operations | ||||||
Segment Reporting Information [Line Items] | ||||||
Capital Expenditures | 542 | 0 | 789 | 1,199 | ||
Depreciation and amortization | 496 | 12 | 1,877 | 14,588 | ||
Identifiable Assets | 57,095 | 29,488 | 57,095 | 212,712 | ||
Operating Segments | Avionics & Controls | ||||||
Segment Reporting Information [Line Items] | ||||||
Capital Expenditures | [2] | 13,074 | 36,423 | 14,537 | 9,312 | |
Depreciation and amortization | 33,415 | 38,909 | 38,070 | 35,604 | ||
Identifiable Assets | 1,276,678 | 1,304,860 | 1,276,678 | 1,125,850 | ||
Operating Segments | Sensors & Systems | ||||||
Segment Reporting Information [Line Items] | ||||||
Capital Expenditures | [3] | 19,489 | 14,319 | 21,766 | 21,070 | |
Depreciation and amortization | 37,250 | 40,399 | 41,200 | 43,507 | ||
Identifiable Assets | 1,116,282 | 1,140,624 | 1,116,282 | 1,240,153 | ||
Operating Segments | Advanced Materials | ||||||
Segment Reporting Information [Line Items] | ||||||
Capital Expenditures | [4] | 14,324 | 15,868 | 16,309 | 13,629 | |
Depreciation and amortization | 17,474 | 18,691 | 19,708 | 20,217 | ||
Identifiable Assets | 493,968 | 498,442 | 493,968 | 498,984 | ||
Corporate Non Segment | ||||||
Segment Reporting Information [Line Items] | ||||||
Capital Expenditures | 1,912 | 1,862 | 2,006 | 468 | ||
Depreciation and amortization | 1,940 | 2,247 | 2,502 | 2,111 | ||
Identifiable Assets | [5] | $ 56,465 | $ 58,617 | $ 56,465 | $ 115,768 | |
[1] | (Recast) | |||||
[2] | Excludes capital expenditures accounted for as a capitalized lease obligation of $2.8 million in fiscal 2014. | |||||
[3] | Excludes capital expenditures accounted for as a capitalized lease obligation of $8.0 million in fiscal 2016. | |||||
[4] | Excludes capital expenditures accounted for as a capitalized lease obligation of $3.3 million in fiscal 2016. | |||||
[5] | Primarily cash and deferred tax assets (see Note 10). |
Reconciliation of Assets fro109
Reconciliation of Assets from Segment to Consolidated (Parenthetical) (Detail) - USD ($) $ in Millions | Sep. 30, 2016 | Oct. 31, 2014 |
Avionics & Controls | ||
Segment Reporting Information [Line Items] | ||
Capitalized lease obligation | $ 2.8 | |
Sensors & Systems | ||
Segment Reporting Information [Line Items] | ||
Capitalized lease obligation | $ 8 | |
Advanced Materials | ||
Segment Reporting Information [Line Items] | ||
Capitalized lease obligation | $ 3.3 |
Revenue from External Customers
Revenue from External Customers Attributed to Foreign Countries by Geographic Area (Detail) - USD ($) $ in Thousands | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | |||||||||||||||||
Oct. 02, 2015 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Sep. 25, 2015 | Jul. 31, 2015 | Jun. 26, 2015 | May 01, 2015 | Mar. 27, 2015 | Jan. 30, 2015 | Dec. 26, 2014 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | [2] | Oct. 31, 2014 | |||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | $ 349,627 | $ 543,752 | $ 517,092 | $ 490,310 | $ 441,477 | $ 545,249 | $ 490,022 | $ 484,723 | $ 494,042 | $ 468,210 | $ 440,758 | $ 504,611 | $ 1,774,449 | [1] | $ 1,992,631 | [1] | $ 2,002,793 | $ 2,029,471 | [1] | ||
US | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | 933,084 | 1,087,940 | 1,014,815 | |||||||||||||||||
Canada | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | 177,407 | 186,068 | 239,481 | |||||||||||||||||
France | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | 407,785 | 450,370 | 521,599 | |||||||||||||||||
United Kingdom | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | 265,846 | 262,234 | 289,416 | |||||||||||||||||
All Other Foreign | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | 244,437 | 330,995 | 130,514 | |||||||||||||||||
Intersegment Elimination | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | (254,110) | (324,976) | (166,354) | |||||||||||||||||
Unaffiliated customers - U.S. | US | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | 706,586 | 838,259 | 763,345 | |||||||||||||||||
Unaffiliated customers - Export | US | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | 168,459 | 172,209 | 218,955 | |||||||||||||||||
Intercompany | US | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | 58,039 | 77,472 | 32,515 | |||||||||||||||||
Intercompany | Canada | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | 4,013 | 3,378 | 7,544 | |||||||||||||||||
Intercompany | France | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | 42,903 | 51,461 | 60,763 | |||||||||||||||||
Intercompany | United Kingdom | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | 23,769 | 25,100 | 22,846 | |||||||||||||||||
Intercompany | All Other Foreign | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | 125,386 | 167,565 | 42,686 | |||||||||||||||||
Unaffiliated Customers | Canada | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | 173,394 | 182,690 | 231,937 | |||||||||||||||||
Unaffiliated Customers | France | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | 364,882 | 398,909 | 460,836 | |||||||||||||||||
Unaffiliated Customers | United Kingdom | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | 242,077 | 237,134 | 266,570 | |||||||||||||||||
Unaffiliated Customers | All Other Foreign | |||||||||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||||||||
Sales | [1] | $ 119,051 | $ 163,430 | $ 87,828 | |||||||||||||||||
[1] | Based on country from which the sale originated and the sale was recorded. | ||||||||||||||||||||
[2] | (Recast) |
Revenue from External Custom111
Revenue from External Customers and Long-Lived Assets, by Geographical Areas (Detail) - USD ($) $ in Thousands | 11 Months Ended | 12 Months Ended | ||
Oct. 02, 2015 | Sep. 30, 2016 | Oct. 31, 2014 | ||
Segment Reporting Information [Line Items] | ||||
Segment Earnings | [1] | $ 218,648 | $ 240,639 | $ 310,583 |
Identifiable Assets | [2] | 2,944,023 | 2,973,414 | 3,077,699 |
US | ||||
Segment Reporting Information [Line Items] | ||||
Segment Earnings | [1] | 121,052 | 135,107 | 178,029 |
Identifiable Assets | [2] | 933,631 | 1,055,567 | 1,028,879 |
Canada | ||||
Segment Reporting Information [Line Items] | ||||
Segment Earnings | [1] | 19,133 | 7,670 | 33,599 |
Identifiable Assets | [2] | 458,635 | 452,466 | 514,520 |
France | ||||
Segment Reporting Information [Line Items] | ||||
Segment Earnings | [1] | 51,599 | 61,381 | 50,750 |
Identifiable Assets | [2] | 747,660 | 770,625 | 839,467 |
United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Segment Earnings | [1] | 28,826 | 25,646 | 38,686 |
Identifiable Assets | [2] | 501,969 | 394,811 | 555,620 |
All Other Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Segment Earnings | [1] | (1,962) | 10,835 | 9,519 |
Identifiable Assets | [2] | $ 302,128 | $ 299,945 | $ 139,213 |
[1] | Before corporate expense, shown on page 80. | |||
[2] | Excludes corporate, shown on page 81. |
Product Lines Contributing Sale
Product Lines Contributing Sales (Detail) | 12 Months Ended | ||
Sep. 30, 2016 | Oct. 02, 2015 | Oct. 31, 2014 | |
Connector | |||
Product Information [Line Items] | |||
Product Line Sales Total Percentage | 16.00% | 16.00% | 18.00% |
Avionics | |||
Product Information [Line Items] | |||
Product Line Sales Total Percentage | 9.00% | 10.00% | 10.00% |
Summary of Unaudited Quarterly
Summary of Unaudited Quarterly Financial Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 2 Months Ended | 3 Months Ended | 11 Months Ended | 12 Months Ended | ||||||||||||||||
Oct. 02, 2015 | Sep. 30, 2016 | Jul. 01, 2016 | Apr. 01, 2016 | Jan. 01, 2016 | Sep. 25, 2015 | Jul. 31, 2015 | Jun. 26, 2015 | May 01, 2015 | Mar. 27, 2015 | Jan. 30, 2015 | Dec. 26, 2014 | Oct. 02, 2015 | Sep. 30, 2016 | Oct. 02, 2015 | [2] | Oct. 31, 2014 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||||
Net Sales | $ 349,627 | $ 543,752 | $ 517,092 | $ 490,310 | $ 441,477 | $ 545,249 | $ 490,022 | $ 484,723 | $ 494,042 | $ 468,210 | $ 440,758 | $ 504,611 | $ 1,774,449 | [1] | $ 1,992,631 | [1] | $ 2,002,793 | $ 2,029,471 | [1] | |
Gross profit | 114,165 | 193,769 | 173,584 | 156,173 | 137,719 | 185,840 | 168,606 | 165,290 | 162,590 | 150,017 | 144,032 | 178,241 | 589,393 | 661,245 | 679,388 | 714,709 | ||||
Earnings from continuing operations | 20,704 | 52,045 | 38,046 | 16,996 | 9,864 | 40,267 | 29,868 | 28,222 | 21,498 | 24,931 | 24,595 | 34,475 | 96,665 | 116,951 | 127,895 | 165,029 | ||||
Earnings (Loss) from discontinued operations | (17,718) | 227 | (8,690) | (2,023) | (4,780) | (19,285) | (1,371) | (558) | (1,688) | (14,600) | (16,276) | (5,876) | (37,053) | (15,266) | (40,319) | (62,611) | ||||
Net Earnings Attributable to Esterline | $ 2,986 | $ 52,272 | $ 29,356 | $ 14,973 | $ 5,084 | $ 20,982 | $ 28,497 | $ 27,664 | $ 19,810 | $ 10,331 | $ 8,319 | $ 28,599 | $ 59,612 | $ 101,685 | $ 87,576 | $ 102,418 | ||||
Continuing operations | $ 0.70 | $ 1.77 | $ 1.30 | $ 0.58 | $ 0.33 | $ 1.36 | $ 0.99 | $ 0.92 | $ 0.69 | $ 0.80 | $ 0.77 | $ 1.09 | $ 3.15 | $ 3.97 | $ 4.16 | $ 5.19 | ||||
Discontinued operations | (0.60) | 0.01 | (0.30) | (0.07) | (0.16) | (0.65) | (0.05) | (0.02) | (0.05) | (0.47) | (0.51) | (0.19) | (1.21) | (0.52) | (1.31) | (1.97) | ||||
Earnings (Loss) Per Share - Basic | 0.10 | 1.78 | 1 | 0.51 | 0.17 | 0.71 | 0.94 | 0.90 | 0.64 | 0.33 | 0.26 | 0.90 | 1.94 | 3.45 | 2.85 | 3.22 | ||||
Continuing operations | 0.69 | 1.75 | 1.28 | 0.57 | 0.33 | 1.34 | 0.96 | 0.90 | 0.68 | 0.79 | 0.77 | 1.06 | 3.10 | 3.93 | 4.10 | 5.09 | ||||
Discontinued operations | (0.59) | 0.01 | (0.29) | (0.07) | (0.16) | (0.64) | (0.04) | (0.02) | (0.05) | (0.46) | (0.51) | (0.18) | (1.19) | (0.51) | (1.29) | (1.93) | ||||
Earnings (Loss) Per Share - Diluted | $ 0.10 | $ 1.76 | $ 0.99 | $ 0.50 | $ 0.17 | $ 0.70 | $ 0.92 | $ 0.88 | $ 0.63 | $ 0.33 | $ 0.26 | $ 0.88 | $ 1.91 | $ 3.42 | $ 2.81 | $ 3.16 | ||||
[1] | Based on country from which the sale originated and the sale was recorded. | |||||||||||||||||||
[2] | (Recast) |