Document and Entity Information
Document and Entity Information - DEI Document - shares | 9 Months Ended | |
Jul. 02, 2022 | Jul. 25, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 02, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-05129 | |
Entity Registrant Name | MOOG Inc. | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 16-0757636 | |
Entity Address, Address Line One | 400 Jamison Road | |
Entity Address, City or Town | East Aurora, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 14052-0018 | |
City Area Code | 716 | |
Local Phone Number | 652-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Central Index Key | 0000067887 | |
Current Fiscal Year End Date | --10-01 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A common stock | |
Trading Symbol | MOG.A | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 28,961,475 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class B common stock | |
Trading Symbol | MOG.B | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 3,019,313 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Earnings - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 772,911 | $ 707,352 | $ 2,267,784 | $ 2,127,708 |
Cost of sales | 560,966 | 516,750 | 1,646,742 | 1,547,554 |
Inventory write-down | 202 | 0 | 3,407 | 0 |
Gross profit | 211,743 | 190,602 | 617,635 | 580,154 |
Research and development | 25,890 | 33,095 | 84,318 | 91,556 |
Selling, general and administrative | 113,886 | 100,597 | 336,702 | 305,331 |
Interest | 9,131 | 8,239 | 25,376 | 25,288 |
Asset impairment | 692 | 0 | 15,928 | 0 |
Restructuring | 576 | 0 | 8,369 | 0 |
Gain on sale of business | 0 | 0 | (16,146) | 0 |
Other | 1,759 | 76 | 3,143 | (3,115) |
Earnings before income taxes | 59,809 | 48,595 | 159,945 | 161,094 |
Income taxes | 9,400 | 12,473 | 34,184 | 38,442 |
Net earnings | $ 50,409 | $ 36,122 | $ 125,761 | $ 122,652 |
Net earnings per share | ||||
Basic | $ 1.58 | $ 1.12 | $ 3.93 | $ 3.82 |
Diluted | $ 1.57 | $ 1.12 | $ 3.91 | $ 3.80 |
Average common shares outstanding | ||||
Basic | 31,922,377 | 32,125,524 | 31,988,150 | 32,115,400 |
Diluted | 32,067,431 | 32,355,238 | 32,125,438 | 32,305,834 |
Consolidated Condensed Statem_2
Consolidated Condensed Statement of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net earnings | $ 50,409 | $ 36,122 | $ 125,761 | $ 122,652 |
Other comprehensive income (loss) ("OCI"), net of tax: | ||||
Foreign currency translation adjustment | (43,954) | 4,549 | (68,797) | 25,111 |
Retirement liability adjustment | 5,438 | 3,259 | 14,066 | 9,177 |
Change in accumulated loss on derivatives | (1,533) | (731) | (1,693) | (1,335) |
Other comprehensive income (loss), net of tax | (40,049) | 7,077 | (56,424) | 32,953 |
Comprehensive income | $ 10,360 | $ 43,199 | $ 69,337 | $ 155,605 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 |
Current assets | ||
Cash and cash equivalents | $ 93,912 | $ 99,599 |
Restricted cash | 1,952 | 1,315 |
Receivables, net | 973,771 | 945,929 |
Inventories, net | 592,358 | 613,095 |
Prepaid expenses and other current assets | 60,693 | 58,842 |
Total current assets | 1,722,686 | 1,718,780 |
Property, plant and equipment, net | 673,620 | 645,778 |
Operating lease right-of-use assets | 68,800 | 60,355 |
Goodwill | 826,307 | 851,605 |
Intangible assets, net | 98,375 | 106,095 |
Deferred income taxes | 15,010 | 17,769 |
Other assets | 34,258 | 32,787 |
Total assets | 3,439,056 | 3,433,169 |
Current liabilities | ||
Current installments of long-term debt | 1,008 | 80,365 |
Accounts payable | 219,428 | 200,602 |
Accrued compensation | 86,593 | 112,703 |
Contract advances | 293,794 | 263,686 |
Accrued liabilities and other | 211,769 | 212,005 |
Total current liabilities | 812,592 | 869,361 |
Long-term debt, excluding current installments | 856,097 | 823,355 |
Long-term pension and retirement obligations | 153,277 | 162,728 |
Deferred income taxes | 71,799 | 64,642 |
Other long-term liabilities | 113,866 | 112,939 |
Total liabilities | 2,007,631 | 2,033,025 |
Shareholders' equity | ||
Additional paid-in capital | 528,571 | 509,622 |
Retained earnings | 2,338,956 | 2,237,848 |
Treasury shares | (1,031,904) | (1,007,506) |
Accumulated other comprehensive loss | (303,984) | (247,560) |
Total shareholders’ equity | 1,431,425 | 1,400,144 |
Total liabilities and shareholders’ equity | 3,439,056 | 3,433,169 |
Class A Common Stock | ||
Shareholders' equity | ||
Common stock | 43,806 | 43,803 |
Class B Common Stock | ||
Shareholders' equity | ||
Common stock | 7,474 | 7,477 |
Stock Employee Compensation Trust (SECT) | ||
Shareholders' equity | ||
Common stock issued to trust | (85,565) | (79,776) |
Total shareholders’ equity | (85,565) | (79,776) |
Supplemental Retirement Plan (SERP) Trust | ||
Shareholders' equity | ||
Common stock issued to trust | (65,929) | (63,764) |
Total shareholders’ equity | $ (65,929) | $ (63,764) |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Shareholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock At Cost | Stock Employee Compensation Trust (SECT) | Supplemental Retirement Plan (SERP) Trust | Accumulated Other Comprehensive Loss | Class A Common Stock | Class A Common Stock Treasury Stock At Cost | Class A Common Stock Stock Employee Compensation Trust (SECT) | Class B Common Stock | Class B Common Stock Treasury Stock At Cost | Class B Common Stock Stock Employee Compensation Trust (SECT) | Class B Common Stock Supplemental Retirement Plan (SERP) Trust |
Beginning of period at Oct. 03, 2020 | $ 51,280 | $ 472,645 | $ 2,112,734 | $ (990,783) | $ (64,242) | $ (53,098) | $ (285,453) | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Issuance of shares | 6,435 | 8,920 | |||||||||||||
Equity-based compensation expense | 5,990 | ||||||||||||||
Adjustments to market - SECT and SERP | 34,566 | ||||||||||||||
Net earnings | $ 122,652 | 122,652 | |||||||||||||
Dividends | (24,081) | ||||||||||||||
Class A and B shares purchased | (25,891) | ||||||||||||||
Issuance of shares - SECT | 679 | ||||||||||||||
Purchase of shares - SECT | (3,535) | (3,535) | |||||||||||||
Adjustment to market | (18,216) | (16,350) | |||||||||||||
Other comprehensive income (loss) | 32,953 | 32,953 | |||||||||||||
End of period at Jul. 03, 2021 | $ 1,367,205 | 51,280 | 519,636 | 2,211,305 | (1,007,754) | (85,314) | (69,448) | (252,500) | |||||||
Beginning of period - Common Stock at Oct. 03, 2020 | 43,799,229 | 7,480,484 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Conversion of Class B to Class A | 3,035 | (3,035) | |||||||||||||
End of period - Common Stock at Jul. 03, 2021 | 43,802,264 | 7,477,449 | |||||||||||||
Beginning of period, Shares at Oct. 03, 2020 | (13,959,998) | (425,148) | (3,344,877) | (557,543) | (826,170) | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Class A and B shares issued related to equity compensation, shares | 29,309 | 255,979 | |||||||||||||
Class A and B shares purchased, shares | (171,175) | (179,989) | |||||||||||||
Issuance of shares - SECT | 8,683 | ||||||||||||||
Purchase of shares - SECT | (43,339) | ||||||||||||||
End of period, Shares at Jul. 03, 2021 | (14,101,864) | (425,148) | (3,268,887) | (592,199) | (826,170) | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.75 | ||||||||||||||
Beginning of period at Apr. 03, 2021 | 51,280 | 519,006 | 2,183,218 | (1,000,389) | (85,034) | (70,047) | (259,577) | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Issuance of shares | (104) | 478 | |||||||||||||
Equity-based compensation expense | 1,623 | ||||||||||||||
Adjustments to market - SECT and SERP | (889) | ||||||||||||||
Net earnings | $ 36,122 | 36,122 | |||||||||||||
Dividends | (8,035) | ||||||||||||||
Class A and B shares purchased | (7,843) | ||||||||||||||
Issuance of shares - SECT | 405 | ||||||||||||||
Purchase of shares - SECT | (976) | ||||||||||||||
Adjustment to market | 291 | 599 | |||||||||||||
Other comprehensive income (loss) | 7,077 | 7,077 | |||||||||||||
End of period at Jul. 03, 2021 | $ 1,367,205 | 51,280 | 519,636 | 2,211,305 | (1,007,754) | (85,314) | (69,448) | (252,500) | |||||||
Beginning of period - Common Stock at Apr. 03, 2021 | 43,802,229 | 7,477,484 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Conversion of Class B to Class A | 35 | (35) | |||||||||||||
End of period - Common Stock at Jul. 03, 2021 | 43,802,264 | 7,477,449 | |||||||||||||
Beginning of period, Shares at Apr. 03, 2021 | (14,111,891) | (425,148) | (3,191,331) | (585,584) | (826,170) | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Class A and B shares issued related to equity compensation, shares | 11,749 | 8,926 | |||||||||||||
Class A and B shares purchased, shares | (1,722) | (86,482) | |||||||||||||
Issuance of shares - SECT | 4,548 | ||||||||||||||
Purchase of shares - SECT | (11,163) | ||||||||||||||
End of period, Shares at Jul. 03, 2021 | (14,101,864) | (425,148) | (3,268,887) | (592,199) | (826,170) | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.25 | ||||||||||||||
Beginning of period at Oct. 02, 2021 | $ 1,400,144 | 51,280 | 509,622 | 2,237,848 | (1,007,506) | (79,776) | (63,764) | (247,560) | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Issuance of shares | 9,187 | 6,087 | |||||||||||||
Equity-based compensation expense | 5,706 | ||||||||||||||
Adjustments to market - SECT and SERP | 4,056 | ||||||||||||||
Net earnings | 125,761 | 125,761 | |||||||||||||
Dividends | (24,653) | ||||||||||||||
Class A and B shares purchased | (30,485) | ||||||||||||||
Issuance of shares - SECT | 7,586 | ||||||||||||||
Purchase of shares - SECT | (11,484) | (11,484) | |||||||||||||
Adjustment to market | (1,891) | (2,165) | |||||||||||||
Other comprehensive income (loss) | (56,424) | (56,424) | |||||||||||||
End of period at Jul. 02, 2022 | $ 1,431,425 | 51,280 | 528,571 | 2,338,956 | (1,031,904) | (85,565) | (65,929) | (303,984) | |||||||
Beginning of period - Common Stock at Oct. 02, 2021 | 43,803,236 | 7,476,477 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Conversion of Class B to Class A | 2,629 | (2,629) | |||||||||||||
End of period - Common Stock at Jul. 02, 2022 | 43,805,865 | 7,473,848 | |||||||||||||
Beginning of period, Shares at Oct. 02, 2021 | (14,157,721) | (425,148) | (3,179,055) | (600,880) | (826,170) | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Class A and B shares issued related to equity compensation, shares | 37,707 | 225,702 | |||||||||||||
Class A and B shares purchased, shares | (301,673) | (102,544) | |||||||||||||
Issuance of shares - SECT | 93,899 | ||||||||||||||
Purchase of shares - SECT | (137,770) | ||||||||||||||
End of period, Shares at Jul. 02, 2022 | (14,421,687) | (425,148) | (3,055,897) | (644,751) | (826,170) | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.77 | ||||||||||||||
Beginning of period at Apr. 02, 2022 | 51,280 | 543,292 | 2,296,849 | (1,028,414) | (94,548) | (73,876) | (263,935) | ||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Issuance of shares | 1,578 | 514 | |||||||||||||
Equity-based compensation expense | 1,707 | ||||||||||||||
Adjustments to market - SECT and SERP | (18,006) | ||||||||||||||
Net earnings | $ 50,409 | 50,409 | |||||||||||||
Dividends | (8,302) | ||||||||||||||
Class A and B shares purchased | (4,004) | ||||||||||||||
Issuance of shares - SECT | 12 | ||||||||||||||
Purchase of shares - SECT | (1,088) | ||||||||||||||
Adjustment to market | 10,059 | 7,947 | |||||||||||||
Other comprehensive income (loss) | (40,049) | (40,049) | |||||||||||||
End of period at Jul. 02, 2022 | $ 1,431,425 | $ 51,280 | $ 528,571 | $ 2,338,956 | $ (1,031,904) | $ (85,565) | $ (65,929) | $ (303,984) | |||||||
Beginning of period - Common Stock at Apr. 02, 2022 | 43,803,861 | 7,475,852 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Conversion of Class B to Class A | 2,004 | (2,004) | |||||||||||||
End of period - Common Stock at Jul. 02, 2022 | 43,805,865 | 7,473,848 | |||||||||||||
Beginning of period, Shares at Apr. 02, 2022 | (14,377,074) | (425,148) | (3,082,267) | (632,060) | (826,170) | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Class A and B shares issued related to equity compensation, shares | 8,678 | 26,530 | |||||||||||||
Class A and B shares purchased, shares | (53,291) | (160) | |||||||||||||
Issuance of shares - SECT | 136 | ||||||||||||||
Purchase of shares - SECT | (12,827) | ||||||||||||||
End of period, Shares at Jul. 02, 2022 | (14,421,687) | (425,148) | (3,055,897) | (644,751) | (826,170) | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.26 |
Consolidated Condensed Statem_4
Consolidated Condensed Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 02, 2022 | Jul. 03, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings | $ 125,761 | $ 122,652 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation | 56,169 | 56,806 |
Amortization | 9,998 | 10,000 |
Deferred income taxes | 7,644 | 4,161 |
Equity-based compensation expense | 6,747 | 6,420 |
Gain on sale of business | (16,146) | 0 |
Asset impairment and Inventory write-down | 19,335 | 0 |
Other | 4,960 | (2,781) |
Changes in assets and liabilities providing (using) cash: | ||
Receivables | (58,668) | (21,329) |
Inventories | (6,778) | 9,509 |
Accounts payable | 27,184 | (17,530) |
Contract advances | 35,867 | 54,414 |
Accrued expenses | (24,066) | 3,503 |
Accrued income taxes | 7,692 | 14,776 |
Net pension and post retirement liabilities | 13,490 | 8,380 |
Other assets and liabilities | (24,925) | (18,401) |
Net cash provided by operating activities | 184,264 | 230,580 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisitions of businesses, net of cash acquired | (11,837) | (77,600) |
Purchase of property, plant and equipment | (106,713) | (88,573) |
Other investing transactions | 33,283 | 3,615 |
Net cash used by investing activities | (85,267) | (162,558) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from revolving lines of credit | 661,675 | 653,500 |
Payments on revolving lines of credit | (629,251) | (651,986) |
Proceeds from long-term debt | 0 | 42,300 |
Payments on long-term debt | (80,273) | (55,891) |
Payments on finance lease obligations | (1,779) | (1,588) |
Payment of dividends | (24,653) | (24,081) |
Proceeds from sale of treasury stock | 10,792 | 4,603 |
Purchase of outstanding shares for treasury | (30,485) | (26,702) |
Proceeds from sale of stock held by SECT | 7,586 | 679 |
Purchase of stock held by SECT | (11,484) | (3,535) |
Net cash used by financing activities | (97,872) | (62,701) |
Effect of exchange rate changes on cash | (6,175) | 1,265 |
Increase (decrease) in cash, cash equivalents and restricted cash | (5,050) | 6,586 |
Cash, cash equivalents and restricted cash at beginning of period | 100,914 | 85,072 |
Cash, cash equivalents and restricted cash at end of period | 95,864 | 91,658 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Treasury shares issued as compensation | 4,482 | 10,751 |
Equipment and property acquired through lease financing | $ 32,000 | $ 9,878 |
Basis Of Presentation
Basis Of Presentation | 9 Months Ended |
Jul. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated condensed financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting of normal recurring adjustments considered necessary for the fair presentation of results for the interim period have been included. The results of operations for the three and nine months ended July 2, 2022 are not necessarily indicative of the results expected for the full year. The accompanying unaudited consolidated condensed financial statements should be read in conjunction with the financial statements and notes thereto included in our Form 10-K for the fiscal year ended October 2, 2021. All references to years in these financial statements are to fiscal years. COVID-19 Impacts On Our Business On March 11, 2020, the World Health Organization classified the COVID-19 outbreak as a pandemic. The spread of the COVID-19 pandemic disrupted businesses on a global scale, led to significant volatility in financial markets and affected the aviation and industrial industries. Substantially all of our operations and production activities have, to-date, remained operational. However, the impacts of the pandemic have placed labor and supply chain pressures on our business and we have been impacted by localized lockdowns in China. While our backlog continues to grow across our end markets, ongoing COVID-19 disruptions continue to challenge our business. As economic activity continues to recover, we will continue to monitor the situation, assessing further possible implications on our operations, supply chain, liquidity, cash flow and customer orders. The impact of COVID-19 is discussed in more detail throughout “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Impairment of Assets Long-lived assets, including acquired intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of those assets may not be recoverable. We use undiscounted cash flows to determine whether impairment exists and measure any impairment loss by comparing the fair value, typically calculated using discounted cash flows, to the carrying value. In 2022, we recorded impairment charges on long-lived assets in our Aircraft Controls segment. These charges relate to property, plant and equipment that experienced a significant decline in value due to a slower than expected recovery of our commercial aircraft business. In addition, we have recorded impairment charges on receivables and inventories associated with Russian actions in Ukraine in all three of our segments. These charges are included in asset impairment in the Consolidated Condensed Statement of Earnings. See Note 4 - Receivables, Note 5 - Inventories, Note 6 - Property, Plant and Equipment and Note 12 - Fair Value for additional disclosures relating to impairment charges recorded. Recent Accounting Pronouncements Adopted There have been no accounting pronouncements adopted for the nine months ended July 2, 2022. Recent Accounting Pronouncements Not Yet Adopted |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Jul. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers We recognize revenue from contracts with customers using the five-step model prescribed in ASC 606. The first step is identifying the contract. The identification of a contract with a customer requires an assessment of each party’s rights and obligations regarding the products or services to be transferred, including an evaluation of termination clauses and presently enforceable rights and obligations. Each party’s rights and obligations and the associated terms and conditions are typically determined in purchase orders. For sales that are governed by master supply agreements under which provisions define specific program requirements, purchase orders are issued under these agreements to reflect presently enforceable rights and obligations for the units of products and services being purchased. Contracts are sometimes modified to account for changes in contract specifications and requirements. When this occurs, we assess the modification as prescribed in ASC 606 and determine whether the existing contract needs to be modified (and revenue cumulatively caught up), whether the existing contract needs to be terminated and a new contract needs to be created, or whether the existing contract remains and a new contract needs to be created. This is determined based on the rights and obligations within the modification as well as the associated transaction price. The next step is identifying the performance obligations. A performance obligation is a promise to transfer goods or services to a customer that is distinct in the context of the contract, as defined by ASC 606. We identify a performance obligation for each promise in a contract to transfer a distinct good or service to the customer. As part of our assessment, we consider all goods and/or services promised in the contract, regardless of whether they are explicitly stated or implied by customary business practices. The products and services in our contracts are typically not distinct from one another due to their complexity and reliance on each other or, in many cases, we provide a significant integration service. Accordingly, many of our contracts are accounted for as one performance obligation. In limited cases, our contracts have more than one distinct performance obligation, which occurs when we perform activities that are not highly complex or interrelated or involve different product life cycles. Warranties are provided on certain contracts, but do not typically provide for services beyond standard assurances and are therefore not distinct performance obligations under ASC 606. The third step is determining the transaction price, which represents the amount of consideration we expect to be entitled to receive from a customer in exchange for providing the goods or services. There are times when this consideration is variable, for example a volume discount, and must be estimated. Sales, use, value-added, and excise taxes are excluded from the transaction price, where applicable. The fourth step is allocating the transaction price. The transaction price must be allocated to the performance obligations identified in the contract based on relative stand-alone selling prices when available, or an estimate for each distinct good or service in the contract when standalone prices are not available. Our contracts with customers generally require payment under normal commercial terms after delivery. Payment terms are typically within 30 to 60 days of delivery. The timing of satisfaction of our performance obligations does not significantly vary from the typical timing of payment. The final step is the recognition of revenue. We recognize revenue as the performance obligations are satisfied. ASC 606 provides guidance to help determine if we are satisfying the performance obligation at a point in time or over time. In determining when performance obligations are satisfied, we consider factors such as contract terms, payment terms and whether there is an alternative use of the product or service. In essence, we recognize revenue when, or as control of, the promised goods or services transfer to the customer. Revenue is recognized either over time using an input method that uses costs incurred to date to measure progress toward completion ("cost-to-cost") method, or point in time method. The over-time method of revenue recognition is predominantly used in Aircraft Controls and Space and Defense Controls. We use this method for U.S. Government contracts and repair and overhaul arrangements as we are creating or enhancing assets that the customer controls as the assets are being created or enhanced. In addition, many of our large commercial contracts qualify for over-time accounting as our performance does not create an asset with an alternative use and we have an enforceable right to payment for performance completed to date. Our over-time contracts are primarily firm fixed price. Revenue recognized at the point in time control is transferred to the customer is used most frequently in Industrial Systems. We use this method for commercial contracts in which the asset being created has an alternative use. We determine the point in time control transfers to the customer by weighing the five indicators provided by ASC 606 - the entity has a present right to payment; the customer has legal title; the customer has physical possession; the customer has significant risks and rewards of ownership; and the customer has accepted the asset. When control has transferred to the customer, profit is generated as cost of sales is recorded and as revenue is recognized. Inventory costs include all product manufacturing costs such as direct material, direct labor, other direct costs and indirect overhead cost allocations. Shipping and handling costs are considered costs to fulfill a contract and not considered performance obligations. They are included in cost of sales as incurred. Revenue is recognized on contracts using the cost-to-cost method of accounting as work progresses toward completion as determined by the ratio of cumulative costs incurred to date to estimated total contract costs at completion, multiplied by the total estimated contract revenue, less cumulative revenue recognized in prior periods. We believe that cumulative costs incurred to date as a percentage of estimated total contract costs at completion is an appropriate measure of progress toward satisfaction of performance obligations as this measure most accurately depicts the progress of our work and transfer of control to our customers. Changes in estimates affecting sales, costs and profits are recognized in the period in which the change becomes known using the cumulative catch-up method of accounting, resulting in the cumulative effect of changes reflected in the period. Estimates are reviewed and updated quarterly for substantially all contra cts. For the three and nine months ended July 2, 2022 we recognized lower revenue of $8,615 and additional revenue of $124, respectively, for adjustments made to performance obligations satisfied (or partially satisfied) in previous periods. For the three and nine months ended July 3, 2021 we recognized additional revenue of $1,962 and $14,497, respectively, for adjustments made to performance obligations satisfied (or partially satisfied) in previous periods. Contract costs include only allocable, allowable and reasonable costs which are included in cost of sales when incurred. For applicable U.S. Government contracts, contract costs are determined in accordance with the Federal Acquisition Regulations and the related Cost Accounting Standards. The nature of these costs includes development engineering costs and product manufacturing costs such as direct material, direct labor, other direct costs and indirect overhead costs. Contract profit is recorded as a result of the revenue recognized less costs incurred in any reporting period. Variable consideration and contract modifications, such as performance incentives, penalties, contract claims or change orders are considered in estimating revenues, costs and profits when they can be reliably estimated and realization is considered probable. Revenue recognized on contracts for unresolved claims or unapproved contract change orders was not material for the three and nine months ended July 2, 2022. As of July 2, 2022, we had contract reserves of $44,126. For contracts with anticipated losses at completion, a provision for the entire amount of the estimated remaining loss is charged against income in the period in which the loss becomes known. Contract losses are determined considering all direct and indirect contract costs, exclusive of any selling, general or administrative cost allocations that are treated as period expenses. Loss reserves are more common on firm fixed-price contracts that involve, to varying degrees, the design and development of new and unique controls or control systems to meet the customers’ specifications. In accordance with ASC 606, we calculate contract losses at the contract level, versus the performance obligation level. Recall reserves are recorded when additional work is needed on completed products for them to meet contract specifications. Contract-related loss reserves are recorded for the additional work needed on completed and delivered products in order for them to meet contract specifications. Contract Assets and Liabilities Unbilled receivables (contract assets) primarily represent revenues recognized for performance obligations that have been satisfied but for which amounts have not been billed. These are included as Receivables on the Consolidated Condensed Balance Sheets. Contract advances (contract liabilities) relate to payments received from customers in advance of the satisfaction of performance obligations for a contract. We do not consider contract advances to be significant financing components as the intent of these payments in advance are for reasons other than providing a significant financing benefit and are customary in our industry. Total contract assets and contract liabilities are as follows: July 2, October 2, 2021 Unbilled receivables $ 621,128 $ 546,764 Contract advances 293,794 263,686 Net contract assets $ 327,334 $ 283,078 The increase in contract assets reflects the net impact of additional unbilled revenues recorded in excess of revenue recognized during the period. The increase in contract liabilities reflects the net impact of additional deferred revenues recorded in excess of revenue recognized during the period. For the three and nine months ended July 2, 2022, we recognize d $38,050 and $169,215 o f revenue, respectively, that was included in the contract liability balance at the beginning of the period. Remaining Performance Obligations As of July 2, 2022, the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied) was $5,000,000. We expect to recognize approximately 44% of that amount as sales over the next twelve months and the balance thereafter. Disaggregation of Revenue See Note 19 - Segments, for disclosures related to disaggregation of revenue. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 9 Months Ended |
Jul. 02, 2022 | |
Business Combinations [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions On February 21, 2022, we acquired TEAM Accessories Limited ("TEAM") based in Dublin, Ireland for a purchase price, net of acquired cash, of $14,890, consisting of $11,837 in cash and contingent consideration with an initial fair value of $3,053. TEAM specializes in Maintenance, Repair and Overhaul ("MRO") of engine and airframe components. This operation is included in our Aircraft Controls segment. The purchase price allocation is subject to adjustments as we obtain additional information for our estimates during the measurement period. On December 18, 2020, we acquired Genesys Aerosystems Group, Inc. ("Genesys"), headquartered in Mineral Wells, Texas for a purchase price of $77,600, net of acquired cash. Genesys designs and manufactures a full suite of electronic flight instrument systems and autopilot solutions. This operation is included in our Aircraft Controls segment. Divestitures On December 3, 2021, we sold the assets of our Navigation Aids ("NAVAIDS") business based in Salt Lake City, Utah previously included in our Aircraft Controls segment to THALES USA Inc. We received net proceeds of $35,550, which are included in other investing transactions on the Consolidated Condensed Statements of Cash Flows and recorded a gain of $16,146, net of transaction costs. The gain is subject to adjustments associated with amounts currently held in escrow. |
Receivables
Receivables | 9 Months Ended |
Jul. 02, 2022 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consist of: July 2, October 2, Accounts receivable $ 345,117 $ 395,674 Unbilled receivables 621,128 546,764 Other 11,835 7,842 Less allowance for credit losses (4,309) (4,351) Receivables, net $ 973,771 $ 945,929 Net receivables disclosed above reflects the non-cash write-down of $642 recorded for the nine months ended July 2, 2022 associated with Russian actions in Ukraine. On November 4, 2021, Moog Receivables LLC (the "Receivables Subsidiary"), a wholly owned bankruptcy remote special purpose subsidiary of Moog Inc. (the "Company"), as seller, the Company, as master servicer, Wells Fargo Bank, N.A., as administrative agent (the "Agent") and certain purchasers (collectively, the "Purchasers") entered into an Amended and Restated Receivables Purchase Agreement (the "RPA"). The RPA matures on November 4, 2024 and is subject to customary termination events related to transactions of this type. Under the RPA, the Receivables Subsidiary may sell receivables to the Purchasers in amounts up to a $100,000 limit. The receivables will be sold to the Purchasers in consideration for the Purchasers making payments of cash, which is referred to as "capital" for purposes of the RPA, to the Receivables Subsidiary in accordance with the terms of the RPA. The Receivables Subsidiary may sell receivables to the Purchasers so long as certain conditions are satisfied, including that, at any date of determination, the aggregate capital paid to the Receivables Subsidiary does not exceed a "capital coverage amount", equal to an adjusted net receivables pool balance minus a required reserve. Each Purchaser's share of capital accrues yield at a variable rate plus an applicable margin. The parties intend that the conveyance of receivables to the Agent, for the ratable benefit of the Purchasers will constitute a purchase and sale of receivables and not a pledge for security. The Receivables Subsidiary has guaranteed to each Purchaser and Agent the prompt payment of sold receivables, and to secure the prompt payment and performance of such guaranteed obligations, the Receivables Subsidiary has granted a security interest to the Agent, for the benefit of the Purchasers, in all assets of the Receivables Subsidiary. The assets of the Receivables Subsidiary are not available to pay our creditors or any affiliate thereof. In our capacity as master servicer under the RPA, we are responsible for administering and collecting receivables and have made customary representations, warranties, covenants and indemnities. We also provided a performance guarantee for the benefit of the Purchaser. The proceeds of the RPA are classified as operating activities in our Consolidated Condensed Statement of Cash Flows and were used to pay off the outstanding balance of the Securitization Program. Cash received from collections of sold receivables is use d by the Receivables Subsidiary to fund additional purchases of receivables on a revolving basis or to return all or any portion of outstanding capital of the Purchaser. Subsequent collections on the pledged receivables, which have not been sold, will be classified as operating cash flows at the time of collection. Total receivables sold under the RPA were $105,308 and $361,024 for the three and nine months ended July 2, 2022, respectively. Total cash collections under the RPA were $116,214 and $271,930 f or the three and nine months ended July 2, 2022, respectively. The fai r value of the sold receivables approximated book value due to their credit quality and short-term nature, and as a result, no gain or loss on sale of receivables was recorded. As of July 2, 2022, the amount sold to the Purchaser s was $89,094, w hich was derecognized from the Consolidated Condensed Balance Sheets. As collateral against sold receivables, the Receivables Subsidiary maintains a certain level of unsold receivables, which was $624,812 a s of July 2, 2022. Previously we securitized certain trade receivables in transactions that were accounted for as secured borrowings (the "Securitization Program"). We maintained a subordinated interest in a portion of the pool of trade receivables that were securitized. The retained interest, which is included in Receivables in the Consolidated Condensed Balance Sheets, is recorded at fair value, which approximates the total amount of the designated pool of accounts receivable. Refer to Note 9 - Indebtedness, for additional disclosures related to the Securitization Program. The allowance for credit losses is based on our assessment of the collectability of customer accounts. The allowance is determined by considering factors such as historical experience, credit quality, age of the accounts receivable, current economic conditions and reasonable forecasted financial information that may affect a customer’s ability to pay. |
Inventories
Inventories | 9 Months Ended |
Jul. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net of reserves, consist of: July 2, October 2, Raw materials and purchased parts $ 222,215 $ 231,406 Work in progress 305,678 315,762 Finished goods 64,465 65,927 Inventories, net $ 592,358 $ 613,095 There are no material inventoried costs relating to over-time contracts where revenue is accounted for using the cost-to-cost method of accounting as of July 2, 2022 and October 2, 2021. We have recorded impairment charges on inventory of $202 and $1,907 for the three and nine months ended July 2, 2022, respectively, associated with Russian actions in Ukraine. |
Property, Plant and Equipment
Property, Plant and Equipment | 9 Months Ended |
Jul. 02, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment, net | Property, Plant and Equipment Property, plant and equipment consists of: July 2, October 2, Land $ 36,037 $ 35,762 Buildings and improvements 513,177 506,450 Machinery and equipment 807,369 791,984 Computer equipment and software 199,709 179,066 Property, plant and equipment, at cost 1,556,292 1,513,262 Less accumulated depreciation and amortization (882,672) (867,484) Property, plant and equipment, net $ 673,620 $ 645,778 We have recorded impairment charges on property, plant and equipment totaling $454 an d $15,048 for the three and nine months ended July 2, 2022, respectively, based on expected cash flows over the remaining life of the assets. These charges are associated with a slower than expected recovery of our commercial aircraft business. |
Leases
Leases | 9 Months Ended |
Jul. 02, 2022 | |
Leases [Abstract] | |
Lessee, Operating Leases | Leases We lease certain manufacturing facilities, office space and machinery and equipment globally. At inception we evaluate whether a contractual arrangement contains a lease. Specifically, we consider whether we control the underlying asset and have the right to obtain substantially all the economic benefits or outputs from the asset. If the contractual arrangement contains a lease, we then determine the classification of the lease, operating or finance, using the classification criteria described in ASC 842. We then determine the term of the lease based on terms and conditions of the contractual arrangement, including whether the options to extend or terminate the lease are reasonably certain to be exercised. We have elected to not separate lease components from non-lease components, such as common area maintenance charges and instead, account for the lease and non-lease components as a single component. Our lease right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and our lease liabilities represent our obligation to make lease payments. Operating lease ROU assets are included in Operating lease right-of-use assets and operating lease liabilities are included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Condensed Balance Sheets. Finance lease ROU assets are included in Property, plant and equipment and finance lease liabilities are included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Condensed Balance Sheets. Operating lease cost is included in Cost of sales and Selling, general and administrative on the Consolidated Condensed Statements of Earnings. Finance lease cost is included in Cost of sales, Selling, general and administrative and Interest on the Consolidated Condensed Statements of Earnings. The ROU assets and lease liabilities for both operating and finance leases are recognized as of the commencement date at the net present value of the fixed minimum lease payments over the term of the lease, using the discount rate described below. Variable lease payments are recorded in the period in which the obligation for the payment is incurred. Variable lease payments based on an index or rate are initially measured using the index or rate as of the commencement date of the lease and included in the fixed minimum lease payments. For short-term leases that have a term of 12 months or less as of the commencement date, we do not recognize a ROU asset or lease liability on our balance sheet; we recognize expense as the lease payments are made over the lease term. The discount rate used to calculate the present value of our leases is the rate implicit in the lease. If the information necessary to determine the rate implicit in the lease is not available, we use our incremental borrowing rate for collateralized debt, which is determined using our credit rating and other information available as of the lease commencement date. The components of lease expense were as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, Operating lease cost $ 7,601 $ 7,546 $ 21,759 $ 22,638 Finance lease cost: Amortization of right-of-use assets $ 791 $ 622 $ 2,050 $ 1,673 Interest on lease liabilities 289 193 753 520 Total finance lease cost $ 1,080 $ 815 $ 2,803 $ 2,193 Supplemental cash flow information related to leases was as follows: Nine Months Ended July 2, July 3, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow for operating leases $ 22,167 $ 21,929 Operating cash flow for finance leases 753 520 Financing cash flow for finance leases 1,779 1,588 Assets obtained in exchange for lease obligations: Operating leases 21,793 6,139 Finance leases 10,207 3,739 Supplemental balance sheet information related to leases was as follows: July 2, October 2, Operating Leases Operating lease right-of-use assets $ 68,800 $ 60,355 Accrued liabilities and other $ 13,328 $ 14,176 Other long-term liabilities 65,751 57,277 Total operating lease liabilities $ 79,079 $ 71,453 Finance Leases Property, plant, and equipment, at cost $ 29,040 $ 19,861 Accumulated depreciation (4,862) (3,375) Property, plant, and equipment, net $ 24,178 $ 16,486 Accrued liabilities and other $ 3,033 $ 2,014 Other long-term liabilities 22,836 15,904 Total finance lease liabilities $ 25,869 $ 17,918 Weighted average remaining lease term in years Operating leases 7.8 7.4 Finance leases 17.5 15.5 Weighted average discount rate Operating leases 4.4 % 4.7 % Finance leases 4.7 % 5.0 % Maturities of lease liabilities were as follows: July 2, 2022 Operating Leases Finance Leases 2022 $ 8,304 $ 1,977 2023 16,016 4,053 2024 13,129 4,019 2025 11,251 3,844 2026 9,947 3,577 Thereafter 41,774 28,914 Total lease payments 100,421 46,384 Less: imputed interest (21,342) (20,515) Total $ 79,079 $ 25,869 |
Lessee, Finance Leases | Leases We lease certain manufacturing facilities, office space and machinery and equipment globally. At inception we evaluate whether a contractual arrangement contains a lease. Specifically, we consider whether we control the underlying asset and have the right to obtain substantially all the economic benefits or outputs from the asset. If the contractual arrangement contains a lease, we then determine the classification of the lease, operating or finance, using the classification criteria described in ASC 842. We then determine the term of the lease based on terms and conditions of the contractual arrangement, including whether the options to extend or terminate the lease are reasonably certain to be exercised. We have elected to not separate lease components from non-lease components, such as common area maintenance charges and instead, account for the lease and non-lease components as a single component. Our lease right-of-use ("ROU") assets represent our right to use an underlying asset for the lease term and our lease liabilities represent our obligation to make lease payments. Operating lease ROU assets are included in Operating lease right-of-use assets and operating lease liabilities are included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Condensed Balance Sheets. Finance lease ROU assets are included in Property, plant and equipment and finance lease liabilities are included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Condensed Balance Sheets. Operating lease cost is included in Cost of sales and Selling, general and administrative on the Consolidated Condensed Statements of Earnings. Finance lease cost is included in Cost of sales, Selling, general and administrative and Interest on the Consolidated Condensed Statements of Earnings. The ROU assets and lease liabilities for both operating and finance leases are recognized as of the commencement date at the net present value of the fixed minimum lease payments over the term of the lease, using the discount rate described below. Variable lease payments are recorded in the period in which the obligation for the payment is incurred. Variable lease payments based on an index or rate are initially measured using the index or rate as of the commencement date of the lease and included in the fixed minimum lease payments. For short-term leases that have a term of 12 months or less as of the commencement date, we do not recognize a ROU asset or lease liability on our balance sheet; we recognize expense as the lease payments are made over the lease term. The discount rate used to calculate the present value of our leases is the rate implicit in the lease. If the information necessary to determine the rate implicit in the lease is not available, we use our incremental borrowing rate for collateralized debt, which is determined using our credit rating and other information available as of the lease commencement date. The components of lease expense were as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, Operating lease cost $ 7,601 $ 7,546 $ 21,759 $ 22,638 Finance lease cost: Amortization of right-of-use assets $ 791 $ 622 $ 2,050 $ 1,673 Interest on lease liabilities 289 193 753 520 Total finance lease cost $ 1,080 $ 815 $ 2,803 $ 2,193 Supplemental cash flow information related to leases was as follows: Nine Months Ended July 2, July 3, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow for operating leases $ 22,167 $ 21,929 Operating cash flow for finance leases 753 520 Financing cash flow for finance leases 1,779 1,588 Assets obtained in exchange for lease obligations: Operating leases 21,793 6,139 Finance leases 10,207 3,739 Supplemental balance sheet information related to leases was as follows: July 2, October 2, Operating Leases Operating lease right-of-use assets $ 68,800 $ 60,355 Accrued liabilities and other $ 13,328 $ 14,176 Other long-term liabilities 65,751 57,277 Total operating lease liabilities $ 79,079 $ 71,453 Finance Leases Property, plant, and equipment, at cost $ 29,040 $ 19,861 Accumulated depreciation (4,862) (3,375) Property, plant, and equipment, net $ 24,178 $ 16,486 Accrued liabilities and other $ 3,033 $ 2,014 Other long-term liabilities 22,836 15,904 Total finance lease liabilities $ 25,869 $ 17,918 Weighted average remaining lease term in years Operating leases 7.8 7.4 Finance leases 17.5 15.5 Weighted average discount rate Operating leases 4.4 % 4.7 % Finance leases 4.7 % 5.0 % Maturities of lease liabilities were as follows: July 2, 2022 Operating Leases Finance Leases 2022 $ 8,304 $ 1,977 2023 16,016 4,053 2024 13,129 4,019 2025 11,251 3,844 2026 9,947 3,577 Thereafter 41,774 28,914 Total lease payments 100,421 46,384 Less: imputed interest (21,342) (20,515) Total $ 79,079 $ 25,869 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 9 Months Ended |
Jul. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill are as follows: Aircraft Space and Industrial Total Balance at October 2, 2021 $ 210,779 $ 261,767 $ 379,059 $ 851,605 Acquisition 5,198 — — 5,198 Divestiture (6,961) — — (6,961) Foreign currency translation (5,819) (94) (17,622) (23,535) Balance at July 2, 2022 $ 203,197 $ 261,673 $ 361,437 $ 826,307 Goodwill in our Space and Defense Controls segment is net of a $4,800 accumulated impairment loss at July 2, 2022. Goodwill in our Medical Devices reporting unit, included in our Industrial Systems segment, is net of a $38,200 accumulated impairment loss at July 2, 2022. The components of intangible assets are as follows: July 2, 2022 October 2, 2021 Weighted- Gross Carrying Accumulated Gross Carrying Accumulated Customer-related 12 $ 165,048 $ (110,892) $ 163,215 $ (108,844) Technology-related 9 80,458 (59,771) 82,716 (58,119) Program-related 23 37,250 (19,464) 40,211 (19,707) Marketing-related 8 28,121 (22,599) 28,590 (22,212) Other 10 1,800 (1,576) 1,963 (1,718) Intangible assets 12 $ 312,677 $ (214,302) $ 316,695 $ (210,600) Substantially all acquired intangible assets other than goodwill are being amortized. Customer-related intangible assets primarily consist of customer relationships. Technology-related intangible assets primarily consist of technology, patents, intellectual property and software. Program-related intangible assets consist of long-term programs represented by current contracts and probable follow on work. Marketing-related intangible assets primarily consist of trademarks, trade names and non-compete agreements. Amortization of acquired intangible assets is as follows: Three Months Ended Nine Months Ended July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Acquired intangible asset amortization $ 3,235 $ 3,555 $ 9,962 $ 9,974 Based on acquired intangible assets recorded at July 2, 2022, amortization is estimated to be approximately: 2022 2023 2024 2025 2026 Estimated future amortization of acquired intangible assets $ 13,200 $ 12,700 $ 12,000 $ 10,800 $ 10,600 |
Indebtedness
Indebtedness | 9 Months Ended |
Jul. 02, 2022 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness We maintain short-term line of credit facilities with banks throughout the world that are principally demand lines subject to revision by the banks. Long-term debt consists of: July 2, October 2, U.S. revolving credit facility $ 344,050 $ 321,886 SECT revolving credit facility 17,000 7,000 Senior notes 4.25% 500,000 500,000 Securitization program — 80,000 Other long-term debt 1,008 1,280 Senior debt 862,058 910,166 Less deferred debt issuance cost (4,953) (6,446) Less current installments (1,008) (80,365) Long-term debt $ 856,097 $ 823,355 Our U.S. revolving credit facility, which matures on October 15, 2024, has a capacity of $1,100,000 and provides an expansion option, which permits us to request an increase of up to $400,000 to the credit facility upon satisfaction of certain conditions. The credit facility is secured by substantially all of our U.S. assets. The loan agreement contains various covenants which, among others, specify interest coverage and maximum leverage. We are in compliance with all covenants. The SECT has a revolving credit facility with a borrowing capacity of $35,000, maturing on July 26, 2024. Interest is based on LIBOR plus an applicable margin. A commitment fee is also charged based on a percentage of the unused amounts available and is not material. At July 2, 2022, we had $500,000 aggregate principal amount of 4.25% senior notes due December 15, 2027 with interest paid semiannually on June 15 and December 15 of each year, which commenced on June 15, 2020. The senior notes are unsecured obligations, guaranteed on a senior unsecured basis by certain subsidiaries and contain normal incurrence-based covenants and limitations such as the ability to incur additional indebtedness, pay dividends, make other restricted payments and investments, create liens and certain corporate acts such as mergers and consolidations. The aggregate net proceeds were used to repay indebtedness under our U.S. revolving credit facility, thereby increasing the unused portion of our U.S. revolving credit facility. |
Other Accrued Liabilities
Other Accrued Liabilities | 9 Months Ended |
Jul. 02, 2022 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consists of: July 2, October 2, 2021 Contract reserves $ 44,126 $ 58,857 Employee benefits 62,594 54,146 Warranty accrual 24,587 26,602 Accrued income taxes 17,454 12,908 Other 63,008 59,492 Other accrued liabilities $ 211,769 $ 212,005 In the ordinary course of business, we warrant our products against defects in design, materials and workmanship typically over periods ranging from twelve to sixty months. We determine warranty reserves needed by product line based on historical experience and current facts and circumstances. Activity in the warranty accrual is summarized as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, Warranty accrual at beginning of period $ 24,471 $ 29,238 $ 26,602 $ 27,707 Additions from acquisitions — — — 990 Warranties issued during current period 2,973 3,102 6,373 10,890 Adjustments to pre-existing warranties (195) (95) (261) (308) Reductions for settling warranties (2,273) (3,729) (7,127) (10,875) Divestiture adjustment — — (368) — Foreign currency translation (389) 76 (632) 188 Warranty accrual at end of period $ 24,587 $ 28,592 $ 24,587 $ 28,592 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Jul. 02, 2022 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We principally use derivative financial instruments to manage foreign exchange risk related to foreign operations and foreign currency transactions an d interest rate risk associated with long-term debt. We enter into derivative financial instruments with a number of major financial institutions to minimize counterparty credit risk. Derivatives designated as hedging instruments We use foreign currency contracts as cash flow hedges to effectively fix the exchange rates on future payments and revenue. To mitigate exposure in movements between various currencies, including the Philippine peso and the British pound, we had outstanding foreign currency contracts with notional amounts of $40,479 at July 2, 2022. These contracts mature at various times through March 1, 2024. We use forward currency contracts to hedge our net investment in certain foreign subsidiaries. As of July 2, 2022, we had no outstanding net investment hedges. Interest rate swaps are used to adjust the proportion of total debt that is subject to variable and fixed interest rates. The interest rate swaps are designated as hedges of the amount of future cash flows related to interest payments on variable-rate debt that, in combination with the interest payments on the debt, convert a portion of the variable-rate debt to fixed-rate debt. At July 2, 2022, we had no outstanding interest rate swaps. Foreign currency contracts, net investment hedges and interest rate swaps are recorded in the Consolidated Condensed Balance Sheets at fair value and the related gains or losses are deferred in Shareholders’ Equity as a component of Accumulated Other Comprehensive Income ("AOCIL"). These deferred gains and losses are reclassified into the Consolidated Condensed Statements of Earnings, as necessary, during the periods in which the related payments or receipts affect earnings. However, to the extent the foreign currency contracts and interest rate swaps are not perfectly effective in offsetting the change in the value of the payments and revenue being hedged, the ineffective portion of these contracts is recognized in earnings immediately. Ineffectiveness was not material in the first nine months of 2022 or 2021. Derivatives not designated as hedging instruments We also have foreign currency exposure on balances, primarily intercompany, that are denominated in a foreign currency and are adjusted to current values using period-end exchange rates. The resulting gains or losses are recorded in the Consolidated Condensed Statements of Earnings. To minimize foreign currency exposure, we had foreign currency contracts with notional amounts of $98,997 at July 2, 2022. The foreign currency contracts are recorded in the Consolidated Condensed Balance Sheets at fair value and resulting gains or losses are recorded in the Consolidated Condensed Statements of Earnings. We recorded the following gains and losses on foreign currency contracts which are included in other income or expense and generally offset the gains or losses from the foreign currency adjustments on the intercompany balances that are also included in other income or expense: Three Months Ended Nine Months Ended Statements of Earnings location July 2, July 3, July 2, July 3, Net gain (loss) Foreign currency contracts Other $ (2,861) $ (67) $ (6,899) $ 3,026 Summary of derivatives The fair value and classification of derivatives is summarized as follows: Balance Sheets location July 2, October 2, Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 430 $ 325 Foreign currency contracts Other assets 227 104 Total asset derivatives $ 657 $ 429 Foreign currency contracts Accrued liabilities and other $ 2,971 $ 1,235 Foreign currency contracts Other long-term liabilities 598 537 Total liability derivatives $ 3,569 $ 1,772 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 163 $ 226 Foreign currency contracts Accrued liabilities and other $ 772 $ 480 |
Fair Value
Fair Value | 9 Months Ended |
Jul. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value 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. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate fair value. The definition of the fair value hierarchy is as follows: Level 1 – Quoted prices in active markets for identical assets and liabilities. Level 2 – Observable inputs other than quoted prices in active markets for similar assets and liabilities. Level 3 – Inputs for which significant valuation assumptions are unobservable in a market and therefore value is based on the best available data, some of which is internally developed and considers risk premiums that a market participant would require. Our derivatives are valued using various pricing models or discounted cash flow analyses that incorporate observable market data, such as interest rate yield curves and currency rates, and are classified as Level 2 within the valuation hierarchy. The following table presents the fair values and classification of our financial assets and liabilities measured on a recurring basis, all of which are classified as Level 2, except for the acquisition contingent consideration, which is classified as Level 3: Balance Sheets location July 2, October 2, Foreign currency contracts Other current assets $ 593 $ 551 Foreign currency contracts Other assets 227 104 Total assets $ 820 $ 655 Foreign currency contracts Accrued liabilities and other $ 3,743 $ 1,715 Foreign currency contracts Other long-term liabilities 598 537 Acquisition contingent consideration Accrued liabilities and other 1,018 — Acquisition contingent consideration Other long-term liabilities 2,160 — Total liabilities $ 7,519 $ 2,252 The changes in financial liabilities classified as Level 3 within the fair value hierarchy are as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, Balance at beginning of period $ 3,084 $ — $ — $ — Additions from acquisitions — — 3,053 — Increase in discounted future cash flows recorded as interest expense 94 — 125 — Balance at end of period $ 3,178 $ — $ 3,178 $ — Our only financial instrument for which the carrying value differs from its fair value is long-term debt. At July 2, 2022, the fair value of long-term debt was $793,705 compared to its carrying value of $862,058. The fair value of long-term debt is classified as Level 2 within the fair value hierarchy and was estimated based on quoted market prices. Property, plant and equipment, inventories and receivables have been measured at fair values on a nonrecurring basis using future discounted cash flows and other observable inputs (Level 3) and are not included in the fair value tables above. Impairment losses for the three and nine months ended July 2, 2022 of $894 and $17,835, respectively, are recorded as a result of these measurements and are described in Note 4 - Receivables, Note 5 - Inventories and Note 6 - Property, Plant and Equipment. |
Restructuring
Restructuring | 9 Months Ended |
Jul. 02, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring In 2022, we initiated restructuring actions in relation to portfolio shaping activities in our Space and Defense and Industrial Systems segments and for slower than expected commercial aircraft business recovery in our Aircraft Controls segment. These actions have and will result in workforce reductions, principally in the U.S., U.K. and Europe. The 2022 restructuring charge consists of non-cash charges related to an inventory write-down of $1,500, equipment of $946 and severance of $7,423 for businesses we are no longer pursuing. Restructuring activity for severance and other costs by segment and reconciliation to consolidated amounts is as follows: Aircraft Controls Space and Defense Controls Industrial Systems Total Balance at October 2, 2021 $ 179 $ — $ 5,486 $ 5,665 Charged to expense - 2022 plan 3,996 3,424 2,449 9,869 Non-cash charges - 2022 plan — (2,446) — (2,446) Cash payments - 2022 plan (3,501) (503) (377) (4,381) Cash payments - 2020 plan (179) — (443) (622) Cash payments - 2018 plan — — (285) (285) Foreign currency translation — — (35) (35) Balance at July 2, 2022 $ 495 $ 475 $ 6,795 $ 7,765 As of July 2, 2022, the restructuring accrual consists of $3,028 for the 2022 plan, $2,999 for the 2020 plan and $1,738 for the 2018 plan. Restructuring is expected to be paid within a year, except portions classified as long-term liabilities based on the nature of the reserve. |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Jul. 02, 2022 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Pension expense for our defined contribution plans consists of: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, U.S. defined contribution plans $ 10,558 $ 9,151 $ 32,253 $ 26,911 Non-U.S. defined contribution plans 1,994 2,044 6,551 5,709 Total expense for defined contribution plans $ 12,552 $ 11,195 $ 38,804 $ 32,620 Net periodic benefit costs for our defined benefit pension plans are as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, U.S. Plans Service cost $ 4,957 $ 5,622 $ 14,870 $ 16,866 Interest cost 4,562 4,276 13,685 12,828 Expected return on plan assets (7,451) (7,636) (22,352) (22,908) Amortization of actuarial loss 3,896 3,430 11,689 10,291 Expense for U.S. defined benefit plans $ 5,964 $ 5,692 $ 17,892 $ 17,077 Non-U.S. Plans Service cost $ 1,056 $ 1,214 $ 3,285 $ 4,101 Interest cost 602 528 1,863 1,759 Expected return on plan assets (839) (994) (2,622) (3,127) Amortization of prior service cost 15 16 45 30 Amortization of actuarial loss 953 1,405 2,979 4,195 Curtailment gain — — — (5,830) Expense for non-U.S. defined benefit plans $ 1,787 $ 2,169 $ 5,550 $ 1,128 |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 02, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesThe effective tax rate for the three and nine months ended July 2, 2022 was 15.7% and 21.4%, respectively. The effective tax rate for the three and nine months ended July 2, 2022 is lower than expected from applying the U.S. federal statutory tax rate of 21% to earnings before income taxes due to beneficial provision to return adjustments in the quarter ended July 2, 2022 primarily associated with an increase in the U.S. research and development tax credit partially offset by tax on earnings generated outside the U.S.The effective tax rate for the three and nine months ended July 3, 2021 was 25.7% and 23.9%, respectively. The effective tax rate for the three and nine months ended July 3, 2021 is higher than expected from applying the U.S. federal statutory tax rate of 21% to earnings before income taxes due to tax on earnings generated outside the U.S. Further, there were beneficial provision to return adjustments primarily associated with an increase in the U.S. research and development tax credit. This benefit was offset by an expense resulting from the revaluation of deferred tax liabilities due to a tax rate increase in the UK. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Jul. 02, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in AOCIL, net of tax, by component for the nine months ended July 2, 2022 are as follows: Accumulated foreign currency translation Accumulated retirement liability Accumulated gain (loss) on derivatives Total AOCIL at October 2, 2021 $ (92,989) $ (153,210) $ (1,361) $ (247,560) OCI before reclassifications (68,952) 3,568 (2,455) (67,839) Amounts reclassified from AOCIL 155 10,498 762 11,415 OCI, net of tax (68,797) 14,066 (1,693) (56,424) AOCIL at July 2, 2022 $ (161,786) $ (139,144) $ (3,054) $ (303,984) Net gains and losses on net investment hedges are recorded in Accumulated foreign currency translation to the extent that the instruments are effective in hedging the designated risk. The amounts reclassified from AOCIL into earnings are as follows: Three Months Ended Nine Months Ended Statements of Earnings location July 2, July 3, July 2, July 3, Retirement liability: Prior service cost $ 15 $ 16 $ 45 $ 30 Actuarial losses 4,530 4,707 13,713 14,101 Curtailment gain — — — (5,830) Reclassification from AOCIL into earnings 4,545 4,723 13,758 8,301 Tax effect (1,077) (1,123) (3,260) (3,362) Net reclassification from AOCIL into earnings $ 3,468 $ 3,600 $ 10,498 $ 4,939 Derivatives: Foreign currency contracts Sales $ 375 $ (178) $ 619 $ (230) Foreign currency contracts Cost of sales (8) (313) 341 (1,418) Reclassification from AOCIL into earnings 367 (491) 960 (1,648) Tax effect (69) 107 (198) 378 Net reclassification from AOCIL into earnings $ 298 $ (384) $ 762 $ (1,270) Reclassification from AOCIL into earnings for the Retirement liability are included in the computation of non-service pension expense, which is included in Other on the Consolidated Condensed Statement of Earnings. The effective portion of amounts deferred in AOCIL are as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, Foreign currency contracts $ (2,350) $ (451) $ (3,152) $ (103) Net loss (2,350) (451) (3,152) (103) Tax effect 519 104 697 38 Net deferral in AOCIL of derivatives $ (1,831) $ (347) $ (2,455) $ (65) |
Stock Employee Compensation Tru
Stock Employee Compensation Trust and Supplemental Retirement Plan Trust | 9 Months Ended |
Jul. 02, 2022 | |
Share-Based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Employee Compensation Trust and Supplemental Retirement Plan Trust | Stock Employee Compensation Trust and Supplemental Retirement Plan TrustThe SECT assists in administering and provides funding for equity-based compensation plans and benefit programs, including the Moog Inc. Retirement Savings Plan ("RSP") and the Employee Stock Purchase Plan ("ESPP"). SERP Trust provides funding for benefits under the SERP provisions of the Moog Inc. Plan to Equalize Retirement Income and Supplemental Retirement Income. Both the SECT and the SERP Trust hold Moog shares as investments. The shares in the SECT and SERP Trust are not considered outstanding for purposes of calculating earnings per share. However, in accordance with the trust agreements governing the SECT and SERP Trust, the trustees vote all shares held by the SECT and SERP Trust on all matters submitted to shareholders. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jul. 02, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Basic and diluted weighted-average shares outstanding, as well as shares considered to be anti-dilutive, are as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, Basic weighted-average shares outstanding 31,922,377 32,125,524 31,988,150 32,115,400 Dilutive effect of equity-based awards 145,054 229,714 137,288 190,434 Diluted weighted-average shares outstanding 32,067,431 32,355,238 32,125,438 32,305,834 Anti-dilutive shares from equity-based awards 40,679 20,302 52,362 50,322 |
Segment Information
Segment Information | 9 Months Ended |
Jul. 02, 2022 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment Information | Segments Disaggregation of net sales by segment for the three and nine months ended July 2, 2022 and July 3, 2021 are as follows: Three Months Ended Nine Months Ended Market Type July 2, July 3, July 2, July 3, Net sales: Military $ 180,891 $ 175,922 $ 558,929 $ 583,140 Commercial 137,126 96,209 373,673 280,126 Aircraft Controls 318,017 272,131 932,602 863,266 Space 88,338 86,031 262,995 251,679 Defense 135,306 118,856 391,854 347,538 Space and Defense Controls 223,644 204,887 654,849 599,217 Energy 31,178 30,950 94,960 87,841 Industrial Automation 111,316 112,225 323,870 318,662 Simulation and Test 25,458 24,618 77,258 64,518 Medical 63,298 62,541 184,245 194,204 Industrial Systems 231,250 230,334 680,333 665,225 Net sales $ 772,911 $ 707,352 $ 2,267,784 $ 2,127,708 Three Months Ended Nine Months Ended Customer Type July 2, July 3, July 2, July 3, Net sales: Commercial $ 137,126 $ 96,209 $ 373,673 $ 280,126 U.S. Government (including OEM) 141,793 145,722 423,698 453,878 Other 39,098 30,200 135,231 129,262 Aircraft Controls 318,017 272,131 932,602 863,266 Commercial 32,001 28,947 84,878 97,100 U.S. Government (including OEM) 177,643 156,238 527,767 452,365 Other 14,000 19,702 42,204 49,752 Space and Defense Controls 223,644 204,887 654,849 599,217 Commercial 227,445 224,407 669,845 644,412 U.S. Government (including OEM) 1,596 4,496 5,535 15,245 Other 2,209 1,431 4,953 5,568 Industrial Systems 231,250 230,334 680,333 665,225 Commercial 396,572 349,563 1,128,396 1,021,638 U.S. Government (including OEM) 321,032 306,456 957,000 921,488 Other 55,307 51,333 182,388 184,582 Net sales $ 772,911 $ 707,352 $ 2,267,784 $ 2,127,708 Three Months Ended Nine Months Ended Revenue Recognition Method July 2, July 3, July 2, July 3, Net sales: Over-time $ 243,428 $ 221,460 $ 729,797 $ 693,515 Point in time 74,589 50,671 202,805 169,751 Aircraft Controls 318,017 272,131 932,602 863,266 Over-time 204,196 190,559 603,951 554,304 Point in time 19,448 14,328 50,898 44,913 Space and Defense Controls 223,644 204,887 654,849 599,217 Over-time 36,536 32,800 105,848 89,901 Point in time 194,714 197,534 574,485 575,324 Industrial Systems 231,250 230,334 680,333 665,225 Over-time 484,160 444,819 1,439,596 1,337,720 Point in time 288,751 262,533 828,188 789,988 Net sales $ 772,911 $ 707,352 $ 2,267,784 $ 2,127,708 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 for the three and nine months ended July 2, 2022 and July 3, 2021 and a reconciliation of segment operating profit to earnings before income taxes are as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, Operating profit: Aircraft Controls $ 34,453 $ 20,545 $ 88,809 $ 70,485 Space and Defense Controls 25,368 21,339 70,742 71,037 Industrial Systems 19,484 23,004 57,398 66,715 Total operating profit 79,305 64,888 216,949 208,237 Deductions from operating profit: Interest expense 9,131 8,239 25,376 25,288 Equity-based compensation expense 2,169 1,791 6,747 6,420 Non-service pension expense (income) 1,442 928 4,399 (3,053) Corporate and other expenses, net 6,754 5,335 20,482 18,488 Earnings before income taxes $ 59,809 $ 48,595 $ 159,945 $ 161,094 |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Jul. 02, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related Party Transactions John Scannell, Moog's Chairman of the Board of Directors and Chief Executive Officer, is a member of the Board of Directors of M&T Bank Corporation and M&T Bank. We currently engage with M&T Bank in the ordinary course of business for various financing activities, all of which were initiated prior to the election of Mr. Scannell to the Board. M&T Bank provides credit extension for routine purchases, which for the three and nine months ended July 2, 2022 totaled $4,681 and $12,544, respectively. Credit extension for the three and nine months ended July 3, 2021 totaled $3,635 and $10,585, respectively. At July 2, 2022, we held outstanding leases with a total original cost of $16,375 . At July 2, 2022, outstanding deposits on our behalf for future equipment leases totale d $2,045. M &T B ank also maintains an interest of approximately 12% in our U.S. revolving credit facility. Further details of the U.S. revolving credit facility can be found in Note 9 - Indebtedness. Wilmington Trust, a subsidiary of M&T Bank, is the trustee of the pension assets for our qualified U.S. defined benefit plan. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jul. 02, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, we are involved in legal proceedings. We are not a party to any pending legal proceedings which management believes will result in a material adverse effect on our financial condition, results of operations or cash flows. We are engaged in administrative proceedings with governmental agencies and legal proceedings with governmental agencies and other third parties in the normal course of our business, including environmental matters. We believe that adequate reserves have been established for our share of the estimated cost for all currently pending environmental administrative or legal proceedings and do not expect that these environmental matters will have a material adverse effect on our financial condition, results of operations or cash flows. In the ordinary course of business we could be subject to ongoing claims or disputes from our customers, the ultimate settlement of which could have a material adverse impact on our consolidated results of operations. While the receivables and any loss provisions recorded to date reflect management's best estimate of the projected costs to complete a given project, there is still significant effort required to complete the ultimate deliverable. Future variability in internal cost and future profitability is dependent upon a number of factors including deliveries, performance and government budgetary pressures. The inability to achieve a satisfactory contractual solution, further unplanned delays, additional developmental cost growth or variations in any of the estimates used in the existing contract analysis could lead to further loss provisions. Additional losses could have a material adverse impact on our financial condition, results of operations or cash flows in the period in which the loss may be recognized. We are contingently liab le f or $32,794 of standby letters of credit issued by a bank to third parties on our behalf at July 2, 2022. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Jul. 02, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent EventOn July 28, 2022, we declared a $0.26 per share quarterly dividend payable on issued and outstanding shares of our Class A and Class B common stock on August 30, 2022 to shareholders of record at the close of business on August 12, 2022. |
Basis Of Presentation (Policies
Basis Of Presentation (Policies) | 9 Months Ended |
Jul. 02, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying unaudited consolidated condensed financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting of normal recurring adjustments considered necessary for the fair presentation of results for the interim period have been included. The results of operations for the three and nine months ended July 2, 2022 are not necessarily indicative of the results expected for the full year. The accompanying unaudited consolidated condensed financial statements should be read in conjunction with the financial statements and notes thereto included in our Form 10-K for the fiscal year ended October 2, 2021. All references to years in these financial statements are to fiscal years. |
COVID-19 Response | COVID-19 Impacts On Our Business On March 11, 2020, the World Health Organization classified the COVID-19 outbreak as a pandemic. The spread of the COVID-19 pandemic disrupted businesses on a global scale, led to significant volatility in financial markets and affected the aviation and industrial industries. Substantially all of our operations and production activities have, to-date, remained operational. However, the impacts of the pandemic have placed labor and supply chain pressures on our business and we have been impacted by localized lockdowns in China. While our backlog continues to grow across our end markets, ongoing COVID-19 disruptions continue to challenge our business. As economic activity continues to recover, we will continue to monitor the situation, assessing further possible implications on our operations, supply chain, liquidity, cash flow and customer orders. The impact of COVID-19 is discussed in more detail throughout “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Impairment of Assets Long-lived assets, including acquired intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of those assets may not be recoverable. We use undiscounted cash flows to determine whether impairment exists and measure any impairment loss by comparing the fair value, typically calculated using discounted cash flows, to the carrying value. In 2022, we recorded impairment charges on long-lived assets in our Aircraft Controls segment. These charges relate to property, plant and equipment that experienced a significant decline in value due to a slower than expected recovery of our commercial aircraft business. In addition, we have recorded impairment charges on receivables and inventories associated with Russian actions in Ukraine in all three of our segments. These charges are included in asset impairment in the Consolidated Condensed Statement of Earnings. See Note 4 - Receivables, Note 5 - Inventories, Note 6 - Property, Plant and Equipment and Note 12 - Fair Value for additional disclosures relating to impairment charges recorded. |
Recent Accounting Pronouncements and Changes in Accounting Principles | Recent Accounting Pronouncements Adopted There have been no accounting pronouncements adopted for the nine months ended July 2, 2022. Recent Accounting Pronouncements Not Yet Adopted |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets and Liabilities | Total contract assets and contract liabilities are as follows: July 2, October 2, 2021 Unbilled receivables $ 621,128 $ 546,764 Contract advances 293,794 263,686 Net contract assets $ 327,334 $ 283,078 |
Receivables (Tables)
Receivables (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Receivables consist of: July 2, October 2, Accounts receivable $ 345,117 $ 395,674 Unbilled receivables 621,128 546,764 Other 11,835 7,842 Less allowance for credit losses (4,309) (4,351) Receivables, net $ 973,771 $ 945,929 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, net of reserves | Inventories, net of reserves, consist of: July 2, October 2, Raw materials and purchased parts $ 222,215 $ 231,406 Work in progress 305,678 315,762 Finished goods 64,465 65,927 Inventories, net $ 592,358 $ 613,095 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of: July 2, October 2, Land $ 36,037 $ 35,762 Buildings and improvements 513,177 506,450 Machinery and equipment 807,369 791,984 Computer equipment and software 199,709 179,066 Property, plant and equipment, at cost 1,556,292 1,513,262 Less accumulated depreciation and amortization (882,672) (867,484) Property, plant and equipment, net $ 673,620 $ 645,778 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, Operating lease cost $ 7,601 $ 7,546 $ 21,759 $ 22,638 Finance lease cost: Amortization of right-of-use assets $ 791 $ 622 $ 2,050 $ 1,673 Interest on lease liabilities 289 193 753 520 Total finance lease cost $ 1,080 $ 815 $ 2,803 $ 2,193 |
Supplemental Cash Flow Lease Information | Supplemental cash flow information related to leases was as follows: Nine Months Ended July 2, July 3, Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow for operating leases $ 22,167 $ 21,929 Operating cash flow for finance leases 753 520 Financing cash flow for finance leases 1,779 1,588 Assets obtained in exchange for lease obligations: Operating leases 21,793 6,139 Finance leases 10,207 3,739 |
Supplemental Balance Sheet Lease Information | Supplemental balance sheet information related to leases was as follows: July 2, October 2, Operating Leases Operating lease right-of-use assets $ 68,800 $ 60,355 Accrued liabilities and other $ 13,328 $ 14,176 Other long-term liabilities 65,751 57,277 Total operating lease liabilities $ 79,079 $ 71,453 Finance Leases Property, plant, and equipment, at cost $ 29,040 $ 19,861 Accumulated depreciation (4,862) (3,375) Property, plant, and equipment, net $ 24,178 $ 16,486 Accrued liabilities and other $ 3,033 $ 2,014 Other long-term liabilities 22,836 15,904 Total finance lease liabilities $ 25,869 $ 17,918 Weighted average remaining lease term in years Operating leases 7.8 7.4 Finance leases 17.5 15.5 Weighted average discount rate Operating leases 4.4 % 4.7 % Finance leases 4.7 % 5.0 % |
Finance Lease Maturity Schedule | Maturities of lease liabilities were as follows: July 2, 2022 Operating Leases Finance Leases 2022 $ 8,304 $ 1,977 2023 16,016 4,053 2024 13,129 4,019 2025 11,251 3,844 2026 9,947 3,577 Thereafter 41,774 28,914 Total lease payments 100,421 46,384 Less: imputed interest (21,342) (20,515) Total $ 79,079 $ 25,869 |
Operating Lease Maturity Schedule | Maturities of lease liabilities were as follows: July 2, 2022 Operating Leases Finance Leases 2022 $ 8,304 $ 1,977 2023 16,016 4,053 2024 13,129 4,019 2025 11,251 3,844 2026 9,947 3,577 Thereafter 41,774 28,914 Total lease payments 100,421 46,384 Less: imputed interest (21,342) (20,515) Total $ 79,079 $ 25,869 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carry Amount of Goodwill | The changes in the carrying amount of goodwill are as follows: Aircraft Space and Industrial Total Balance at October 2, 2021 $ 210,779 $ 261,767 $ 379,059 $ 851,605 Acquisition 5,198 — — 5,198 Divestiture (6,961) — — (6,961) Foreign currency translation (5,819) (94) (17,622) (23,535) Balance at July 2, 2022 $ 203,197 $ 261,673 $ 361,437 $ 826,307 |
Components of Intangible Assets | The components of intangible assets are as follows: July 2, 2022 October 2, 2021 Weighted- Gross Carrying Accumulated Gross Carrying Accumulated Customer-related 12 $ 165,048 $ (110,892) $ 163,215 $ (108,844) Technology-related 9 80,458 (59,771) 82,716 (58,119) Program-related 23 37,250 (19,464) 40,211 (19,707) Marketing-related 8 28,121 (22,599) 28,590 (22,212) Other 10 1,800 (1,576) 1,963 (1,718) Intangible assets 12 $ 312,677 $ (214,302) $ 316,695 $ (210,600) |
Finite-lived Intangible Assets Amortization Expense | Amortization of acquired intangible assets is as follows: Three Months Ended Nine Months Ended July 2, 2022 July 3, 2021 July 2, 2022 July 3, 2021 Acquired intangible asset amortization $ 3,235 $ 3,555 $ 9,962 $ 9,974 |
Estimated Future Amortization of Acquired Intangible Assets | Based on acquired intangible assets recorded at July 2, 2022, amortization is estimated to be approximately: 2022 2023 2024 2025 2026 Estimated future amortization of acquired intangible assets $ 13,200 $ 12,700 $ 12,000 $ 10,800 $ 10,600 |
Indebtedness (Tables)
Indebtedness (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Debt Disclosure [Abstract] | |
Components of Long-term debt | Long-term debt consists of: July 2, October 2, U.S. revolving credit facility $ 344,050 $ 321,886 SECT revolving credit facility 17,000 7,000 Senior notes 4.25% 500,000 500,000 Securitization program — 80,000 Other long-term debt 1,008 1,280 Senior debt 862,058 910,166 Less deferred debt issuance cost (4,953) (6,446) Less current installments (1,008) (80,365) Long-term debt $ 856,097 $ 823,355 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Other accrued liabilities consists of: July 2, October 2, 2021 Contract reserves $ 44,126 $ 58,857 Employee benefits 62,594 54,146 Warranty accrual 24,587 26,602 Accrued income taxes 17,454 12,908 Other 63,008 59,492 Other accrued liabilities $ 211,769 $ 212,005 |
Schedule of Product Warranty Liability | Activity in the warranty accrual is summarized as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, Warranty accrual at beginning of period $ 24,471 $ 29,238 $ 26,602 $ 27,707 Additions from acquisitions — — — 990 Warranties issued during current period 2,973 3,102 6,373 10,890 Adjustments to pre-existing warranties (195) (95) (261) (308) Reductions for settling warranties (2,273) (3,729) (7,127) (10,875) Divestiture adjustment — — (368) — Foreign currency translation (389) 76 (632) 188 Warranty accrual at end of period $ 24,587 $ 28,592 $ 24,587 $ 28,592 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Gains And Losses On Foreign Currency Forwards Included In Other Income Or Expense | We recorded the following gains and losses on foreign currency contracts which are included in other income or expense and generally offset the gains or losses from the foreign currency adjustments on the intercompany balances that are also included in other income or expense: Three Months Ended Nine Months Ended Statements of Earnings location July 2, July 3, July 2, July 3, Net gain (loss) Foreign currency contracts Other $ (2,861) $ (67) $ (6,899) $ 3,026 |
Fair Value And Classification Of Derivatives On The Consolidated Balance Sheets | The fair value and classification of derivatives is summarized as follows: Balance Sheets location July 2, October 2, Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 430 $ 325 Foreign currency contracts Other assets 227 104 Total asset derivatives $ 657 $ 429 Foreign currency contracts Accrued liabilities and other $ 2,971 $ 1,235 Foreign currency contracts Other long-term liabilities 598 537 Total liability derivatives $ 3,569 $ 1,772 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 163 $ 226 Foreign currency contracts Accrued liabilities and other $ 772 $ 480 |
Fair Value (Tables)
Fair Value (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Values And Classification Of Financial Assets And Liabilities Measured On A Recurring Basis | The following table presents the fair values and classification of our financial assets and liabilities measured on a recurring basis, all of which are classified as Level 2, except for the acquisition contingent consideration, which is classified as Level 3: Balance Sheets location July 2, October 2, Foreign currency contracts Other current assets $ 593 $ 551 Foreign currency contracts Other assets 227 104 Total assets $ 820 $ 655 Foreign currency contracts Accrued liabilities and other $ 3,743 $ 1,715 Foreign currency contracts Other long-term liabilities 598 537 Acquisition contingent consideration Accrued liabilities and other 1,018 — Acquisition contingent consideration Other long-term liabilities 2,160 — Total liabilities $ 7,519 $ 2,252 |
Financial Liabilities Classified as Level 3 Within the Fair Value Hierarchy | The changes in financial liabilities classified as Level 3 within the fair value hierarchy are as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, Balance at beginning of period $ 3,084 $ — $ — $ — Additions from acquisitions — — 3,053 — Increase in discounted future cash flows recorded as interest expense 94 — 125 — Balance at end of period $ 3,178 $ — $ 3,178 $ — |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve Activity | Restructuring activity for severance and other costs by segment and reconciliation to consolidated amounts is as follows: Aircraft Controls Space and Defense Controls Industrial Systems Total Balance at October 2, 2021 $ 179 $ — $ 5,486 $ 5,665 Charged to expense - 2022 plan 3,996 3,424 2,449 9,869 Non-cash charges - 2022 plan — (2,446) — (2,446) Cash payments - 2022 plan (3,501) (503) (377) (4,381) Cash payments - 2020 plan (179) — (443) (622) Cash payments - 2018 plan — — (285) (285) Foreign currency translation — — (35) (35) Balance at July 2, 2022 $ 495 $ 475 $ 6,795 $ 7,765 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Defined Contribution Plan Disclosures | Pension expense for our defined contribution plans consists of: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, U.S. defined contribution plans $ 10,558 $ 9,151 $ 32,253 $ 26,911 Non-U.S. defined contribution plans 1,994 2,044 6,551 5,709 Total expense for defined contribution plans $ 12,552 $ 11,195 $ 38,804 $ 32,620 |
Net Periodic Benefit Costs | Net periodic benefit costs for our defined benefit pension plans are as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, U.S. Plans Service cost $ 4,957 $ 5,622 $ 14,870 $ 16,866 Interest cost 4,562 4,276 13,685 12,828 Expected return on plan assets (7,451) (7,636) (22,352) (22,908) Amortization of actuarial loss 3,896 3,430 11,689 10,291 Expense for U.S. defined benefit plans $ 5,964 $ 5,692 $ 17,892 $ 17,077 Non-U.S. Plans Service cost $ 1,056 $ 1,214 $ 3,285 $ 4,101 Interest cost 602 528 1,863 1,759 Expected return on plan assets (839) (994) (2,622) (3,127) Amortization of prior service cost 15 16 45 30 Amortization of actuarial loss 953 1,405 2,979 4,195 Curtailment gain — — — (5,830) Expense for non-U.S. defined benefit plans $ 1,787 $ 2,169 $ 5,550 $ 1,128 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of AOCIL | The changes in AOCIL, net of tax, by component for the nine months ended July 2, 2022 are as follows: Accumulated foreign currency translation Accumulated retirement liability Accumulated gain (loss) on derivatives Total AOCIL at October 2, 2021 $ (92,989) $ (153,210) $ (1,361) $ (247,560) OCI before reclassifications (68,952) 3,568 (2,455) (67,839) Amounts reclassified from AOCIL 155 10,498 762 11,415 OCI, net of tax (68,797) 14,066 (1,693) (56,424) AOCIL at July 2, 2022 $ (161,786) $ (139,144) $ (3,054) $ (303,984) |
Reclassification from AOCIL | The amounts reclassified from AOCIL into earnings are as follows: Three Months Ended Nine Months Ended Statements of Earnings location July 2, July 3, July 2, July 3, Retirement liability: Prior service cost $ 15 $ 16 $ 45 $ 30 Actuarial losses 4,530 4,707 13,713 14,101 Curtailment gain — — — (5,830) Reclassification from AOCIL into earnings 4,545 4,723 13,758 8,301 Tax effect (1,077) (1,123) (3,260) (3,362) Net reclassification from AOCIL into earnings $ 3,468 $ 3,600 $ 10,498 $ 4,939 Derivatives: Foreign currency contracts Sales $ 375 $ (178) $ 619 $ (230) Foreign currency contracts Cost of sales (8) (313) 341 (1,418) Reclassification from AOCIL into earnings 367 (491) 960 (1,648) Tax effect (69) 107 (198) 378 Net reclassification from AOCIL into earnings $ 298 $ (384) $ 762 $ (1,270) |
Activity and Classification of Derivative Deferral in AOCIL | The effective portion of amounts deferred in AOCIL are as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, Foreign currency contracts $ (2,350) $ (451) $ (3,152) $ (103) Net loss (2,350) (451) (3,152) (103) Tax effect 519 104 697 38 Net deferral in AOCIL of derivatives $ (1,831) $ (347) $ (2,455) $ (65) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Earnings Per Share [Abstract] | |
Basic And Diluted Weighted-Average Shares Outstanding | Basic and diluted weighted-average shares outstanding, as well as shares considered to be anti-dilutive, are as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, Basic weighted-average shares outstanding 31,922,377 32,125,524 31,988,150 32,115,400 Dilutive effect of equity-based awards 145,054 229,714 137,288 190,434 Diluted weighted-average shares outstanding 32,067,431 32,355,238 32,125,438 32,305,834 |
Antidilutive Shares Excluded from Computation of Earnings Per Share | Anti-dilutive shares from equity-based awards 40,679 20,302 52,362 50,322 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jul. 02, 2022 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Sales And Operating Profit By Segment And Reconciliation Of Segment Operating Profit To Earnings Before Income Taxes | Disaggregation of net sales by segment for the three and nine months ended July 2, 2022 and July 3, 2021 are as follows: Three Months Ended Nine Months Ended Market Type July 2, July 3, July 2, July 3, Net sales: Military $ 180,891 $ 175,922 $ 558,929 $ 583,140 Commercial 137,126 96,209 373,673 280,126 Aircraft Controls 318,017 272,131 932,602 863,266 Space 88,338 86,031 262,995 251,679 Defense 135,306 118,856 391,854 347,538 Space and Defense Controls 223,644 204,887 654,849 599,217 Energy 31,178 30,950 94,960 87,841 Industrial Automation 111,316 112,225 323,870 318,662 Simulation and Test 25,458 24,618 77,258 64,518 Medical 63,298 62,541 184,245 194,204 Industrial Systems 231,250 230,334 680,333 665,225 Net sales $ 772,911 $ 707,352 $ 2,267,784 $ 2,127,708 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 for the three and nine months ended July 2, 2022 and July 3, 2021 and a reconciliation of segment operating profit to earnings before income taxes are as follows: Three Months Ended Nine Months Ended July 2, July 3, July 2, July 3, Operating profit: Aircraft Controls $ 34,453 $ 20,545 $ 88,809 $ 70,485 Space and Defense Controls 25,368 21,339 70,742 71,037 Industrial Systems 19,484 23,004 57,398 66,715 Total operating profit 79,305 64,888 216,949 208,237 Deductions from operating profit: Interest expense 9,131 8,239 25,376 25,288 Equity-based compensation expense 2,169 1,791 6,747 6,420 Non-service pension expense (income) 1,442 928 4,399 (3,053) Corporate and other expenses, net 6,754 5,335 20,482 18,488 Earnings before income taxes $ 59,809 $ 48,595 $ 159,945 $ 161,094 |
Sales by Major Customer Type | Three Months Ended Nine Months Ended Customer Type July 2, July 3, July 2, July 3, Net sales: Commercial $ 137,126 $ 96,209 $ 373,673 $ 280,126 U.S. Government (including OEM) 141,793 145,722 423,698 453,878 Other 39,098 30,200 135,231 129,262 Aircraft Controls 318,017 272,131 932,602 863,266 Commercial 32,001 28,947 84,878 97,100 U.S. Government (including OEM) 177,643 156,238 527,767 452,365 Other 14,000 19,702 42,204 49,752 Space and Defense Controls 223,644 204,887 654,849 599,217 Commercial 227,445 224,407 669,845 644,412 U.S. Government (including OEM) 1,596 4,496 5,535 15,245 Other 2,209 1,431 4,953 5,568 Industrial Systems 231,250 230,334 680,333 665,225 Commercial 396,572 349,563 1,128,396 1,021,638 U.S. Government (including OEM) 321,032 306,456 957,000 921,488 Other 55,307 51,333 182,388 184,582 Net sales $ 772,911 $ 707,352 $ 2,267,784 $ 2,127,708 |
Revenue Recognition Method | Three Months Ended Nine Months Ended Revenue Recognition Method July 2, July 3, July 2, July 3, Net sales: Over-time $ 243,428 $ 221,460 $ 729,797 $ 693,515 Point in time 74,589 50,671 202,805 169,751 Aircraft Controls 318,017 272,131 932,602 863,266 Over-time 204,196 190,559 603,951 554,304 Point in time 19,448 14,328 50,898 44,913 Space and Defense Controls 223,644 204,887 654,849 599,217 Over-time 36,536 32,800 105,848 89,901 Point in time 194,714 197,534 574,485 575,324 Industrial Systems 231,250 230,334 680,333 665,225 Over-time 484,160 444,819 1,439,596 1,337,720 Point in time 288,751 262,533 828,188 789,988 Net sales $ 772,911 $ 707,352 $ 2,267,784 $ 2,127,708 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Revenue from Contracts with Customers (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | Oct. 02, 2021 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue for adjustments made to performance obligations satisified in prior year | $ (8,615) | $ 1,962 | $ 124 | $ 14,497 | |
Contract loss and contract-related reserves | 44,126 | 44,126 | $ 58,857 | ||
Revenue recognized due to contract liabilities | 38,050 | 169,215 | |||
Remaining performance obligation, amount | $ 5,000,000 | $ 5,000,000 | |||
Remaining performance obligation, percentage | 44% | 44% | |||
Minimum | |||||
Disaggregation of Revenue [Line Items] | |||||
Payment terms - days | 30 | ||||
Maximum | |||||
Disaggregation of Revenue [Line Items] | |||||
Payment terms - days | 60 days | ||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-07-02 | |||||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||||
Remaining performance obligation, expected timing of satisfaction | 12 months | 12 months |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Unbilled receivables | $ 621,128 | $ 546,764 |
Contract advances | 293,794 | 263,686 |
Net contract assets | $ 327,334 | $ 283,078 |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Feb. 21, 2022 | Dec. 03, 2021 | Dec. 18, 2020 | Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Acquisitions and Divestitures | |||||||
Net cash paid to acquire a business | $ 11,837 | $ 77,600 | |||||
(Gain) Loss on Disposition of Business | $ 0 | $ 0 | $ (16,146) | $ 0 | |||
Aircraft Controls | |||||||
Acquisitions and Divestitures | |||||||
Proceeds from Divestiture of Businesses | 2,081 | ||||||
Aircraft Controls | Other Income | |||||||
Acquisitions and Divestitures | |||||||
(Gain) Loss on Disposition of Business | $ 683 | ||||||
Aircraft Controls | Nav Aids Sale | |||||||
Acquisitions and Divestitures | |||||||
Proceeds from Divestiture of Businesses | $ 35,550 | ||||||
(Gain) Loss on Disposition of Business | $ (16,146) | ||||||
Aircraft Controls | TEAM | |||||||
Acquisitions and Divestitures | |||||||
Purchase price, net of acquired cash | $ 14,890 | ||||||
Total cash consideration, net of acquired cash | 11,837 | ||||||
Fair value, Contingent consideration, Liability | $ 3,053 | ||||||
Aircraft Controls | Genesys Aerosystems Group, Inc. | |||||||
Acquisitions and Divestitures | |||||||
Net cash paid to acquire a business | $ 77,600 |
Receivables (Schedule of Receiv
Receivables (Schedule of Receivables) (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 |
Receivables [Abstract] | ||
Accounts receivable | $ 345,117 | $ 395,674 |
Unbilled receivables | 621,128 | 546,764 |
Other | 11,835 | 7,842 |
Less allowance for credit losses | (4,309) | (4,351) |
Receivables, net | $ 973,771 | $ 945,929 |
Receivables (Narrative) (Detail
Receivables (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | Nov. 04, 2021 | Oct. 02, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Asset impairment | $ 692 | $ 0 | $ 15,928 | $ 0 | ||
Maximum Amount of Receivables That May Be Sold to Purchasers | $ 100,000 | |||||
Total Receivables Sold Under RPA | 105,308 | 361,024 | ||||
Total Cash Collections Under RPA | 116,214 | 271,930 | ||||
Gain Loss on Sale of Receivables | 0 | |||||
Amount of Receivables Sold to Purchasers | 89,094 | 89,094 | ||||
Receivables, net | 973,771 | 973,771 | $ 945,929 | |||
Accounts Receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Asset impairment | 642 | |||||
Asset Pledged as Collateral | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Receivables, net | $ 624,812 | $ 624,812 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory) (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and purchased parts | $ 222,215 | $ 231,406 |
Work in progress | 305,678 | 315,762 |
Finished goods | 64,465 | 65,927 |
Inventories, net | $ 592,358 | $ 613,095 |
Inventories (Narrative) (Detail
Inventories (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Inventory | ||||
Asset impairment | $ 692 | $ 0 | $ 15,928 | $ 0 |
Inventories | ||||
Inventory | ||||
Asset impairment | $ 202 | $ 1,907 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 36,037 | $ 35,762 |
Buildings and improvements | 513,177 | 506,450 |
Machinery and equipment | 807,369 | 791,984 |
Computer equipment and software | 199,709 | 179,066 |
Property, plant and equipment, at cost | 1,556,292 | 1,513,262 |
Less accumulated depreciation and amortization | (882,672) | (867,484) |
Property, plant and equipment, net | $ 673,620 | $ 645,778 |
Property, Plant and Equipment_3
Property, Plant and Equipment (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Property, Plant and Equipment | ||||
Asset impairment | $ 692 | $ 0 | $ 15,928 | $ 0 |
Property, Plant and Equipment | ||||
Property, Plant and Equipment | ||||
Asset impairment | $ 454 | $ 15,048 |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Leases [Abstract] | ||||
Operating lease cost | $ 7,601 | $ 7,546 | $ 21,759 | $ 22,638 |
Finance lease cost - Amortization of right-of-use assets | 791 | 622 | 2,050 | 1,673 |
Finance lease cost - Interest on lease liabilities | 289 | 193 | 753 | 520 |
Total finance lease cost | $ 1,080 | $ 815 | $ 2,803 | $ 2,193 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Lease Information) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 02, 2022 | Jul. 03, 2021 | |
Leases [Abstract] | ||
Operating cash flow for operating leases | $ 22,167 | $ 21,929 |
Operating cash flow for finance leases | 753 | 520 |
Financing cash flow for finance leases | 1,779 | 1,588 |
Assets obtained in exchange for lease obligations - Operating leases | 21,793 | 6,139 |
Assets obtained in exchanged for lease obligations - Finance leases | $ 10,207 | $ 3,739 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Lease Information) (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 68,800 | $ 60,355 |
Operating lease - Accrued liabilities and other | 13,328 | 14,176 |
Operating lease - Other long-term liabilities | 65,751 | 57,277 |
Total operating lease liabilities | $ 79,079 | 71,453 |
Operating leases - Accrued liabilities and other | Other Liabilities, Current | |
Operating leases - Other long-term liabilities | Other Liabilities, Noncurrent | |
Total operating lease liabilities | Other Liabilities | |
Finance leases - Property, plant and equipment, at cost | $ 29,040 | 19,861 |
Finance leases - Accumulated depreciation | (4,862) | (3,375) |
Finance leases - Accrued liabilities and other | 3,033 | 2,014 |
Finance leases - Other long-term liabilities | 22,836 | 15,904 |
Total finance lease liabilities | $ 25,869 | $ 17,918 |
Finance leases - Accrued liabilities and other | Other Liabilities, Current | |
Finance leases - Other long-term liabilities | Other Liabilities, Noncurrent | |
Total finance lease liabilities | Other Liabilities | |
Weighted average remaining lease term - Operating leases | 7 years 9 months 18 days | 7 years 4 months 24 days |
Weighted average remaining lease term - Financing leases | 17 years 6 months | 15 years 6 months |
Weighted average discount rate - Operating leases | 4.40% | 4.70% |
Weighted average discount rate - Finance leases | 4.70% | 5% |
Property, Plant and Equipment | ||
Finance Leases - Balance sheet location | ||
Finance leases - Property, plant, and equipment, net | $ 24,178 | $ 16,486 |
Leases (Schedule of Maturities
Leases (Schedule of Maturities of Lease Liabilities) (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 |
Operating Leases | ||
Operating leases maturity - 2022 | $ 8,304 | |
Operating leases maturity - 2023 | 16,016 | |
Operating leases maturity - 2024 | 13,129 | |
Operating leases maturity - 2025 | 11,251 | |
Operating leases maturity - 2026 | 9,947 | |
Operating leases maturity - Thereafter | 41,774 | |
Operating leases - Total lease payments | 100,421 | |
Operating leases - imputed interest | (21,342) | |
Operating leases - Total | 79,079 | $ 71,453 |
Finance Leases | ||
Finance leases maturity - 2022 | 1,977 | |
Finance leases maturity - 2023 | 4,053 | |
Finance leases maturity - 2024 | 4,019 | |
Finance leases maturity - 2025 | 3,844 | |
Finance leases maturity - 2026 | 3,577 | |
Finance leases maturity - Thereafter | 28,914 | |
Finance leases - Total lease payments | 46,384 | |
Finance leases - imputed interest | (20,515) | |
Finance leases - Total | $ 25,869 | $ 17,918 |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets (Changes In Carrying Amount Of Goodwill) (Details) $ in Thousands | 9 Months Ended |
Jul. 02, 2022 USD ($) | |
Goodwill | |
Beginning balance | $ 851,605 |
Acquisition | 5,198 |
Divestiture | (6,961) |
Foreign currency translation | (23,535) |
Ending balance | 826,307 |
Aircraft Controls | |
Goodwill | |
Beginning balance | 210,779 |
Acquisition | 5,198 |
Divestiture | (6,961) |
Foreign currency translation | (5,819) |
Ending balance | 203,197 |
Space And Defense Controls | |
Goodwill | |
Beginning balance | 261,767 |
Acquisition | 0 |
Divestiture | 0 |
Foreign currency translation | (94) |
Ending balance | 261,673 |
Industrial Systems | |
Goodwill | |
Beginning balance | 379,059 |
Acquisition | 0 |
Divestiture | 0 |
Foreign currency translation | (17,622) |
Ending balance | $ 361,437 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets (Goodwill Narrative) (Details) $ in Thousands | Jul. 02, 2022 USD ($) |
Space And Defense Controls | |
Goodwill | |
Goodwill, accumulated impairment loss | $ 4,800 |
Industrial Systems | |
Goodwill | |
Goodwill, accumulated impairment loss | $ 38,200 |
Goodwill And Intangible Asset_4
Goodwill And Intangible Assets (Components Of Intangible Assets) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 02, 2022 | Oct. 02, 2021 | |
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 12 years | |
Gross Carrying Amount | $ 312,677 | $ 316,695 |
Accumulated Amortization | $ (214,302) | (210,600) |
Customer-Related | ||
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 12 years | |
Gross Carrying Amount | $ 165,048 | 163,215 |
Accumulated Amortization | $ (110,892) | (108,844) |
Technology-Related | ||
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 9 years | |
Gross Carrying Amount | $ 80,458 | 82,716 |
Accumulated Amortization | $ (59,771) | (58,119) |
Program-Related | ||
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 23 years | |
Gross Carrying Amount | $ 37,250 | 40,211 |
Accumulated Amortization | $ (19,464) | (19,707) |
Marketing-Related | ||
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 8 years | |
Gross Carrying Amount | $ 28,121 | 28,590 |
Accumulated Amortization | $ (22,599) | (22,212) |
Other Intangible Assets | ||
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 10 years | |
Gross Carrying Amount | $ 1,800 | 1,963 |
Accumulated Amortization | $ (1,576) | $ (1,718) |
Goodwill And Intangible Asset_5
Goodwill And Intangible Assets Amortization of Acquired Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Acquired intangible asset amortization | $ 3,235 | $ 3,555 | $ 9,962 | $ 9,974 |
Goodwill And Intangible Asset_6
Goodwill And Intangible Assets Estimated Future Amortization of Acquired Intangibles (Details) $ in Thousands | Jul. 02, 2022 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Future amortization expenses, 2022 | $ 13,200 |
Future amortization expenses, 2023 | 12,700 |
Future amortization expenses, 2024 | 12,000 |
Future amortization expenses, 2025 | 10,800 |
Future amortization expenses, 2026 | $ 10,600 |
Indebtedness (Components of Lon
Indebtedness (Components of Long-term debt) (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 |
Debt Instrument | ||
Senior notes 4.25% | $ 500,000 | $ 500,000 |
Securitization program | 0 | 80,000 |
Other long-term debt | 1,008 | 1,280 |
Senior debt | 862,058 | 910,166 |
Less deferred debt issuance cost | (4,953) | (6,446) |
Less current installments | (1,008) | (80,365) |
Long-term debt | 856,097 | 823,355 |
U.S. revolving credit facility | ||
Debt Instrument | ||
Revolving credit facility | 344,050 | 321,886 |
SECT revolving credit facility | ||
Debt Instrument | ||
Revolving credit facility | $ 17,000 | $ 7,000 |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) - USD ($) $ in Thousands | Nov. 06, 2020 | Oct. 15, 2019 | Jul. 15, 2021 | Dec. 13, 2019 |
Line of Credit | U.S. revolving credit facility | ||||
Debt Instrument | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,100,000 | |||
Expansion option to increase credit facility | $ 400,000 | |||
Line of Credit | SECT revolving credit facility | ||||
Debt Instrument | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 35,000 | |||
Senior Notes | ||||
Debt Instrument | ||||
Debt Instrument, Face Amount | $ 500,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | |||
Securitization Program | ||||
Debt Instrument | ||||
Maximum credit facility amount that can borrow | $ 80,000 | |||
Percentage of borrowing capacity on the Securitization Program | 80% | |||
Percentage of borrowing base on the Securitization Program | 100% |
Other Accrued Liabilities (Sche
Other Accrued Liabilities (Schedule of Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Contract reserves | $ 44,126 | $ 58,857 |
Employee benefits | 62,594 | 54,146 |
Warranty accrual | 24,587 | 26,602 |
Accrued income taxes | 17,454 | 12,908 |
Other | 63,008 | 59,492 |
Other accrued liabilities | $ 211,769 | $ 212,005 |
Other Accrued Liabilities (Narr
Other Accrued Liabilities (Narrative) (Details) | 9 Months Ended |
Jul. 02, 2022 | |
Minimum | |
Product Warranty Liability | |
Warranty period - months | twelve |
Maximum | |
Product Warranty Liability | |
Warranty period - months | sixty |
Other Accrued Liabilities (Summ
Other Accrued Liabilities (Summary of Activity in Warranty Accrual) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||||
Warranty accrual at beginning of period | $ 24,471 | $ 29,238 | $ 26,602 | $ 27,707 |
Additions from acquisitions | 0 | 0 | 0 | 990 |
Warranties issued during current period | 2,973 | 3,102 | 6,373 | 10,890 |
Adjustments to pre-existing warranties | (195) | (95) | (261) | (308) |
Reductions for settling warranties | (2,273) | (3,729) | (7,127) | (10,875) |
Divestiture adjustment | 0 | 0 | (368) | 0 |
Foreign currency translation | (389) | 76 | (632) | 188 |
Warranty accrual at end of period | $ 24,587 | $ 28,592 | $ 24,587 | $ 28,592 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) $ in Thousands | Jul. 02, 2022 USD ($) |
Designated as Hedging Instrument | Foreign Currency Contracts | |
Derivative | |
Derivative, Notional Amount | $ 40,479 |
Designated as Hedging Instrument | Net Investment Hedge | |
Derivative | |
Derivative, Notional Amount | 0 |
Designated as Hedging Instrument | Interest Rate Swaps | |
Derivative | |
Derivative, Notional Amount | 0 |
Not Designated as Hedging Instrument | Foreign Currency Contracts | |
Derivative | |
Derivative, Notional Amount | $ 98,997 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Gains And Losses On Foreign Currency Forwards Included In Other Income Or Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Foreign Currency Contracts | Other Income (Expense) | ||||
Derivative | ||||
Net gain (loss) | $ (2,861) | $ (67) | $ (6,899) | $ 3,026 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Fair Value And Classification Of Derivatives On The Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 |
Other current assets | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | $ 430 | $ 325 |
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | 163 | 226 |
Other assets | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 227 | 104 |
Total asset derivatives | ||
Derivative Instruments, Fair Value | ||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 657 | 429 |
Accrued liabilities and other | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 2,971 | 1,235 |
Other Derivatives Not Designated as Hedging Instruments Liabilities at Fair Value | 772 | 480 |
Other long-term liabilities | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 598 | 537 |
Total liability derivatives | ||
Derivative Instruments, Fair Value | ||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | $ 3,569 | $ 1,772 |
Fair Value (Fair Values And Cla
Fair Value (Fair Values And Classification Of Financial Assets And Liabilities Measured On A Recurring Basis) (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jul. 02, 2022 | Oct. 02, 2021 |
Other current assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forwards, fair value assets | $ 593 | $ 551 |
Other assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forwards, fair value assets | 227 | 104 |
Total assets | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total fair value assets | 820 | 655 |
Accrued liabilities and other | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forwards, fair value liabilities | 3,743 | 1,715 |
Accrued liabilities and other | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Acquisition contingent consideration, fair value liabilities | 1,018 | 0 |
Other long-term liabilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forwards, fair value liabilities | 598 | 537 |
Other long-term liabilities | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Acquisition contingent consideration, fair value liabilities | 2,160 | 0 |
Total liabilities | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total fair value liabilities | $ 7,519 | $ 2,252 |
Fair Value (Financial Liabiliti
Fair Value (Financial Liabilities Classified as Level 3 Within Fair Value Hierarchy( (Details) - Level 3 - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||||
Balance at beginning of period | $ 3,084 | $ 0 | $ 0 | $ 0 |
Additions from acquisitions | 0 | 0 | 3,053 | 0 |
Increase in discounted future cash flows recorded as interest expense | 94 | 0 | 125 | 0 |
Balance at end of period | $ 3,178 | $ 0 | $ 3,178 | $ 0 |
Fair Value Fair Value (Narrativ
Fair Value Fair Value (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Jul. 02, 2022 | Jul. 02, 2022 | Oct. 02, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Carrying value of long-term debt | $ 862,058 | $ 862,058 | $ 910,166 |
Fair Value, Recurring | Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Fair value of long-term debt | 793,705 | 793,705 | |
Fair Value, Nonrecurring | Level 3 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | |||
Asset impairment | $ 894 | $ 17,835 |
Restructuring (Schedule of Rest
Restructuring (Schedule of Restructuring Reserve Activity) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Restructuring Reserve | ||||
Restructuring accrual at beginning of period | $ 5,665 | |||
Restructuring | $ 576 | $ 0 | 8,369 | $ 0 |
Foreign currency translation | (35) | |||
Restructuring accrual at end of period | 7,765 | 7,765 | ||
2022 Plan | ||||
Restructuring Reserve | ||||
Restructuring | 9,869 | |||
Restructuring Reserve, Settled without Cash | (2,446) | |||
Cash payments | (4,381) | |||
Restructuring accrual at end of period | 3,028 | 3,028 | ||
2020 Plan | ||||
Restructuring Reserve | ||||
Cash payments | (622) | |||
Restructuring accrual at end of period | 2,999 | 2,999 | ||
2018 Plan | ||||
Restructuring Reserve | ||||
Cash payments | (285) | |||
Restructuring accrual at end of period | 1,738 | 1,738 | ||
Aircraft Controls | ||||
Restructuring Reserve | ||||
Restructuring accrual at beginning of period | 179 | |||
Foreign currency translation | 0 | |||
Restructuring accrual at end of period | 495 | 495 | ||
Aircraft Controls | 2022 Plan | ||||
Restructuring Reserve | ||||
Restructuring | 3,996 | |||
Restructuring Reserve, Settled without Cash | 0 | |||
Cash payments | (3,501) | |||
Aircraft Controls | 2020 Plan | ||||
Restructuring Reserve | ||||
Cash payments | (179) | |||
Aircraft Controls | 2018 Plan | ||||
Restructuring Reserve | ||||
Cash payments | 0 | |||
Space And Defense Controls | ||||
Restructuring Reserve | ||||
Restructuring accrual at beginning of period | 0 | |||
Foreign currency translation | 0 | |||
Restructuring accrual at end of period | 475 | 475 | ||
Space And Defense Controls | 2022 Plan | ||||
Restructuring Reserve | ||||
Restructuring | 3,424 | |||
Restructuring Reserve, Settled without Cash | (2,446) | |||
Cash payments | (503) | |||
Space And Defense Controls | 2020 Plan | ||||
Restructuring Reserve | ||||
Cash payments | 0 | |||
Space And Defense Controls | 2018 Plan | ||||
Restructuring Reserve | ||||
Cash payments | 0 | |||
Industrial Systems | ||||
Restructuring Reserve | ||||
Restructuring accrual at beginning of period | 5,486 | |||
Foreign currency translation | (35) | |||
Restructuring accrual at end of period | $ 6,795 | 6,795 | ||
Industrial Systems | 2022 Plan | ||||
Restructuring Reserve | ||||
Restructuring | 2,449 | |||
Restructuring Reserve, Settled without Cash | 0 | |||
Cash payments | (377) | |||
Industrial Systems | 2020 Plan | ||||
Restructuring Reserve | ||||
Cash payments | (443) | |||
Industrial Systems | 2018 Plan | ||||
Restructuring Reserve | ||||
Cash payments | $ (285) |
Restructuring Restructuring (Na
Restructuring Restructuring (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 02, 2022 | Oct. 02, 2021 | |
Restructuring Cost and Reserve | ||
Restructuring Expected Completion Date | Jul. 01, 2023 | |
Restructuring reserve | $ 7,765 | $ 5,665 |
2018 Plan | ||
Restructuring Cost and Reserve | ||
Restructuring reserve | 1,738 | |
2020 Plan | ||
Restructuring Cost and Reserve | ||
Restructuring reserve | 2,999 | |
2022 Plan | ||
Restructuring Cost and Reserve | ||
Restructuring reserve | 3,028 | |
2022 Plan | Other Restructuring | Inventories | ||
Restructuring Cost and Reserve | ||
Restructuring and Related Cost, Incurred Cost | 1,500 | |
2022 Plan | Other Restructuring | Property, Plant and Equipment | ||
Restructuring Cost and Reserve | ||
Restructuring and Related Cost, Incurred Cost | 946 | |
2022 Plan | Employee Severance | ||
Restructuring Cost and Reserve | ||
Restructuring and Related Cost, Incurred Cost | $ 7,423 |
Employee Benefit Plans (Defined
Employee Benefit Plans (Defined Contribution Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
U.S. Plans | ||||
Defined Contribution Plan Disclosure | ||||
Total expense for defined contribution plans | $ 10,558 | $ 9,151 | $ 32,253 | $ 26,911 |
Non-U.S. Plans | ||||
Defined Contribution Plan Disclosure | ||||
Total expense for defined contribution plans | 1,994 | 2,044 | 6,551 | 5,709 |
Defined Contribution Pension Plans | ||||
Defined Contribution Plan Disclosure | ||||
Total expense for defined contribution plans | $ 12,552 | $ 11,195 | $ 38,804 | $ 32,620 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Details) - Defined Benefit Pension Plans - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
U.S. Plans | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | $ 4,957 | $ 5,622 | $ 14,870 | $ 16,866 |
Interest cost | 4,562 | 4,276 | 13,685 | 12,828 |
Expected return on plan assets | (7,451) | (7,636) | (22,352) | (22,908) |
Amortization of actuarial loss | 3,896 | 3,430 | 11,689 | 10,291 |
Expense for defined benefit plans | 5,964 | 5,692 | 17,892 | 17,077 |
Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 1,056 | 1,214 | 3,285 | 4,101 |
Interest cost | 602 | 528 | 1,863 | 1,759 |
Expected return on plan assets | (839) | (994) | (2,622) | (3,127) |
Amortization of prior service cost | 15 | 16 | 45 | 30 |
Amortization of actuarial loss | 953 | 1,405 | 2,979 | 4,195 |
Curtailment gain | 0 | 0 | 0 | (5,830) |
Expense for defined benefit plans | $ 1,787 | $ 2,169 | $ 5,550 | $ 1,128 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 15.70% | 25.70% | 21.40% | 23.90% |
U.S. federal corporate tax rate | 21% | 21% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Changes in AOCI by Component) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning of period | $ 1,400,144 | |||
Other comprehensive income (loss), net of tax | $ (40,049) | $ 7,077 | (56,424) | $ 32,953 |
End of period | 1,431,425 | 1,367,205 | 1,431,425 | 1,367,205 |
Accumulated foreign currency translation | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning of period | (92,989) | |||
OCI before reclassifications | (68,952) | |||
Amounts reclassified from AOCIL | 155 | |||
Other comprehensive income (loss), net of tax | (68,797) | |||
End of period | (161,786) | (161,786) | ||
Accumulated retirement liability | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning of period | (153,210) | |||
OCI before reclassifications | 3,568 | |||
Amounts reclassified from AOCIL | 10,498 | |||
Other comprehensive income (loss), net of tax | 14,066 | |||
End of period | (139,144) | (139,144) | ||
Accumulated gain (loss) on derivatives | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning of period | (1,361) | |||
OCI before reclassifications | (2,455) | |||
Amounts reclassified from AOCIL | 762 | |||
Other comprehensive income (loss), net of tax | (1,693) | |||
End of period | (3,054) | (3,054) | ||
Total | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning of period | (263,935) | (259,577) | (247,560) | (285,453) |
OCI before reclassifications | (67,839) | |||
Amounts reclassified from AOCIL | 11,415 | |||
Other comprehensive income (loss), net of tax | (40,049) | 7,077 | (56,424) | 32,953 |
End of period | $ (303,984) | $ (252,500) | $ (303,984) | $ (252,500) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Reclassification from AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Prior service cost | $ 15 | $ 16 | $ 45 | $ 30 |
Actuarial losses | 4,530 | 4,707 | 13,713 | 14,101 |
Curtailment gain | 0 | 0 | 0 | (5,830) |
Reclassification from AOCIL into earnings - Retirement liability | 4,545 | 4,723 | 13,758 | 8,301 |
Tax effect - Retirement liability | (1,077) | (1,123) | (3,260) | (3,362) |
Net reclassification from AOCIL into earnings - Retirement liability | 3,468 | 3,600 | 10,498 | 4,939 |
Reclassification from AOCIL into earnings - Derivatives | 367 | (491) | 960 | (1,648) |
Tax effect - Derivatives | (69) | 107 | (198) | 378 |
Net reclassification from AOCIL into earnings - Derivatives | 298 | (384) | 762 | (1,270) |
Foreign Currency Contracts | Sales | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Reclassification from AOCIL into earnings - Derivatives | 375 | (178) | 619 | (230) |
Foreign Currency Contracts | Cost Of Sales | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||||
Reclassification from AOCIL into earnings - Derivatives | $ (8) | $ (313) | $ 341 | $ (1,418) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (Activity and Classification of Derivative Deferral in AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Derivative Instruments, Gain (Loss) | ||||
Net deferral in AOCIL of derivatives (effective portion) | $ (2,350) | $ (451) | $ (3,152) | $ (103) |
Tax effect | 519 | 104 | 697 | 38 |
Net deferral in AOCIL of derivatives | (1,831) | (347) | (2,455) | (65) |
Foreign Currency Contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Net deferral in AOCIL of derivatives (effective portion) | $ (2,350) | $ (451) | $ (3,152) | $ (103) |
Earnings Per Share (Basic And D
Earnings Per Share (Basic And Diluted Weighted-Average Shares Outstanding) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Earnings Per Share [Abstract] | ||||
Basic weighted-average shares outstanding | 31,922,377 | 32,125,524 | 31,988,150 | 32,115,400 |
Dilutive effect of equity-based awards | 145,054 | 229,714 | 137,288 | 190,434 |
Diluted weighted-average shares outstanding | 32,067,431 | 32,355,238 | 32,125,438 | 32,305,834 |
Earnings Per Share (Antidilutiv
Earnings Per Share (Antidilutive Shares Excluded from Computation of Earnings Per Share) (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive securities excluded from calculation of diluted earnings per share | 40,679 | 20,302 | 52,362 | 50,322 |
Segment Information (Segment Sa
Segment Information (Segment Sales By Market Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Segment Reporting Information | ||||
Net sales | $ 772,911 | $ 707,352 | $ 2,267,784 | $ 2,127,708 |
Aircraft Controls | ||||
Segment Reporting Information | ||||
Net sales | 318,017 | 272,131 | 932,602 | 863,266 |
Aircraft Controls | Military | ||||
Segment Reporting Information | ||||
Net sales | 180,891 | 175,922 | 558,929 | 583,140 |
Aircraft Controls | Commercial | ||||
Segment Reporting Information | ||||
Net sales | 137,126 | 96,209 | 373,673 | 280,126 |
Space And Defense Controls | ||||
Segment Reporting Information | ||||
Net sales | 223,644 | 204,887 | 654,849 | 599,217 |
Space And Defense Controls | Space | ||||
Segment Reporting Information | ||||
Net sales | 88,338 | 86,031 | 262,995 | 251,679 |
Space And Defense Controls | Defense | ||||
Segment Reporting Information | ||||
Net sales | 135,306 | 118,856 | 391,854 | 347,538 |
Industrial Systems | ||||
Segment Reporting Information | ||||
Net sales | 231,250 | 230,334 | 680,333 | 665,225 |
Industrial Systems | Energy | ||||
Segment Reporting Information | ||||
Net sales | 31,178 | 30,950 | 94,960 | 87,841 |
Industrial Systems | Industrial Automation | ||||
Segment Reporting Information | ||||
Net sales | 111,316 | 112,225 | 323,870 | 318,662 |
Industrial Systems | Simulation and Test | ||||
Segment Reporting Information | ||||
Net sales | 25,458 | 24,618 | 77,258 | 64,518 |
Industrial Systems | Medical | ||||
Segment Reporting Information | ||||
Net sales | $ 63,298 | $ 62,541 | $ 184,245 | $ 194,204 |
Segment Information (Segment _2
Segment Information (Segment Sales by Customer) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Segment Reporting Information | ||||
Net sales | $ 772,911 | $ 707,352 | $ 2,267,784 | $ 2,127,708 |
Commercial customer | ||||
Segment Reporting Information | ||||
Net sales | 396,572 | 349,563 | 1,128,396 | 1,021,638 |
U.S. Government customer (including OEM) | ||||
Segment Reporting Information | ||||
Net sales | 321,032 | 306,456 | 957,000 | 921,488 |
Other Customer | ||||
Segment Reporting Information | ||||
Net sales | 55,307 | 51,333 | 182,388 | 184,582 |
Aircraft Controls | ||||
Segment Reporting Information | ||||
Net sales | 318,017 | 272,131 | 932,602 | 863,266 |
Aircraft Controls | Commercial customer | ||||
Segment Reporting Information | ||||
Net sales | 137,126 | 96,209 | 373,673 | 280,126 |
Aircraft Controls | U.S. Government customer (including OEM) | ||||
Segment Reporting Information | ||||
Net sales | 141,793 | 145,722 | 423,698 | 453,878 |
Aircraft Controls | Other Customer | ||||
Segment Reporting Information | ||||
Net sales | 39,098 | 30,200 | 135,231 | 129,262 |
Space And Defense Controls | ||||
Segment Reporting Information | ||||
Net sales | 223,644 | 204,887 | 654,849 | 599,217 |
Space And Defense Controls | Commercial customer | ||||
Segment Reporting Information | ||||
Net sales | 32,001 | 28,947 | 84,878 | 97,100 |
Space And Defense Controls | U.S. Government customer (including OEM) | ||||
Segment Reporting Information | ||||
Net sales | 177,643 | 156,238 | 527,767 | 452,365 |
Space And Defense Controls | Other Customer | ||||
Segment Reporting Information | ||||
Net sales | 14,000 | 19,702 | 42,204 | 49,752 |
Industrial Systems | ||||
Segment Reporting Information | ||||
Net sales | 231,250 | 230,334 | 680,333 | 665,225 |
Industrial Systems | Commercial customer | ||||
Segment Reporting Information | ||||
Net sales | 227,445 | 224,407 | 669,845 | 644,412 |
Industrial Systems | U.S. Government customer (including OEM) | ||||
Segment Reporting Information | ||||
Net sales | 1,596 | 4,496 | 5,535 | 15,245 |
Industrial Systems | Other Customer | ||||
Segment Reporting Information | ||||
Net sales | $ 2,209 | $ 1,431 | $ 4,953 | $ 5,568 |
Segment Information (Sales by R
Segment Information (Sales by Revenue Recognition Method) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Segment Reporting Information | ||||
Net sales | $ 772,911 | $ 707,352 | $ 2,267,784 | $ 2,127,708 |
Transferred over time | ||||
Segment Reporting Information | ||||
Net sales | 484,160 | 444,819 | 1,439,596 | 1,337,720 |
Transferred at point in time | ||||
Segment Reporting Information | ||||
Net sales | 288,751 | 262,533 | 828,188 | 789,988 |
Aircraft Controls | ||||
Segment Reporting Information | ||||
Net sales | 318,017 | 272,131 | 932,602 | 863,266 |
Aircraft Controls | Transferred over time | ||||
Segment Reporting Information | ||||
Net sales | 243,428 | 221,460 | 729,797 | 693,515 |
Aircraft Controls | Transferred at point in time | ||||
Segment Reporting Information | ||||
Net sales | 74,589 | 50,671 | 202,805 | 169,751 |
Space And Defense Controls | ||||
Segment Reporting Information | ||||
Net sales | 223,644 | 204,887 | 654,849 | 599,217 |
Space And Defense Controls | Transferred over time | ||||
Segment Reporting Information | ||||
Net sales | 204,196 | 190,559 | 603,951 | 554,304 |
Space And Defense Controls | Transferred at point in time | ||||
Segment Reporting Information | ||||
Net sales | 19,448 | 14,328 | 50,898 | 44,913 |
Industrial Systems | ||||
Segment Reporting Information | ||||
Net sales | 231,250 | 230,334 | 680,333 | 665,225 |
Industrial Systems | Transferred over time | ||||
Segment Reporting Information | ||||
Net sales | 36,536 | 32,800 | 105,848 | 89,901 |
Industrial Systems | Transferred at point in time | ||||
Segment Reporting Information | ||||
Net sales | $ 194,714 | $ 197,534 | $ 574,485 | $ 575,324 |
Segment Information (Operating
Segment Information (Operating Profit By Segment And Reconciliation Of Segment Operating Profit To Earnings Before Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Segment Reporting Information | ||||
Operating profit | $ 79,305 | $ 64,888 | $ 216,949 | $ 208,237 |
Deductions from operating profit: | ||||
Interest expense | 9,131 | 8,239 | 25,376 | 25,288 |
Equity-based compensation expense | 2,169 | 1,791 | 6,747 | 6,420 |
Non-service pension expense (income) | 1,442 | 928 | 4,399 | (3,053) |
Corporate and other expenses, net | 6,754 | 5,335 | 20,482 | 18,488 |
Earnings before income taxes | 59,809 | 48,595 | 159,945 | 161,094 |
Aircraft Controls | ||||
Segment Reporting Information | ||||
Operating profit | 34,453 | 20,545 | 88,809 | 70,485 |
Space And Defense Controls | ||||
Segment Reporting Information | ||||
Operating profit | 25,368 | 21,339 | 70,742 | 71,037 |
Industrial Systems | ||||
Segment Reporting Information | ||||
Operating profit | $ 19,484 | $ 23,004 | $ 57,398 | $ 66,715 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - Banking - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 02, 2022 | Jul. 03, 2021 | Jul. 02, 2022 | Jul. 03, 2021 | |
Related Party Transaction | ||||
Related Party US Revolving Credit Facility Interest Percentage | 12% | 12% | ||
Credit Card Intermediary | ||||
Related Party Transaction | ||||
Related Party Transaction, Amounts of Transaction | $ 4,681 | $ 3,635 | $ 12,544 | $ 10,585 |
Lease Agreements | ||||
Related Party Transaction | ||||
Related Party Transaction, Amounts of Transaction | 16,375 | |||
Deposits | ||||
Related Party Transaction | ||||
Related Party Transaction, Amounts of Transaction | $ 2,045 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Jul. 02, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Standby letters of credit | $ 32,794 |
Subsequent Event (Narrative) (D
Subsequent Event (Narrative) (Details) - Subsequent Event | Jul. 28, 2022 $ / shares |
Subsequent Event | |
Dividends Payable, Amount Per Share, Declared | $ 0.26 |
Subsequent Event, Date | Jul. 28, 2022 |