| Segments | Segments Aircraft Controls. We design, manufacture and integrate primary and secondary flight controls and avionics for military and commercial aircraft and provide aftermarket support. Our systems are used on both development and production programs in large commercial transports, supersonic fighters, multi-role military aircraft, business jets and rotorcraft. We also supply ground-based navigation aids. We are currently working on the KC-46 military air refueling tanker and classified military development work on the military side, and the COMAC C919 and the Embraer E-Jet E2 family on the commercial side. Typically development programs require concentrated periods of research and development by our engineering teams, while production programs are generally long-term manufacturing efforts that extend for as long as the aircraft builder receives new orders. Our large military programs include the F-35 Joint Strike Fighter, F/A-18E/F Super Hornet, the V-22 Osprey tiltrotor and the Black Hawk UH-60/Seahawk SH-60 helicopter, while our large commercial production programs include the full line of Boeing 7-series aircraft, Airbus A320, A330 and A350XWB and a variety of business jets. Aftermarket sales, which represented 27%, 30% and 27% of 2021, 2020 and 2019 sales, respectively, for this segment consist of the maintenance, repair, overhaul and parts supply for both military and commercial aircraft. Further, we sell spare parts and line replaceable units to both military and commercial customers that they store throughout the world in order to minimize down time. Space and Defense Controls. We provide controls for a wide array of space and defense applications, including spacecraft, space vehicles, launch vehicles, armored combat vehicles, naval vessels, security and surveillance, as well as tactical, hypersonic, and strategic missiles. We design, manufacture, and integrate steering and propulsion controls for space launch vehicles, hypersonic missiles, and MDA vehicles. Programs of note include Atlas, Vulcan, SLS, LauncherOne, MMIII, Trident, and a variety of other platforms. We have also developed a family of orbital maneuvering vehicles (OMV) and spacecraft bus platforms that have their own avionics, power, propulsion, and communications systems. The Moog Evolved Secondary Payload Adapter (ESPA) is used as the structure of the OMV and has also enabled the rideshare market for many years. Our spacecraft avionics are used for a variety of purposes and missions, including a complete flight control computer, payload processing, and processing of discrete elements on board a spacecraft. Mission specific actuation mechanisms control solar array panels and antenna, and we provide discrete isolation systems for sensitive systems on spacecraft. Our propulsion and fluid control solutions accelerate the spacecraft for orbit-insertion, station keeping, and attitude control. Our fluid control systems are also used in life support systems (ECLSS) for crewed missions, such as Orion. We are an integral part of future human spaceflight and exploration, including NASA's Artemis program. We produce a new reconfigurable turret system (RIwP®) for several military vehicle programs. In addition, we design controls for gun aiming, stabilization and automatic ammunition loading for armored combat vehicles for a variety of domestic and international customers. We also design controls for steering tactical and strategic missiles including: Lockheed Martin's HELLFIRE® and PAC-3 interceptor, the U.S. National Missile Defense Agency's (MDA) Ballistic Missile Defense initiatives, multiple hypersonic missiles, as well as Raytheon's TOW, and Trident missiles. We also design, build, and integrate weapons stores management systems for light attack aerial reconnaissance, ground, and sea platforms. Our high-power, quiet controls are designed and built for many naval vessels including naval surface ships and submarines such as the U.S. Virginia Class. Our sensor and surveillance products are used in both military and commercial applications such as electrical grid and other critical infrastructure protection. Also, we design and manufacture a number of component products that serve both the space and defense segments by providing mission critical power and data transfer, motion control and military electronics. Slip rings allow unimpeded rotation while delivering power and data through a rotating interface. Our motion control products include high-performance motors, position feedback devices, actuators and integrated motion assemblies. The military electronics include a range of media converters and Ethernet devices. Each of these components are used across a broad range of applications which include military vehicles, aircraft, missiles, radar and satellites. Industrial Systems. We provide customized machine performance components and systems utilizing electrohydraulic, electromechanical and control technologies in applications involving motion control, fluid control and power and data management across a variety of markets. In the industrial automation market, we design, manufacture and integrate components and systems for applications in injection and blow molding machinery, metal forming presses and heavy industry for steel and aluminum production. Our components and systems allow for precise controls of critical parameters in the industrial manufacturing processes, using both hydraulic and electric technologies. Other industrial automation applications we serve include material handling and paper mills. In the simulation and test market, we supply electromechanical motion simulation bases for the flight simulation and training applications. We also supply custom test systems and controls for automotive, structural and fatigue testing. In the energy market, we supply solutions for power generation applications which allow for precise control and greater safety of fuel metering and guide vane positioning on steam and gas turbines. We also design and manufacture high reliability systems and components for applications in oil and gas exploration and production, including downhole drilling, topside and subsea environments. We supply high-reliability components for wind turbine applications. In the medical market, we supply components and systems for diagnostic imaging CT scan medical equipment, sleep apnea equipment, oxygen concentrators, infusion therapy and enteral clinical nutrition. Our components product categories include hydraulics, slip rings, rotary unions and fiber optic rotary joints, motors and infusion and enteral pumps and associated sets across similar markets. Hydraulic components include high-performance servo valves with mechanical or electronic feedback, high-dynamic performance hydraulic servo pumps, energy-efficient electro hydrostatic actuators and complex hydraulic manifold systems. Slip rings, rotary unions and fiber optic rotary joints come in a range of sizes that allow them to be used in many applications, including diagnostic imaging CT scan medical equipment, remotely operated vehicles and floating platforms for offshore oil exploration, surveillance cameras and wind turbines. Electric motors are used in an equally broad range of solutions, many of which are the same as for slip rings. We design and manufacture a series of fractional horsepower brushless motors that provide extremely low acoustic noise and reliable long life operation, with the largest programs being sleep apnea equipment and datacenter cooling. Industrial customers use our motors for material handling and electric pumps. Infusion therapy products include infusion pumps and associated administration sets. They offer IV, intra-arterial, subcutaneous or epidural flow of fluids and precise medicine delivery and can be applied to many applications, including hydration, nutrition, patient-controlled analgesia, local anesthesia, chemotherapy and antibiotics. Enteral clinical nutrition products include a complete line of portable and stationary pumps along with disposable sets. They are designed for ease of use and mobility. Medical customers use our enteral feeding products in the delivery of enteral nutrition for patients in their own homes, hospitals and long-term care facilities. Disaggregation of net sales by segment are as follows: Market Type 2021 2020 2019 Net sales: Military $ 781,921 $ 721,024 $ 622,126 Commercial 379,317 484,726 680,846 Aircraft Controls 1,161,238 1,205,750 1,302,972 Space 332,946 294,254 218,970 Defense 466,289 475,860 464,498 Space and Defense Controls 799,235 770,114 683,468 Energy 120,173 127,693 120,771 Industrial Automation 427,076 405,291 447,515 Simulation and Test 89,459 102,600 122,935 Medical 254,812 273,106 227,002 Industrial Systems 891,520 908,690 918,223 Net sales $ 2,851,993 $ 2,884,554 $ 2,904,663 Customer Type 2021 2020 2019 Net sales: Commercial $ 379,317 $ 484,726 $ 680,846 U.S. Government (including OEM) 617,034 593,093 484,203 Other 164,887 127,931 137,923 Aircraft Controls 1,161,238 1,205,750 1,302,972 Commercial 126,751 133,715 124,445 U.S. Government (including OEM) 614,984 571,045 513,250 Other 57,500 65,354 45,773 Space and Defense Controls 799,235 770,114 683,468 Commercial 865,269 877,148 888,132 U.S. Government (including OEM) 18,510 23,184 20,452 Other 7,741 8,358 9,639 Industrial Systems 891,520 908,690 918,223 Commercial 1,371,337 1,495,589 1,693,423 U.S. Government (including OEM) 1,250,528 1,187,322 1,017,905 Other 230,128 201,643 193,335 Net sales $ 2,851,993 $ 2,884,554 $ 2,904,663 Revenue Recognition Method 2021 2020 2019 Net sales: Over-time $ 939,251 $ 1,018,190 $ 1,068,747 Point in time 221,987 187,560 234,225 Aircraft Controls 1,161,238 1,205,750 1,302,972 Over-time 746,613 700,068 625,250 Point in time 52,622 70,046 58,218 Space and Defense Controls 799,235 770,114 683,468 Over-time 122,066 152,366 152,646 Point in time 769,454 756,324 765,577 Industrial Systems 891,520 908,690 918,223 Over-time 1,807,930 1,870,624 1,846,643 Point in time 1,044,063 1,013,930 1,058,020 Net sales $ 2,851,993 $ 2,884,554 $ 2,904,663 Operating profit is net sales less cost of sales and other operating expenses, excluding interest expense, equity-based compensation expense, non-service pension expense and other corporate expenses. Cost of sales and other operating expenses are directly identifiable to the respective segment or allocated on the basis of sales, manpower or profit. Operating profit by segment and reconciliations to consolidated amounts are as follows: 2021 2020 2019 Operating profit: Aircraft Controls $ 96,678 $ 34,670 $ 122,701 Space and Defense Controls 88,333 101,667 88,990 Industrial Systems 85,948 80,025 109,451 Total operating profit 270,959 216,362 321,142 Deductions from operating profit: Interest expense 33,892 38,897 39,269 Equity-based compensation expense 7,461 5,661 6,464 Pension settlement — 121,324 — Non-service pension expense (income) (2,194) 15,231 19,552 Corporate and other expenses, net 28,026 29,832 28,905 Earnings before income taxes $ 203,774 $ 5,417 $ 226,952 Depreciation and amortization: Aircraft Controls $ 41,580 $ 39,782 $ 41,144 Space and Defense Controls 18,655 18,039 18,014 Industrial Systems 29,731 28,644 25,454 Corporate 193 507 648 Total depreciation and amortization $ 90,159 $ 86,972 $ 85,260 Identifiable assets: Aircraft Controls $ 1,471,338 $ 1,322,335 $ 1,300,781 Space and Defense Controls 839,783 761,874 737,141 Industrial Systems 1,078,025 1,102,222 1,040,659 Corporate 44,023 39,400 35,656 Total assets $ 3,433,169 $ 3,225,831 $ 3,114,237 Capital expenditures: Aircraft Controls $ 63,514 $ 47,954 $ 68,595 Space and Defense Controls 39,863 22,505 23,903 Industrial Systems 25,338 17,700 25,808 Corporate 19 125 116 Total capital expenditures $ 128,734 $ 88,284 $ 118,422 Sales, based on the customer’s location, and property, plant and equipment by geographic area are as follows: 2021 2020 2019 Net sales: United States $ 1,935,626 $ 1,873,667 $ 1,757,518 Germany 148,739 175,598 213,128 Japan 108,813 159,025 166,690 Other 658,815 676,264 767,327 Net sales $ 2,851,993 $ 2,884,554 $ 2,904,663 Property, plant and equipment, net: United States $ 438,851 $ 389,454 $ 365,136 United Kingdom 62,662 58,888 56,253 Philippines 35,851 37,270 61,910 Other 108,414 114,886 103,468 Property, plant and equipment, net $ 645,778 $ 600,498 $ 586,767 Sales to Boeing were $345,907, $402,960 and $370,306, or 12%, 14% and 13% of sales, in 2021, 2020 and 2019, respectively, including sales to Boeing Commercial Airplanes of $118,549, $206,648 and $264,805 in 2021, 2020 and 2019, respectively. Sales to Lockheed Martin were $330,779 and $366,609, or 12% and 13% in 2021 and 2020, respectively. Sales arising from U.S. Government prime or sub-contracts, including military sales to Boeing and Lockheed Martin, were $1,250,528, $1,187,322 and $1,017,905 in 2021, 2020 and 2019, respectively. Sales to Boeing, Lockheed Martin and the U.S. Government and its prime- or sub-contractors are made primarily from our Aircraft Controls and Space and Defense Controls segments. |
