Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Sep. 28, 2019 | Nov. 21, 2019 | Mar. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Sep. 28, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 0-02382 | ||
Entity Registrant Name | MTS SYSTEMS CORPORATION | ||
Entity Incorporation, State or Country Code | MN | ||
Entity Tax Identification Number | 41-0908057 | ||
Entity Address, Address Line One | 14000 Technology Drive | ||
Entity Address, City or Town | Eden Prairie, | ||
Entity Address, State or Province | MN | ||
Entity Address, Postal Zip Code | 55344 | ||
City Area Code | 952 | ||
Local Phone Number | 937-4000 | ||
Title of 12(b) Security | Common Stock, $0.25 par value | ||
Trading Symbol | MTSC | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1 | ||
Entity Common Stock, Shares Outstanding | 19,140,444 | ||
Documents Incorporated by Reference | Portions of MTS Systems Corporation's Definitive Proxy Statement (to be filed pursuant to Regulation 14A within 120 days after the end of the fiscal year ended September 28, 2019 ) for its annual shareholders' meeting to be held on February 11, 2020 , are incorporated by reference into Part III of this Annual Report on Form 10-K to the extent described in such Part. | ||
Entity Central Index Key | 0000068709 | ||
Current Fiscal Year End Date | --09-28 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Current assets | ||
Cash and cash equivalents | $ 57,937 | $ 71,804 |
Accounts receivable, net of allowance for doubtful accounts of $5,963 and $5,004, respectively | 121,260 | 122,243 |
Unbilled accounts receivable, net | 80,331 | 70,474 |
Inventories, net | 167,199 | 139,109 |
Prepaid expenses and other current assets | 23,761 | 24,572 |
Total current assets | 450,488 | 428,202 |
Property and equipment, net | 101,083 | 90,269 |
Goodwill | 429,039 | 369,275 |
Intangible assets, net | 306,585 | 246,138 |
Other long-term assets | 3,553 | 2,263 |
Deferred income taxes | 7,229 | 3,249 |
Total assets | 1,297,977 | 1,139,396 |
Current liabilities | ||
Current maturities of long-term debt, net | 27,969 | 32,738 |
Accounts payable | 46,849 | 47,886 |
Accrued payroll and related costs | 46,760 | 43,554 |
Advance payments from customers | 70,520 | 80,131 |
Accrued warranty costs | 3,541 | 5,418 |
Accrued income taxes | 7,077 | 4,928 |
Accrued dividends | 5,695 | 5,312 |
Other accrued liabilities | 43,165 | 19,146 |
Total current liabilities | 251,576 | 239,113 |
Long-term debt, less current maturities, net | 484,648 | 355,640 |
Deferred income taxes | 41,531 | 46,482 |
Non-current accrued income taxes | 4,414 | 6,158 |
Defined benefit pension plan obligation | 16,585 | 9,177 |
Other long-term liabilities | 15,164 | 4,894 |
Total liabilities | 813,918 | 661,464 |
Shareholders' Equity | ||
Common stock, $0.25 par value; 64,000 shares authorized: 19,124 and 17,856 shares issued and outstanding as of September 28, 2019 and September 29, 2018, respectively | 4,781 | 4,464 |
Additional paid-in capital | 182,422 | 171,407 |
Retained earnings | 315,329 | 300,585 |
Accumulated other comprehensive income (loss) | (18,473) | 1,476 |
Total shareholders' equity | 484,059 | 477,932 |
Total liabilities and shareholders' equity | $ 1,297,977 | $ 1,139,396 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 5,963 | $ 5,004 |
Common stock, par value (in dollars per share) | $ 0.25 | $ 0.25 |
Common stock, shares authorized (in shares) | 64,000 | 64,000 |
Common stock, shares issued (in shares) | 19,124 | 17,856 |
Common stock, shares outstanding (in shares) | 19,124 | 17,856 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Revenue | |||
Revenue | $ 892,518 | $ 778,032 | $ 787,955 |
Cost of sales | |||
Total cost of sales | 563,588 | 472,503 | 485,677 |
Gross profit | 328,930 | 305,529 | 302,278 |
Operating expenses | |||
Selling and marketing | 131,639 | 126,333 | 124,912 |
General and administrative | 86,658 | 79,240 | 87,539 |
Research and development | 30,928 | 34,784 | 34,999 |
Total operating expenses | 249,225 | 240,357 | 247,450 |
Income from operations | 79,705 | 65,172 | 54,828 |
Interest expense, net | (31,558) | (25,882) | (30,821) |
Other income (expense), net | 466 | 4,933 | (996) |
Income before income taxes | 48,613 | 44,223 | 23,011 |
Income tax provision (benefit) | 5,546 | (17,105) | (2,073) |
Net income | $ 43,067 | $ 61,328 | $ 25,084 |
Basic | |||
Earnings per share (in dollars per share) | $ 2.24 | $ 3.20 | $ 1.32 |
Weighted average common shares outstanding (in shares) | 19,258 | 19,163 | 19,040 |
Diluted | |||
Earnings per share (in dollars per share) | $ 2.21 | $ 3.18 | $ 1.31 |
Weighted average dilutive common shares outstanding (in shares) | 19,447 | 19,293 | 19,137 |
Dividends per share (in dollars per share) | $ 1.20 | $ 1.20 | $ 1.20 |
Product | |||
Revenue | |||
Revenue | $ 782,012 | $ 674,391 | $ 691,471 |
Cost of sales | |||
Cost of goods and services sold | 494,725 | 409,525 | 427,405 |
Service | |||
Revenue | |||
Revenue | 110,506 | 103,641 | 96,484 |
Cost of sales | |||
Cost of goods and services sold | $ 68,863 | $ 62,978 | $ 58,272 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 43,067 | $ 61,328 | $ 25,084 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation gain (loss) adjustments | (9,980) | (2,174) | 3,273 |
Derivative instruments | |||
Unrealized net gain (loss) | (2,141) | ||
Unrealized net gain (loss) | 4,325 | 2,110 | |
Net (gain) loss reclassified to earnings | (2,905) | ||
Net (gain) loss reclassified to earnings | (598) | 98 | |
Defined benefit pension plan | |||
Unrealized net gain (loss) | (5,758) | (621) | 4,132 |
Net (gain) loss reclassified to earnings | 379 | 367 | 696 |
Currency exchange rate gain (loss) | 456 | 90 | (489) |
Other comprehensive income (loss) | (19,949) | 1,389 | 9,820 |
Comprehensive income | $ 23,118 | $ 62,717 | $ 34,904 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at the beginning of the year (in shares) at Oct. 01, 2016 | 16,660,000 | ||||
Balance at the beginning of the year at Oct. 01, 2016 | $ 405,260 | $ 4,165 | $ 154,879 | $ 256,589 | $ (10,373) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Total comprehensive income | 34,904 | 25,084 | 9,820 | ||
Conversion of tangible equity units (in shares) | 939,000 | ||||
Conversion of tangible equity units | 0 | $ 235 | (235) | ||
Settlement of capped calls (in shares) | (12,000) | ||||
Settlement of capped calls | $ 0 | $ (3) | 3 | ||
Exercise of stock options (in shares) | 112,000 | 112,000 | |||
Exercise of stock options | $ 4,559 | $ 28 | 4,531 | ||
Stock-based compensation (in shares) | 69,000 | ||||
Stock-based compensation | 5,620 | $ 17 | 5,603 | ||
Tax shortfall from equity compensation | (386) | (386) | |||
Issuance for employee stock purchase plan (in shares) | 25,000 | ||||
Issuance for employee stock purchase plan | 1,020 | $ 6 | 1,014 | ||
Common stock purchased and retired (in shares) | (33,000) | ||||
Common stock purchased and retired | (1,785) | $ (8) | (1,777) | ||
Dividends, $1.20 per share | (20,415) | (20,415) | |||
Balance at the end of the year (in shares) at Sep. 30, 2017 | 17,760,000 | ||||
Balance at the end of the year at Sep. 30, 2017 | 428,777 | $ 4,440 | 163,632 | 261,258 | (553) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Total comprehensive income | $ 62,717 | 61,328 | 1,389 | ||
Settlement of capped calls (in shares) | 0 | ||||
Exercise of stock options (in shares) | 19,000 | 19,000 | |||
Exercise of stock options | $ 921 | $ 5 | 916 | ||
Stock-based compensation (in shares) | 79,000 | ||||
Stock-based compensation | 7,243 | $ 19 | 7,224 | ||
Issuance for employee stock purchase plan (in shares) | 24,000 | ||||
Issuance for employee stock purchase plan | 1,071 | $ 6 | 1,065 | ||
Common stock purchased and retired (in shares) | (26,000) | ||||
Common stock purchased and retired | (1,403) | $ (6) | (1,397) | ||
Dividends, $1.20 per share | (21,394) | (21,394) | |||
Balance at the end of the year (in shares) at Sep. 29, 2018 | 17,856,000 | ||||
Balance at the end of the year at Sep. 29, 2018 | 477,932 | $ 4,464 | 171,407 | 300,585 | 1,476 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Total comprehensive income | 23,118 | 43,067 | (19,949) | ||
Conversion of tangible equity units (in shares) | 1,342,000 | ||||
Conversion of tangible equity units | 0 | $ 336 | (336) | ||
Settlement of capped calls (in shares) | (223,000) | ||||
Settlement of capped calls | $ 0 | $ (57) | 57 | ||
Exercise of stock options (in shares) | 47,000 | 47,000 | |||
Exercise of stock options | $ 2,279 | $ 12 | 2,267 | ||
Stock-based compensation (in shares) | 97,000 | ||||
Stock-based compensation | 9,430 | $ 24 | 9,406 | ||
Issuance for employee stock purchase plan (in shares) | 34,000 | ||||
Issuance for employee stock purchase plan | 1,156 | $ 8 | 1,148 | ||
Common stock purchased and retired (in shares) | (29,000) | ||||
Common stock purchased and retired | (1,533) | $ (6) | (1,527) | ||
Dividends, $1.20 per share | (22,096) | (22,096) | |||
Balance at the end of the year (in shares) at Sep. 28, 2019 | 19,124,000 | ||||
Balance at the end of the year at Sep. 28, 2019 | $ 484,059 | $ 4,781 | $ 182,422 | $ 315,329 | $ (18,473) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per share (in dollars per share) | $ 1.20 | $ 1.20 | $ 1.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Cash Flows from Operating Activities | |||
Net income | $ 43,067 | $ 61,328 | $ 25,084 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities | |||
Stock-based compensation | 9,397 | 7,283 | 5,600 |
Fair value adjustment to acquired inventory | 1,601 | 0 | 7,975 |
Net periodic pension benefit cost | 1,154 | 1,178 | 1,768 |
Depreciation and amortization | 37,975 | 34,492 | 35,523 |
(Gain) loss on sale or disposal of property and equipment | 1,442 | (4,162) | 733 |
Amortization of debt issuance costs | 6,765 | 4,644 | 3,863 |
Loss on debt extinguishment | 0 | 0 | 503 |
Deferred income taxes | (11,060) | (28,252) | (9,127) |
Bad debt provision (recovery), net | 1,744 | 2,271 | 1,930 |
Other | (671) | (111) | 0 |
Changes in operating assets and liabilities | |||
Accounts receivable and unbilled accounts receivable | (21,340) | 4,763 | 7,652 |
Inventories, net | 8,702 | (12,343) | (2,253) |
Prepaid expenses | (3,194) | (375) | (1,486) |
Accounts payable | (4,624) | (846) | 1,751 |
Accrued payroll and related costs | 2,917 | (5,338) | 4,781 |
Advance payments from customers | (23,041) | 3,531 | 3,635 |
Accrued warranty costs | (1,861) | (594) | 278 |
Other assets and liabilities | 24,490 | (4,222) | (16,350) |
Net Cash Provided by (Used in) Operating Activities | 73,463 | 63,247 | 71,860 |
Cash Flows from Investing Activities | |||
Purchases of property and equipment | (30,525) | (12,321) | (17,798) |
Proceeds from sale of property and equipment | 10 | 6,793 | 45 |
Purchases of business, net of acquired cash | (151,956) | 0 | (853) |
Other | (285) | 823 | 0 |
Net Cash Provided by (Used in) Investing Activities | (182,756) | (4,705) | (18,606) |
Cash Flows from Financing Activities | |||
Proceeds from issuance of long-term debt | 430,391 | 0 | 0 |
Payment of long-term debt | (298,659) | (64,517) | (4,881) |
Payment of debt component of tangible equity units | (7,290) | (9,153) | (8,541) |
Payment of debt issuance costs for long-term debt | (6,561) | 0 | (782) |
Payment of debt issuance costs for revolving credit facility | (667) | (125) | (200) |
Receipts under short-term borrowings | 70,000 | 38,750 | 0 |
Payments under short-term borrowings | (70,000) | (38,750) | 0 |
Cash dividends | (21,713) | (21,360) | (20,079) |
Proceeds from exercise of stock options and employee stock purchase plan | 3,435 | 1,992 | 5,579 |
Payments to purchase and retire common stock | (1,533) | (1,403) | (1,785) |
Net Cash Provided by (Used in) Financing Activities | 97,403 | (94,566) | (30,689) |
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (1,977) | (905) | 1,388 |
Cash and Cash Equivalents | |||
Increase (decrease) during the period | (13,867) | (36,929) | 23,953 |
Balance, beginning of period | 71,804 | 108,733 | 84,780 |
Balance, End of Period | 57,937 | 71,804 | 108,733 |
Cash paid during the year for | |||
Interest | 22,136 | 22,224 | 29,881 |
Income taxes | 11,406 | 11,380 | 11,478 |
Non-cash investing and financing activities | |||
Property and equipment acquired under capital lease | 0 | 67 | 2,747 |
Dividends declared not yet paid | $ 5,695 | $ 5,312 | $ 5,278 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Sep. 28, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations MTS Systems Corporation is a leading global supplier of high-performance test systems, motion simulators and sensors. Our testing and simulation hardware, software and service solutions help customers accelerate and improve their design, development and manufacturing processes and are used for determining the mechanical behavior of materials, products and structures. Our high-performance sensors provide measurements of vibration, pressure, position, force and sound in a variety of applications to enable automation, enhance precision and safety, and lower our customers' production costs by improving performance and reducing downtime. Fiscal Year We have a 5-4-4 week, quarterly accounting cycle with our fiscal year ending on the Saturday closest to September 30. Fiscal years 2019 , 2018 and 2017 ended September 28, 2019 , September 29, 2018 and September 30, 2017 , respectively. Fiscal years 2019 , 2018 and 2017 all included 52 weeks. Consolidation The Consolidated Financial Statements include the accounts of MTS Systems Corporation and its wholly owned subsidiaries. Significant intercompany account balances and transactions have been eliminated. Revenue Recognition As described in Note 2, we adopted Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), followed by related amendments, on September 30, 2018 under the modified retrospective transition method. Our new revenue recognition accounting policy and disclosures relative to this guidance are included in Note 3. Research and Development Research and development (R&D) costs associated with new products are charged to operations as incurred. We have also allocated certain resources to capitalized software development activities. Total internal software development costs capitalized during fiscal years 2019 and 2018 were $5,883 and $1,803 , respectively. Foreign Currency The financial position and results of operations of our foreign subsidiaries are measured using local currency as the functional currency. Assets and liabilities are translated using fiscal period-end exchange rates, and monthly statements of income are translated using average exchange rates applicable to each month, with the resulting adjustments recorded in foreign currency translation gain (loss) adjustments in the Consolidated Statements of Comprehensive Income. Net gains and losses from foreign currency transactions are recognized in the Consolidated Statements of Income. We recorded a net foreign currency transaction loss of $200 in fiscal year 2019 , a net foreign currency transaction gain of $104 in fiscal year 2018 and a net foreign currency transaction loss of $2,499 in fiscal year 2017 . Cash and Cash Equivalents Cash and cash equivalents represent cash, demand deposits and highly liquid investments with original maturities of three months or less. Cash equivalents are recorded at cost, which approximates fair value. Cash equivalents, both within and outside the U.S., are invested in bank deposits or money market funds and are held in local currency. Accounts Receivable and Long-term Contracts We grant credit to customers and generally do not require collateral or other security from domestic customers. When deemed appropriate, receivables from customers located outside the U.S. are supported by letters of credit from financial institutions. The allowance for doubtful accounts is based on our assessment of the collectability of specific customer accounts and includes consideration of the credit worthiness and financial condition of those specific customers. We record an allowance to reduce receivables to the amount reasonably believed to be collectible and consider factors such as the financial condition of the customer and the aging of the receivables. If there is a deterioration of a customer's financial condition, if we become aware of additional information related to the credit worthiness of a customer or if future actual default rates on trade receivables differ from those currently anticipated, we may adjust the allowance for doubtful accounts, which would affect earnings in the period the adjustments were made. We enter into long-term contracts for customized equipment sold to our customers. Under the terms of such contracts, revenue recognized over time may be invoiced upon completion of contractual milestones, shipment to the customer or installation and customer acceptance. Unbilled amounts relating to these contracts are included in unbilled accounts receivable, net in the Consolidated Balance Sheets. Amounts unbilled as of September 28, 2019 are expected to be invoiced during fiscal year 2020 . Inventories Inventories consist of material, labor and overhead costs and are stated at the lower of cost or net realizable value determined under the first-in, first-out accounting method. Certain inventories are measured using the weighted average cost method. Inventories, net are as follows: 2019 2018 Components, assemblies and parts $ 112,886 $ 93,020 Customer projects in various stages of completion 39,534 35,675 Finished goods 14,779 10,414 Total inventories, net $ 167,199 $ 139,109 Software Development Costs We capitalize certain software development costs related to software to be sold or otherwise marketed. Capitalized software development costs include purchased materials and services, salary and benefits of our development and technical support staff and other costs associated with the development of new products and services. Software development costs are expensed as incurred until technological feasibility has been established, at which time future costs incurred are capitalized until the product is available for general release to the public. Based on our product development process, technological feasibility is generally established once product and detailed program designs have been completed, uncertainties related to high-risk development issues have been resolved through coding and testing, and we have the capability to manufacture the end product. Once a software product is available for general release to the public, capitalized development costs associated with that product will begin to be amortized to cost of sales in the Consolidated Statements of Income over the product's estimated economic life, using the greater of straight-line or a method that results in cost recognition in future periods that is consistent with the anticipated timing of product revenue recognition. Our capitalized software development costs are subject to an ongoing assessment of recoverability, which is impacted by estimates and assumptions of future revenues and expenses for these software products, as well as other factors such as changes in product technologies. Any portion of unamortized capitalized software development costs that is determined to be in excess of net realizable value is expensed in the period such a determination is made. We capitalized $8,295 , $5,167 and $2,900 of software development costs during fiscal years 2019 , 2018 and 2017 , respectively. Amortization expense for software development costs was $176 , $30 and $892 for fiscal years 2019 , 2018 and 2017 , respectively. See Note 5 for additional information on capitalized software development costs. Impairment of Long-lived Assets We review the carrying value of long-lived assets or asset groups, such as property and equipment and intangible assets subject to amortization, when events or changes in circumstances such as asset utilization, physical change, legal factors or other matters indicate that the carrying value may not be recoverable. When this review indicates the carrying value of an asset or asset group exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group, we recognize an asset impairment charge in earnings in the period such a determination is made. The amount of the impairment loss recorded is the amount by which the carrying value of the impaired asset or asset group exceeds its fair value. Property and Equipment Property and equipment are capitalized at cost, including additions, replacements and improvements. Repairs and maintenance are expensed as incurred. Depreciation is recorded over the following estimated useful lives of the asset: Asset Type Useful Life Buildings and improvements 10 to 40 years Machinery and equipment 3 to 10 years Building and equipment additions are generally depreciated on a straight-line basis for financial reporting purposes and on an accelerated basis for income tax purposes. Property and equipment includes assets held under capital leases, consisting of machinery and equipment, which are recorded at the present value of minimum lease payments and amortized on a straight-line basis over the estimated life of the asset or the lease term. Amortization of assets held under capital leases is included in depreciation expense in the Consolidated Statements of Income. See Note 5 for additional information on property and equipment. Goodwill and Indefinite-lived Intangible Assets Goodwill represents the excess of cost over the fair value of the identifiable net assets of businesses acquired and allocated to our reporting units at the time of acquisition. We test goodwill for impairment annually in the fourth quarter and when an event occurs or circumstances change that indicate the carrying value of the reporting unit may not be recoverable. As of both September 28, 2019 and September 29, 2018 , we determined there was no impairment of our goodwill or indefinite-lived intangible assets. Evaluating goodwill for impairment involves the determination of the fair value of each reporting unit in which goodwill is recorded using a qualitative or quantitative analysis. A reporting unit is an operating segment or a component of an operating segment for which discrete financial information is available and reviewed by management on a regular basis. For fiscal year 2019 , we identified four reporting units: Test & Simulation excluding E2M Technologies B.V. (E2M), E2M, Temposonics and PCB Group, Inc. (PCB). Prior to completing the quantitative analysis described below, we have the option to perform a qualitative assessment of goodwill for impairment to determine whether it is more likely than not (a likelihood of more than 50% ) that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. If we conclude the fair value is more likely than not less than the carrying value, we perform the quantitative analysis. Otherwise, no further testing is needed. If the quantitative analysis is required, the impairment test is used to compare the calculated fair value of each reporting unit to its carrying value, including goodwill. We estimate the fair value of a reporting unit using both the income approach and the market approach. The income approach uses a discounted cash flow model that requires input of certain estimates and assumptions requiring judgment, including projections of revenue, profit margins, operating costs, capital expenditures, changes in working capital, discount rates and perpetual growth rates based on economic conditions, customer demand, changes in competition and new product introductions. The market approach uses a multiple of earnings and revenue based on guidelines for publicly traded companies. Fair value calculations contain significant judgments and estimates. If the fair value exceeds the carrying value, no further work is required and no impairment loss is recognized. If the carrying value exceeds the fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. In fiscal years 2019 and 2018 , we performed a qualitative analysis of goodwill for each of our reporting units as described above. Based on the analysis, we determined that it was more likely than not that the fair value exceeds the carrying amount for all of our reporting units. Therefore, a quantitative analysis was not necessary for any of our reporting units. As of September 28, 2019 , our Test & Simulation excluding E2M, E2M, Temposonics and PCB reporting units had goodwill balances of $25,993 , $35,160 , $1,416 and $366,470 , respectively. Indefinite-lived Intangible Assets Intangible assets with indefinite lives are not amortized. These assets are tested annually for impairment and when an event occurs or circumstances change that indicate the carrying value of the asset may not be recoverable. Fair value of indefinite-lived intangible assets is primarily determined using a relief from royalty method if a quantitative analysis is deemed necessary. See Note 5 for additional information on goodwill and intangible assets. Other Long-term Assets Other assets primarily consist of the cash value of security deposits paid on leased property, life insurance policies and debt issuance costs. Derivative Financial Instruments Our results of operations could be materially impacted by changes in foreign currency exchange rates, as well as interest rates on our floating-rate indebtedness. In an effort to manage exposure to these risks, we periodically enter into forward and option currency exchange contracts, interest rate swaps and forward interest rate swaps. Since the market value of these hedging contracts is derived from current market rates, they are classified as derivative financial instruments. We do not use derivatives for speculative or trading purposes. The derivative contracts contain credit risk to the extent that our bank counterparties may be unable to meet the terms of the agreements. The amount of such credit risk is generally limited to the unrealized gains, if any, in such contracts. Such risk is minimized by limiting those counterparties to major financial institutions of high credit quality. For derivative instruments executed under master netting arrangements, we have the contractual right to offset fair value amounts recognized for the right to reclaim cash collateral against obligations to return cash collateral. We do not offset fair value amounts recognized on these derivative instruments. As of both September 28, 2019 and September 29, 2018 , we did not have any foreign exchange contracts with credit risk related contingent features. See Note 7 for additional information on derivatives and hedging activities. Income Taxes We record a tax provision for the anticipated tax consequences of the reported results of operations. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those deferred tax assets and liabilities are expected to be realized or settled. We record a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized. We believe it is more likely than not that forecasted income, including income that may be generated as a result of certain tax planning strategies, together with the tax effects of the deferred tax liabilities, will be sufficient to fully recover the remaining net realizable value of our deferred tax assets. In the event that all or part of the net deferred tax assets are determined not to be realizable in the future, an adjustment to the valuation allowance would be charged to earnings in the period such determination is made. In addition, the calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws. Resolution of these uncertainties in a manner inconsistent with our expectations could have a material impact on our financial condition and operating results. See Note 11 for additional information on income taxes. Stock-based Compensation We measure the cost of employee services received in exchange for the award of equity instruments based on the fair value of the award at the date of grant. We recognize the cost over the period during which an employee is required to provide services in exchange for the award. Forfeitures of stock-based awards are recognized as they occur. For purposes of determining estimated fair value of stock-based payment awards, we utilize the Black-Scholes option pricing model, which requires the input of certain assumptions requiring management judgment. Because our employee stock option awards have characteristics significantly different from those of traded options and because changes in the input assumptions can materially affect fair value estimates, existing models may not provide a reliable single measure of the fair value of employee stock options. We continue to assess the assumptions and methodologies used to calculate estimated fair value of stock-based compensation. Circumstances may change and additional data may become available over time that could result in changes to these assumptions and methodologies and thereby materially impact the fair value determination of future grants of stock-based payment awards. If factors change and we employ different assumptions in future periods, the compensation expense recorded may differ significantly from the stock-based compensation expense recorded in the current period. See Note 9 for additional information on stock-based compensation. Loss Contingencies We establish an accrual for loss contingencies when it is both probable that an asset has been impaired or a liability has been incurred and the amount of the loss can be reasonably estimated. When both of these criteria are not met, we do not establish an accrual. However, when there is at least a reasonable possibility that a loss has been incurred, but it is not probable or reasonably estimable, we disclose the nature of the loss contingency and an estimate of the possible loss or range of loss, as applicable. Any adjustment made to a loss contingency accrual during an accounting period affects the earnings of the period. Business Acquisitions Our acquisition accounting policy and disclosures are included in Note 16. Use of Estimates |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 12 Months Ended |
Sep. 28, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Leases In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (Topic 842), followed by related amendments (collectively, "the new lease standard"), which requires lessees to recognize most leases on the balance sheet for the rights and obligations created by those leases. Under the new lease standard, a company recognizes a right-of-use asset, representing the right to use the underlying asset for the lease term, and a corresponding lease liability for all leases with terms greater than 12 months. The new lease standard requires enhanced disclosures regarding the amount, timing and uncertainty of cash flows arising from a company's leases. Adoption of the new lease standard is required for annual periods beginning after December 15, 2018, including interim periods within that annual period, which is our fiscal year 2020. The new guidance is required to be adopted using a modified retrospective transition method, and an optional transition method may be elected to use the effective date as the date of initial application on transition. We will adopt the new lease standard for our fiscal year 2020 under the optional transition method with an effective date of September 29, 2019. As a result, we will not adjust our comparative period financial information or make the new required lease disclosures for periods before the effective date. We will elect the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. We will elect the practical expedient to not separate non-lease components from the lease components to which they relate and instead account for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. Accordingly, all costs associated with a lease contract are accounted for as lease cost. We will also make an accounting policy election to keep leases with an initial lease term of 12 months or less off the balance sheet. We continue to make progress with preparation for the adoption and implementation of the new lease standard, including assessing the completeness of our lease arrangements, assessing impacts to controls and implementing a lease software solution. The adoption of the new lease standard will result in an increase in assets and liabilities on our Consolidated Balance Sheet. The impact on our Consolidated Statement of Income and Consolidated Statement of Cash Flows is being evaluated but is not expected to be significant. Expanded disclosures will be provided beginning in the first quarter of fiscal year 2020. Other In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , followed by related amendments, which changes the accounting for credit losses on instruments measured at amortized cost by adding an impairment model that is based on expected losses rather than incurred losses. An entity will recognize as an allowance its estimate of expected credit losses, which is believed to result in more timely recognition of such losses as the standard eliminates the probable initial recognition threshold. Adoption of the standard is required for annual periods beginning after December 15, 2019, including interim periods within that annual period, which is our fiscal year 2021. The new guidance is required to be adopted using a modified retrospective approach with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period of adoption. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within that annual period, which is our fiscal year 2020. We have not yet evaluated the impact the adoption of this guidance may have on our financial condition, results of operations or disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement , which eliminates, amends and adds disclosure requirements for fair value measurements. The standard is required to be adopted for annual periods beginning after December 15, 2019, including interim periods within that annual period, which is our fiscal year 2021. Certain disclosures in the new guidance are to be applied using a retrospective approach while other disclosures are to be applied using a prospective approach. Early adoption is permitted. We have not yet evaluated the impact the adoption of this guidance may have on our financial condition, results of operations or disclosures. In August 2018, the FASB issued ASU No. 2018-14, Compensation–Retirement Benefits–Defined Benefit Plans–General (Subtopic 715-20): Disclosure Framework–Changes to the Disclosure Requirements for Defined Benefit Plans , which eliminates, amends and adds disclosure requirements for defined benefit pension and other postretirement plans. The standard is required to be adopted for annual periods ending after December 15, 2020, which is our fiscal year 2021. The new guidance is to be applied using a retrospective approach with early adoption permitted. We have not yet evaluated the impact the adoption of this guidance may have on our financial condition, results of operations or disclosures. Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), followed by related amendments (collectively, "the new revenue standard" or "ASC 606"), to provide a single, comprehensive revenue recognition model for all contracts with customers. Under the new revenue standard, a company recognizes revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. Determination of when and how revenue is recognized is based on a five-step analysis. Enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from a company's contracts with customers are required. We adopted the new revenue standard on September 30, 2018 for our fiscal year 2019 under the modified retrospective transition method. As of September 30, 2018, we recorded a cumulative-effect reduction to the opening balance of our fiscal year 2019 retained earnings of $6,227 , net of tax, for the net deferral of previously recognized revenue and related cost of sales, partially offset by the capitalization and deferral of pre-contract costs. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. See Note 3 for our new revenue recognition accounting policy and disclosures relative to this guidance. In March 2016, the FASB issued ASU No. 2016-04, Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products , which amends existing guidance on extinguishing financial liabilities for certain prepaid stored-value products. The standard requires recognition of the expected breakage amount or the value that is ultimately not redeemed either proportionally in earnings as redemption occurs or when redemption is remote, if issuers are not entitled to breakage. We adopted the standard on a modified retrospective basis for the annual period ending September 28, 2019, including interim periods within that annual period. The adoption of this guidance had no impact on our financial condition, results of operations or disclosures. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory , which requires companies to account for the income tax effects of intercompany sales and transfers of assets other than inventory when the transfer occurs. Existing guidance required companies to defer the income tax effects of intercompany transfers of assets until the asset has been sold to an outside party or otherwise recognized. We adopted the standard on a modified retrospective basis for the annual period ending September 28, 2019, including interim periods within that annual period. The adoption of this guidance had no impact on our financial condition, results of operations or disclosures. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which changes how employers that sponsor defined benefit pension or other postretirement benefit plans present the net periodic benefit cost in the income statement. The standard requires the service cost component of net periodic benefit cost to be presented in the same income statement line items as other employee compensation costs arising from services rendered during the period, with only the service cost component eligible for capitalization in assets. Other components of the net periodic benefit cost are to be stated separately from the line items that include the service cost and outside of operating income. These components are not eligible for capitalization in assets. We adopted the standard for the annual period ending September 28, 2019, including interim periods within that annual period, retrospectively for the presentation in the income statement of the service cost component and the other components of net periodic pension cost and prospectively for the capitalization in assets of the service cost component of net periodic pension cost. The adoption of this guidance did not have a material impact on our current or prior year financial condition, results of operations or disclosures. Therefore, the comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which amends the hedge accounting model in Accounting Standards Codification (ASC) 815 to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. We early adopted the standard on a modified retrospective basis for the annual period ending September 28, 2019, including interim periods within that annual period. The adoption of this guidance had no impact on our current or prior year financial condition, results of operations or disclosures. |
Revenue
Revenue | 12 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Adoption We adopted the new revenue standard on September 30, 2018 for our fiscal year 2019 under the modified retrospective transition method. We applied the new revenue standard to all contracts which were not completed as of the effective date and elected not to apply contract modification guidance retrospectively. As a result of the adoption, we recorded a cumulative-effect reduction to the opening balance of our fiscal year 2019 retained earnings of $6,227 , net of tax, for the net deferral of previously recognized revenue and related cost of sales, partially offset by the capitalization and deferral of pre-contract costs. The timing of revenue recognition for the majority of our products and contracts remains substantially unchanged under the new revenue standard, with the exception of certain contracts in our Test & Simulation segment (Test & Simulation). Dependent on contract-specific terms that evidence customer control of the work in process or an enforceable right to payment with no alternative use, certain contracts have a delay in revenue recognition until the customer takes control of the product, while certain contracts accelerate the recognition of revenue over the life of the contract. Under the new revenue standard, certain costs to obtain contracts (i.e., pre-contract costs) are capitalized at contract inception and recognized as revenue is earned. The impact of adopting the new revenue standard on our Consolidated Statements of Income and Consolidated Balance Sheets is as follows: Consolidated Statements of Income September 28, 2019 As Reported Balances without Adoption of ASC 606 Effect of Change Revenue $ 892,518 $ 849,805 $ 42,713 Cost of sales 563,588 535,204 28,384 Gross profit 328,930 314,601 14,329 Selling and marketing 131,639 129,894 1,745 Income tax provision (benefit) 5,546 3,399 2,147 Net income 43,067 32,630 10,437 Consolidated Balance Sheets September 28, 2019 As Reported Balances without Adoption of ASC 606 Effect of Change Assets Accounts receivable, net $ 121,260 $ 120,496 $ 764 Unbilled accounts receivable, net 80,331 70,949 9,382 Inventories, net 167,199 166,668 531 Prepaid expenses and other current assets 23,761 20,328 3,433 Other long-term assets 3,553 2,690 863 Deferred income taxes 7,229 7,538 (309 ) Liabilities and Shareholders' Equity Advance payments from customers 70,520 74,209 (3,689 ) Other accrued liabilities 43,165 28,506 14,659 Deferred income taxes 41,531 41,548 (17 ) Other long-term liabilities 15,164 15,715 (551 ) Accumulated other comprehensive income (loss) (18,473 ) (18,525 ) 52 Retained earnings 315,329 311,119 4,210 The cumulative effect of the changes made to our September 29, 2018 Consolidated Balance Sheet from the modified retrospective adoption of the new revenue standard is as follows: Consolidated Balance Sheets Balance at September 29, 2018 Adjustments due to ASC 606 Adoption Balance at September 30, 2018 Assets Accounts receivable, net $ 122,243 $ (4,481 ) $ 117,762 Unbilled accounts receivable, net 70,474 (8,002 ) 62,472 Inventories, net 139,109 16,727 155,836 Prepaid expenses and other current assets 24,572 4,651 29,223 Other long-term assets 2,263 1,060 3,323 Deferred income taxes 3,249 643 3,892 Liabilities and Shareholders' Equity Advance payments from customers 80,131 13,568 93,699 Other accrued liabilities 19,146 (2,504 ) 16,642 Deferred income taxes 46,482 (1,228 ) 45,254 Other long-term liabilities 4,894 6,989 11,883 Retained earnings 300,585 (6,227 ) 294,358 Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for transferring those goods or providing those services. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are known, the contract has commercial substance and collectability of consideration is probable. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under the new revenue standard. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Many of our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. In situations when our contract includes distinct goods or services that are substantially the same and have the same pattern of transfer to the customer over time, they are recognized as a series of distinct goods or services. For contracts with multiple performance obligations, we allocate the contract's transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. We do not adjust the promised amount of consideration for the effects of a significant financing component if we expect, at contract inception, that the period between when we transfer a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Revenue is recorded net of taxes collected from customers, and taxes collected are recorded as current liabilities until remitted to the relevant government authority. Shipping and handling costs associated with outbound freight after control of a product has transferred are accounted for as a fulfillment cost and are included in cost of sales in the Consolidated Statements of Income. The following is a description of the product offerings, end markets, typical revenue transactions and payment terms for each of our two reportable segments. See Note 15 for further information on reportable segments. Test & Simulation Test & Simulation manufactures and sells equipment and related software and services which are used by customers to characterize a product's mechanical properties or performance. Our solutions simulate forces and motions that customers expect their products to encounter in use or are necessary to properly characterize the product's performance. Primary Test & Simulation markets include transportation, infrastructure, energy, aerospace, materials science, medical, flight training and amusement parks. A typical system is a comprehensive solution which includes a reaction frame to hold the prototype specimen; a hydraulic or electro-mechanical power source; actuators to create the force or motion; and a computer controller with specialized software to coordinate the actuator movement and to measure, record, analyze and manipulate results. Our portfolio of Test & Simulation solutions includes standard, configurable testing products; engineered products which combine standard product configurations with a moderate degree of customization per customer specifications; and highly customized, highly engineered testing solutions built to address the customer's unique business need, which can include development of first-of-a-kind technology. To complement our Test & Simulation products, we provide our customers with a spectrum of services to maximize product performance including installation, product life cycle management, professional training, calibration and metrology, technical consulting and onsite and factory repair and maintenance. In addition, we sell a variety of accessories and spare parts. The manufacturing cycle for a typical system ranges from weeks to 12 months , depending on the complexity of the system and the availability of components, and can be several years for larger, more complex systems. For certain contracts, the order to revenue cycle may extend beyond the manufacturing cycle, such as when the manufacturing start date is driven by the customer's project timeline or when the contract terms require equipment installation and commissioning and customer acceptance prior to point-in-time revenue recognition. Test & Simulation contracts often have multiple performance obligations, most commonly due to the contract covering multiple phases of the product life cycle (i.e., equipment design and production, installation and commissioning, extended warranty and software maintenance). The primary method used to estimate standalone selling price is the expected cost plus a margin approach under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service. Test & Simulation revenue is recognized either over time as work progresses or point-in-time, depending on contract-specific terms and the pattern of transfer of control of the product or service to the customer. Revenue from services is recognized in the period the service is performed or ratably over the period of the related service contract. Equipment revenue is recognized over time when: (i) control is transferred to the customer over time as work progresses; or (ii) contract terms evidence customer control of the work in process or an enforceable right to payment with no alternative use. Equipment revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying the performance obligation. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Equipment contract costs include materials, component parts, labor and overhead costs. Equipment revenue is recognized point-in-time when either: (i) control is transferred to the customer at a point-in-time when obligations under the terms of the contract are satisfied; or (ii) contract terms do not evidence customer control of the work in process or an enforceable right to payment with no alternative use, and consequently revenue is deferred as work progresses. Satisfaction of performance obligations under the terms of the contract occurs either upon product shipment (as evidenced by delivery or shipment terms), completion of equipment installation and commissioning, or customer acceptance. For our Test & Simulation contracts with customers, payment terms vary and are subject to negotiation. Typical payment terms include progress payments based on specified events or milestones. For some contracts, we are entitled to receive an advance payment. Sensors Our Sensors segment (Sensors) manufactures and sells high-performance sensors which provide measurements of vibration, pressure, position, force and sound in a variety of applications. Our Sensors products are used to enable automation, enhance precision and safety, and lower our customers' production costs by improving performance and reducing downtime. Primary Sensors markets include automotive, aerospace and defense, industrial, and research and development. Our Sensors products are sold as configurable, standard units; utilize piezoelectric or magnetostriction technology; and are ideal for use in harsh operating environments to provide accurate and reliable sensor information. To complement our Sensors products, we also provide spare parts and services. The cycle from contract inception to shipment of equipment is typically one to three months , with the exception of certain high-volume contracts which are fulfilled in a series of shipments over an extended period. Our Sensors contracts generally have a single performance obligation which is satisfied at a point in time. The performance obligation is a stand-alone sensor product, accessory, service or software license. Sensors contracts are generally fixed-price purchase order fulfillment contracts, and the transaction price is equal to the observable consideration in the contract. Revenue is recognized when obligations under the terms of the contract with our customer are satisfied; generally this occurs with the transfer of control upon product shipment (as evidenced by shipment or delivery terms) or with the performance of the service. Certain contracts are measured using the as invoiced practical expedient as we have a right to consideration from a customer in an amount that corresponds directly with the value to the customer of our performance completed to date. For our Sensors contracts with customers, payment terms are generally within 90 days. The timing of satisfying our Sensors performance obligations does not vary significantly from the typical timing of payment. For certain high-volume contracts, we are entitled to receive an advance payment. Disaggregation of Revenue We disaggregate our revenue by reportable segment, sales type (product or service), the timing of recognition of revenue for transfer of goods or services to customers (point-in-time or over time), and geographic market based on the billing location of the customer. See Note 15 for further information on our reportable segments and intersegment revenue. 2019 Test & Simulation Sensors Intersegment Total Sales type Product $ 455,715 $ 327,663 $ (1,366 ) $ 782,012 Service 103,193 7,313 — 110,506 Total revenue $ 558,908 $ 334,976 $ (1,366 ) $ 892,518 Timing of recognition Point-in-time $ 356,907 $ 313,355 $ (1,366 ) $ 668,896 Over time 202,001 21,621 — 223,622 Total revenue $ 558,908 $ 334,976 $ (1,366 ) $ 892,518 Geographic market Americas $ 179,421 $ 168,483 $ (1,366 ) $ 346,538 Europe 120,164 104,818 — 224,982 Asia 259,323 61,675 — 320,998 Total revenue $ 558,908 $ 334,976 $ (1,366 ) $ 892,518 Contract Assets and Liabilities Contract assets and contract liabilities are as follows: 2019 2018 Contract assets $ 80,331 $ 70,474 Contract liabilities 81,045 80,131 The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled accounts receivable (contract assets) and advance payments from customers (contract liabilities). Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end of each reporting period. Contract liabilities represent payments received from customers at contract inception and at milestones per contract provisions. These payments are recorded in advance payments from customers and other long-term liabilities in our Consolidated Balance Sheets (current and non-current portions, respectively) and are liquidated as revenue is recognized. Conversely, when billing occurs subsequent to revenue recognition for contracts recognized over time, balances are recorded in unbilled accounts receivable, net in our Consolidated Balance Sheets. As customers are billed, unbilled accounts receivable balances are transferred to accounts receivable, net in the Consolidated Balance Sheets. Significant changes in contract assets and contract liabilities are as follows: Contract Assets Balance, September 29, 2018 $ 70,474 Cumulative transition adjustment upon adoption (8,002 ) Changes in estimated stage of completion 121,770 Transfers to accounts receivable, net (108,171 ) Acquisitions 1 1,518 Other 2,742 Balance, September 28, 2019 $ 80,331 Contract Liabilities Balance, September 29, 2018 $ 80,131 Cumulative transition adjustment upon adoption 20,557 Revenue recognized included in balance at beginning of period (80,414 ) Increases due to payments received, excluding amounts recognized as revenue during period 55,208 Acquisitions 1 4,853 Other 710 Balance, September 28, 2019 $ 81,045 1 See Note 16 for additional information regarding acquisitions. Remaining Performance Obligations As of September 28, 2019 , we had approximately $188,500 of remaining performance obligations on contracts with an original expected duration of one year or more which are primarily related to Test & Simulation. As of September 28, 2019 , we expect to recognize approximately 74% of these remaining performance obligations as revenue within one year, an additional 23% within two years and the balance thereafter. We do not disclose the value of remaining performance obligations for contracts with an original expected duration of one year or less. Contract Estimates For contracts recognized over time, we estimate the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognize that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, and internal and subcontractor performance. Pricing is established at or prior to the time of sale with our customers, and we record sales at the agreed-upon selling price. The terms of a contract or the historical business practice can give rise to variable consideration due to but not limited to volume discounts, penalties and early payment discounts. We estimate variable consideration at the most likely amount we will receive from customers. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized for such transaction will not occur, or when the uncertainty associated with the variable consideration is resolved. In general, variable consideration in our contracts relates to the entire contract. As a result, the variable consideration is allocated proportionately to all performance obligations. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us at contract inception. There are no significant instances where variable consideration is constrained and not recorded at the initial time of sale. As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the period it is identified. Our review of contract-related estimates has not resulted in adjustments that are significant to our results of operations. Contract Modifications When contracts are modified to account for changes in contract specifications and requirements, we consider whether the modification either creates new, or changes existing, enforceable rights and obligations. Contract modifications that are for goods or services that are not distinct from the existing contract, due to the significant integration with the original product or service provided, are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price, and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) under the cumulative catch-up method. When the modifications include additional performance obligations that are distinct and at a relative stand-alone selling price, they are accounted for as a new contract and performance obligation and recognized prospectively. Warranties and Returns For both Test & Simulation and Sensors, we provide a manufacturer's warranty on our products and systems which is included in customer contracts. At the time a sale is recognized, we record estimated future warranty costs. See Note 4 for further discussion of our product warranty liabilities. We also offer separately-priced extended warranties or service-type contracts on certain products for which revenue is recognized over the contractual period or as services are rendered. Our sales terms generally do not allow for a right of return except for situations where the product fails. When the right of return exists, we recognize revenue for the transferred products at the expected amount of consideration for which we will be entitled. Shipping and Handling Freight revenue billed to customers is reported within revenue in the Consolidated Statements of Income. Expenses incurred for shipping products to customers are reported within cost of sales in the Consolidated Statements of Income. Pre-contract Costs We recognize an asset for the incremental costs of obtaining a contract with a customer (i.e., pre-contract costs) when costs are considered recoverable. Capitalized pre-contract costs, consisting primarily of Test & Simulation sales commissions, are amortized as the related revenue is recognized. We recognized total capitalized pre-contract costs of $4,297 in prepaid expenses and other current assets and other long-term assets in the Consolidated Balance Sheets as of September 28, 2019 and related expense of $9,003 in the Consolidated Statements of Income during fiscal year 2019 . |
Warranty Obligations
Warranty Obligations | 12 Months Ended |
Sep. 28, 2019 | |
Product Warranties Disclosures [Abstract] | |
WARRANTY OBLIGATIONS | WARRANTY OBLIGATIONS Sales of our products and systems are subject to limited warranty obligations that are included in customer contracts. For sales that include installation services, warranty obligations generally extend for a period of 12 to 24 months from the date of either shipment or acceptance based on the contract terms. Product obligations generally extend for a period of 12 to 24 months from the date of purchase. Certain products offered in our Sensors segment include a lifetime warranty. Under the terms of these warranties, we are obligated to repair or replace any components or assemblies deemed defective due to workmanship or materials. We reserve the right to reject warranty claims where it is determined that failure is due to normal wear, customer modifications, improper maintenance or misuse. We record general warranty provisions based on an estimated warranty expense percentage applied to current period revenue. The percentage applied reflects our historical warranty claims experience over the preceding 12 -month period. Both the experience percentage and the warranty liability are evaluated on an ongoing basis for adequacy. Warranty provisions are also recognized for certain unanticipated product claims that are individually significant. Changes to accrued warranty costs are as follows: 2019 2018 Beginning accrued warranty costs $ 5,418 $ 6,018 Warranty claims (4,331 ) (5,443 ) Warranty provisions 2,485 5,109 Adjustments to preexisting warranties (15 ) (260 ) Currency translation (16 ) (6 ) Ending accrued warranty costs $ 3,541 $ 5,418 |
Capital Assets
Capital Assets | 12 Months Ended |
Sep. 28, 2019 | |
Capital Assets [Abstract] | |
CAPITAL ASSETS | CAPITAL ASSETS Property and Equipment Property and equipment, net are as follows: 2019 2018 Land and improvements $ 3,949 $ 2,881 Buildings and improvements 64,140 58,880 Machinery and equipment 224,684 203,647 Assets held under capital leases 2,796 2,815 Total property and equipment 295,569 268,223 Less: Accumulated depreciation (194,486 ) (177,954 ) Total property and equipment, net $ 101,083 $ 90,269 Goodwill Changes to the carrying amount of goodwill are as follows: Test & Simulation Sensors Total Balance, September 30, 2017 $ 25,109 $ 344,653 $ 369,762 Currency translation gain (loss) (478 ) (9 ) (487 ) Balance, September 29, 2018 $ 24,631 $ 344,644 $ 369,275 Acquisitions 1 39,181 23,292 62,473 Currency translation gain (loss) (2,659 ) (50 ) (2,709 ) Balance, September 28, 2019 $ 61,153 $ 367,886 $ 429,039 1 See Note 16 for additional information regarding acquisitions. See Note 1 for additional information on our goodwill impairment analysis. Intangible Assets Intangible assets are as follows: September 28, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Average Useful Life (in Years) Software development costs 2 $ 39,546 $ (16,035 ) $ 23,511 6.2 Technology and patents 63,015 (15,739 ) 47,276 14.9 Trademarks and trade names 20,186 (3,808 ) 16,378 18.4 Customer lists 192,488 (34,735 ) 157,753 15.6 Land-use rights 2,303 (968 ) 1,335 25.7 Other 3,606 (774 ) 2,832 4.0 Trade names 57,500 — 57,500 Indefinite Total intangible assets $ 378,644 $ (72,059 ) $ 306,585 14.4 September 29, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Software development costs 2 $ 31,251 $ (15,860 ) $ 15,391 6.5 Technology and patents 46,405 (12,188 ) 34,217 14.9 Trademarks and trade names 6,754 (2,987 ) 3,767 25.4 Customer lists 156,971 (23,314 ) 133,657 15.8 Land-use rights 2,336 (730 ) 1,606 26.0 Trade names 57,500 — 57,500 Indefinite Total intangible assets $ 301,217 $ (55,079 ) $ 246,138 14.8 2 The gross carrying amount of software development costs as of September 28, 2019 and September 29, 2018 includes $21,840 and $15,391 , respectively, of software not yet available for general release to the public. Amortization expense recognized related to finite-lived intangible assets is as follows: 2019 2018 2017 Amortization expense $ 17,361 $ 13,831 $ 14,665 See Note 1 for additional information on our intangible asset impairment analysis. Estimated future amortization expense related to finite-lived intangible assets is as follows: Fiscal Year Amortization Expense 2020 $ 19,395 2021 20,558 2022 21,537 2023 20,662 2024 20,296 Thereafter 146,637 Future amortization amounts presented above are estimates. Actual future amortization expense may be different due to fluctuations in foreign currency exchange rates, future acquisitions, impairments, changes in amortization periods or other factors. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Sep. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS In determining the fair value of financial assets and liabilities, we currently utilize market data or other assumptions that we believe market participants would use in pricing the asset or liability in the principal or most advantageous market and adjust for non-performance and/or other risk associated with the company as well as counterparties, as appropriate. When considering market participant assumptions in fair value measurements, the following fair value hierarchy distinguishes between observable and unobservable inputs, which are categorized in one of the following levels: • Level 1: Unadjusted quoted prices which are available in active markets for identical assets or liabilities accessible to us at the measurement date. • Level 2: Inputs other than quoted prices included in Level 1 inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the asset or liability. • Level 3: Unobservable inputs for the asset or liability used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The hierarchy gives the highest priority to Level 1, as this level provides the most reliable measure of fair value, while giving the lowest priority to Level 3. Assets and Liabilities Measured at Fair Value on a Recurring Basis Financial assets and liabilities subject to fair value measurements on a recurring basis are as follows: September 28, 2019 Level 1 Level 2 Level 3 Total Assets Currency contracts 1 $ — $ 907 $ — $ 907 Total assets — 907 — 907 Liabilities Currency contracts 1 — 251 — 251 Total liabilities $ — $ 251 $ — $ 251 September 29, 2018 Level 1 Level 2 Level 3 Total Assets Currency contracts 1 $ — $ 1,080 $ — $ 1,080 Interest rate swaps 2 — 7,411 — 7,411 Total assets — 8,491 — 8,491 Liabilities Currency contracts 1 — 173 — 173 Total liabilities $ — $ 173 $ — $ 173 1 Based on observable market transactions of spot currency rates and forward currency rates on equivalently-termed instruments. Carrying amounts of the financial assets and liabilities are equal to the fair value. See Note 7 for additional information on derivative financial instruments. 2 Based on London Interbank Offered Rate (LIBOR) and spot rates. Carrying amount of the financial asset is equal to the fair value. In the fourth quarter of fiscal year 2019, we terminated the interest rate swap agreement. See Note 7 for additional information on derivative financial instruments. Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis We measure certain financial instruments at fair value on a nonrecurring basis. These assets primarily include goodwill, intangible assets and other long-lived assets acquired either as part of a business acquisition, individually or with a group of other assets, as well as property and equipment. These assets were initially measured and recognized at amounts equal to the fair value determined as of the date of acquisition or purchase subject to changes in value only for foreign currency translation. Periodically, these assets are tested for impairment, by comparing their respective carrying values to the estimated fair value of the reporting unit or asset group in which they reside. In the event any of these assets were to become impaired, we would recognize an impairment loss equal to the amount by which the carrying value of the reporting unit, impaired asset or asset group exceeds its estimated fair value. Fair value measurements of reporting units are estimated using an income approach involving discounted or undiscounted cash flow models that contain certain Level 3 inputs requiring management judgment, including projections of economic conditions and customer demand, revenue and margins, changes in competition, operating costs, working capital requirements and new product introductions. Fair value measurements of the reporting units associated with our goodwill balances and our indefinite-lived intangible assets are estimated at least annually in the fourth quarter of each fiscal year for purposes of impairment testing if a quantitative analysis is performed. Fair value measurements associated with our intangible assets, other long-lived assets and property and equipment are estimated when events or changes in circumstances such as market value, asset utilization, physical change, legal factors or other matters indicate that the carrying value may not be recoverable. See Note 1 and Note 5 for additional information on goodwill, indefinite-lived intangible assets, other long-lived assets, property and equipment and impairment testing. Assets and Liabilities Not Measured at Fair Value Certain financial instruments are not measured at fair value but are recorded at carrying amounts approximating fair value based on their short-term nature or variable interest rate. These financial instruments include cash and cash equivalents, accounts receivable, unbilled accounts receivable, accounts payable and short-term borrowings. Other Financial Instruments Other financial instruments subject to fair value measurements include debt, which is recorded at carrying value in the Consolidated Balance Sheets. The carrying amount and estimated fair values of our debt are as follows: September 28, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 Tranche B term loan 3 $ 173,695 $ 174,563 $ — $ 174,563 $ — Senior unsecured notes 3 350,000 366,625 — 366,625 — Total debt $ 523,695 $ 541,188 $ — $ 541,188 $ — September 29, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Debt component of tangible equity units 4 $ 7,290 $ 8,626 $ — $ 8,626 $ — Tranche B term loan 3 391,416 395,330 — 395,330 — Total debt $ 398,706 $ 403,956 $ — $ 403,956 $ — 3 The fair value of the tranche B term loan and senior unsecured notes is based on the most recently quoted market price for the outstanding debt instrument, adjusted for any known significant deviations in value. The estimated fair value of the debt obligation is not necessarily indicative of the amount that would be realized in a current market exchange. See Note 8 for additional information on financing arrangements. 4 The fair value of the 8.75% |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Sep. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES Our currency exchange contracts and interest rate swaps are designated as cash flow hedges and qualify as hedging instruments. We also have derivatives that are not designated as cash flow hedges and, therefore, are accounted for and reported under foreign currency guidance. Regardless of designation for accounting purposes, we believe all of our derivative instruments are hedges of transactional risk exposures. The fair value of our outstanding designated and undesignated derivative assets and liabilities are reported in the Consolidated Balance Sheets as follows: September 28, 2019 Prepaid Expenses and Other Current Assets Other Accrued Liabilities Designated hedge derivatives Cash flow derivatives $ 907 $ 133 Total designated hedge derivatives 907 133 Undesignated hedge derivatives Balance sheet derivatives — 118 Total hedge derivatives $ 907 $ 251 September 29, 2018 Prepaid Expenses and Other Current Assets Other Accrued Liabilities Designated hedge derivatives Cash flow derivatives $ 989 $ 173 Interest rate swaps 7,411 — Total designated hedge derivatives 8,400 173 Undesignated hedge derivatives Balance sheet derivatives 91 — Total hedge derivatives $ 8,491 $ 173 A reconciliation of the net fair value of designated hedge derivatives subject to master netting arrangements that are recorded in the Consolidated Balance Sheets to the net fair value that could have been reported in the Consolidated Balance Sheets are as follows: Gross Recognized Amount Gross Offset Amount Net Amount Presented Derivatives Subject to Offset Cash Collateral Received Net Amount September 28, 2019 Assets $ 907 $ — $ 907 $ (133 ) $ — $ 774 Liabilities 133 — 133 (133 ) — — September 29, 2018 Assets $ 8,400 $ — $ 8,400 $ (173 ) $ — $ 8,227 Liabilities 173 — 173 (173 ) — — Cash Flow Hedging – Currency Risks Currency exchange contracts utilized to maintain the functional currency value of expected financial transactions denominated in foreign currencies are designated as cash flow hedges. Gains and losses related to changes in the market value of these contracts are reported as a component of accumulated other comprehensive income (AOCI) within shareholders' equity in the Consolidated Balance Sheets and reclassified to earnings in the same line item in the Consolidated Statements of Income and in the same period as the recognition of the underlying hedged transaction. The effective portion of the cash flow hedges represents the change in fair value of the hedge that offsets the change in the functional currency value of the hedged item. We periodically assess whether our currency exchange contracts are effective and, when a contract is determined to be no longer effective as a hedge, we discontinue hedge accounting prospectively. Subsequent changes in the market value of ineffective currency exchange contracts are recognized as an increase or decrease in revenue in the Consolidated Statements of Income as that is the same line item in which the underlying hedged transaction is reported. As of September 28, 2019 and September 29, 2018 , we had outstanding cash flow hedge currency exchange contracts with gross notional U.S. dollar equivalent amounts of $43,033 and $39,856 , respectively. Upon netting offsetting contracts to sell foreign currencies against contracts to purchase foreign currencies, irrespective of contract maturity dates, the net notional U.S. dollar equivalent amount of contracts outstanding was $38,177 and $29,315 at September 28, 2019 and September 29, 2018 , respectively. As of September 28, 2019 , the net market value of the foreign currency exchange contracts was a net asset of $774 , consisting of $907 in assets and $133 in liabilities. As of September 29, 2018 , the net market value of the foreign currency exchange contracts was a net asset of $816 , consisting of $989 in assets and $173 in liabilities. The pretax amounts recognized in AOCI on currency exchange contracts, including (gains) losses reclassified into earnings in the Consolidated Statements of Income and gains (losses) recognized in other comprehensive income (loss) (OCI), are as follows: 2019 2018 Beginning unrealized net gain (loss) in AOCI $ 672 $ (443 ) Net (gain) loss reclassified into revenue (1,026 ) 399 Net gain (loss) recognized in OCI 920 716 Ending unrealized net gain (loss) in AOCI $ 566 $ 672 As of September 28, 2019 , the amount projected to be reclassified from AOCI into earnings in the next 12 months was a net gain of $609 . The maximum remaining maturity of any forward or optional contracts as of September 28, 2019 was 1.1 years . Interest Rate Swaps On October 20, 2016, we entered into a floating to fixed interest rate swap agreement to mitigate our exposure to interest rate increases related to a portion of our tranche B term loan facility. In connection with the repayment of a portion of the tranche B term loan facility during the fourth quarter of fiscal year 2019, we terminated the interest rate swap agreement. Prior to termination, every month we paid a fixed interest of 1.256% in exchange for interest received at one month U.S. LIBOR. The interest rate swap was designated as a cash flow hedge. As a result, changes in the fair value of the interest rate swap were recorded in AOCI within shareholders' equity in the Consolidated Balance Sheets. The unrealized gains on the interest rate swap associated with the interest payments on our tranche B term loan facility that are still forecasted to occur are included in AOCI. These gains will be reclassified into interest expense over the life of the original swap agreement as the hedged interest payments occur. The pretax amounts recognized in AOCI on interest rate swaps, including (gains) losses reclassified into earnings in the Consolidated Statements of Income and gains (losses) recognized in OCI, are as follows: 2019 2018 Beginning unrealized net gain (loss) in AOCI $ 7,411 $ 3,499 Net (gain) loss reclassified into interest expense (2,689 ) (1,204 ) Net gain (loss) recognized in OCI (3,643 ) 5,116 Ending unrealized net gain (loss) in AOCI $ 1,079 $ 7,411 As of September 28, 2019, the amount projected to be reclassified from AOCI into earnings in the next 12 months was a net gain of $886 . Foreign Currency Balance Sheet Derivatives We also use foreign currency derivative contracts to maintain the functional currency value of monetary assets and liabilities denominated in non-functional foreign currencies. The gains and losses related to the changes in the market value of these derivative contracts are included in other income (expense), net in the Consolidated Statements of Income. As of September 28, 2019 and September 29, 2018 , we had outstanding foreign currency balance sheet derivative contracts with gross notional U.S. dollar equivalent amounts of $60,827 and $90,816 , respectively. Upon netting offsetting contracts by counterparty banks to sell foreign currencies against contracts to purchase foreign currencies, irrespective of contract maturity dates, the net notional U.S. dollar equivalent amount of contracts outstanding at September 28, 2019 and September 29, 2018 was $118 and $28,271 , respectively. As of September 28, 2019 and September 29, 2018 , the net market value of the foreign exchange balance sheet derivative contracts was a net liability of $118 and a net asset of $91 , respectively. The net gain (loss) recognized in the Consolidated Statements of Income on foreign exchange balance sheet derivative contracts is as follows: 2019 2018 2017 Net gain (loss) recognized in other income (expense), net $ 365 $ 316 $ (876 ) |
Financing
Financing | 12 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
FINANCING | FINANCING Long-term debt consists of the following: 2019 2018 Long-term debt Tranche B term loan, 1.00% amortizing per year, maturing July 5, 2023 $ 173,695 $ 391,416 Senior unsecured notes, 5.75% coupon, maturing August 15, 2027 350,000 — Tangible equity units, 8.75% coupon, maturing July 1, 2019 1 — 7,290 Capital lease obligations 1,436 2,000 Total long-term debt $ 525,131 $ 400,706 Less: Unamortized underwriting discounts, commissions and other expenses (10,313 ) (8,623 ) Less: Current maturities of tranche B term loan debt 2, 3 (29,600 ) (28,600 ) Less: Current maturities of TEU debt 2 — (7,290 ) Less: Current maturities of capital lease obligations 2 (570 ) (553 ) Total long-term debt, less current maturities, net $ 484,648 $ 355,640 1 See Note 12 for more information on our TEUs. 2 In addition to the current maturities above, current maturities of long-term debt, net on the Consolidated Balance Sheets includes the current portion of unamortized underwriting discounts, commissions and other expenses of $2,201 and $3,705 as of September 28, 2019 and September 29, 2018 , respectively. 3 As of September 28, 2019 and September 29, 2018 , current maturities of tranche B term loan consist of the 1% annual payment and calculated required annual Excess Cash Flow payment as defined below, as well as planned prepayments. Tranche B Term Loan and Revolving Credit Facility We have a credit agreement with U.S. Bank National Association and HSBC Bank USA, National Association as Co-Documentation Agents, Wells Fargo Bank, National Association as Syndication Agent, JPMorgan Chase Bank, N.A. as Administrative Agent and JP Morgan Chase Bank, N.A. and Wells Fargo Securities, LLC as Joint Bookrunners and Joint Lead Arrangers (the Credit Agreement). The Credit Agreement as amended provides for senior secured credit facilities consisting of a $150,000 revolving credit facility (the Revolving Credit Facility) which expires on July 5, 2022, and a $460,000 tranche B term loan facility (the Term Facility) which expires on July 5, 2023. The proceeds of the Revolving Credit Facility can be drawn upon to refinance existing indebtedness, for working capital and for other general corporate purposes, up to a maximum of $150,000 . The Term Facility amortizes in equal quarterly installments equal to 1% of the original principal amount. The proceeds of the Term Facility were used for financing the acquisition of PCB Group, Inc. (PCB) in fiscal year 2016. Borrowings on the Revolving Credit Facility were used for financing the acquisition of E2M Technologies B.V. (E2M) in the first quarter of fiscal year 2019. In the first quarter of fiscal year 2019, in conjunction with the acquisition of E2M, we entered into a third amendment to the Credit Agreement to increase the borrowing capacity on the Revolving Credit Facility from $120,000 to $150,000 and extend the expiration date of the Revolving Credit Facility from July 5, 2021 to July 5, 2022. Additionally, the required performance levels under certain financial covenants were modified. During fiscal year 2019, we incurred debt financing costs of $541 as a result of this amendment which were capitalized in current maturities of long-term debt, net and long-term debt, less current maturities, net in the Consolidated Balance Sheets. The primary categories of borrowing include Alternate Base Rate (ABR) Borrowings (ABR Term Loans and ABR Revolving Loans), Swingline Loans and Eurocurrency Borrowings (Eurocurrency Term Loans and Eurocurrency Revolving Loans), each as defined in the Credit Agreement. ABR Borrowings and Swingline Loans made in U.S. dollars under the Credit Agreement bear interest at a rate per annum equal to the ABR plus the Applicable Rate (as defined in the Credit Agreement). The ABR is defined as the greater of (a) the Prime Rate (as defined in the Credit Agreement) in effect on such day, (b) the New York Federal Reserve Bank (NYFRB) rate (as defined in the Credit Agreement) in effect on such day plus ½ of 1.00% , or (c) the Adjusted LIBOR (as defined in the Credit Agreement) for a one-month interest period in dollars on such day plus 1.00% . The ABR for ABR Term Loans shall not be less than 1.75% per annum. The Applicable Rate for any ABR Revolving Loans is based upon the leverage ratio applicable on such date. As of September 28, 2019 , the Applicable Rate for ABR Term Loans was 2.25% per annum. Eurocurrency Borrowings made under the Credit Agreement bear interest at a rate per annum equal to the Adjusted LIBOR Rate plus the Applicable Rate. The Adjusted LIBOR Rate is defined as an interest rate per annum equal to (a) the LIBOR Rate for such interest period multiplied by (b) the Statutory Reserve Rate (as defined in the Credit Agreement). The Applicable Rate for any Eurocurrency Revolving Loans is based upon the leverage ratio applicable on such date. The Adjusted LIBOR Rate for Eurocurrency Term Loans shall not be less than 0.75% per annum. Based on our leverage ratio as of September 28, 2019 , the Applicable Rate for Eurocurrency Revolving Loans was 3.00% . As of September 28, 2019 , the Applicable Rate for Eurocurrency Term Loans was 3.25% per annum, plus the applicable Adjusted LIBOR rate of 2.06% . The weighted average interest rate on the Term Facility debt during fiscal year 2019 was 5.65% . As of September 28, 2019 and September 29, 2018 , there were no outstanding borrowings under the Revolving Credit Facility. We had outstanding letters of credit drawn from the Revolving Credit Facility totaling $21,173 and $20,448 as of September 28, 2019 and September 29, 2018 , respectively, leaving approximately $128,827 and $99,552 , respectively, of unused borrowing capacity. Commitment fees are payable on the unused portion of the Revolving Credit Facility at rates between 0.25% and 0.40% based on our leverage ratio. For fiscal years 2019 and 2018 , commitment fees incurred totaled $281 and $342 , respectively. The Credit Agreement governing the Term Facility requires us to prepay outstanding term loans, subject to certain exceptions, depending on the leverage ratio with (a) up to 50% of our annual Excess Cash Flow (as defined in the Credit Agreement) and (b) 100% of the net cash proceeds of (i) certain asset sales and casualty and condemnation events, subject to reinvestment rights and certain other exceptions; and (ii) any incurrence or issuance of certain debt, other than debt permitted under the Credit Agreement. We may voluntarily prepay outstanding loans under the Term Facility at any time without premium or penalty. All obligations under the Term Facility are unconditionally guaranteed by certain of our existing wholly-owned domestic subsidiaries, and are secured, subject to certain exceptions, by substantially all of our assets and the assets of our subsidiary guarantors. Under the Credit Agreement, we are subject to customary affirmative and negative covenants, including, among others, restrictions on our ability to incur debt; create liens; dispose of assets; make investments, loans, advances, guarantees and acquisitions; enter into transactions with affiliates; and enter into any restrictive agreements and customary events of default (including payment defaults, covenant defaults, change of control defaults and bankruptcy defaults). The Credit Agreement also contains financial covenants, including the ratio of consolidated total indebtedness to adjusted consolidated earnings before income, taxes, depreciation and amortization (Adjusted EBITDA), as defined in the Credit Agreement, as well as the ratio of Adjusted EBITDA to consolidated interest expense. These covenants restrict our ability to purchase outstanding shares of our common stock. As of September 28, 2019 and September 29, 2018 , we were in compliance with these financial covenants. See Note 18 for changes to our capital structure subsequent to the end of fiscal year 2019. Senior Unsecured Notes On July 16, 2019, we issued $350,000 in aggregate principal amount of 5.750% senior unsecured notes due in 2027 (the Notes). The Notes were issued pursuant to an Indenture dated as of July 16, 2019 among us, the Guarantors (as defined therein) and Wells Fargo Bank, National Association, as trustee (the Indenture). The Notes will mature on August 15, 2027. Interest accrues at the rate of 5.750% per annum and is payable semi-annually on each February 15 and August 15, with the first interest payment due on February 15, 2020. We used the net proceeds after discounts and expenses of $343,439 from the offering to repay all outstanding debt under the Revolving Credit Facility, to repay a portion of the Term Facility and for general corporate purposes. The Notes and the guarantees constitute senior unsecured obligations of the company and the Guarantors, respectively. The Notes are: (a) equal in right of payment with all existing or future unsecured indebtedness that is not subordinated to the Notes; (b) senior in right of payment to any existing or future indebtedness that is subordinated to the Notes; (c) unconditionally guaranteed by the Guarantors; (d) effectively subordinated to all existing or future indebtedness this is secured, including borrowings under the Credit Agreement, to the extent of the value of assets securing such indebtedness; and (e) structurally subordinated to all indebtedness, other liabilities and preferred stock, of any of our subsidiaries that are not Guarantors. The Indenture governing the Notes contains covenants that limit, among other things, our ability and the ability of our restricted subsidiaries to incur additional indebtedness or issue certain preferred shares, create liens; pay dividends, redeem stock or make other distributions; make investments; for our restricted subsidiaries to pay dividends to us or make other intercompany transfers; transfer or sell assets; merge or consolidate; enter into certain transactions with our affiliates; and designate subsidiaries as unrestricted subsidiaries. If we experience a change of control, we must offer to repurchase all of the Notes (unless otherwise redeemed) at a price equal to 101% of the aggregate principal amount of the Notes, plus accrued and unpaid interest, if any, on such Notes to the repurchase date. If we sell assets under certain circumstances, we must use the proceeds to make an offer to repurchase all of the Notes at a price equal to 100% of their principal amount, plus accrued and unpaid interest, if any, to the date of purchase. See Note 6 for additional information on the fair value of the Term Facility, the TEU debt and the Notes. Future Maturities of Long-term Debt Future maturities of long-term debt, excluding unamortized original issue discounts and deferred financing costs, for the next five fiscal years and thereafter are as follows: Fiscal Year Future Maturities 4 2020 $ 5,170 2021 5,188 2022 4,878 2023 159,895 2024 — Thereafter 350,000 4 Fiscal year 2020 includes the 1% annual payment on the Term Facility and current maturities of capital lease obligations. No Excess Cash Flow prepayment is required under the provisions of the Credit Agreement for the Term Facility. Fiscal years 2021 and thereafter exclude any Excess Cash Flow prepayments which may be required under the provisions of the Credit Agreement for the Term Facility based on fiscal year 2020 and subsequent fiscal year results because the amount of future prepayments, if any, is not reasonably estimable as of September 28, 2019 . Capital lease obligations expire on various dates through fiscal year 2022. Letters of Credit and Guarantees As of September 28, 2019 , we had outstanding letters of credit and guarantees totaling $23,121 and $26,665 , respectively, primarily to advance payments and performance guarantees related to customer contracts in Test & Simulation. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Sep. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION We compensate our officers, directors and employees with stock-based compensation under the 2017 Stock Incentive Plan (the 2017 Plan) approved by our shareholders and administered under the supervision of our Board of Directors. The 2017 Plan provides stock incentive awards in the form of stock options (incentive and non-qualified), stock appreciation rights, restricted stock, restricted stock units, performance stock, performance stock units and other awards. In fiscal year 2017, our shareholders approved the 2017 Plan and authorized 1,500 shares for issuance. As of September 28, 2019 , a total of 967 shares were available for issuance under the 2017 Plan. Shares will be available for issuance under the 2017 Plan until June 6, 2027 . We make an annual stock grant under the 2017 Plan of stock options, restricted stock units and performance restricted stock units, as well as stock grants throughout the fiscal year. For fiscal years 2019 , 2018 and 2017 , the annual stock grant occurred in December 2018, April 2018 and April 2017, respectively. Stock-based Compensation Expense Stock-based compensation expense recognized in the Consolidated Statements of Income is as follows: 2019 2018 2017 Stock-based compensation expense by type of award Employee stock options $ 2,415 $ 1,849 $ 1,588 Employee stock purchase plan 321 283 298 Restricted stock units and performance restricted stock units 6,694 5,112 3,737 Amounts capitalized as inventory (2,875 ) (1,799 ) (1,444 ) Amounts recognized in income for amounts previously capitalized as inventory 2,842 1,838 1,421 Total stock-based compensation included in income from operations 9,397 7,283 5,600 Income tax benefit on stock-based compensation (1,978 ) (1,763 ) (1,893 ) Net stock-based compensation expense included in net income $ 7,419 $ 5,520 $ 3,707 As of September 28, 2019 , there was $1,837 of total unrecognized expense related to non-vested awards of stock options which is expected to be recognized over a weighted average period of approximately 1.0 years . As of September 28, 2019 , there was $7,244 of total unrecognized expense related to non-vested awards of restricted stock units and performance restricted stock units which is expected to be recognized over a weighted average period of approximately 1.1 years . Stock Options Stock options are granted at an exercise price equal to the closing market price of our stock on the date of grant. Generally, stock options vest proportionally on the first three anniversaries of the grant date and expire, depending on the date of grant, five or seven years from the grant date. The fair value of stock options granted is estimated as of the date of each grant using the multiple option form of the Black-Scholes valuation model based on the exercise price and assumptions regarding the expected grant life, stock price volatility, dividends and risk-free interest rates. Each vesting period of an option award is valued separately and recognized evenly over the respective vesting period. The weighted average per share fair value of stock options granted during fiscal years 2019 , 2018 and 2017 was $9.91 , $11.10 and $8.91 , respectively. The weighted average assumptions used to determine fair value of stock options granted are as follows: 2019 2018 2017 Expected life (in years) 3.7 4.0 4.0 Risk-free interest rate 2.8 % 2.6 % 1.6 % Expected volatility 29.2 % 29.4 % 29.2 % Dividend yield 2.5 % 2.3 % 2.6 % The expected life represents the period that the stock option awards are expected to be outstanding and was determined based on historical and anticipated future exercise and expiration patterns. The risk-free interest rate used is based on the yield of constant maturity U.S. Treasury bonds on the grant date with a remaining term equal to the expected life of the grant. Stock price volatility is estimated based on a historical weekly price observation. The dividend yield assumption is based on the annualized current dividend divided by the share price on the grant date. Stock option activity is as follows: 2019 2018 2017 Shares WAEP 1 Shares WAEP 1 Shares WAEP 1 Options outstanding at beginning of year 881 $ 56.57 766 $ 57.86 784 $ 60.34 Granted 231 $ 48.58 245 $ 52.30 288 $ 46.35 Exercised (47 ) $ 48.04 (19 ) $ 47.26 (112 ) $ 40.68 Forfeited or expired (85 ) $ 56.47 (111 ) $ 57.64 (194 ) $ 60.74 Options outstanding at end of year 980 $ 55.11 881 $ 56.57 766 $ 57.86 Options eligible for exercise at year end 565 $ 59.37 443 $ 61.61 329 $ 64.52 1 Weighted Average Exercise Price Options outstanding as of September 28, 2019 had a weighted average remaining contractual term of 4.1 years and an aggregate intrinsic value of $3,594 . Options eligible for exercise as of September 28, 2019 had a weighted average remaining contractual term of 3.0 years and an aggregate intrinsic value of $1,165 . The total intrinsic value of stock options exercised during fiscal years 2019 , 2018 and 2017 was $459 , $121 and $1,467 , respectively. Restricted Stock Units and Performance Restricted Stock Units We award restricted stock units to directors. The restricted stock units vest one year from the date of the grant, provided the director continues to serve on the Board of Directors . The directors are entitled to cash dividend equivalents on restricted stock units, but they do not have voting rights on the unvested shares until they become owners of the shares, unless otherwise approved by the Compensation and Leadership Development Committee of the Board of Directors. Restricted stock units are valued based on the market value of the shares as of the date of grant with the value allocated to expense evenly over the restricted period. We award restricted stock units to key employees. Employees awarded restricted stock units are not entitled to cash dividends or voting rights on unvested units. Awards are valued based on the market value of our stock as of the date of grant with the value recognized as expense evenly over the restricted period. Restricted stock units vest proportionally on the first three anniversaries of the grant date. We award performance restricted stock units to key employees. Performance restricted stock units vest based on attainment of average return on invested capital performance targets over a one or three year performance period . Participants awarded performance restricted stock units are not entitled to cash dividends or voting rights on unvested units. Performance restricted stock units are valued based on the market value of our shares as of the date of grant with the value recognized as an expense over the performance period. Once the performance criteria has been met, the value of the performance restricted stock units is finalized at the end of the performance period. Restricted stock unit and performance restricted stock unit activity are as follows: 2019 2018 2017 Shares WAGDFV 2 Shares WAGDFV 2 Shares WAGDFV 2 Outstanding at beginning of year 267 $ 48.99 223 $ 49.95 165 $ 58.98 Granted 189 $ 47.41 140 $ 49.67 157 $ 45.05 Vested and released (97 ) $ 50.12 (75 ) $ 52.45 (68 ) $ 59.07 Forfeited (33 ) $ 47.44 (21 ) $ 48.96 (31 ) $ 53.08 Outstanding at end of year 326 $ 47.88 267 $ 48.99 223 $ 49.95 2 Weighted Average Grant Date Fair Value per share Employee Stock Purchase Plan Our U.S. employees are eligible to participate in the 2012 Employee Stock Purchase Plan (2012 ESPP). Employee purchases of our stock are funded through payroll deductions over calendar six -month periods. The purchase price is 85% of the lower of the market price at the beginning or end of the six -month period. The shares are required to be held by the employee for at least 18 months subsequent to the purchase. Employee stock purchase plan share awards are valued based on the value of the discount feature plus the fair value of the optional features as of the date of grant using the Black-Scholes valuation model. The value of these share awards is allocated to expense evenly over each purchase period. In fiscal year 2011, our shareholders approved the 2012 ESPP that was effective beginning January 1, 2012. As of September 28, 2019 , a total of 581 shares were available for issuance under the 2012 ESPP. Shares will be available for issuance under the 2012 ESPP until December 31, 2021 . In fiscal years 2019 , 2018 and 2017 , purchases under the 2012 ESPP were 34 , 24 and 25 shares, respectively, with weighted average prices per share of $34.11 , $44.39 and $40.49 |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 28, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Retirement Savings Plan We sponsor a defined contribution retirement savings plan for ceratin U.S. employees subject to the provisions of the Employee Retirement Income Security Act. These employees may contribute a portion of their eligible compensation to the plan on a pre-tax or after-tax basis. We match a portion of certain eligible employee contributions by contributing cash into the investment options selected by the employees. The total amount contributed by MTS is determined by plan provisions for matching contributions, as well as at our discretion. Matching contributions were 75% of eligible compensation for fiscal years 2019 , 2018 and 2017 , up to a maximum of 6% of compensation subject to Internal Revenue Service (IRS) limitations. Employer matching and discretionary contributions were $5,370 , $5,394 and $5,483 for fiscal years 2019 , 2018 and 2017 , respectively. Defined Benefit Pension Plan We sponsor a non-contributory, defined benefit pension plan for eligible employees of one of our German subsidiaries. This plan provides benefits based on the employee's years of service and compensation during the years immediately preceding retirement, termination, disability or death, as defined in the plan. We use a September 30 measurement date for this defined benefit pension plan. We recognize the funded status of the defined benefit pension plan in our Consolidated Balance Sheets, recognize changes in the funded status in the year in which the changes occur through comprehensive income and measure the plan's assets and obligations that determine the plan's funded status as of the end of our fiscal year. The portion of the pre-tax amount in AOCI as of September 29, 2018 that was recognized in earnings during fiscal year 2019 was $542 . The portion of the pretax amount in AOCI as of September 28, 2019 that is expected to be recognized as a component of net periodic retirement cost during fiscal year 2020 is $1,201 . The actuarial loss in fiscal year 2019 of $8,304 was primarily a result of the change in the discount rate from 1.89% in fiscal year 2018 to 0.72% in fiscal year 2019 . Changes in benefit obligations and plan assets are as follows: 2019 2018 Change in benefit obligation Projected benefit obligation, beginning of year $ 33,909 $ 32,280 Service cost 1,271 1,282 Interest cost 612 640 Actuarial (gain) loss 8,304 871 Currency translation (2,419 ) (405 ) Benefits paid (759 ) (759 ) Projected benefit obligation, end of year $ 40,918 $ 33,909 Change in plan assets Fair value of plan assets, beginning of year $ 23,871 $ 22,886 Actual return on plan assets 1,144 1,269 Employer contributions 759 759 Currency translation (1,534 ) (284 ) Benefits paid (759 ) (759 ) Fair value of plan assets, end of year $ 23,481 $ 23,871 The funded status of the defined benefit pension plan and amounts included in our Consolidated Balance Sheets are as follows: 2019 2018 Funded status Funded status, end of year $ (17,437 ) $ (10,038 ) Actuarial net loss in AOCI, pre-tax 16,546 9,496 Net amount recognized $ (891 ) $ (542 ) Included in Consolidated Balance Sheets Accrued payroll and related costs $ (853 ) $ (861 ) Defined benefit pension plan obligation (16,585 ) (9,177 ) Deferred income taxes 5,008 2,880 AOCI, net of tax 11,539 6,616 Net amount recognized $ (891 ) $ (542 ) The weighted average assumptions used to determine the defined benefit pension plan obligation as of September 28, 2019 and September 29, 2018 in the Consolidated Balance Sheets and the net periodic benefit cost for fiscal year 2020 are as follows: 2019 2018 Discount rate 0.72 % 1.89 % Expected rate of return on plan assets 5.50 % 5.50 % Expected rate of increase in future compensation levels 3.00 % 3.00 % The discount rate is calculated based on zero-coupon bond yields published by the Deutsche Bundesbank for maturities that match the weighted average duration of the pension liability, adjusted for the average credit spread of corporate bond rates above the government bond yields. The expected rate of return on plan assets represents the weighted average of the expected returns on individual asset categories in the portfolio. We use investment advisors to assist with determining the overall expected rate of return on plan assets. Factors considered in our determination include historical long-term investment performance and estimates of future long-term returns by asset class. The overall objective of our investment policy and strategy for the defined benefit pension plan is to maintain sufficient liquidity to pay benefits and minimize the volatility of returns while earning the highest possible rate of return over time to satisfy the benefit obligations. The plan fiduciaries assist us with setting our long-term strategic investment objectives for the defined benefit pension plan assets. The objectives include preserving the funded status of the trust and balancing risk and return. Investment performance and plan asset mix are reviewed periodically. As of both September 28, 2019 and September 29, 2018 , plan assets were invested in a single mutual fund, the underlying assets of which were allocated to fixed income and cash and cash equivalents categories as shown in the table below. Any decisions to change the asset allocation are made by the plan fiduciaries. The investment in equity and fixed income securities has a long-term targeted allocation of assets of 50% equity and 50% fixed income. The actual defined benefit pension plan asset allocations within the balanced mutual fund are as follows: Percentage of Plan Assets 2019 2018 Fixed income securities 1 77.8 % 77.2 % Cash and cash equivalents 2 22.2 % 22.8 % Total 100.0 % 100.0 % 1 Fixed income securities are comprised primarily of international government agency and international corporate bonds with investment grade ratings. 2 Cash and cash equivalents include deposit accounts holding cash in Euros and other currencies and term deposits primarily held as collateral for equity futures. The market values of the equity and futures are linked to the values of equity indices of developed country markets, including the U.S., Great Britain, Europe, Canada, Switzerland and Japan. The fair value of the defined benefit pension plan assets, which are subject to fair value measurement as described in Note 6, are as follows: September 28, 2019 Level 1 Level 2 Level 3 Total Mutual fund 3 $ — $ 23,481 $ — $ 23,481 September 29, 2018 Level 1 Level 2 Level 3 Total Mutual fund 3 $ — $ 23,871 $ — $ 23,871 3 The fair value of the mutual fund is valued based on closing prices from national exchanges, if the underlying securities are traded on an active market, or fixed income pricing models that use observable market inputs. Net periodic benefit cost for the defined benefit pension plan includes the following components: 2019 2018 2017 Service cost $ 1,271 $ 1,282 $ 1,426 Interest cost 612 640 431 Expected return on plan assets (1,271 ) (1,270 ) (1,085 ) Net amortization and deferral 542 526 996 Net periodic benefit cost $ 1,154 $ 1,178 $ 1,768 The accumulated benefit obligation of our defined benefit pension plan as of September 28, 2019 and September 29, 2018 was $37,182 and $31,077 , respectively. Future pension benefit payments, which reflect expected future service for the next five fiscal years and the combined five fiscal years thereafter, are as follows: Fiscal Year Pension Benefit Payments 2020 $ 852 2021 965 2022 1,031 2023 1,058 2024 1,081 2025 through 2028 6,336 Total $ 11,323 Other Retirement Plans Certain of our international subsidiaries have non-contributory, unfunded post-retirement benefit plans that provide retirement benefits for eligible employees and managing directors. Generally, these post-retirement plans provide benefits that accumulate based on years of service and compensation levels. As of September 28, 2019 and September 29, 2018 , the aggregate liabilities associated with these post-retirement benefit plans were $3,412 and $3,924 |
Income Taxes
Income Taxes | 12 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of income (loss) before income taxes are as follows: 2019 2018 2017 Domestic $ 17,474 $ 6,139 $ (9,658 ) Foreign 31,139 38,084 32,669 Total income (loss) before income taxes $ 48,613 $ 44,223 $ 23,011 The income tax provision (benefit) is as follows: 2019 2018 2017 Current Federal $ 2,392 $ 1,613 $ (1,493 ) State 1,171 565 156 Foreign 11,638 10,331 11,980 Deferred (9,655 ) (29,614 ) (12,716 ) Income tax provision (benefit) $ 5,546 $ (17,105 ) $ (2,073 ) A reconciliation from the U.S. federal statutory income tax rate to our effective income tax rate is as follows: 2019 2018 2017 U.S. federal statutory income tax rate 21 % 25 % 35 % Impact from foreign operations 10 3 (10 ) State income taxes, net of federal benefit 1 — (1 ) R&D tax credits (15 ) (10 ) (22 ) Domestic production activities deduction / foreign derived intangible income (5 ) (2 ) (10 ) Impact of U.S. Tax Act (2 ) (57 ) — Acquisition costs — — (3 ) Nondeductible stock option expense and other permanent items 1 2 2 Effective income tax rate 11 % (39 )% (9 )% The Tax Cuts and Jobs Act (the Tax Act) was enacted into law on December 22, 2017 and made significant changes to U.S. federal corporate tax law. Effective January 1, 2018, the Tax Act lowered the U.S. corporate tax rate from 35% to 21% and prompted various other changes to U.S. federal corporate tax law, including the establishment of a territorial-style system for taxing foreign-source income of domestic multinational corporations and a one-time deemed repatriation tax on untaxed foreign earnings. The Tax Act resulted in a U.S. federal blended statutory rates of 21.0% and 24.5% for fiscal years 2019 and 2018, respectively. Generally, the impacts of new tax legislation would be required to be recorded in the period of enactment, which was our first quarter of fiscal year 2018. However, in March 2018, the FASB issued ASU No. 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which incorporated various SEC paragraphs from Staff Accounting Bulletin No. 118 into income tax accounting guidance effective immediately, allowing registrants to record provisional amounts during a one-year measurement period. As of December 29, 2018, we completed our accounting for the tax effects of the Tax Act at the conclusion of the one-year measurement period. As a result, the income tax provision for the three months ended December 29, 2018 included certain discrete benefits of $1,293 for Tax Act measurement period adjustments. The discrete benefits relate to $1,297 of additional dividends received deduction for certain foreign tax credits included in the mandatory deemed repatriation tax calculation, partially offset by $4 of expense for other Tax Act measurement period adjustments. The additional dividends received deduction is based on our assessment of the treatment under the applicable provisions of the Tax Act as written and enacted during the first quarter of fiscal year 2019. The Department of the Treasury provided regulatory updates during the three months ended June 29, 2019, causing us to change our assessment of the benefit associated with the dividends received deduction, and in the third quarter of fiscal year 2019 to reverse the entire benefit of $1,297 that was recorded in the first quarter of fiscal year 2019. The fiscal year 2019 effective tax rate was 11.4% primarily due to certain discrete benefits of $3,547 for the favorable true-up of our previously recorded transition tax estimate, successful closure of prior year audit activity and the reduction in the Netherlands income tax rate resulting in remeasurement of the deferred tax liability associated with their intangible assets. Excluding the impact of these discrete items, the effective tax rate for fiscal year 2019 was 18.7% . Factors that increased the effective tax rate for fiscal year 2019 included impacts of the Tax Act, such as elimination of the domestic manufacturing deduction and the implementation of the global intangible low-taxed income (GILTI) provision. These increases were offset by favorable aspects of the Tax Act, such as the decrease in the U.S. income tax rate and provisions for incentivizing foreign-derived intangible income (FDII). In the first quarter of fiscal year 2019, we made an accounting policy election to treat the future tax impacts of the GILTI provisions of the Tax Act as a period cost to the extent applicable. The fiscal year 2018 effective tax rate was a benefit of 38.7% primarily due to certain discrete benefits of $25,008 for the estimated impact of the Tax Act. The discrete benefits primarily related to $31,647 of estimated benefit from the remeasurement of our estimated net deferred tax liabilities, partially offset by $6,639 of estimated expense associated with the mandatory deemed repatriation tax. Excluding the impact of these discrete benefits, the effective tax rate for fiscal year 2018 was 17.9% and increased compared to the prior year rate excluding the impact of certain discrete benefits primarily due to higher current year earnings before taxes, partially offset by the lower U.S. corporate tax rate under the Tax Act. The fiscal year 2017 effective tax rate was a benefit of 9.0% primarily due to certain discrete benefits of $2,801 recognized during the third quarter of fiscal year 2017, which consisted of additional U.S. tax benefits for prior fiscal years associated with domestic manufacturing, deductible PCB acquisition-related expenses, and the U.S. R&D tax credit. Excluding the impact of these discrete benefits, the effective tax rate for fiscal year 2017 was 3.2% . A summary of the deferred tax assets and liabilities are as follows: 2019 2018 Deferred tax assets Accrued compensation and benefits $ 15,014 $ 10,660 Inventory reserves 4,510 4,787 163(j) interest disallowance 4,253 — Other assets 4,565 4,255 Allowance for doubtful accounts 1,408 1,196 Net operating loss carryovers 2,103 516 State and foreign tax credit carryovers 1,224 1,252 Research and development tax credit carryovers 3,774 3,337 Unrealized derivative instrument gains 311 — Total deferred tax asset before valuation allowance 37,162 26,003 Less valuation allowance (5,279 ) (4,792 ) Total deferred tax assets 31,883 21,211 Deferred tax liabilities Property and equipment 13,158 10,210 Foreign deferred revenue and other 5,779 4,649 Intangible assets 47,248 48,019 Unrealized derivative instrument gains — 1,566 Total deferred tax liabilities 66,185 64,444 Net deferred tax assets (liabilities) $ (34,302 ) $ (43,233 ) As of September 28, 2019 , we had a Minnesota R&D tax credit carryover of $3,768 , which may be carried forward fifteen years . We also had New York and North Carolina tax credit carryovers of $1,224 . We have determined that the benefit of these tax credits are not likely to be realized before they expire and have recorded a full valuation allowance against these deferred tax assets. During fiscal year 2019, we repatriated $5,943 of current earnings from various foreign subsidiaries and recorded $437 of corresponding tax expense. During fiscal year 2018, we repatriated $54,778 of earnings from various foreign subsidiaries and recorded $1,249 of corresponding tax expense. During fiscal year 2017, we repatriated $15,272 of earnings from our German and Japanese subsidiaries and recorded $11 of corresponding tax expense. We have not recognized a deferred tax liability for the undistributed earnings of certain foreign operations because those subsidiaries have invested or will invest the undistributed earnings indefinitely. As of September 28, 2019 and September 29, 2018 , undistributed earnings were $68,784 and $73,819 , respectively. Because of the availability of U.S. dividends received deductions, it is impracticable for us to determine the amount of U.S. federal tax liability that would be payable if these earnings were not indefinitely reinvested. Deferred taxes are recorded for earnings of foreign operations when we determine that such earnings are no longer indefinitely reinvested. A summary of changes to our liability for unrecognized tax benefits is as follows: 2019 2018 Beginning liability for unrecognized tax benefits $ 6,158 $ 5,849 Increase due to tax positions related to the current year 663 742 Increase (decrease) due to tax positions related to prior years 960 277 Decrease due to settlements with tax authorities (2,635 ) — Decrease due to lapse of statute of limitations (732 ) (710 ) Ending liability for unrecognized tax benefits $ 4,414 $ 6,158 Included in the liability of unrecognized tax benefits as of September 28, 2019 and September 29, 2018 are potential benefits of $2,761 and $3,740 , respectively, that, if recognized, would impact the effective tax rate. As of September 28, 2019 and September 29, 2018 , we have accrued interest related to uncertain income tax positions of approximately $332 and $542 , respectively. As of September 28, 2019 and September 29, 2018 , no accrual for penalties related to uncertain tax positions existed. Interest and penalties related to uncertain tax positions are included in interest expense, net and general and administrative expense, respectively, in the Consolidated Statements of Income. We are subject to U.S. federal income tax as well as income tax of numerous state and foreign jurisdictions. We are no longer subject to U.S. federal tax examinations for fiscal years ending before fiscal year 2018 and with limited exceptions, state and foreign income tax examinations for fiscal years ending before fiscal year 2015. As of September 28, 2019 , we do not expect significant changes in the amount of unrecognized tax benefits for our U.S. or foreign subsidiaries during the next 12 months. As of September 28, 2019 and September 29, 2018 , we expected to receive income tax refunds within the next fiscal year. As a result, we recognized a current income tax receivable of $4,282 and $5,155 as of September 28, 2019 and September 29, 2018 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Sep. 28, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS' EQUITY Tangible Equity Units During the third quarter of fiscal year 2016, we issued 1,150 TEUs in a registered public offering primarily to finance the acquisition of PCB, to repay amounts outstanding under our existing revolving credit facility and to pay related costs, fees and expenses. Total proceeds, net of underwriting discounts, commissions and other expenses were $110,926 . Each TEU had a stated amount of $100 per TEU and was comprised of a prepaid stock purchase contract and a senior amortizing note having a final installment payment date of July 1, 2019. We allocated the proceeds from the issuance of the TEUs between equity and debt based on the relative fair values of the respective components of each TEU. The fair value of the prepaid stock purchase contracts, net of underwriting discounts, commissions and other expenses, was recorded in additional paid-in capital in the Consolidated Balance Sheets. The fair value of the senior amortizing notes, net of underwriting discounts, commissions and other expenses, was split between current maturities of long-term debt, net and long-term debt, less current maturities, net in the Consolidated Balance Sheets. Underwriting discounts, commissions and other costs directly associated with the TEU-related debt were amortized using the effective interest rate method over the three -year term of the instrument. The aggregate values assigned upon issuance to each component of the TEUs, based on the relative fair value of the respective components, were as follows: Equity Component Debt Component Total Fair value price per TEU 1 $ 76.19 $ 23.81 $ 100.00 Gross proceeds $ 87,614 $ 27,386 $ 115,000 Less: Underwriting discounts and commissions (2,628 ) (822 ) (3,450 ) Less: Other expenses 2 (475 ) (149 ) (624 ) Issuance of TEUs, net $ 84,511 $ 26,415 $ 110,926 1 The fair value price allocation between equity and debt for each TEU was determined using a discounted cash flow model. 2 Other expenses include direct and incremental costs related to the issuance of the TEUs. Equity Component During the fourth quarter of fiscal year 2017, certain holders of our TEUs elected to early convert the equity component on 473 of our outstanding TEUs at the minimum conversion rate of 1.9841 which resulted in the issuance of 939 shares of our common stock. During fiscal year 2018, no holders of our TEUs elected to early convert the equity component of our TEUs. During the third quarter of fiscal year 2019, certain holders of our TEUs elected to early convert the equity component on 394 of our outstanding TEUs at the minimum conversion rate of 1.9841 which resulted in the issuance of 781 shares of our common stock. During the fourth quarter of fiscal year 2019, the remaining 283 outstanding TEUs were converted at the minimum conversion rate of 1.9841 which resulted in the issuance of 561 shares of our common stock. As of September 28, 2019, no TEUs were outstanding. Debt Component During the fourth quarter of fiscal year 2019, we made the final quarterly cash installment payment of $2.1875 per amortizing note. Capped Calls In connection with the pricing of the TEUs sold in our public offering in fiscal year 2016, we purchased capped calls from third party banking institutions (Capped Calls) for $7,935 . The initial Capped Calls were for 2,282 equivalent shares of our common stock with a strike price of $50.40 , a cap price of $58.80 and an expiration date of July 1, 2019. The value of the Capped Calls is settled with shares of our common stock, based on the approximate market value of our common stock at such time, and could be settled as the TEUs were early converted or settled upon expiration on July 1, 2019 (Capped Call Expiration). During the fourth quarter of fiscal year 2017, we settled approximately 10% of the Capped Calls, which resulted in us receiving and retiring 12 shares of our common stock. During fiscal year 2018, no Capped Calls were settled. On June 13, 2018, we amended the agreements with third party banking institutions for the outstanding Capped Calls (Capped Call Agreements) to modify the timing of settlement to be only upon expiration for all outstanding Capped Calls. Per the Capped Call Agreements, the outstanding Capped Calls were for 2,054 equivalent shares of our common stock with a strike price of $50.40 and a cap price of $57.97 . The Capped Calls automatically settled upon Capped Call Expiration with shares of our common stock based on the average market value of our common stock as defined in the Capped Call Agreements, resulting in us receiving and retiring 223 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings per share is computed by dividing net income by the daily weighted average number of common shares outstanding during the applicable period. In fiscal years 2018 and 2017, the TEUs were assumed to be settled at the minimum settlement amount of 1.9841 shares per TEU when calculating weighted average common shares outstanding for purposes of basic earnings per share. Under the treasury stock method, shares associated with certain stock options have been excluded from the diluted weighted average shares outstanding calculation because the exercise of those options would lead to a net reduction in common shares outstanding or anti-dilution. As a result, stock options to acquire 805 , 584 and 726 weighted common shares have been excluded from the diluted weighted shares outstanding calculation for fiscal years 2019 , 2018 and 2017 , respectively. In connection with the pricing of the TEUs, we purchased capped calls. The capped calls were settled in the fourth quarter of fiscal year 2019 and have been reflected in the calculation of diluted earnings in fiscal year 2019. See Note 12 for additional information on our equity instruments. Basic and diluted earnings per share were calculated as follows: 2019 2018 2017 Net income $ 43,067 $ 61,328 $ 25,084 Weighted average common shares outstanding 19,258 19,163 19,040 Effect of dilutive securities Stock-based compensation 189 130 97 Weighted average dilutive common shares outstanding 19,447 19,293 19,137 Earnings per share Basic $ 2.24 $ 3.20 $ 1.32 Diluted $ 2.21 $ 3.18 $ 1.31 |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 12 Months Ended |
Sep. 28, 2019 | |
Equity [Abstract] | |
OTHER COMPREHENSIVE INCOME (LOSS) | OTHER COMPREHENSIVE INCOME (LOSS) Other comprehensive income (loss), a component of shareholders' equity, consists of foreign currency translation adjustments, gains or losses on derivative instruments and defined benefit pension plan adjustments. Income tax expense or benefit allocated to each component of other comprehensive income (loss) is as follows: 2019 2018 2017 Pretax Tax Net Pretax Tax Net Pretax Tax Net Foreign currency translation gain (loss) adjustments $ (9,980 ) $ — $ (9,980 ) $ (2,174 ) $ — $ (2,174 ) $ 3,273 $ — $ 3,273 Derivative instruments Unrealized net gain (loss) (2,723 ) 582 (2,141 ) 5,832 (1,507 ) 4,325 3,301 (1,191 ) 2,110 Net (gain) loss reclassified to earnings (3,715 ) 810 (2,905 ) (805 ) 207 (598 ) 155 (57 ) 98 Defined benefit pension plan Unrealized net gain (loss) (8,247 ) 2,489 (5,758 ) (890 ) 269 (621 ) 5,918 (1,786 ) 4,132 Net (gain) loss reclassified to earnings 542 (163 ) 379 526 (159 ) 367 996 (300 ) 696 Currency exchange rate gain (loss) 456 — 456 90 — 90 (489 ) — (489 ) Other comprehensive income (loss) $ (23,667 ) $ 3,718 $ (19,949 ) $ 2,579 $ (1,190 ) $ 1,389 $ 13,154 $ (3,334 ) $ 9,820 The changes in the net-of-tax balances of each component of AOCI are as follows: Foreign Currency Translation Adjustments Unrealized Derivative Instrument Adjustments Defined Benefit Pension Plan Adjustments Total Balance, October 1, 2016 $ 673 $ (255 ) $ (10,791 ) $ (10,373 ) Other comprehensive net gain (loss) reclassifications 3,273 2,110 3,643 9,026 Net (gain) loss reclassified to earnings — 98 696 794 Other comprehensive income (loss) 3,273 2,208 4,339 9,820 Balance, September 30, 2017 $ 3,946 $ 1,953 $ (6,452 ) $ (553 ) Other comprehensive net gain (loss) reclassifications (2,174 ) 4,325 (531 ) 1,620 Net (gain) loss reclassified to earnings — (598 ) 367 (231 ) Other comprehensive income (loss) (2,174 ) 3,727 (164 ) 1,389 Reclassification to retained earnings 1 — 640 — 640 Balance, September 29, 2018 $ 1,772 $ 6,320 $ (6,616 ) $ 1,476 Other comprehensive net gain (loss) reclassifications (9,980 ) (2,141 ) (5,302 ) (17,423 ) Net (gain) loss reclassified to earnings — (2,905 ) 379 (2,526 ) Other comprehensive income (loss) (9,980 ) (5,046 ) (4,923 ) (19,949 ) Balance, September 28, 2019 $ (8,208 ) $ 1,274 $ (11,539 ) $ (18,473 ) 1 Deferred taxes stranded in AOCI as a result of the Tax Act that were reclassified to retained earnings upon adoption of ASU 2018-02. The effect on certain line items in the Consolidated Statements of Income of amounts reclassified out of AOCI are as follows: 2019 2018 2017 Affected Line Item in the Consolidated Statements of Income Derivative instruments Currency exchange contracts gain (loss) $ 1,026 $ (399 ) $ 459 Revenue Interest rate swap contracts gain (loss) 2,689 1,204 (614 ) Interest expense, net Income tax benefit (expense) (810 ) (207 ) 57 Income tax provision (benefit) Total net gain (loss) on derivative instruments 2,905 598 (98 ) Net income Defined benefit pension plan 2 Actuarial loss — (288 ) (543 ) Cost of sales Actuarial loss — (148 ) (282 ) Selling and marketing Actuarial loss — (90 ) (171 ) General and administrative Actuarial loss (542 ) — — Other income (expense), net Total actuarial loss (542 ) (526 ) (996 ) Income before income taxes Income tax benefit 163 159 300 Income tax provision (benefit) Total net loss on pension plan (379 ) (367 ) (696 ) Net income Total net of tax reclassifications out of $ 2,526 $ 231 $ (794 ) 2 Change in classification of actuarial loss on defined benefit pension plan related to the adoption of ASU No. 2017-07 in fiscal year 2019. See Note 2 for additional information on the impact of adoption. |
Business Segment Information
Business Segment Information | 12 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENT INFORMATION | BUSINESS SEGMENT INFORMATION Our Chief Executive Officer (the Chief Operating Decision Maker) regularly reviews financial information for our two operating segments, Test & Simulation and Sensors. Test & Simulation manufactures and sells equipment and related software and services which are used by customers to characterize a product's mechanical properties or performance. Sensors manufactures and sells high-performance sensors which provide measurements of vibration, pressure, position, force and sound in a variety of applications. In evaluating each segment's performance, our Chief Executive Officer focuses on income from operations. This measure excludes interest income and expense, income taxes and other non-operating items. Corporate expenses, including costs associated with various support functions such as human resources, information technology, legal, finance and accounting, and general and administrative costs are allocated to the reportable segments on the basis of revenue. The accounting policies of the reportable segments are the same as those described in Note 1 and Note 3 of this Annual Report on Form 10-K. Intersegment revenue is based on standard costs with reasonable mark-ups established between the reportable segments. All significant intersegment amounts are eliminated to arrive at consolidated financial results. Financial information by reportable segment is as follows: 2019 2018 2017 Revenue Test & Simulation $ 558,908 $ 464,924 $ 504,087 Sensors 334,976 314,269 283,868 Intersegment eliminations (1,366 ) (1,161 ) — Total revenue $ 892,518 $ 778,032 $ 787,955 Income from Operations Test & Simulation $ 34,080 $ 19,225 $ 28,622 Sensors 45,620 45,980 26,206 Intersegment eliminations 5 (33 ) — Total income from operations $ 79,705 $ 65,172 $ 54,828 Identifiable Assets Test & Simulation $ 419,403 $ 299,242 $ 374,698 Sensors 878,602 840,187 814,994 Intersegment eliminations (28 ) (33 ) — Total identifiable assets $ 1,297,977 $ 1,139,396 $ 1,189,692 Goodwill Test & Simulation $ 61,153 $ 24,631 $ 25,109 Sensors 367,886 344,644 344,653 Total goodwill $ 429,039 $ 369,275 $ 369,762 Capital Expenditures Test & Simulation $ 18,792 $ 8,111 $ 13,281 Sensors 11,733 4,210 4,517 Total capital expenditures $ 30,525 $ 12,321 $ 17,798 Depreciation and Amortization Test & Simulation $ 19,529 $ 16,353 $ 17,275 Sensors 18,446 18,139 18,248 Total depreciation and amortization $ 37,975 $ 34,492 $ 35,523 Geographic information is as follows: 2019 2018 2017 Revenue U.S. $ 306,574 $ 245,909 $ 246,679 Europe 224,982 223,236 192,491 China 189,227 165,421 174,044 Asia, excluding China 131,771 113,953 142,644 Americas, excluding U.S. 39,964 29,513 32,097 Total revenue $ 892,518 $ 778,032 $ 787,955 Property and Equipment, Net U.S. $ 81,119 $ 69,782 $ 78,080 Europe 13,927 15,130 15,296 China 5,424 4,858 5,542 Asia, excluding China 613 499 1,012 Total property and equipment, net $ 101,083 $ 90,269 $ 99,930 Revenue by geographic area is presented based on customer location. The U.S. and China were the only countries with revenue in excess of 10% of total revenue during fiscal years 2019 , 2018 and 2017 . No single customer accounted for 10% or more of consolidated revenue for fiscal years 2019 , 2018 and 2017 . Revenue is not reported for each of our products and services because it is impracticable to do so. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Sep. 28, 2019 | |
Business Combinations [Abstract] | |
BUSINESS ACQUISITIONS | BUSINESS ACQUISITIONS E2M Technologies B.V. Acquisition On November 21, 2018, we acquired all ownership interests of E2M for a cash purchase price of $80,287 . Based in Amsterdam, Netherlands, E2M is a leading manufacturer of high force, electrically driven actuation systems, serving primarily the human-rated entertainment and training simulation markets. The acquisition of E2M expands our technology and product offerings for human-rated simulation systems and brings key regulatory approvals and customers in the flight simulation and entertainment markets. The transaction was accounted for under the acquisition method of accounting. The acquired assets, liabilities and operating results have been included in our financial statements within Test & Simulation from the date of acquisition. During fiscal year 2019 , we included $29,554 of revenue from E2M in our Consolidated Statements of Income. We funded the acquisition of E2M primarily with borrowings on our Revolving Credit Facility. Costs of $1,287 associated with the acquisition of E2M were expensed as incurred. Pro forma information related to the acquisition of E2M has not been included as the impact on our consolidated results of operations was not considered material. The following table summarizes the final fair value measurement of the assets acquired and liabilities assumed, net of cash acquired, as of the date of acquisition: Fair Value Finite-Lived Intangible Asset Lives (Years) Asset (Liability) Accounts receivable $ 4,651 Unbilled accounts receivable 1,518 Inventories 11,063 Prepaid expenses and other current assets 123 Property and equipment 672 Intangible assets Customer lists 21,652 15 Trademarks and trade names 5,926 15 Technology 12,650 15 Other intangible assets 3,761 4 Other long-term assets 60 Purchased goodwill 36,665 Accounts payable (3,657 ) Accrued payroll and related costs (1,328 ) Advance payments from customers (4,315 ) Accrued income taxes (290 ) Other accrued liabilities (127 ) Deferred income taxes (10,477 ) Net assets acquired $ 78,547 Supplemental information Consideration paid at closing $ 79,772 Post-closing purchase price adjustment 515 Less: Cash acquired (1,740 ) Purchase price, net of cash acquired $ 78,547 The fair value measurement was completed as of September 28, 2019 . Measurement period adjustments were recorded in fiscal year 2019 and have been reflected in the table above. Goodwill was calculated as the difference between the acquisition date fair value of the total purchase price consideration and the fair value of the net assets acquired and represents the future economic benefits that we expect to achieve as a result of the acquisition. This resulted in a purchase price in excess of the fair value of identifiable net assets acquired. The purchase price also included the fair value of other assets that were not identifiable, not separately recognizable under accounting rules (e.g., assembled workforce) or of immaterial value. All of the goodwill was assigned to Test & Simulation. None of the goodwill is deductible for income tax purposes. The fair value of the acquired intangible assets was $43,989 . The acquired intangible assets are being amortized on a straight-line basis over the useful lives identified in the table above. Endevco Acquisition On August 5, 2019, we acquired the Endevco sensors business from Meggitt PLC for a cash purchase price of $68,330 . Endevco is a historic leader in high performance test and measurement sensors used primarily in the testing of new products. This strategic product line purchase brings together two iconic brands in the test and measurement sensors market, in PCB and Endevco, and further enhances our long-term strategy of growth and market leadership in our core businesses. The transaction was accounted for under the acquisition method of accounting. The acquired assets and operating results have been included in our financial statements within Sensors from the date of acquisition. During fiscal year 2019, we included $4,409 of revenue from Endevco in our Consolidated Statements of Income. We funded the acquisition of Endevco through cash on hand. Costs of $1,388 associated with the acquisition of Endevco were expensed as incurred. Pro forma information related to the acquisition of Endevco has not been included as the impact on our consolidated results of operations was not considered material. The following table summarizes the preliminary fair value measurement of the assets acquired as of the date of acquisition: Fair Value Finite-Lived Intangible Asset Lives (Years) Asset Inventories $ 11,890 Property and equipment 1,078 Intangible assets Customer lists 13,200 15 Trademarks and trade names 7,900 15 Technology 4,400 15 Purchased goodwill 23,292 Deferred income taxes 6,570 Net assets acquired $ 68,330 Supplemental information Consideration paid at closing $ 70,000 Post-closing purchase price adjustment (1,670 ) Purchase price $ 68,330 The allocation of purchase price consideration is considered preliminary as of September 28, 2019 with provisional amounts related to inventory, property and equipment, intangible assets, deferred income taxes and purchase price adjustments included as our allocation process has not been finalized. We expect to finalize the allocation of purchase price as soon as possible, but no later than one year from the acquisition date. Goodwill was calculated as the difference between the acquisition date fair value of the total purchase price consideration and the fair value of the net assets acquired and represents the future economic benefits that we expect to achieve as a result of the acquisition. This resulted in a purchase price in excess of the fair value of identifiable assets acquired. The purchase price also included the fair value of other assets that were not identifiable, not separately recognizable under accounting rules (e.g., assembled workforce) or of immaterial value. All of the goodwill was assigned to Sensors. All of the goodwill is deductible for income tax purposes. The fair value of the acquired intangible assets was $25,500 . The acquired intangible assets are being amortized on a straight-line basis over the useful lives identified in the table above. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation We are subject to various claims, legal actions and complaints arising in the ordinary course of business. We believe the final resolution of legal matters outstanding as of September 28, 2019 will not have a material adverse effect on our consolidated financial position or results of operations. We expense legal costs as incurred. Operating Leases We have operating lease commitments for equipment, automobiles, land and facilities that expire on various dates through 2052. Total lease expense was $9,055 , $7,924 and $7,506 for fiscal years 2019 , 2018 and 2017 , respectively. Minimum annual rents payable under operating leases for the next five fiscal years and thereafter are as follows: Fiscal Year Operating Lease Payments 2020 $ 7,149 2021 5,291 2022 3,124 2023 1,602 2024 1,085 Thereafter 1,789 Total $ 20,040 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Sep. 28, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS Amendment to the Credit Agreement On November 1, 2019, we entered into a fourth amendment to the Credit Agreement, which governs the Term Facility and Revolving Credit Facility, to increase the borrowing capacity on the Revolving Credit Facility to $200,000 and extend the expiration date to July 5, 2023. Additionally, the required performance levels under certain financial covenants were modified. See Note 8 for additional information on financing arrangements. Business Acquisition On November 22, 2019, we signed a definitive agreement to acquire 100% of the stock of R&D Test Systems, R&D Engineering, R&D Steel, R&D Prague, RGDK Engineering Private Limited and R&D Tools and Structures (collectively, "R&D") for approximately $80,000 , subject to working capital and other adjustments. We expect the deal to close by December 31, 2019, subject to customary closing provisions. Based out of Denmark, R&D is a leader in high-quality, durable, rotating test systems, serving primarily the wind energy markets. As a strategic addition to Test & Simulation, the acquisition is structured with an upfront payment of approximately $55,000 to be funded primarily through our existing Revolving Credit Facility, with expected earn-out payments of up to an additional $25,000 based on financial performance through June 2021. |
Schedule II _ Summary of Consol
Schedule II – Summary of Consolidated Allowances for Doubtful Accounts | 12 Months Ended |
Sep. 28, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II – Summary of Consolidated Allowances for Doubtful Accounts | MTS Systems Corporation Schedule II – Summary of Consolidated Allowances for Doubtful Accounts Changes to the allowance for doubtful accounts receivable are as follows: 2019 2018 2017 Beginning balance $ 5,004 $ 5,371 $ 3,923 Provisions / (recoveries) 1,864 2,142 1,930 Amounts written-off / payments (734 ) (2,378 ) (551 ) Currency translation (171 ) (131 ) 69 Ending balance $ 5,963 $ 5,004 $ 5,371 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 28, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations | Nature of Operations MTS Systems Corporation is a leading global supplier of high-performance test systems, motion simulators and sensors. Our testing and simulation hardware, software and service solutions help customers accelerate and improve their design, development and manufacturing processes and are used for determining the mechanical behavior of materials, products and structures. Our high-performance sensors provide measurements of vibration, pressure, position, force and sound in a variety of applications to enable automation, enhance precision and safety, and lower our customers' production costs by improving performance and reducing downtime. |
Fiscal Year | Fiscal Year We have a 5-4-4 week, quarterly accounting cycle with our fiscal year ending on the Saturday closest to September 30. Fiscal years 2019 , 2018 and 2017 ended September 28, 2019 , September 29, 2018 and September 30, 2017 , respectively. Fiscal years 2019 , 2018 and 2017 all included 52 weeks. |
Consolidation | Consolidation |
Revenue Recognition | Revenue Recognition As described in Note 2, we adopted Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606), followed by related amendments, on September 30, 2018 under the modified retrospective transition method. Our new revenue recognition accounting policy and disclosures relative to this guidance are included in Note 3. Contract Estimates For contracts recognized over time, we estimate the profit on a contract as the difference between the total estimated revenue and expected costs to complete a contract and recognize that profit over the life of the contract. Contract estimates are based on various assumptions to project the outcome of future events that may span several years. These assumptions include labor productivity and availability, the complexity of the work to be performed, the cost and availability of materials, and internal and subcontractor performance. Pricing is established at or prior to the time of sale with our customers, and we record sales at the agreed-upon selling price. The terms of a contract or the historical business practice can give rise to variable consideration due to but not limited to volume discounts, penalties and early payment discounts. We estimate variable consideration at the most likely amount we will receive from customers. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized for such transaction will not occur, or when the uncertainty associated with the variable consideration is resolved. In general, variable consideration in our contracts relates to the entire contract. As a result, the variable consideration is allocated proportionately to all performance obligations. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all information (historical, current and forecasted) that is reasonably available to us at contract inception. There are no significant instances where variable consideration is constrained and not recorded at the initial time of sale. As a significant change in one or more of these estimates could affect the profitability of our contracts, we review and update our contract-related estimates regularly. We recognize adjustments in estimated profit on contracts under the cumulative catch-up method. Under this method, the impact of the adjustment on profit recorded to date is recognized in the period the adjustment is identified. Revenue and profit in future periods of contract performance is recognized using the adjusted estimate. If at any time the estimate of contract profitability indicates an anticipated loss on the contract, we recognize the total loss in the period it is identified. Our review of contract-related estimates has not resulted in adjustments that are significant to our results of operations. Contract Modifications When contracts are modified to account for changes in contract specifications and requirements, we consider whether the modification either creates new, or changes existing, enforceable rights and obligations. Contract modifications that are for goods or services that are not distinct from the existing contract, due to the significant integration with the original product or service provided, are accounted for as if they were part of that existing contract. The effect of a contract modification on the transaction price, and our measure of progress for the performance obligation to which it relates, is recognized as an adjustment to revenue (either as an increase in or a reduction of revenue) under the cumulative catch-up method. When the modifications include additional performance obligations that are distinct and at a relative stand-alone selling price, they are accounted for as a new contract and performance obligation and recognized prospectively. Warranties and Returns For both Test & Simulation and Sensors, we provide a manufacturer's warranty on our products and systems which is included in customer contracts. At the time a sale is recognized, we record estimated future warranty costs. See Note 4 for further discussion of our product warranty liabilities. We also offer separately-priced extended warranties or service-type contracts on certain products for which revenue is recognized over the contractual period or as services are rendered. Our sales terms generally do not allow for a right of return except for situations where the product fails. When the right of return exists, we recognize revenue for the transferred products at the expected amount of consideration for which we will be entitled. Shipping and Handling Freight revenue billed to customers is reported within revenue in the Consolidated Statements of Income. Expenses incurred for shipping products to customers are reported within cost of sales in the Consolidated Statements of Income. Pre-contract Costs The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled accounts receivable (contract assets) and advance payments from customers (contract liabilities). Contract balances are classified as assets or liabilities on a contract-by-contract basis at the end of each reporting period. Contract liabilities represent payments received from customers at contract inception and at milestones per contract provisions. These payments are recorded in advance payments from customers and other long-term liabilities in our Consolidated Balance Sheets (current and non-current portions, respectively) and are liquidated as revenue is recognized. Conversely, when billing occurs subsequent to revenue recognition for contracts recognized over time, balances are recorded in unbilled accounts receivable, net in our Consolidated Balance Sheets. As customers are billed, unbilled accounts receivable balances are transferred to accounts receivable, net in the Consolidated Balance Sheets. Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for transferring those goods or providing those services. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are known, the contract has commercial substance and collectability of consideration is probable. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer and is the unit of account under the new revenue standard. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Many of our contracts have a single performance obligation as the promise to transfer the individual goods or services is not separately identifiable from other promises in the contracts and, therefore, not distinct. In situations when our contract includes distinct goods or services that are substantially the same and have the same pattern of transfer to the customer over time, they are recognized as a series of distinct goods or services. For contracts with multiple performance obligations, we allocate the contract's transaction price to each performance obligation using our best estimate of the standalone selling price of each distinct good or service in the contract. We do not adjust the promised amount of consideration for the effects of a significant financing component if we expect, at contract inception, that the period between when we transfer a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Revenue is recorded net of taxes collected from customers, and taxes collected are recorded as current liabilities until remitted to the relevant government authority. Shipping and handling costs associated with outbound freight after control of a product has transferred are accounted for as a fulfillment cost and are included in cost of sales in the Consolidated Statements of Income. The following is a description of the product offerings, end markets, typical revenue transactions and payment terms for each of our two reportable segments. See Note 15 for further information on reportable segments. Test & Simulation Test & Simulation manufactures and sells equipment and related software and services which are used by customers to characterize a product's mechanical properties or performance. Our solutions simulate forces and motions that customers expect their products to encounter in use or are necessary to properly characterize the product's performance. Primary Test & Simulation markets include transportation, infrastructure, energy, aerospace, materials science, medical, flight training and amusement parks. A typical system is a comprehensive solution which includes a reaction frame to hold the prototype specimen; a hydraulic or electro-mechanical power source; actuators to create the force or motion; and a computer controller with specialized software to coordinate the actuator movement and to measure, record, analyze and manipulate results. Our portfolio of Test & Simulation solutions includes standard, configurable testing products; engineered products which combine standard product configurations with a moderate degree of customization per customer specifications; and highly customized, highly engineered testing solutions built to address the customer's unique business need, which can include development of first-of-a-kind technology. To complement our Test & Simulation products, we provide our customers with a spectrum of services to maximize product performance including installation, product life cycle management, professional training, calibration and metrology, technical consulting and onsite and factory repair and maintenance. In addition, we sell a variety of accessories and spare parts. The manufacturing cycle for a typical system ranges from weeks to 12 months , depending on the complexity of the system and the availability of components, and can be several years for larger, more complex systems. For certain contracts, the order to revenue cycle may extend beyond the manufacturing cycle, such as when the manufacturing start date is driven by the customer's project timeline or when the contract terms require equipment installation and commissioning and customer acceptance prior to point-in-time revenue recognition. Test & Simulation contracts often have multiple performance obligations, most commonly due to the contract covering multiple phases of the product life cycle (i.e., equipment design and production, installation and commissioning, extended warranty and software maintenance). The primary method used to estimate standalone selling price is the expected cost plus a margin approach under which we forecast our expected costs of satisfying a performance obligation and then add an appropriate margin for that distinct good or service. Test & Simulation revenue is recognized either over time as work progresses or point-in-time, depending on contract-specific terms and the pattern of transfer of control of the product or service to the customer. Revenue from services is recognized in the period the service is performed or ratably over the period of the related service contract. Equipment revenue is recognized over time when: (i) control is transferred to the customer over time as work progresses; or (ii) contract terms evidence customer control of the work in process or an enforceable right to payment with no alternative use. Equipment revenue is recognized over time using costs incurred to date relative to total estimated costs at completion to measure progress toward satisfying the performance obligation. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Equipment contract costs include materials, component parts, labor and overhead costs. Equipment revenue is recognized point-in-time when either: (i) control is transferred to the customer at a point-in-time when obligations under the terms of the contract are satisfied; or (ii) contract terms do not evidence customer control of the work in process or an enforceable right to payment with no alternative use, and consequently revenue is deferred as work progresses. Satisfaction of performance obligations under the terms of the contract occurs either upon product shipment (as evidenced by delivery or shipment terms), completion of equipment installation and commissioning, or customer acceptance. For our Test & Simulation contracts with customers, payment terms vary and are subject to negotiation. Typical payment terms include progress payments based on specified events or milestones. For some contracts, we are entitled to receive an advance payment. Sensors Our Sensors segment (Sensors) manufactures and sells high-performance sensors which provide measurements of vibration, pressure, position, force and sound in a variety of applications. Our Sensors products are used to enable automation, enhance precision and safety, and lower our customers' production costs by improving performance and reducing downtime. Primary Sensors markets include automotive, aerospace and defense, industrial, and research and development. Our Sensors products are sold as configurable, standard units; utilize piezoelectric or magnetostriction technology; and are ideal for use in harsh operating environments to provide accurate and reliable sensor information. To complement our Sensors products, we also provide spare parts and services. The cycle from contract inception to shipment of equipment is typically one to three months , with the exception of certain high-volume contracts which are fulfilled in a series of shipments over an extended period. Our Sensors contracts generally have a single performance obligation which is satisfied at a point in time. The performance obligation is a stand-alone sensor product, accessory, service or software license. Sensors contracts are generally fixed-price purchase order fulfillment contracts, and the transaction price is equal to the observable consideration in the contract. Revenue is recognized when obligations under the terms of the contract with our customer are satisfied; generally this occurs with the transfer of control upon product shipment (as evidenced by shipment or delivery terms) or with the performance of the service. Certain contracts are measured using the as invoiced practical expedient as we have a right to consideration from a customer in an amount that corresponds directly with the value to the customer of our performance completed to date. For our Sensors contracts with customers, payment terms are generally within 90 days. The timing of satisfying our Sensors performance obligations does not vary significantly from the typical timing of payment. For certain high-volume contracts, we are entitled to receive an advance payment. |
Research and Development | Research and Development |
Foreign Currency | Foreign Currency |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Accounts Receivable and Long-Term Contracts | Accounts Receivable and Long-term Contracts We grant credit to customers and generally do not require collateral or other security from domestic customers. When deemed appropriate, receivables from customers located outside the U.S. are supported by letters of credit from financial institutions. The allowance for doubtful accounts is based on our assessment of the collectability of specific customer accounts and includes consideration of the credit worthiness and financial condition of those specific customers. We record an allowance to reduce receivables to the amount reasonably believed to be collectible and consider factors such as the financial condition of the customer and the aging of the receivables. If there is a deterioration of a customer's financial condition, if we become aware of additional information related to the credit worthiness of a customer or if future actual default rates on trade receivables differ from those currently anticipated, we may adjust the allowance for doubtful accounts, which would affect earnings in the period the adjustments were made. We enter into long-term contracts for customized equipment sold to our customers. Under the terms of such contracts, revenue recognized over time may be invoiced upon completion of contractual milestones, shipment to the customer or installation and customer acceptance. Unbilled amounts relating to these contracts are included in unbilled accounts receivable, net in the Consolidated Balance Sheets. Amounts unbilled as of September 28, 2019 are expected to be invoiced during fiscal year 2020 . |
Inventories | Inventories |
Software Development Costs | Software Development Costs We capitalize certain software development costs related to software to be sold or otherwise marketed. Capitalized software development costs include purchased materials and services, salary and benefits of our development and technical support staff and other costs associated with the development of new products and services. Software development costs are expensed as incurred until technological feasibility has been established, at which time future costs incurred are capitalized until the product is available for general release to the public. Based on our product development process, technological feasibility is generally established once product and detailed program designs have been completed, uncertainties related to high-risk development issues have been resolved through coding and testing, and we have the capability to manufacture the end product. Once a software product is available for general release to the public, capitalized development costs associated with that product will begin to be amortized to cost of sales in the Consolidated Statements of Income over the product's estimated economic life, using the greater of straight-line or a method that results in cost recognition in future periods that is consistent with the anticipated timing of product revenue recognition. |
Impairment of Long-Lived Assets | Impairment of Long-lived Assets We review the carrying value of long-lived assets or asset groups, such as property and equipment and intangible assets subject to amortization, when events or changes in circumstances such as asset utilization, physical change, legal factors or other matters indicate that the carrying value may not be recoverable. When this review indicates the carrying value of an asset or asset group exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset or asset group, we recognize an asset impairment charge in earnings in the period such a determination is made. The amount of the impairment loss recorded is the amount by which the carrying value of the impaired asset or asset group exceeds its fair value. |
Property and Equipment | Property and Equipment Property and equipment are capitalized at cost, including additions, replacements and improvements. Repairs and maintenance are expensed as incurred. Depreciation is recorded over the following estimated useful lives of the asset: Asset Type Useful Life Buildings and improvements 10 to 40 years Machinery and equipment 3 to 10 years |
Goodwill and Indefinite-lived Intangible Assets | Goodwill and Indefinite-lived Intangible Assets Goodwill represents the excess of cost over the fair value of the identifiable net assets of businesses acquired and allocated to our reporting units at the time of acquisition. We test goodwill for impairment annually in the fourth quarter and when an event occurs or circumstances change that indicate the carrying value of the reporting unit may not be recoverable. As of both September 28, 2019 and September 29, 2018 , we determined there was no impairment of our goodwill or indefinite-lived intangible assets. Evaluating goodwill for impairment involves the determination of the fair value of each reporting unit in which goodwill is recorded using a qualitative or quantitative analysis. A reporting unit is an operating segment or a component of an operating segment for which discrete financial information is available and reviewed by management on a regular basis. For fiscal year 2019 , we identified four reporting units: Test & Simulation excluding E2M Technologies B.V. (E2M), E2M, Temposonics and PCB Group, Inc. (PCB). Prior to completing the quantitative analysis described below, we have the option to perform a qualitative assessment of goodwill for impairment to determine whether it is more likely than not (a likelihood of more than 50% ) that the fair value of a reporting unit is less than its carrying amount, including goodwill and other intangible assets. If we conclude the fair value is more likely than not less than the carrying value, we perform the quantitative analysis. Otherwise, no further testing is needed. If the quantitative analysis is required, the impairment test is used to compare the calculated fair value of each reporting unit to its carrying value, including goodwill. We estimate the fair value of a reporting unit using both the income approach and the market approach. The income approach uses a discounted cash flow model that requires input of certain estimates and assumptions requiring judgment, including projections of revenue, profit margins, operating costs, capital expenditures, changes in working capital, discount rates and perpetual growth rates based on economic conditions, customer demand, changes in competition and new product introductions. The market approach uses a multiple of earnings and revenue based on guidelines for publicly traded companies. Fair value calculations contain significant judgments and estimates. If the fair value exceeds the carrying value, no further work is required and no impairment loss is recognized. If the carrying value exceeds the fair value, an impairment loss shall be recognized in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. In fiscal years 2019 and 2018 , we performed a qualitative analysis of goodwill for each of our reporting units as described above. Based on the analysis, we determined that it was more likely than not that the fair value exceeds the carrying amount for all of our reporting units. Therefore, a quantitative analysis was not necessary for any of our reporting units. As of September 28, 2019 , our Test & Simulation excluding E2M, E2M, Temposonics and PCB reporting units had goodwill balances of $25,993 , $35,160 , $1,416 and $366,470 , respectively. Indefinite-lived Intangible Assets |
Other Long-term Assets | Other Long-term Assets |
Derivative Financial Instruments | Derivative Financial Instruments Our results of operations could be materially impacted by changes in foreign currency exchange rates, as well as interest rates on our floating-rate indebtedness. In an effort to manage exposure to these risks, we periodically enter into forward and option currency exchange contracts, interest rate swaps and forward interest rate swaps. Since the market value of these hedging contracts is derived from current market rates, they are classified as derivative financial instruments. We do not use derivatives for speculative or trading purposes. The derivative contracts contain credit risk to the extent that our bank counterparties may be unable to meet the terms of the agreements. The amount of such credit risk is generally limited to the unrealized gains, if any, in such contracts. Such risk is minimized by limiting those counterparties to major financial institutions of high credit quality. For derivative instruments executed under master netting arrangements, we have the contractual right to offset fair value amounts recognized for the right to reclaim cash collateral against obligations to return cash collateral. We do not offset fair value amounts recognized on these derivative instruments. As of both September 28, 2019 and September 29, 2018 |
Income Taxes | Income Taxes |
Stock-Based Compensation | Stock-based Compensation We measure the cost of employee services received in exchange for the award of equity instruments based on the fair value of the award at the date of grant. We recognize the cost over the period during which an employee is required to provide services in exchange for the award. Forfeitures of stock-based awards are recognized as they occur. |
Loss Contingencies | Loss Contingencies |
Use of Estimates | Use of Estimates |
Recently Issued Accounting Pronouncements | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS Leases In February 2016, the Financial Accounting Standards Board (FASB) issued ASU No. 2016-02, Leases (Topic 842), followed by related amendments (collectively, "the new lease standard"), which requires lessees to recognize most leases on the balance sheet for the rights and obligations created by those leases. Under the new lease standard, a company recognizes a right-of-use asset, representing the right to use the underlying asset for the lease term, and a corresponding lease liability for all leases with terms greater than 12 months. The new lease standard requires enhanced disclosures regarding the amount, timing and uncertainty of cash flows arising from a company's leases. Adoption of the new lease standard is required for annual periods beginning after December 15, 2018, including interim periods within that annual period, which is our fiscal year 2020. The new guidance is required to be adopted using a modified retrospective transition method, and an optional transition method may be elected to use the effective date as the date of initial application on transition. We will adopt the new lease standard for our fiscal year 2020 under the optional transition method with an effective date of September 29, 2019. As a result, we will not adjust our comparative period financial information or make the new required lease disclosures for periods before the effective date. We will elect the package of practical expedients to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. We will elect the practical expedient to not separate non-lease components from the lease components to which they relate and instead account for each separate lease and non-lease component associated with that lease component as a single lease component for all underlying asset classes. Accordingly, all costs associated with a lease contract are accounted for as lease cost. We will also make an accounting policy election to keep leases with an initial lease term of 12 months or less off the balance sheet. We continue to make progress with preparation for the adoption and implementation of the new lease standard, including assessing the completeness of our lease arrangements, assessing impacts to controls and implementing a lease software solution. The adoption of the new lease standard will result in an increase in assets and liabilities on our Consolidated Balance Sheet. The impact on our Consolidated Statement of Income and Consolidated Statement of Cash Flows is being evaluated but is not expected to be significant. Expanded disclosures will be provided beginning in the first quarter of fiscal year 2020. Other In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , followed by related amendments, which changes the accounting for credit losses on instruments measured at amortized cost by adding an impairment model that is based on expected losses rather than incurred losses. An entity will recognize as an allowance its estimate of expected credit losses, which is believed to result in more timely recognition of such losses as the standard eliminates the probable initial recognition threshold. Adoption of the standard is required for annual periods beginning after December 15, 2019, including interim periods within that annual period, which is our fiscal year 2021. The new guidance is required to be adopted using a modified retrospective approach with a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period of adoption. Early adoption is permitted for annual periods beginning after December 15, 2018, including interim periods within that annual period, which is our fiscal year 2020. We have not yet evaluated the impact the adoption of this guidance may have on our financial condition, results of operations or disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurements (Topic 820): Disclosure Framework–Changes to the Disclosure Requirements for Fair Value Measurement , which eliminates, amends and adds disclosure requirements for fair value measurements. The standard is required to be adopted for annual periods beginning after December 15, 2019, including interim periods within that annual period, which is our fiscal year 2021. Certain disclosures in the new guidance are to be applied using a retrospective approach while other disclosures are to be applied using a prospective approach. Early adoption is permitted. We have not yet evaluated the impact the adoption of this guidance may have on our financial condition, results of operations or disclosures. In August 2018, the FASB issued ASU No. 2018-14, Compensation–Retirement Benefits–Defined Benefit Plans–General (Subtopic 715-20): Disclosure Framework–Changes to the Disclosure Requirements for Defined Benefit Plans , which eliminates, amends and adds disclosure requirements for defined benefit pension and other postretirement plans. The standard is required to be adopted for annual periods ending after December 15, 2020, which is our fiscal year 2021. The new guidance is to be applied using a retrospective approach with early adoption permitted. We have not yet evaluated the impact the adoption of this guidance may have on our financial condition, results of operations or disclosures. Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), followed by related amendments (collectively, "the new revenue standard" or "ASC 606"), to provide a single, comprehensive revenue recognition model for all contracts with customers. Under the new revenue standard, a company recognizes revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. Determination of when and how revenue is recognized is based on a five-step analysis. Enhanced disclosures regarding the nature, amount, timing and uncertainty of revenue and cash flows arising from a company's contracts with customers are required. We adopted the new revenue standard on September 30, 2018 for our fiscal year 2019 under the modified retrospective transition method. As of September 30, 2018, we recorded a cumulative-effect reduction to the opening balance of our fiscal year 2019 retained earnings of $6,227 , net of tax, for the net deferral of previously recognized revenue and related cost of sales, partially offset by the capitalization and deferral of pre-contract costs. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. See Note 3 for our new revenue recognition accounting policy and disclosures relative to this guidance. In March 2016, the FASB issued ASU No. 2016-04, Liabilities—Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products , which amends existing guidance on extinguishing financial liabilities for certain prepaid stored-value products. The standard requires recognition of the expected breakage amount or the value that is ultimately not redeemed either proportionally in earnings as redemption occurs or when redemption is remote, if issuers are not entitled to breakage. We adopted the standard on a modified retrospective basis for the annual period ending September 28, 2019, including interim periods within that annual period. The adoption of this guidance had no impact on our financial condition, results of operations or disclosures. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740), Intra-Entity Transfers of Assets Other Than Inventory , which requires companies to account for the income tax effects of intercompany sales and transfers of assets other than inventory when the transfer occurs. Existing guidance required companies to defer the income tax effects of intercompany transfers of assets until the asset has been sold to an outside party or otherwise recognized. We adopted the standard on a modified retrospective basis for the annual period ending September 28, 2019, including interim periods within that annual period. The adoption of this guidance had no impact on our financial condition, results of operations or disclosures. In March 2017, the FASB issued ASU No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, which changes how employers that sponsor defined benefit pension or other postretirement benefit plans present the net periodic benefit cost in the income statement. The standard requires the service cost component of net periodic benefit cost to be presented in the same income statement line items as other employee compensation costs arising from services rendered during the period, with only the service cost component eligible for capitalization in assets. Other components of the net periodic benefit cost are to be stated separately from the line items that include the service cost and outside of operating income. These components are not eligible for capitalization in assets. We adopted the standard for the annual period ending September 28, 2019, including interim periods within that annual period, retrospectively for the presentation in the income statement of the service cost component and the other components of net periodic pension cost and prospectively for the capitalization in assets of the service cost component of net periodic pension cost. The adoption of this guidance did not have a material impact on our current or prior year financial condition, results of operations or disclosures. Therefore, the comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which amends the hedge accounting model in Accounting Standards Codification (ASC) 815 to enable entities to better portray the economics of their risk management activities in the financial statements and enhance the transparency and understandability of hedge results. We early adopted the standard on a modified retrospective basis for the annual period ending September 28, 2019, including interim periods within that annual period. The adoption of this guidance had no impact on our current or prior year financial condition, results of operations or disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Accounting Policies [Abstract] | |
Inventories | Inventories, net are as follows: 2019 2018 Components, assemblies and parts $ 112,886 $ 93,020 Customer projects in various stages of completion 39,534 35,675 Finished goods 14,779 10,414 Total inventories, net $ 167,199 $ 139,109 |
Property and Equipment Useful Life | Depreciation is recorded over the following estimated useful lives of the asset: Asset Type Useful Life Buildings and improvements 10 to 40 years Machinery and equipment 3 to 10 years |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Impact of 606 Adoption | The impact of adopting the new revenue standard on our Consolidated Statements of Income and Consolidated Balance Sheets is as follows: Consolidated Statements of Income September 28, 2019 As Reported Balances without Adoption of ASC 606 Effect of Change Revenue $ 892,518 $ 849,805 $ 42,713 Cost of sales 563,588 535,204 28,384 Gross profit 328,930 314,601 14,329 Selling and marketing 131,639 129,894 1,745 Income tax provision (benefit) 5,546 3,399 2,147 Net income 43,067 32,630 10,437 Consolidated Balance Sheets September 28, 2019 As Reported Balances without Adoption of ASC 606 Effect of Change Assets Accounts receivable, net $ 121,260 $ 120,496 $ 764 Unbilled accounts receivable, net 80,331 70,949 9,382 Inventories, net 167,199 166,668 531 Prepaid expenses and other current assets 23,761 20,328 3,433 Other long-term assets 3,553 2,690 863 Deferred income taxes 7,229 7,538 (309 ) Liabilities and Shareholders' Equity Advance payments from customers 70,520 74,209 (3,689 ) Other accrued liabilities 43,165 28,506 14,659 Deferred income taxes 41,531 41,548 (17 ) Other long-term liabilities 15,164 15,715 (551 ) Accumulated other comprehensive income (loss) (18,473 ) (18,525 ) 52 Retained earnings 315,329 311,119 4,210 The cumulative effect of the changes made to our September 29, 2018 Consolidated Balance Sheet from the modified retrospective adoption of the new revenue standard is as follows: Consolidated Balance Sheets Balance at September 29, 2018 Adjustments due to ASC 606 Adoption Balance at September 30, 2018 Assets Accounts receivable, net $ 122,243 $ (4,481 ) $ 117,762 Unbilled accounts receivable, net 70,474 (8,002 ) 62,472 Inventories, net 139,109 16,727 155,836 Prepaid expenses and other current assets 24,572 4,651 29,223 Other long-term assets 2,263 1,060 3,323 Deferred income taxes 3,249 643 3,892 Liabilities and Shareholders' Equity Advance payments from customers 80,131 13,568 93,699 Other accrued liabilities 19,146 (2,504 ) 16,642 Deferred income taxes 46,482 (1,228 ) 45,254 Other long-term liabilities 4,894 6,989 11,883 Retained earnings 300,585 (6,227 ) 294,358 |
Disaggregation of Revenue | We disaggregate our revenue by reportable segment, sales type (product or service), the timing of recognition of revenue for transfer of goods or services to customers (point-in-time or over time), and geographic market based on the billing location of the customer. See Note 15 for further information on our reportable segments and intersegment revenue. 2019 Test & Simulation Sensors Intersegment Total Sales type Product $ 455,715 $ 327,663 $ (1,366 ) $ 782,012 Service 103,193 7,313 — 110,506 Total revenue $ 558,908 $ 334,976 $ (1,366 ) $ 892,518 Timing of recognition Point-in-time $ 356,907 $ 313,355 $ (1,366 ) $ 668,896 Over time 202,001 21,621 — 223,622 Total revenue $ 558,908 $ 334,976 $ (1,366 ) $ 892,518 Geographic market Americas $ 179,421 $ 168,483 $ (1,366 ) $ 346,538 Europe 120,164 104,818 — 224,982 Asia 259,323 61,675 — 320,998 Total revenue $ 558,908 $ 334,976 $ (1,366 ) $ 892,518 |
Contract Assets and Contract Liabilities | Contract assets and contract liabilities are as follows: 2019 2018 Contract assets $ 80,331 $ 70,474 Contract liabilities 81,045 80,131 Significant changes in contract assets and contract liabilities are as follows: Contract Assets Balance, September 29, 2018 $ 70,474 Cumulative transition adjustment upon adoption (8,002 ) Changes in estimated stage of completion 121,770 Transfers to accounts receivable, net (108,171 ) Acquisitions 1 1,518 Other 2,742 Balance, September 28, 2019 $ 80,331 Contract Liabilities Balance, September 29, 2018 $ 80,131 Cumulative transition adjustment upon adoption 20,557 Revenue recognized included in balance at beginning of period (80,414 ) Increases due to payments received, excluding amounts recognized as revenue during period 55,208 Acquisitions 1 4,853 Other 710 Balance, September 28, 2019 $ 81,045 1 See Note 16 for additional information regarding acquisitions. |
Warranty Obligations (Tables)
Warranty Obligations (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Product Warranties Disclosures [Abstract] | |
Warranty Provisions and Claims | Changes to accrued warranty costs are as follows: 2019 2018 Beginning accrued warranty costs $ 5,418 $ 6,018 Warranty claims (4,331 ) (5,443 ) Warranty provisions 2,485 5,109 Adjustments to preexisting warranties (15 ) (260 ) Currency translation (16 ) (6 ) Ending accrued warranty costs $ 3,541 $ 5,418 |
Capital Assets (Tables)
Capital Assets (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Capital Assets [Abstract] | |
Property and Equipment | Property and equipment, net are as follows: 2019 2018 Land and improvements $ 3,949 $ 2,881 Buildings and improvements 64,140 58,880 Machinery and equipment 224,684 203,647 Assets held under capital leases 2,796 2,815 Total property and equipment 295,569 268,223 Less: Accumulated depreciation (194,486 ) (177,954 ) Total property and equipment, net $ 101,083 $ 90,269 |
Goodwill | Changes to the carrying amount of goodwill are as follows: Test & Simulation Sensors Total Balance, September 30, 2017 $ 25,109 $ 344,653 $ 369,762 Currency translation gain (loss) (478 ) (9 ) (487 ) Balance, September 29, 2018 $ 24,631 $ 344,644 $ 369,275 Acquisitions 1 39,181 23,292 62,473 Currency translation gain (loss) (2,659 ) (50 ) (2,709 ) Balance, September 28, 2019 $ 61,153 $ 367,886 $ 429,039 1 See Note 16 for additional information regarding acquisitions. |
Other Intangible Assets | Intangible assets are as follows: September 28, 2019 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Average Useful Life (in Years) Software development costs 2 $ 39,546 $ (16,035 ) $ 23,511 6.2 Technology and patents 63,015 (15,739 ) 47,276 14.9 Trademarks and trade names 20,186 (3,808 ) 16,378 18.4 Customer lists 192,488 (34,735 ) 157,753 15.6 Land-use rights 2,303 (968 ) 1,335 25.7 Other 3,606 (774 ) 2,832 4.0 Trade names 57,500 — 57,500 Indefinite Total intangible assets $ 378,644 $ (72,059 ) $ 306,585 14.4 September 29, 2018 Gross Carrying Amount Accumulated Amortization Net Carrying Value Weighted Software development costs 2 $ 31,251 $ (15,860 ) $ 15,391 6.5 Technology and patents 46,405 (12,188 ) 34,217 14.9 Trademarks and trade names 6,754 (2,987 ) 3,767 25.4 Customer lists 156,971 (23,314 ) 133,657 15.8 Land-use rights 2,336 (730 ) 1,606 26.0 Trade names 57,500 — 57,500 Indefinite Total intangible assets $ 301,217 $ (55,079 ) $ 246,138 14.8 2 The gross carrying amount of software development costs as of September 28, 2019 and September 29, 2018 includes $21,840 and $15,391 |
Finite-lived Intangible Assets Amortization Expense | Amortization expense recognized related to finite-lived intangible assets is as follows: 2019 2018 2017 Amortization expense $ 17,361 $ 13,831 $ 14,665 |
Estimated Future Amortization Expense on Other Intangible Assets | Estimated future amortization expense related to finite-lived intangible assets is as follows: Fiscal Year Amortization Expense 2020 $ 19,395 2021 20,558 2022 21,537 2023 20,662 2024 20,296 Thereafter 146,637 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Subject to Fair Value Measurements on a Recurring Basis | Financial assets and liabilities subject to fair value measurements on a recurring basis are as follows: September 28, 2019 Level 1 Level 2 Level 3 Total Assets Currency contracts 1 $ — $ 907 $ — $ 907 Total assets — 907 — 907 Liabilities Currency contracts 1 — 251 — 251 Total liabilities $ — $ 251 $ — $ 251 September 29, 2018 Level 1 Level 2 Level 3 Total Assets Currency contracts 1 $ — $ 1,080 $ — $ 1,080 Interest rate swaps 2 — 7,411 — 7,411 Total assets — 8,491 — 8,491 Liabilities Currency contracts 1 — 173 — 173 Total liabilities $ — $ 173 $ — $ 173 1 Based on observable market transactions of spot currency rates and forward currency rates on equivalently-termed instruments. Carrying amounts of the financial assets and liabilities are equal to the fair value. See Note 7 for additional information on derivative financial instruments. 2 Based on London Interbank Offered Rate (LIBOR) and spot rates. Carrying amount of the financial asset is equal to the fair value. In the fourth quarter of fiscal year 2019, we terminated the interest rate swap agreement. See Note 7 for additional information on derivative financial instruments. |
Schedule of Estimated Fair Values of Debt Instruments | The carrying amount and estimated fair values of our debt are as follows: September 28, 2019 Carrying Value Fair Value Level 1 Level 2 Level 3 Tranche B term loan 3 $ 173,695 $ 174,563 $ — $ 174,563 $ — Senior unsecured notes 3 350,000 366,625 — 366,625 — Total debt $ 523,695 $ 541,188 $ — $ 541,188 $ — September 29, 2018 Carrying Value Fair Value Level 1 Level 2 Level 3 Debt component of tangible equity units 4 $ 7,290 $ 8,626 $ — $ 8,626 $ — Tranche B term loan 3 391,416 395,330 — 395,330 — Total debt $ 398,706 $ 403,956 $ — $ 403,956 $ — 3 The fair value of the tranche B term loan and senior unsecured notes is based on the most recently quoted market price for the outstanding debt instrument, adjusted for any known significant deviations in value. The estimated fair value of the debt obligation is not necessarily indicative of the amount that would be realized in a current market exchange. See Note 8 for additional information on financing arrangements. 4 The fair value of the 8.75% |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair Value of Outstanding Designated and Undesignated Derivative Assets and Liabilities | The fair value of our outstanding designated and undesignated derivative assets and liabilities are reported in the Consolidated Balance Sheets as follows: September 28, 2019 Prepaid Expenses and Other Current Assets Other Accrued Liabilities Designated hedge derivatives Cash flow derivatives $ 907 $ 133 Total designated hedge derivatives 907 133 Undesignated hedge derivatives Balance sheet derivatives — 118 Total hedge derivatives $ 907 $ 251 September 29, 2018 Prepaid Expenses and Other Current Assets Other Accrued Liabilities Designated hedge derivatives Cash flow derivatives $ 989 $ 173 Interest rate swaps 7,411 — Total designated hedge derivatives 8,400 173 Undesignated hedge derivatives Balance sheet derivatives 91 — Total hedge derivatives $ 8,491 $ 173 |
Reconciliation of Net Fair Value of Foreign Exchange Cash Flow Hedge Assets and Liabilities | A reconciliation of the net fair value of designated hedge derivatives subject to master netting arrangements that are recorded in the Consolidated Balance Sheets to the net fair value that could have been reported in the Consolidated Balance Sheets are as follows: Gross Recognized Amount Gross Offset Amount Net Amount Presented Derivatives Subject to Offset Cash Collateral Received Net Amount September 28, 2019 Assets $ 907 $ — $ 907 $ (133 ) $ — $ 774 Liabilities 133 — 133 (133 ) — — September 29, 2018 Assets $ 8,400 $ — $ 8,400 $ (173 ) $ — $ 8,227 Liabilities 173 — 173 (173 ) — — |
Pretax Amounts Recognized in Accumulated Other Comprehensive Income on Currency Contracts | The pretax amounts recognized in AOCI on currency exchange contracts, including (gains) losses reclassified into earnings in the Consolidated Statements of Income and gains (losses) recognized in other comprehensive income (loss) (OCI), are as follows: 2019 2018 Beginning unrealized net gain (loss) in AOCI $ 672 $ (443 ) Net (gain) loss reclassified into revenue (1,026 ) 399 Net gain (loss) recognized in OCI 920 716 Ending unrealized net gain (loss) in AOCI $ 566 $ 672 |
Pretax Amounts Recognized in AOCI on Interest Rate Swaps | The pretax amounts recognized in AOCI on interest rate swaps, including (gains) losses reclassified into earnings in the Consolidated Statements of Income and gains (losses) recognized in OCI, are as follows: 2019 2018 Beginning unrealized net gain (loss) in AOCI $ 7,411 $ 3,499 Net (gain) loss reclassified into interest expense (2,689 ) (1,204 ) Net gain (loss) recognized in OCI (3,643 ) 5,116 Ending unrealized net gain (loss) in AOCI $ 1,079 $ 7,411 |
Derivatives Not Designated as Hedging Instruments | The net gain (loss) recognized in the Consolidated Statements of Income on foreign exchange balance sheet derivative contracts is as follows: 2019 2018 2017 Net gain (loss) recognized in other income (expense), net $ 365 $ 316 $ (876 ) |
Financing (Tables)
Financing (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Long-term debt consists of the following: 2019 2018 Long-term debt Tranche B term loan, 1.00% amortizing per year, maturing July 5, 2023 $ 173,695 $ 391,416 Senior unsecured notes, 5.75% coupon, maturing August 15, 2027 350,000 — Tangible equity units, 8.75% coupon, maturing July 1, 2019 1 — 7,290 Capital lease obligations 1,436 2,000 Total long-term debt $ 525,131 $ 400,706 Less: Unamortized underwriting discounts, commissions and other expenses (10,313 ) (8,623 ) Less: Current maturities of tranche B term loan debt 2, 3 (29,600 ) (28,600 ) Less: Current maturities of TEU debt 2 — (7,290 ) Less: Current maturities of capital lease obligations 2 (570 ) (553 ) Total long-term debt, less current maturities, net $ 484,648 $ 355,640 1 See Note 12 for more information on our TEUs. 2 In addition to the current maturities above, current maturities of long-term debt, net on the Consolidated Balance Sheets includes the current portion of unamortized underwriting discounts, commissions and other expenses of $2,201 and $3,705 as of September 28, 2019 and September 29, 2018 , respectively. 3 As of September 28, 2019 and September 29, 2018 , current maturities of tranche B term loan consist of the 1% annual payment and calculated required annual Excess Cash Flow payment as defined below, as well as planned prepayments. |
Schedule of Maturities of Long-term Debt | Future maturities of long-term debt, excluding unamortized original issue discounts and deferred financing costs, for the next five fiscal years and thereafter are as follows: Fiscal Year Future Maturities 4 2020 $ 5,170 2021 5,188 2022 4,878 2023 159,895 2024 — Thereafter 350,000 4 Fiscal year 2020 includes the 1% annual payment on the Term Facility and current maturities of capital lease obligations. No Excess Cash Flow prepayment is required under the provisions of the Credit Agreement for the Term Facility. Fiscal years 2021 and thereafter exclude any Excess Cash Flow prepayments which may be required under the provisions of the Credit Agreement for the Term Facility based on fiscal year 2020 and subsequent fiscal year results because the amount of future prepayments, if any, is not reasonably estimable as of September 28, 2019 . Capital lease obligations expire on various dates through fiscal year 2022. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Expense By Type of Award | Stock-based compensation expense recognized in the Consolidated Statements of Income is as follows: 2019 2018 2017 Stock-based compensation expense by type of award Employee stock options $ 2,415 $ 1,849 $ 1,588 Employee stock purchase plan 321 283 298 Restricted stock units and performance restricted stock units 6,694 5,112 3,737 Amounts capitalized as inventory (2,875 ) (1,799 ) (1,444 ) Amounts recognized in income for amounts previously capitalized as inventory 2,842 1,838 1,421 Total stock-based compensation included in income from operations 9,397 7,283 5,600 Income tax benefit on stock-based compensation (1,978 ) (1,763 ) (1,893 ) Net stock-based compensation expense included in net income $ 7,419 $ 5,520 $ 3,707 |
Assumptions Used to Determine Fair Value of Stock Options Granted | The weighted average assumptions used to determine fair value of stock options granted are as follows: 2019 2018 2017 Expected life (in years) 3.7 4.0 4.0 Risk-free interest rate 2.8 % 2.6 % 1.6 % Expected volatility 29.2 % 29.4 % 29.2 % Dividend yield 2.5 % 2.3 % 2.6 % |
Schedule of Stock Options Activity | Stock option activity is as follows: 2019 2018 2017 Shares WAEP 1 Shares WAEP 1 Shares WAEP 1 Options outstanding at beginning of year 881 $ 56.57 766 $ 57.86 784 $ 60.34 Granted 231 $ 48.58 245 $ 52.30 288 $ 46.35 Exercised (47 ) $ 48.04 (19 ) $ 47.26 (112 ) $ 40.68 Forfeited or expired (85 ) $ 56.47 (111 ) $ 57.64 (194 ) $ 60.74 Options outstanding at end of year 980 $ 55.11 881 $ 56.57 766 $ 57.86 Options eligible for exercise at year end 565 $ 59.37 443 $ 61.61 329 $ 64.52 1 |
Schedule of Restricted Stock Grants and Unit Activity | Restricted stock unit and performance restricted stock unit activity are as follows: 2019 2018 2017 Shares WAGDFV 2 Shares WAGDFV 2 Shares WAGDFV 2 Outstanding at beginning of year 267 $ 48.99 223 $ 49.95 165 $ 58.98 Granted 189 $ 47.41 140 $ 49.67 157 $ 45.05 Vested and released (97 ) $ 50.12 (75 ) $ 52.45 (68 ) $ 59.07 Forfeited (33 ) $ 47.44 (21 ) $ 48.96 (31 ) $ 53.08 Outstanding at end of year 326 $ 47.88 267 $ 48.99 223 $ 49.95 2 Weighted Average Grant Date Fair Value per share |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Retirement Benefits [Abstract] | |
Summary of Changes in Benefit Obligations and Plan Assets | Changes in benefit obligations and plan assets are as follows: 2019 2018 Change in benefit obligation Projected benefit obligation, beginning of year $ 33,909 $ 32,280 Service cost 1,271 1,282 Interest cost 612 640 Actuarial (gain) loss 8,304 871 Currency translation (2,419 ) (405 ) Benefits paid (759 ) (759 ) Projected benefit obligation, end of year $ 40,918 $ 33,909 Change in plan assets Fair value of plan assets, beginning of year $ 23,871 $ 22,886 Actual return on plan assets 1,144 1,269 Employer contributions 759 759 Currency translation (1,534 ) (284 ) Benefits paid (759 ) (759 ) Fair value of plan assets, end of year $ 23,481 $ 23,871 |
Summary of Funded Status of Defined Benefit Retirement Plan | The funded status of the defined benefit pension plan and amounts included in our Consolidated Balance Sheets are as follows: 2019 2018 Funded status Funded status, end of year $ (17,437 ) $ (10,038 ) Actuarial net loss in AOCI, pre-tax 16,546 9,496 Net amount recognized $ (891 ) $ (542 ) Included in Consolidated Balance Sheets Accrued payroll and related costs $ (853 ) $ (861 ) Defined benefit pension plan obligation (16,585 ) (9,177 ) Deferred income taxes 5,008 2,880 AOCI, net of tax 11,539 6,616 Net amount recognized $ (891 ) $ (542 ) |
Weighted Average Assumptions Used to Determine Defined Benefit Retirement Plan Obligation | The weighted average assumptions used to determine the defined benefit pension plan obligation as of September 28, 2019 and September 29, 2018 in the Consolidated Balance Sheets and the net periodic benefit cost for fiscal year 2020 are as follows: 2019 2018 Discount rate 0.72 % 1.89 % Expected rate of return on plan assets 5.50 % 5.50 % Expected rate of increase in future compensation levels 3.00 % 3.00 % |
Actual Defined Benefit Retirement Plan Asset Allocations | The actual defined benefit pension plan asset allocations within the balanced mutual fund are as follows: Percentage of Plan Assets 2019 2018 Fixed income securities 1 77.8 % 77.2 % Cash and cash equivalents 2 22.2 % 22.8 % Total 100.0 % 100.0 % 1 Fixed income securities are comprised primarily of international government agency and international corporate bonds with investment grade ratings. 2 Cash and cash equivalents include deposit accounts holding cash in Euros and other currencies and term deposits primarily held as collateral for equity futures. The market values of the equity and futures are linked to the values of equity indices of developed country markets, including the U.S., Great Britain, Europe, Canada, Switzerland and Japan. The fair value of the defined benefit pension plan assets, which are subject to fair value measurement as described in Note 6, are as follows: September 28, 2019 Level 1 Level 2 Level 3 Total Mutual fund 3 $ — $ 23,481 $ — $ 23,481 September 29, 2018 Level 1 Level 2 Level 3 Total Mutual fund 3 $ — $ 23,871 $ — $ 23,871 3 The fair value of the mutual fund is valued based on closing prices from national exchanges, if the underlying securities are traded on an active market, or fixed income pricing models that use observable market inputs. |
Net Periodic Benefit Cost for Defined Benefit Retirement Plan | Net periodic benefit cost for the defined benefit pension plan includes the following components: 2019 2018 2017 Service cost $ 1,271 $ 1,282 $ 1,426 Interest cost 612 640 431 Expected return on plan assets (1,271 ) (1,270 ) (1,085 ) Net amortization and deferral 542 526 996 Net periodic benefit cost $ 1,154 $ 1,178 $ 1,768 |
Expected Future Pension Benefit Payments | Future pension benefit payments, which reflect expected future service for the next five fiscal years and the combined five fiscal years thereafter, are as follows: Fiscal Year Pension Benefit Payments 2020 $ 852 2021 965 2022 1,031 2023 1,058 2024 1,081 2025 through 2028 6,336 Total $ 11,323 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of Income Before Income Taxes | The components of income (loss) before income taxes are as follows: 2019 2018 2017 Domestic $ 17,474 $ 6,139 $ (9,658 ) Foreign 31,139 38,084 32,669 Total income (loss) before income taxes $ 48,613 $ 44,223 $ 23,011 |
Provision for Income Taxes | The income tax provision (benefit) is as follows: 2019 2018 2017 Current Federal $ 2,392 $ 1,613 $ (1,493 ) State 1,171 565 156 Foreign 11,638 10,331 11,980 Deferred (9,655 ) (29,614 ) (12,716 ) Income tax provision (benefit) $ 5,546 $ (17,105 ) $ (2,073 ) |
Reconciliation from Federal Statutory Income Tax Rate to Effective Income Tax Rate | A reconciliation from the U.S. federal statutory income tax rate to our effective income tax rate is as follows: 2019 2018 2017 U.S. federal statutory income tax rate 21 % 25 % 35 % Impact from foreign operations 10 3 (10 ) State income taxes, net of federal benefit 1 — (1 ) R&D tax credits (15 ) (10 ) (22 ) Domestic production activities deduction / foreign derived intangible income (5 ) (2 ) (10 ) Impact of U.S. Tax Act (2 ) (57 ) — Acquisition costs — — (3 ) Nondeductible stock option expense and other permanent items 1 2 2 Effective income tax rate 11 % (39 )% (9 )% |
Summary of Deferred Tax Assets and Liabilities | A summary of the deferred tax assets and liabilities are as follows: 2019 2018 Deferred tax assets Accrued compensation and benefits $ 15,014 $ 10,660 Inventory reserves 4,510 4,787 163(j) interest disallowance 4,253 — Other assets 4,565 4,255 Allowance for doubtful accounts 1,408 1,196 Net operating loss carryovers 2,103 516 State and foreign tax credit carryovers 1,224 1,252 Research and development tax credit carryovers 3,774 3,337 Unrealized derivative instrument gains 311 — Total deferred tax asset before valuation allowance 37,162 26,003 Less valuation allowance (5,279 ) (4,792 ) Total deferred tax assets 31,883 21,211 Deferred tax liabilities Property and equipment 13,158 10,210 Foreign deferred revenue and other 5,779 4,649 Intangible assets 47,248 48,019 Unrealized derivative instrument gains — 1,566 Total deferred tax liabilities 66,185 64,444 Net deferred tax assets (liabilities) $ (34,302 ) $ (43,233 ) |
Summary of Changes in Liability for Unrecognized Tax Benefits | A summary of changes to our liability for unrecognized tax benefits is as follows: 2019 2018 Beginning liability for unrecognized tax benefits $ 6,158 $ 5,849 Increase due to tax positions related to the current year 663 742 Increase (decrease) due to tax positions related to prior years 960 277 Decrease due to settlements with tax authorities (2,635 ) — Decrease due to lapse of statute of limitations (732 ) (710 ) Ending liability for unrecognized tax benefits $ 4,414 $ 6,158 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Equity [Abstract] | |
Schedule of Tangible Equity Units | The aggregate values assigned upon issuance to each component of the TEUs, based on the relative fair value of the respective components, were as follows: Equity Component Debt Component Total Fair value price per TEU 1 $ 76.19 $ 23.81 $ 100.00 Gross proceeds $ 87,614 $ 27,386 $ 115,000 Less: Underwriting discounts and commissions (2,628 ) (822 ) (3,450 ) Less: Other expenses 2 (475 ) (149 ) (624 ) Issuance of TEUs, net $ 84,511 $ 26,415 $ 110,926 1 The fair value price allocation between equity and debt for each TEU was determined using a discounted cash flow model. 2 Other expenses include direct and incremental costs related to the issuance of the TEUs. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted earnings per share were calculated as follows: 2019 2018 2017 Net income $ 43,067 $ 61,328 $ 25,084 Weighted average common shares outstanding 19,258 19,163 19,040 Effect of dilutive securities Stock-based compensation 189 130 97 Weighted average dilutive common shares outstanding 19,447 19,293 19,137 Earnings per share Basic $ 2.24 $ 3.20 $ 1.32 Diluted $ 2.21 $ 3.18 $ 1.31 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Equity [Abstract] | |
Schedule of Changes in Each Component of Accumulated Other Comprehensive Income | Income tax expense or benefit allocated to each component of other comprehensive income (loss) is as follows: 2019 2018 2017 Pretax Tax Net Pretax Tax Net Pretax Tax Net Foreign currency translation gain (loss) adjustments $ (9,980 ) $ — $ (9,980 ) $ (2,174 ) $ — $ (2,174 ) $ 3,273 $ — $ 3,273 Derivative instruments Unrealized net gain (loss) (2,723 ) 582 (2,141 ) 5,832 (1,507 ) 4,325 3,301 (1,191 ) 2,110 Net (gain) loss reclassified to earnings (3,715 ) 810 (2,905 ) (805 ) 207 (598 ) 155 (57 ) 98 Defined benefit pension plan Unrealized net gain (loss) (8,247 ) 2,489 (5,758 ) (890 ) 269 (621 ) 5,918 (1,786 ) 4,132 Net (gain) loss reclassified to earnings 542 (163 ) 379 526 (159 ) 367 996 (300 ) 696 Currency exchange rate gain (loss) 456 — 456 90 — 90 (489 ) — (489 ) Other comprehensive income (loss) $ (23,667 ) $ 3,718 $ (19,949 ) $ 2,579 $ (1,190 ) $ 1,389 $ 13,154 $ (3,334 ) $ 9,820 The changes in the net-of-tax balances of each component of AOCI are as follows: Foreign Currency Translation Adjustments Unrealized Derivative Instrument Adjustments Defined Benefit Pension Plan Adjustments Total Balance, October 1, 2016 $ 673 $ (255 ) $ (10,791 ) $ (10,373 ) Other comprehensive net gain (loss) reclassifications 3,273 2,110 3,643 9,026 Net (gain) loss reclassified to earnings — 98 696 794 Other comprehensive income (loss) 3,273 2,208 4,339 9,820 Balance, September 30, 2017 $ 3,946 $ 1,953 $ (6,452 ) $ (553 ) Other comprehensive net gain (loss) reclassifications (2,174 ) 4,325 (531 ) 1,620 Net (gain) loss reclassified to earnings — (598 ) 367 (231 ) Other comprehensive income (loss) (2,174 ) 3,727 (164 ) 1,389 Reclassification to retained earnings 1 — 640 — 640 Balance, September 29, 2018 $ 1,772 $ 6,320 $ (6,616 ) $ 1,476 Other comprehensive net gain (loss) reclassifications (9,980 ) (2,141 ) (5,302 ) (17,423 ) Net (gain) loss reclassified to earnings — (2,905 ) 379 (2,526 ) Other comprehensive income (loss) (9,980 ) (5,046 ) (4,923 ) (19,949 ) Balance, September 28, 2019 $ (8,208 ) $ 1,274 $ (11,539 ) $ (18,473 ) 1 Deferred taxes stranded in AOCI as a result of the Tax Act that were reclassified to retained earnings upon adoption of ASU 2018-02. |
Schedule of Amounts Reclassified out of Accumulated Other Comprehensive Income | The effect on certain line items in the Consolidated Statements of Income of amounts reclassified out of AOCI are as follows: 2019 2018 2017 Affected Line Item in the Consolidated Statements of Income Derivative instruments Currency exchange contracts gain (loss) $ 1,026 $ (399 ) $ 459 Revenue Interest rate swap contracts gain (loss) 2,689 1,204 (614 ) Interest expense, net Income tax benefit (expense) (810 ) (207 ) 57 Income tax provision (benefit) Total net gain (loss) on derivative instruments 2,905 598 (98 ) Net income Defined benefit pension plan 2 Actuarial loss — (288 ) (543 ) Cost of sales Actuarial loss — (148 ) (282 ) Selling and marketing Actuarial loss — (90 ) (171 ) General and administrative Actuarial loss (542 ) — — Other income (expense), net Total actuarial loss (542 ) (526 ) (996 ) Income before income taxes Income tax benefit 163 159 300 Income tax provision (benefit) Total net loss on pension plan (379 ) (367 ) (696 ) Net income Total net of tax reclassifications out of $ 2,526 $ 231 $ (794 ) 2 Change in classification of actuarial loss on defined benefit pension plan related to the adoption of ASU No. 2017-07 in fiscal year 2019. See Note 2 for additional information on the impact of adoption. |
Business Segment Information (T
Business Segment Information (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Segment Reporting [Abstract] | |
Financial Information by Reportable Segment | Financial information by reportable segment is as follows: 2019 2018 2017 Revenue Test & Simulation $ 558,908 $ 464,924 $ 504,087 Sensors 334,976 314,269 283,868 Intersegment eliminations (1,366 ) (1,161 ) — Total revenue $ 892,518 $ 778,032 $ 787,955 Income from Operations Test & Simulation $ 34,080 $ 19,225 $ 28,622 Sensors 45,620 45,980 26,206 Intersegment eliminations 5 (33 ) — Total income from operations $ 79,705 $ 65,172 $ 54,828 Identifiable Assets Test & Simulation $ 419,403 $ 299,242 $ 374,698 Sensors 878,602 840,187 814,994 Intersegment eliminations (28 ) (33 ) — Total identifiable assets $ 1,297,977 $ 1,139,396 $ 1,189,692 Goodwill Test & Simulation $ 61,153 $ 24,631 $ 25,109 Sensors 367,886 344,644 344,653 Total goodwill $ 429,039 $ 369,275 $ 369,762 Capital Expenditures Test & Simulation $ 18,792 $ 8,111 $ 13,281 Sensors 11,733 4,210 4,517 Total capital expenditures $ 30,525 $ 12,321 $ 17,798 Depreciation and Amortization Test & Simulation $ 19,529 $ 16,353 $ 17,275 Sensors 18,446 18,139 18,248 Total depreciation and amortization $ 37,975 $ 34,492 $ 35,523 |
Geographical Information | Geographic information is as follows: 2019 2018 2017 Revenue U.S. $ 306,574 $ 245,909 $ 246,679 Europe 224,982 223,236 192,491 China 189,227 165,421 174,044 Asia, excluding China 131,771 113,953 142,644 Americas, excluding U.S. 39,964 29,513 32,097 Total revenue $ 892,518 $ 778,032 $ 787,955 Property and Equipment, Net U.S. $ 81,119 $ 69,782 $ 78,080 Europe 13,927 15,130 15,296 China 5,424 4,858 5,542 Asia, excluding China 613 499 1,012 Total property and equipment, net $ 101,083 $ 90,269 $ 99,930 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
E2M Technologies B.V. | |
Business Acquisition [Line Items] | |
Fair Values Assigned to Assets and Liabilities Assumed | The following table summarizes the final fair value measurement of the assets acquired and liabilities assumed, net of cash acquired, as of the date of acquisition: Fair Value Finite-Lived Intangible Asset Lives (Years) Asset (Liability) Accounts receivable $ 4,651 Unbilled accounts receivable 1,518 Inventories 11,063 Prepaid expenses and other current assets 123 Property and equipment 672 Intangible assets Customer lists 21,652 15 Trademarks and trade names 5,926 15 Technology 12,650 15 Other intangible assets 3,761 4 Other long-term assets 60 Purchased goodwill 36,665 Accounts payable (3,657 ) Accrued payroll and related costs (1,328 ) Advance payments from customers (4,315 ) Accrued income taxes (290 ) Other accrued liabilities (127 ) Deferred income taxes (10,477 ) Net assets acquired $ 78,547 Supplemental information Consideration paid at closing $ 79,772 Post-closing purchase price adjustment 515 Less: Cash acquired (1,740 ) Purchase price, net of cash acquired $ 78,547 |
Endevco | |
Business Acquisition [Line Items] | |
Fair Values Assigned to Assets and Liabilities Assumed | The following table summarizes the preliminary fair value measurement of the assets acquired as of the date of acquisition: Fair Value Finite-Lived Intangible Asset Lives (Years) Asset Inventories $ 11,890 Property and equipment 1,078 Intangible assets Customer lists 13,200 15 Trademarks and trade names 7,900 15 Technology 4,400 15 Purchased goodwill 23,292 Deferred income taxes 6,570 Net assets acquired $ 68,330 Supplemental information Consideration paid at closing $ 70,000 Post-closing purchase price adjustment (1,670 ) Purchase price $ 68,330 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Sep. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Minimum Annual Rental Commitments | Minimum annual rents payable under operating leases for the next five fiscal years and thereafter are as follows: Fiscal Year Operating Lease Payments 2020 $ 7,149 2021 5,291 2022 3,124 2023 1,602 2024 1,085 Thereafter 1,789 Total $ 20,040 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Sep. 28, 2019USD ($)reporting_unit | Sep. 29, 2018USD ($) | Sep. 30, 2017USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Capitalization of software development costs | $ 8,295,000 | $ 5,167,000 | $ 2,900,000 |
Foreign currency transaction gain (loss), before tax | (200,000) | 104,000 | (2,499,000) |
Amortization expense on capitalized computer software | 176,000 | 30,000 | 892,000 |
Goodwill impairment | 0 | 0 | |
Impairment of intangible assets | $ 0 | 0 | |
Number of reporting units | reporting_unit | 4 | ||
Goodwill | $ 429,039,000 | 369,275,000 | $ 369,762,000 |
Foreign exchange contracts with credit-risk related contingent features | $ 0 | 0 | |
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Percent fair value is less than carrying amount | 50.00% | ||
Test & Simulation Excluding E2M | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Goodwill | $ 25,993,000 | ||
E2M Technologies B.V. | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Goodwill | 35,160,000 | ||
Temposonics | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Goodwill | 1,416,000 | ||
PCB Group, Inc | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Goodwill | 366,470,000 | ||
Research And Development | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Capitalization of software development costs | $ 5,883,000 | $ 1,803,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Inventories) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 30, 2018 | Sep. 29, 2018 |
Accounting Policies [Abstract] | |||
Components, assemblies and parts | $ 112,886 | $ 93,020 | |
Customer projects in various stages of completion | 39,534 | 35,675 | |
Finished goods | 14,779 | 10,414 | |
Total inventories, net | $ 167,199 | $ 155,836 | $ 139,109 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies (Schedule of Useful Life) (Details) | 12 Months Ended |
Sep. 28, 2019 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Buildings and improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 3 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment, useful life | 10 years |
Recently Issued Accounting Pr_2
Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | Sep. 30, 2018 | Oct. 01, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of accounting change | $ 6,227 | $ 0 |
Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of accounting change | 6,227 | $ 607 |
Retained Earnings | Accounting Standards Update 2014-09 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative effect of accounting change | $ 6,227 |
Revenue (Narrative) (Details)
Revenue (Narrative) (Details) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019reporting_unit | Sep. 30, 2018USD ($) | Oct. 01, 2017USD ($) | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect of accounting change | $ (6,227) | $ 0 | |
Number of reportable segments | reporting_unit | 2 | ||
Minimum | Sensors | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Operating cycle | 1 month | ||
Maximum | Test & Simulation | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Operating cycle | 12 months | ||
Maximum | Sensors | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Operating cycle | 3 months | ||
Retained Earnings | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect of accounting change | (6,227) | $ (607) | |
Retained Earnings | Accounting Standards Update 2014-09 | |||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |||
Cumulative effect of accounting change | $ (6,227) |
Revenue (Impact of ASC 606 Adop
Revenue (Impact of ASC 606 Adoption) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | $ 892,518 | $ 778,032 | $ 787,955 | |
Cost of sales | 563,588 | 472,503 | 485,677 | |
Gross profit | 328,930 | 305,529 | 302,278 | |
Selling and marketing | 131,639 | 126,333 | 124,912 | |
Income tax provision (benefit) | 5,546 | (17,105) | (2,073) | |
Net income | 43,067 | 61,328 | $ 25,084 | |
Assets | ||||
Accounts receivable, net | 121,260 | 122,243 | $ 117,762 | |
Unbilled accounts receivable, net | 80,331 | 70,474 | 62,472 | |
Inventories, net | 167,199 | 139,109 | 155,836 | |
Prepaid expenses and other current assets | 23,761 | 24,572 | 29,223 | |
Other long-term assets | 3,553 | 2,263 | 3,323 | |
Deferred income taxes | 7,229 | 3,249 | 3,892 | |
Liabilities and Shareholders' Equity | ||||
Advance payments from customers | 70,520 | 80,131 | 93,699 | |
Other accrued liabilities | 43,165 | 19,146 | 16,642 | |
Deferred income taxes | 41,531 | 46,482 | 45,254 | |
Other long-term liabilities | 15,164 | 4,894 | 11,883 | |
Accumulated other comprehensive income (loss) | (18,473) | 1,476 | ||
Retained earnings | 315,329 | 300,585 | $ 294,358 | |
Calculated under Revenue Guidance in Effect before Topic 606 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 849,805 | |||
Cost of sales | 535,204 | |||
Gross profit | 314,601 | |||
Selling and marketing | 129,894 | |||
Income tax provision (benefit) | 3,399 | |||
Net income | 32,630 | |||
Assets | ||||
Accounts receivable, net | 120,496 | |||
Unbilled accounts receivable, net | 70,949 | |||
Inventories, net | 166,668 | |||
Prepaid expenses and other current assets | 20,328 | |||
Other long-term assets | 2,690 | |||
Deferred income taxes | 7,538 | |||
Liabilities and Shareholders' Equity | ||||
Advance payments from customers | 74,209 | |||
Other accrued liabilities | 28,506 | |||
Deferred income taxes | 41,548 | |||
Other long-term liabilities | 15,715 | |||
Accumulated other comprehensive income (loss) | (18,525) | |||
Retained earnings | 311,119 | |||
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||
Revenue | 42,713 | |||
Cost of sales | 28,384 | |||
Gross profit | 14,329 | |||
Selling and marketing | 1,745 | |||
Income tax provision (benefit) | 2,147 | |||
Net income | 10,437 | |||
Assets | ||||
Accounts receivable, net | 764 | (4,481) | ||
Unbilled accounts receivable, net | 9,382 | (8,002) | ||
Inventories, net | 531 | 16,727 | ||
Prepaid expenses and other current assets | 3,433 | 4,651 | ||
Other long-term assets | 863 | 1,060 | ||
Deferred income taxes | (309) | 643 | ||
Liabilities and Shareholders' Equity | ||||
Advance payments from customers | (3,689) | 13,568 | ||
Other accrued liabilities | 14,659 | (2,504) | ||
Deferred income taxes | (17) | (1,228) | ||
Other long-term liabilities | (551) | 6,989 | ||
Accumulated other comprehensive income (loss) | 52 | |||
Retained earnings | $ 4,210 | $ (6,227) |
Revenue (Disaggregation) (Detai
Revenue (Disaggregation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 892,518 | $ 778,032 | $ 787,955 |
Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 346,538 | ||
Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 224,982 | 223,236 | 192,491 |
Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 320,998 | ||
Point-in-time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 668,896 | ||
Over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 223,622 | ||
Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 782,012 | 674,391 | 691,471 |
Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 110,506 | 103,641 | 96,484 |
Test & Simulation | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 558,908 | 464,924 | 504,087 |
Sensors | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 334,976 | 314,269 | 283,868 |
Operating Segments | Test & Simulation | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 558,908 | ||
Operating Segments | Test & Simulation | Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 179,421 | ||
Operating Segments | Test & Simulation | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 120,164 | ||
Operating Segments | Test & Simulation | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 259,323 | ||
Operating Segments | Test & Simulation | Point-in-time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 356,907 | ||
Operating Segments | Test & Simulation | Over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 202,001 | ||
Operating Segments | Test & Simulation | Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 455,715 | ||
Operating Segments | Test & Simulation | Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 103,193 | ||
Operating Segments | Sensors | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 334,976 | ||
Operating Segments | Sensors | Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 168,483 | ||
Operating Segments | Sensors | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 104,818 | ||
Operating Segments | Sensors | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 61,675 | ||
Operating Segments | Sensors | Point-in-time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 313,355 | ||
Operating Segments | Sensors | Over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 21,621 | ||
Operating Segments | Sensors | Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 327,663 | ||
Operating Segments | Sensors | Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 7,313 | ||
Intersegment | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | (1,366) | $ (1,161) | $ 0 |
Intersegment | Americas | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | (1,366) | ||
Intersegment | Europe | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | ||
Intersegment | Asia | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | ||
Intersegment | Point-in-time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | (1,366) | ||
Intersegment | Over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 0 | ||
Intersegment | Product | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | (1,366) | ||
Intersegment | Service | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 0 |
Revenue (Contract Assets and Li
Revenue (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 30, 2018 | Sep. 29, 2018 |
Revenue from Contract with Customer [Abstract] | |||
Contract assets | $ 80,331 | $ 62,472 | $ 70,474 |
Contract liabilities | $ 81,045 | $ 80,131 |
Revenue (Significant Changes in
Revenue (Significant Changes in Contact Assets and Liabilities) (Details) $ in Thousands | 12 Months Ended |
Sep. 28, 2019USD ($) | |
Change in Contract with Customer, Asset [Abstract] | |
Balance, September 29, 2018 | $ 70,474 |
Cumulative transition adjustment upon adoption | (8,002) |
Changes in estimated stage of completion | 121,770 |
Transfers to accounts receivable, net | (108,171) |
Acquisitions | 1,518 |
Other | 2,742 |
Balance, September 28, 2019 | 80,331 |
Change in Contract with Customer, Liability [Abstract] | |
Balance, September 29, 2018 | 80,131 |
Cumulative transition adjustment upon adoption | 20,557 |
Revenue recognized included in balance at beginning of period | (80,414) |
Increases due to payments received, excluding amounts recognized as revenue during period | 55,208 |
Acquisitions | 4,853 |
Other | 710 |
Balance, September 28, 2019 | $ 81,045 |
Revenue (Remaining Performance
Revenue (Remaining Performance Obligations) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 29, 2019 | Sep. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue, remaining performance obligation, amount | $ 188,500 | |
Revenue, remaining performance obligation, optional exemption, nature | We do not disclose the value of remaining performance obligations for contracts with an original expected duration of one year or less. | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-09-30 | ||
Revenue from Contract with Customer [Abstract] | ||
Revenue, remaining performance obligation, percentage | 74.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-09-30 | ||
Revenue from Contract with Customer [Abstract] | ||
Revenue, remaining performance obligation, percentage | 23.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue (Pre-contract Costs) (D
Revenue (Pre-contract Costs) (Details) $ in Thousands | 12 Months Ended |
Sep. 28, 2019USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Capitalized pre-contract costs | $ 4,297 |
Capitalized pre-contract costs, related expense | $ 9,003 |
Warranty Obligations (Narrative
Warranty Obligations (Narrative) (Details) | 12 Months Ended |
Sep. 28, 2019 | |
Product Warranty Liability [Line Items] | |
Number of previous months historical warranty claims used to calculate warranty expense percentage | 12 months |
Minimum | |
Product Warranty Liability [Line Items] | |
Life of warranty obligations for sales that include installation services in months | 12 months |
Product obligation period from date of purchase in months | 12 months |
Maximum | |
Product Warranty Liability [Line Items] | |
Life of warranty obligations for sales that include installation services in months | 24 months |
Product obligation period from date of purchase in months | 24 months |
Warranty Obligations (Warranty
Warranty Obligations (Warranty Provisions and Claims) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning accrued warranty costs | $ 5,418 | $ 6,018 |
Warranty claims | (4,331) | (5,443) |
Warranty provisions | 2,485 | 5,109 |
Adjustments to preexisting warranties | (15) | (260) |
Currency translation | (16) | (6) |
Ending accrued warranty costs | $ 3,541 | $ 5,418 |
Capital Assets (Property And Eq
Capital Assets (Property And Equipment) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 295,569 | $ 268,223 | |
Less: Accumulated depreciation | (194,486) | (177,954) | |
Total property and equipment, net | 101,083 | 90,269 | $ 99,930 |
Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,949 | 2,881 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 64,140 | 58,880 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 224,684 | 203,647 | |
Assets held under capital leases | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 2,796 | $ 2,815 |
Capital Assets (Goodwill) (Deta
Capital Assets (Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Goodwill [Roll Forward] | ||
Beginning Balance | $ 369,275 | $ 369,762 |
Currency translation gain (loss) | (2,709) | (487) |
Acquisitions | 62,473 | |
Ending Balance | 429,039 | 369,275 |
Test & Simulation | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 24,631 | 25,109 |
Currency translation gain (loss) | (2,659) | (478) |
Acquisitions | 39,181 | |
Ending Balance | 61,153 | 24,631 |
Sensors | ||
Goodwill [Roll Forward] | ||
Beginning Balance | 344,644 | 344,653 |
Currency translation gain (loss) | (50) | (9) |
Acquisitions | 23,292 | |
Ending Balance | $ 367,886 | $ 344,644 |
Capital Assets (Intangible Asse
Capital Assets (Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total intangible assets | $ 378,644 | $ 301,217 |
Accumulated Amortization | (72,059) | (55,079) |
Intangible assets, net | $ 306,585 | $ 246,138 |
Weighted Average Useful Life (in Years) | 14 years 4 months 24 days | 14 years 9 months 18 days |
Software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 39,546 | $ 31,251 |
Accumulated Amortization | (16,035) | (15,860) |
Net Carrying Value | $ 23,511 | $ 15,391 |
Weighted Average Useful Life (in Years) | 6 years 2 months 12 days | 6 years 6 months |
Technology and Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 63,015 | $ 46,405 |
Accumulated Amortization | (15,739) | (12,188) |
Net Carrying Value | $ 47,276 | $ 34,217 |
Weighted Average Useful Life (in Years) | 14 years 10 months 24 days | 14 years 10 months 24 days |
Trademarks and trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 20,186 | $ 6,754 |
Accumulated Amortization | (3,808) | (2,987) |
Net Carrying Value | $ 16,378 | $ 3,767 |
Weighted Average Useful Life (in Years) | 18 years 4 months 24 days | 25 years 4 months 24 days |
Customer lists | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 192,488 | $ 156,971 |
Accumulated Amortization | (34,735) | (23,314) |
Net Carrying Value | $ 157,753 | $ 133,657 |
Weighted Average Useful Life (in Years) | 15 years 7 months 6 days | 15 years 9 months 18 days |
Land-use rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 2,303 | $ 2,336 |
Accumulated Amortization | (968) | (730) |
Net Carrying Value | $ 1,335 | $ 1,606 |
Weighted Average Useful Life (in Years) | 25 years 8 months 12 days | 26 years |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 3,606 | |
Accumulated Amortization | (774) | |
Net Carrying Value | $ 2,832 | |
Weighted Average Useful Life (in Years) | 4 years | |
Software Development Not Yet Placed In Service | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 21,840 | $ 15,391 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 57,500 | $ 57,500 |
Capital Assets Amortization Exp
Capital Assets Amortization Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Capital Assets [Abstract] | |||
Amortization expense | $ 17,361 | $ 13,831 | $ 14,665 |
Capital Assets (Estimated Futur
Capital Assets (Estimated Future Amortization Expense On Other Intangible Assets) (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Capital Assets [Abstract] | |
2020 | $ 19,395 |
2021 | 20,558 |
2022 | 21,537 |
2023 | 20,662 |
2024 | 20,296 |
Thereafter | $ 146,637 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets and Liabilities Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Currency contracts | $ 907 | $ 1,080 |
Total assets | 907 | 8,491 |
Currency contracts | 251 | 173 |
Total liabilities | 251 | 173 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Currency contracts | 0 | 0 |
Total assets | 0 | 0 |
Currency contracts | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Currency contracts | 907 | 1,080 |
Total assets | 907 | 8,491 |
Currency contracts | 251 | 173 |
Total liabilities | 251 | 173 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Currency contracts | 0 | 0 |
Total assets | 0 | 0 |
Currency contracts | 0 | 0 |
Total liabilities | $ 0 | 0 |
Interest rate swaps | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 7,411 | |
Interest rate swaps | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 0 | |
Interest rate swaps | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | 7,411 | |
Interest rate swaps | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest rate swaps | $ 0 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Fair Value of Debt Instruments) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 541,188 | $ 403,956 |
Tangible equity units, rate | 8.75% | |
Debt component of tangible equity units | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 8,626 | |
Tranche B term loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 174,563 | 395,330 |
Senior unsecured note | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 366,625 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | 0 |
Level 1 | Debt component of tangible equity units | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | |
Level 1 | Tranche B term loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | 0 |
Level 1 | Senior unsecured note | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 541,188 | 403,956 |
Level 2 | Debt component of tangible equity units | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 8,626 | |
Level 2 | Tranche B term loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 174,563 | 395,330 |
Level 2 | Senior unsecured note | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 366,625 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | 0 |
Level 3 | Debt component of tangible equity units | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | |
Level 3 | Tranche B term loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | 0 |
Level 3 | Senior unsecured note | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 0 | |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 523,695 | 398,706 |
Carrying Value | Debt component of tangible equity units | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 7,290 | |
Carrying Value | Tranche B term loan | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | 173,695 | $ 391,416 |
Carrying Value | Senior unsecured note | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term debt | $ 350,000 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Fair Value Of Outstanding Designated And Undesignated Derivative Assets And Liabilities) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | $ 907 | $ 8,491 |
Other Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 251 | 173 |
Designated hedge derivatives | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 907 | 8,400 |
Designated hedge derivatives | Other Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 133 | 173 |
Undesignated hedge derivatives | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 0 | 91 |
Undesignated hedge derivatives | Other Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | 118 | 0 |
Cash flow derivatives | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 907 | 989 |
Cash flow derivatives | Designated hedge derivatives | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 907 | 989 |
Cash flow derivatives | Designated hedge derivatives | Other Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 133 | 173 |
Interest rate swaps | Designated hedge derivatives | Prepaid Expenses and Other Current Assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 7,411 | |
Interest rate swaps | Designated hedge derivatives | Other Accrued Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 0 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities (Net Fair Value Of Designated Hedge Derivatives Subject To Master Netting Arrangements) (Details) - Currency exchange contracts gain (loss) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Net Fair Value Of Foreign Exchange Cash Flow Assets And Liabilities [Line Items] | ||
Gross recognized amount, assets | $ 907 | $ 8,400 |
Gross offset amount, assets | 0 | 0 |
Net amount presented, assets | 907 | 8,400 |
Derivatives subject to offset, assets | (133) | (173) |
Cash collateral received, assets | 0 | 0 |
Net amount, assets | 774 | 8,227 |
Gross recognized amount, liabilities | 133 | 173 |
Gross offset amount, liabilities | 0 | 0 |
Net amount presented, liabilities | 133 | 173 |
Derivatives subject to offset, liabilities | (133) | (173) |
Cash collateral received, liabilities | 0 | 0 |
Net amount, liability | $ 0 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Derivative [Line Items] | ||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 609 | |
Maximum remaining maturity of foreign currency derivatives | 1 year 1 month 6 days | |
Cash flow derivatives | ||
Derivative [Line Items] | ||
Gross notional amount of foreign exchange derivatives outstanding | $ 43,033 | $ 39,856 |
Net notional amount of foreign exchange derivatives | 38,177 | 29,315 |
Derivative assets (liabilities), at fair value, net | 774 | 816 |
Net market value of the foreign currency exchange contracts, assets | 907 | 989 |
Net market value of the foreign currency exchange contracts, liabilities | 133 | 173 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Cash flow hedge gain (loss) to be reclassified within twelve months | $ 886 | |
Fixed interest rate | 1.256% | |
Foreign exchange balance sheet derivative contracts | ||
Derivative [Line Items] | ||
Gross notional amount of foreign exchange derivatives outstanding | $ 60,827 | 90,816 |
Net notional amount of foreign exchange derivatives | 118 | 28,271 |
Derivative assets (liabilities), at fair value, net | $ (118) | $ 91 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities (Pretax Amounts Recognized In Accumulated Other Comprehensive Income On Currency Contracts) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Net (gain) loss reclassified to earnings | $ (2,905) | |
Net gain (loss) recognized in OCI | (2,141) | |
Currency exchange contracts gain (loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning unrealized net gain (loss) in AOCI | 672 | $ (443) |
Net (gain) loss reclassified to earnings | (1,026) | 399 |
Net gain (loss) recognized in OCI | 920 | 716 |
Ending unrealized net gain (loss) in AOCI | 566 | 672 |
Interest rate swaps | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning unrealized net gain (loss) in AOCI | 7,411 | 3,499 |
Net (gain) loss reclassified to earnings | (2,689) | (1,204) |
Net gain (loss) recognized in OCI | (3,643) | 5,116 |
Ending unrealized net gain (loss) in AOCI | $ 1,079 | $ 7,411 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities (Net Gains (Losses) Recognized In Income For Derivative Contracts) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Other nonoperating income (expense) | |||
Derivative [Line Items] | |||
Net gain (loss) recognized in other income (expense), net | $ 365 | $ 316 | $ (876) |
Financing (Schedule of Long ter
Financing (Schedule of Long term Debt) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Debt Instrument [Line Items] | ||
Total long-term debt | $ 525,131 | $ 400,706 |
Less: Unamortized underwriting discounts, commissions and other expenses | (10,313) | (8,623) |
Total long-term debt, less current maturities, net | 484,648 | 355,640 |
Debt issuance costs | 2,201 | 3,705 |
Term Loan B Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 173,695 | 391,416 |
Current maturities | $ (29,600) | $ (28,600) |
Debt instrument, amortization percentage | 1.00% | 1.00% |
Interest rate, percentage | 1.00% | |
5.750% Senior Unsecured Notes Due 2027 | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 350,000 | $ 0 |
Interest rate, percentage | 5.75% | |
Tangible Equity Units Senior Amortizing Note | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 0 | 7,290 |
Current maturities | $ 0 | (7,290) |
Interest rate, percentage | 8.75% | |
Capital Lease Obligations | ||
Debt Instrument [Line Items] | ||
Capital lease obligations | $ 1,436 | 2,000 |
Capital lease obligations, current | $ (570) | $ (553) |
Financing (Narrative) (Details)
Financing (Narrative) (Details) - USD ($) | Jul. 16, 2019 | Sep. 28, 2019 | Sep. 29, 2018 | Dec. 29, 2018 | Jul. 05, 2016 |
Line of Credit Facility [Line Items] | |||||
Percent added to Adjusted LIBOR rate for one month interest period | 1.00% | ||||
Commitment fees incurred on credit facility | $ 281,000 | $ 342,000 | |||
Annual excess cash flow percentage | 50.00% | ||||
Net cash proceed percentage | 100.00% | ||||
Alternate Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Effective interest rate applicable to outstanding credit facility (in hundredths) | 2.25% | ||||
Minimum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.25% | ||||
Minimum | Alternate Base Rate | |||||
Line of Credit Facility [Line Items] | |||||
Effective interest rate applicable to outstanding credit facility (in hundredths) | 1.75% | ||||
Maximum | |||||
Line of Credit Facility [Line Items] | |||||
Commitment fee percentage | 0.40% | ||||
Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, borrowing capacity | $ 150,000,000 | ||||
Maximum borrowing capacity | $ 150,000,000 | 120,000,000 | $ 150,000,000 | ||
Debt issuance costs | 541,000 | ||||
Short-term borrowings | 0 | 0 | |||
Letters of credit outstanding, amount | 21,173,000 | 20,448,000 | |||
Line of credit facility, remaining borrowing capacity | $ 128,827,000 | $ 99,552,000 | |||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | |||||
Line of Credit Facility [Line Items] | |||||
Debt interest rate spread | 1.00% | ||||
Term Loan B Facility | |||||
Line of Credit Facility [Line Items] | |||||
Line of credit facility, borrowing capacity | $ 460,000,000 | ||||
Debt instrument, amortization percentage | 1.00% | 1.00% | |||
Line of credit facility, interest rate at period end (in hundredths) | 5.65% | ||||
Interest rate, percentage | 1.00% | ||||
Eurocurrency Term Loans | |||||
Line of Credit Facility [Line Items] | |||||
Effective interest rate applicable to outstanding credit facility (in hundredths) | 3.25% | ||||
Eurocurrency Term Loans | London Interbank Offered Rate (LIBOR) | |||||
Line of Credit Facility [Line Items] | |||||
Effective interest rate applicable to outstanding credit facility (in hundredths) | 2.06% | ||||
Eurocurrency Term Loans | Minimum | London Interbank Offered Rate (LIBOR) | |||||
Line of Credit Facility [Line Items] | |||||
Effective interest rate applicable to outstanding credit facility (in hundredths) | 0.75% | ||||
Eurocurrency Revolving Loans | |||||
Line of Credit Facility [Line Items] | |||||
Effective interest rate applicable to outstanding credit facility (in hundredths) | 3.00% | ||||
Test & Simulation | |||||
Line of Credit Facility [Line Items] | |||||
Letters of credit outstanding, amount | $ 23,121,000 | ||||
Guarantees | $ 26,665,000 | ||||
5.750% Senior Unsecured Notes Due 2027 | Unsecured Debt | |||||
Line of Credit Facility [Line Items] | |||||
Principal amount | $ 350,000,000 | ||||
Interest rate, percentage | 5.75% | ||||
Proceeds from debt, net of issuance costs | $ 343,439,000 | ||||
Repurchase percentage of principal amount due to change of control | 101.00% | ||||
Repurchase percentage of principal amount due to sale of assets | 100.00% |
Financing (Maturities of Long-T
Financing (Maturities of Long-Term Debt) (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Debt Disclosure [Abstract] | |
2020 | $ 5,170 |
2021 | 5,188 |
2022 | 4,878 |
2023 | 159,895 |
2024 | 0 |
Thereafter | $ 350,000 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) - Stock Incentive Plan 2017 - shares shares in Thousands | 12 Months Ended | |
Sep. 28, 2019 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 1,500 | |
Shares available for future grant under stock plan (in shares) | 967 | |
Expiration date | Jun. 6, 2027 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock-Based Compensation Expense By Type Of Award) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Employee stock options | $ 2,415 | $ 1,849 | $ 1,588 |
Employee stock purchase plan | 321 | 283 | 298 |
Restricted stock units and performance restricted stock units | 6,694 | 5,112 | 3,737 |
Amounts capitalized as inventory | (2,875) | (1,799) | (1,444) |
Amounts recognized in income for amounts previously capitalized as inventory | 2,842 | 1,838 | 1,421 |
Total stock-based compensation included in income from operations | 9,397 | 7,283 | 5,600 |
Income tax benefit on stock-based compensation | (1,978) | (1,763) | (1,893) |
Net stock-based compensation expense included in net income | $ 7,419 | $ 5,520 | $ 3,707 |
Stock-Based Compensation (Compe
Stock-Based Compensation (Compensation Expense) (Details) $ in Thousands | 12 Months Ended |
Sep. 28, 2019USD ($) | |
Share-based Payment Arrangement, Option | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock expense related to non-vested awards not yet recognized | $ 1,837 |
Stock expense related to non-vested awards expected to be recognized over a weighted average period, in years | 1 year |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock expense related to non-vested awards not yet recognized | $ 7,244 |
Stock expense related to non-vested awards expected to be recognized over a weighted average period, in years | 1 year 1 month 6 days |
Stock-Based Compensation (Sto_2
Stock-Based Compensation (Stock Options & Restricted Stock Units) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Weighted average per share fair value of stock options granted (in dollar per share) | $ 9.91 | $ 11.10 | $ 8.91 |
Weighted average remaining contractual term of options outstanding, in years | 4 years 1 month 6 days | ||
Aggregate intrinsic value of options outstanding | $ 3,594 | ||
Weighted average remaining contractual term of options eligible for exercise, in years | 3 years | ||
Aggregate intrinsic value of options eligible for exercise | $ 1,165 | ||
Total intrinsic value of stock options exercised | $ 459 | $ 121 | $ 1,467 |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 5 years | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period | 7 years | ||
Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 1 year | ||
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Director | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights | vest one year from the date of the grant, provided the director continues to serve on the Board of Directors | ||
Key Employees | Restricted Stock Units (RSUs) | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting period | 3 years | ||
Key Employees | Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award vesting rights | based on attainment of average return on invested capital performance targets over a one or three year performance period |
Stock-Based Compensation (Assum
Stock-Based Compensation (Assumptions Used To Determine Fair Value Of Stock Options Granted) (Details) | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Expected life (in years) | 3 years 8 months 12 days | 4 years | 4 years |
Risk-free interest rate | 2.80% | 2.60% | 1.60% |
Expected volatility | 29.20% | 29.40% | 29.20% |
Dividend yield | 2.50% | 2.30% | 2.60% |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule Of Stock Options Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options outstanding at beginning of year (in shares) | 881 | 766 | 784 |
Granted (in shares) | 231 | 245 | 288 |
Exercised (in shares) | (47) | (19) | (112) |
Forfeited or expired (in shares) | (85) | (111) | (194) |
Options outstanding at end of year (in shares) | 980 | 881 | 766 |
Options eligible for exercise at year end (in shares) | 565 | 443 | 329 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Price Per Share [Roll Forward] | |||
Options outstanding at beginning of year, WAEP (in dollars per share) | $ 56.57 | $ 57.86 | $ 60.34 |
Granted, WAEP (in dollars per share) | 48.58 | 52.30 | 46.35 |
Exercised, WAEP (in dollars per share) | 48.04 | 47.26 | 40.68 |
Forfeited or expired, WAEP (in dollars per share) | 56.47 | 57.64 | 60.74 |
Options outstanding at end of year, WAEP (in dollars per share) | 55.11 | 56.57 | 57.86 |
Options eligible for exercise at year-end, WAEP (in dollars per share) | $ 59.37 | $ 61.61 | $ 64.52 |
Stock-Based Compensation (Sch_2
Stock-Based Compensation (Schedule Of Restricted Stock Unit Activity) (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning of year (in shares) | 267 | 223 | 165 |
Granted (in shares) | 189 | 140 | 157 |
Vested and released (in shares) | (97) | (75) | (68) |
Forfeited (in shares) | (33) | (21) | (31) |
End of year (in shares) | 326 | 267 | 223 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Price Per Share [Roll Forward] | |||
Beginning of year, WAGDFV (in dollars per share) | $ 48.99 | $ 49.95 | $ 58.98 |
Granted, WAGDFV (in dollars per share) | 47.41 | 49.67 | 45.05 |
Vested, WAGDFV (in dollars per share) | 50.12 | 52.45 | 59.07 |
Forfeited, WAGDFV (in dollars per share) | 47.44 | 48.96 | 53.08 |
End of year, WAGDFV (in dollars per share) | $ 47.88 | $ 48.99 | $ 49.95 |
Stock-Based Compensation (Emplo
Stock-Based Compensation (Employee Stock Purchase Plan) (Details) - Employee Stock Purchase Plan - $ / shares shares in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Period of payroll deductions for funding of employee purchases of company stock (in months) | 6 months | ||
Percentage of the lower of the market price at which employees can purchase company stock | 85.00% | ||
Period at which purchase price is measured at lower of market price (in months) | 6 months | ||
Minimum period to hold employee purchased company stock | 18 months | ||
Shares available for future grant under stock plan (in shares) | 581 | ||
Expiration date | Dec. 31, 2021 | ||
Issuance for employee stock purchase plan (in shares) | 34 | 24 | 25 |
Employee stock purchase plan per share weighted average price of shares issued (in dollars per share) | $ 34.11 | $ 44.39 | $ 40.49 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined contribution plan, employer matching contribution, percent of match | 75.00% | 75.00% | 75.00% |
Employer matching pre-tax and Roth 401(k) contribution, percent | 6.00% | 6.00% | 6.00% |
Employer matching contributions | $ 5,370 | $ 5,394 | $ 5,483 |
Pretax amount recognized in other comprehensive income | 542 | ||
Portion of accumulated comprehensive income recognized as component of net periodic benefit cost over the next fiscal year | 1,201 | ||
Actuarial gain (loss) | $ (8,304) | $ (871) | |
Discount rate | 0.72% | 1.89% | |
Discount rate calculation assumption, description | The discount rate is calculated based on zero-coupon bond yields published by the Deutsche Bundesbank for maturities that match the weighted average duration of the pension liability, adjusted for the average credit spread of corporate bond rates above the government bond yields. | ||
Accumulated benefit obligation of the defined benefit retirement plan | $ 37,182 | $ 31,077 | |
Aggregate liabilities associated with other postretirement plans | $ 3,412 | $ 3,924 | |
Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee benefit plan target allocations | 50.00% | ||
Fixed Income Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee benefit plan target allocations | 50.00% |
Employee Benefit Plans (Summary
Employee Benefit Plans (Summary Of Changes In Benefit Obligations And Plan Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |||
Projected benefit obligation, beginning of year | $ 33,909 | $ 32,280 | |
Service cost | 1,271 | 1,282 | $ 1,426 |
Interest cost | 612 | 640 | 431 |
Actuarial (gain) loss | 8,304 | 871 | |
Currency translation | (2,419) | (405) | |
Benefits paid | (759) | (759) | |
Projected benefit obligation, end of year | 40,918 | 33,909 | 32,280 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |||
Fair value of plan assets, beginning of year | 23,871 | 22,886 | |
Actual return on plan assets | 1,144 | 1,269 | |
Employer contributions | 759 | 759 | |
Currency translation | (1,534) | (284) | |
Benefits paid | (759) | (759) | |
Fair value of plan assets, end of year | $ 23,481 | $ 23,871 | $ 22,886 |
Employee Benefit Plans (Summa_2
Employee Benefit Plans (Summary Of Funded Status Of Defined Benefit Retirement Plan) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Retirement Benefits [Abstract] | ||
Funded status, end of year | $ (17,437) | $ (10,038) |
Actuarial net loss in AOCI, pre-tax | 16,546 | 9,496 |
Accrued payroll and related costs | (853) | (861) |
Defined benefit pension plan obligation | (16,585) | (9,177) |
Deferred income taxes | 5,008 | 2,880 |
AOCI, net of tax | 11,539 | 6,616 |
Net amount recognized | $ (891) | $ (542) |
Employee Benefit Plans (Weighte
Employee Benefit Plans (Weighted Average Assumptions Used To Determine The Defined Benefit Retirement Plan Obligation) (Details) | 12 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Retirement Benefits [Abstract] | ||
Discount rate | 0.72% | 1.89% |
Expected rate of return on plan assets | 5.50% | 5.50% |
Expected rate of increase in future compensation levels | 3.00% | 3.00% |
Employee Benefit Plans (Actual
Employee Benefit Plans (Actual Defined Benefit Retirement Plan Asset Allocations) (Details) | Sep. 28, 2019 | Sep. 29, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 100.00% | 100.00% |
Fixed Income Securities | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 77.80% | 77.20% |
Cash And Cash Equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Percentage of Plan Assets | 22.20% | 22.80% |
Employee Benefit Plans (Defined
Employee Benefit Plans (Defined Benefit Retirement Plan Assets Subject To Fair Value Measurements) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit retirement plan assets | $ 23,481 | $ 23,871 | $ 22,886 |
Mutual Fund | Level 1 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit retirement plan assets | 0 | 0 | |
Mutual Fund | Level 2 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit retirement plan assets | 23,481 | 23,871 | |
Mutual Fund | Level 3 | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit retirement plan assets | $ 0 | $ 0 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Cost For Defined Benefit Retirement Plan) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Retirement Benefits [Abstract] | |||
Service cost | $ 1,271 | $ 1,282 | $ 1,426 |
Interest cost | 612 | 640 | 431 |
Expected return on plan assets | (1,271) | (1,270) | (1,085) |
Net amortization and deferral | 542 | 526 | 996 |
Net periodic benefit cost | $ 1,154 | $ 1,178 | $ 1,768 |
Employee Benefit Plans (Expecte
Employee Benefit Plans (Expected Future Pension Benefit Payments) (Details) $ in Thousands | Sep. 28, 2019USD ($) |
Retirement Benefits [Abstract] | |
2020 | $ 852 |
2021 | 965 |
2022 | 1,031 |
2023 | 1,058 |
2024 | 1,081 |
2025 through 2028 | 6,336 |
Total | $ 11,323 |
Income Taxes (Components Of Inc
Income Taxes (Components Of Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 17,474 | $ 6,139 | $ (9,658) |
Foreign | 31,139 | 38,084 | 32,669 |
Income before income taxes | $ 48,613 | $ 44,223 | $ 23,011 |
Income Taxes (Provisions For In
Income Taxes (Provisions For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 2,392 | $ 1,613 | $ (1,493) |
State | 1,171 | 565 | 156 |
Foreign | 11,638 | 10,331 | 11,980 |
Deferred | (9,655) | (29,614) | (12,716) |
Income tax provision (benefit) | $ 5,546 | $ (17,105) | $ (2,073) |
Income Taxes (Reconciliation Fr
Income Taxes (Reconciliation From The Federal Statutory Income Tax Rate To The Effective Income Tax Rate) (Details) | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory income tax rate | 21.00% | 24.50% | 35.00% |
Impact from foreign operations | 10.00% | 3.00% | (10.00%) |
State income taxes, net of federal benefit | 1.00% | 0.00% | (1.00%) |
R&D tax credits | (15.00%) | (10.00%) | (22.00%) |
Domestic production activities deduction / foreign derived intangible income | (5.00%) | (2.00%) | (10.00%) |
Impact of U.S. Tax Act | (0.02) | (0.57) | 0 |
Acquisition costs | 0.00% | 0.00% | (3.00%) |
Nondeductible stock option expense and other permanent items | 1.00% | 2.00% | 2.00% |
Effective income tax rate | 11.40% | (38.70%) | (9.00%) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Jun. 29, 2019 | Dec. 29, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Income Taxes [Line Items] | |||||
U.S. federal statutory income tax rate | 21.00% | 24.50% | 35.00% | ||
Discrete tax benefit | $ 1,293,000 | $ 3,547,000 | $ 25,008,000 | $ 2,801,000 | |
Effective income tax rate reconciliation, change in enacted tax rate, amount | (1,297,000) | $ 31,647,000 | |||
Tax Cuts and Jobs Act of 2017, other measurement period adjustment, income tax expense (benefit) | $ 4,000 | ||||
Tax Cuts And Jobs Act Of 2017, potential future income tax expense (benefit) | $ 1,297,000 | ||||
Effective income tax rate | 11.40% | (38.70%) | (9.00%) | ||
Effective income tax rate, percent excluding certain discrete tax benefits | 18.70% | 17.90% | 3.20% | ||
Deferred tax asset, provisional income tax expense (benefit) | $ 6,639,000 | ||||
R&D tax credit carryover | $ 3,774,000 | 3,337,000 | |||
Foreign earnings repatriated | 5,943,000 | 54,778,000 | |||
Effective income tax rate reconciliation, repatriation of foreign earnings, amount | 437,000 | ||||
Foreign undistributed earnings | 68,784,000 | 73,819,000 | |||
Unrecognized tax benefits that would affect the effective tax rate | 2,761,000 | 3,740,000 | |||
Accrued interest related to uncertain income tax positions | 332,000 | 542,000 | |||
Accrual for penalties related to uncertain tax positions | 0 | 0 | |||
Current income tax receivable | 4,282,000 | 5,155,000 | |||
Minnesota (R&D) | |||||
Income Taxes [Line Items] | |||||
R&D tax credit carryover | $ 3,768,000 | ||||
R&D carryforward period | 15 years | ||||
New York and North Carolina | |||||
Income Taxes [Line Items] | |||||
Tax credit carryforwards | $ 1,224,000 | ||||
Germany and Japan | |||||
Income Taxes [Line Items] | |||||
Foreign earnings repatriated | $ 15,272,000 | ||||
Effective income tax rate reconciliation, repatriation of foreign earnings, amount | $ 1,249,000 | $ 11,000 |
Income Taxes (Summary Of The De
Income Taxes (Summary Of The Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Sep. 28, 2019 | Sep. 29, 2018 |
Deferred tax assets | ||
Accrued compensation and benefits | $ 15,014 | $ 10,660 |
Inventory reserves | 4,510 | 4,787 |
163(j) interest disallowance | 4,253 | 0 |
Other assets | 4,565 | 4,255 |
Allowance for doubtful accounts | 1,408 | 1,196 |
Net operating loss carryovers | 2,103 | 516 |
State and foreign tax credit carryovers | 1,224 | 1,252 |
Research and development tax credit carryovers | 3,774 | 3,337 |
Deferred Tax Assets, Derivative Instruments | 311 | 0 |
Total deferred tax asset before valuation allowance | 37,162 | 26,003 |
Less valuation allowance | (5,279) | (4,792) |
Total deferred tax assets | 31,883 | 21,211 |
Deferred tax liabilities | ||
Property and equipment | 13,158 | 10,210 |
Foreign deferred revenue and other | 5,779 | 4,649 |
Intangible assets | 47,248 | 48,019 |
Unrealized derivative instrument gains | 0 | 1,566 |
Total deferred tax liabilities | 66,185 | 64,444 |
Net deferred tax liabilities, net | $ (34,302) | $ (43,233) |
Income Taxes (Summary Of Change
Income Taxes (Summary Of Changes In Liability For Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 28, 2019 | Sep. 29, 2018 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning liability for unrecognized tax benefits | $ 6,158 | $ 5,849 |
Increase due to tax positions related to the current year | 663 | 742 |
Increase (decrease) due to tax positions related to prior years | 960 | 277 |
Decrease due to settlements with tax authorities | (2,635) | 0 |
Decrease due to lapse of statute of limitations | (732) | (710) |
Ending liability for unrecognized tax benefits | $ 4,414 | $ 6,158 |
Shareholders' Equity (Tangible
Shareholders' Equity (Tangible Equity Units Narrative) (Details) Tangible_Equity_Unit in Thousands, $ in Thousands | 3 Months Ended |
Jul. 02, 2016USD ($)Tangible_Equity_Unit$ / per_TEU | |
Debt Instrument [Line Items] | |
Issued tangible equity units (in units) | Tangible_Equity_Unit | 1,150 |
Tangible equity units, issued | $ | $ 110,926 |
Fair value price per TEU (in dollars per TEU) | $ / per_TEU | 100 |
Tangible Equity Units Senior Amortizing Note | |
Debt Instrument [Line Items] | |
Amortization period costs | 3 years |
Shareholders' Equity (Schedule
Shareholders' Equity (Schedule of TEU Components) (Details) $ in Thousands | 3 Months Ended |
Jul. 02, 2016USD ($)$ / per_TEU | |
Debt Instrument [Line Items] | |
Fair value price per TEU (in dollars per TEU) | $ / per_TEU | 100 |
Gross proceeds | $ 115,000 |
Less: Underwriting discounts and commissions | (3,450) |
Less: Other expenses | (624) |
Issuance of TEUs, net | $ 110,926 |
Equity Component | |
Debt Instrument [Line Items] | |
Fair value price per TEU (in dollars per TEU) | $ / per_TEU | 76.19 |
Gross proceeds | $ 87,614 |
Less: Underwriting discounts and commissions | (2,628) |
Less: Other expenses | (475) |
Issuance of TEUs, net | $ 84,511 |
Debt Component | |
Debt Instrument [Line Items] | |
Fair value price per TEU (in dollars per TEU) | $ / per_TEU | 23.81 |
Gross proceeds | $ 27,386 |
Less: Underwriting discounts and commissions | (822) |
Less: Other expenses | (149) |
Issuance of TEUs, net | $ 26,415 |
Shareholders' Equity (Equity Co
Shareholders' Equity (Equity Component) (Details) - Equity Component | 3 Months Ended | 12 Months Ended | |||
Sep. 28, 2019Tangible_Equity_Unitshares | Jun. 29, 2019Tangible_Equity_Unitshares | Sep. 30, 2017Tangible_Equity_Unitshares | Sep. 29, 2018shares | Sep. 30, 2017shares | |
Debt Instrument [Line Items] | |||||
Settlement of tangible equity units, settled (in units) | Tangible_Equity_Unit | 283,000 | 394,000 | 473,000 | ||
Number of equity instruments per contract (in shares) | 1.9841 | ||||
Settlement of tangible equity units (in shares) | 561,000 | 781,000 | 939,000 | ||
Tangible equity units, outstanding units (in units) | Tangible_Equity_Unit | 0 | ||||
Minimum | Common Class A | |||||
Debt Instrument [Line Items] | |||||
Number of equity instruments per contract (in shares) | 1.9841 | 1.9841 | 1.9841 | 1.9841 |
Shareholders' Equity (Debt Comp
Shareholders' Equity (Debt Component) (Details) | 3 Months Ended |
Sep. 28, 2019USD ($) | |
Tangible Equity Units Senior Amortizing Note | |
Debt Instrument [Line Items] | |
Periodic payment per note, after initial payment | $ 2.1875 |
Shareholders' Equity (Capped Ca
Shareholders' Equity (Capped Calls) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Sep. 28, 2019shares | Sep. 30, 2017shares | Sep. 28, 2019shares$ / shares | Sep. 29, 2018shares | Sep. 30, 2017shares | Oct. 01, 2016USD ($)shares$ / shares | |
Class of Stock [Line Items] | ||||||
Additional paid in capital, capped calls | $ | $ 7,935 | |||||
Initial capped calls equivalent shares (in shares) | 2,282,000 | |||||
Capped calls settled, percentage | 10.00% | |||||
Settlement of capped calls (in shares) | 12,000 | 0 | ||||
Original Capped Call Agreements | Minimum | ||||||
Class of Stock [Line Items] | ||||||
Strike price, capped calls (in dollars per share) | $ / shares | $ 50.40 | |||||
Original Capped Call Agreements | Maximum | ||||||
Class of Stock [Line Items] | ||||||
Strike price, capped calls (in dollars per share) | $ / shares | $ 58.80 | |||||
Amended Capped Call Agreements | ||||||
Class of Stock [Line Items] | ||||||
Capped calls outstanding equivalent shares (in shares) | 2,054,000 | |||||
Amended Capped Call Agreements | Minimum | ||||||
Class of Stock [Line Items] | ||||||
Strike price, capped calls (in dollars per share) | $ / shares | $ 50.40 | |||||
Amended Capped Call Agreements | Maximum | ||||||
Class of Stock [Line Items] | ||||||
Strike price, capped calls (in dollars per share) | $ / shares | $ 57.97 | |||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Settlement of capped calls (in shares) | (223,000) | (12,000) | ||||
Common Stock | Amended Capped Call Agreements | ||||||
Class of Stock [Line Items] | ||||||
Common stock to be received and retired under capped calls (in shares) | 223,000 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | 12 Months Ended | ||||
Sep. 28, 2019 | Jun. 29, 2019 | Sep. 30, 2017 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Class of Stock [Line Items] | ||||||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 805,000 | 584,000 | 726,000 | |||
Equity Component | ||||||
Class of Stock [Line Items] | ||||||
Convertible, number of equity instruments per contract (in shares) | 1.9841 | |||||
Equity Component | Minimum | Common Class A | ||||||
Class of Stock [Line Items] | ||||||
Convertible, number of equity instruments per contract (in shares) | 1.9841 | 1.9841 | 1.9841 | 1.9841 |
Earnings Per Share (Schedule of
Earnings Per Share (Schedule of Earnings per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |||
Net income | $ 43,067 | $ 61,328 | $ 25,084 |
Weighted average common shares outstanding (in shares) | 19,258 | 19,163 | 19,040 |
Effect of dilutive securities | |||
Stock-based compensation (in shares) | 189 | 130 | 97 |
Weighted average dilutive common shares outstanding (in shares) | 19,447 | 19,293 | 19,137 |
Earnings per share | |||
Basic (in dollars per share) | $ 2.24 | $ 3.20 | $ 1.32 |
Diluted (in dollars per share) | $ 2.21 | $ 3.18 | $ 1.31 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) (Schedule Of Other Comprehensive Income (Loss)) Allocated To Each Component Of Other Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Net | |||
OCI, before reclassifications, net of tax | $ (17,423) | $ 1,620 | $ 9,026 |
Net (gain) loss reclassified to earnings | (2,526) | (231) | 794 |
Other comprehensive income (loss) | (19,949) | 1,389 | 9,820 |
Accumulated Other Comprehensive Income (Loss) | |||
Pretax | |||
Other comprehensive income (loss) | (23,667) | 2,579 | 13,154 |
Tax | |||
Other comprehensive income (loss) | 3,718 | (1,190) | (3,334) |
Net | |||
Other comprehensive income (loss) | (19,949) | 1,389 | 9,820 |
Foreign currency translation gain (loss) adjustments | |||
Pretax | |||
OCI, before reclassifications, before tax | (9,980) | (2,174) | 3,273 |
Net | |||
OCI, before reclassifications, net of tax | (9,980) | (2,174) | 3,273 |
Net (gain) loss reclassified to earnings | 0 | 0 | 0 |
Other comprehensive income (loss) | (9,980) | (2,174) | 3,273 |
Unrealized Derivative Instrument Adjustments | |||
Pretax | |||
OCI, before reclassifications, before tax | (2,723) | 5,832 | 3,301 |
Net (gain) loss reclassified to earnings | (3,715) | (805) | 155 |
Tax | |||
OCI, before reclassifications, net of tax | 582 | (1,507) | (1,191) |
Net (gain) loss reclassified to earnings | 810 | 207 | (57) |
Net | |||
OCI, before reclassifications, net of tax | (2,141) | 4,325 | 2,110 |
Net (gain) loss reclassified to earnings | (2,905) | (598) | 98 |
Other comprehensive income (loss) | (5,046) | 3,727 | 2,208 |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent | |||
Pretax | |||
OCI, before reclassifications, before tax | (8,247) | (890) | 5,918 |
Net (gain) loss reclassified to earnings | 542 | 526 | 996 |
Tax | |||
OCI, before reclassifications, net of tax | 2,489 | 269 | (1,786) |
Net (gain) loss reclassified to earnings | (163) | (159) | (300) |
Net | |||
OCI, before reclassifications, net of tax | (5,758) | (621) | 4,132 |
Net (gain) loss reclassified to earnings | 379 | 367 | 696 |
Currency exchange rate gain (loss) | |||
Pretax | |||
OCI, before reclassifications, before tax | 456 | 90 | (489) |
Net | |||
OCI, before reclassifications, net of tax | $ 456 | $ 90 | $ (489) |
Other Comprehensive Income (L_4
Other Comprehensive Income (Loss) (Schedule Of Changes In Each Component Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at the beginning of the year | $ 477,932 | $ 428,777 | $ 405,260 |
Other comprehensive net gain (loss) reclassifications | (17,423) | 1,620 | 9,026 |
Net (gain) loss reclassified to earnings | (2,526) | (231) | 794 |
Other comprehensive income (loss) | (19,949) | 1,389 | 9,820 |
Reclassification to retained earnings | 640 | ||
Balance at the end of the year | 484,059 | 477,932 | 428,777 |
Foreign Currency Translation Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at the beginning of the year | 1,772 | 3,946 | 673 |
Other comprehensive net gain (loss) reclassifications | (9,980) | (2,174) | 3,273 |
Net (gain) loss reclassified to earnings | 0 | 0 | 0 |
Other comprehensive income (loss) | (9,980) | (2,174) | 3,273 |
Reclassification to retained earnings | 0 | ||
Balance at the end of the year | (8,208) | 1,772 | 3,946 |
Unrealized Derivative Instrument Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at the beginning of the year | 6,320 | 1,953 | (255) |
Other comprehensive net gain (loss) reclassifications | (2,141) | 4,325 | 2,110 |
Net (gain) loss reclassified to earnings | (2,905) | (598) | 98 |
Other comprehensive income (loss) | (5,046) | 3,727 | 2,208 |
Reclassification to retained earnings | 640 | ||
Balance at the end of the year | 1,274 | 6,320 | 1,953 |
Defined Benefit Pension Plan Adjustments | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at the beginning of the year | (6,616) | (6,452) | (10,791) |
Other comprehensive net gain (loss) reclassifications | (5,302) | (531) | 3,643 |
Net (gain) loss reclassified to earnings | 379 | 367 | 696 |
Other comprehensive income (loss) | (4,923) | (164) | 4,339 |
Reclassification to retained earnings | 0 | ||
Balance at the end of the year | (11,539) | (6,616) | (6,452) |
Accumulated Other Comprehensive Income (Loss) | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Balance at the beginning of the year | 1,476 | (553) | (10,373) |
Other comprehensive income (loss) | (19,949) | 1,389 | 9,820 |
Balance at the end of the year | $ (18,473) | $ 1,476 | $ (553) |
Other Comprehensive Income (L_5
Other Comprehensive Income (Loss) (Schedule Of Amounts Reclassified Out Of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenue | $ 892,518 | $ 778,032 | $ 787,955 |
Interest expense, net | (31,558) | (25,882) | (30,821) |
Cost of sales | (563,588) | (472,503) | (485,677) |
Selling and marketing | (131,639) | (126,333) | (124,912) |
General and administrative | (86,658) | (79,240) | (87,539) |
Other income (expense), net | 466 | 4,933 | (996) |
Income before income taxes | 48,613 | 44,223 | 23,011 |
Income tax provision (benefit) | (5,546) | 17,105 | 2,073 |
Net income | 43,067 | 61,328 | 25,084 |
Reclassification Out Of Accumulated Other Comprehensive Income | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Net income | 2,526 | 231 | (794) |
Reclassification Out Of Accumulated Other Comprehensive Income | Unrealized Derivative Instrument Adjustments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Income tax provision (benefit) | (810) | (207) | 57 |
Net income | 2,905 | 598 | (98) |
Reclassification Out Of Accumulated Other Comprehensive Income | Unrealized Derivative Instrument Adjustments | Currency exchange contracts gain (loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Revenue | 1,026 | (399) | 459 |
Reclassification Out Of Accumulated Other Comprehensive Income | Unrealized Derivative Instrument Adjustments | Interest rate swap contracts gain (loss) | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Interest expense, net | 2,689 | 1,204 | (614) |
Reclassification Out Of Accumulated Other Comprehensive Income | Defined Benefit Pension Plan Adjustments | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Cost of sales | 0 | (288) | (543) |
Selling and marketing | 0 | (148) | (282) |
General and administrative | 0 | (90) | (171) |
Other income (expense), net | (542) | 0 | 0 |
Income before income taxes | (542) | (526) | (996) |
Income tax provision (benefit) | 163 | 159 | 300 |
Net income | $ (379) | $ (367) | $ (696) |
Business Segment Information (N
Business Segment Information (Narrative) (Details) - segment | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Segment Reporting [Abstract] | |||
Number of operating segments | 2 | ||
Minimum threshold percentage of revenues by country | 10.00% | 10.00% | 10.00% |
Minimum disclosure threshold percentage of revenues by customer | 10.00% | 10.00% | 10.00% |
Business Segment Information (F
Business Segment Information (Financial Information By Reportable Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Segment Reporting Information [Line Items] | |||
Revenue | $ 892,518 | $ 778,032 | $ 787,955 |
Income from Operations | 79,705 | 65,172 | 54,828 |
Identifiable Assets | 1,297,977 | 1,139,396 | 1,189,692 |
Goodwill | 429,039 | 369,275 | 369,762 |
Capital Expenditures | 30,525 | 12,321 | 17,798 |
Depreciation and Amortization | 37,975 | 34,492 | 35,523 |
Test & Simulation | |||
Segment Reporting Information [Line Items] | |||
Revenue | 558,908 | 464,924 | 504,087 |
Income from Operations | 34,080 | 19,225 | 28,622 |
Identifiable Assets | 419,403 | 299,242 | 374,698 |
Goodwill | 61,153 | 24,631 | 25,109 |
Capital Expenditures | 18,792 | 8,111 | 13,281 |
Depreciation and Amortization | 19,529 | 16,353 | 17,275 |
Sensors | |||
Segment Reporting Information [Line Items] | |||
Revenue | 334,976 | 314,269 | 283,868 |
Income from Operations | 45,620 | 45,980 | 26,206 |
Identifiable Assets | 878,602 | 840,187 | 814,994 |
Goodwill | 367,886 | 344,644 | 344,653 |
Capital Expenditures | 11,733 | 4,210 | 4,517 |
Depreciation and Amortization | 18,446 | 18,139 | 18,248 |
Intersegment | |||
Segment Reporting Information [Line Items] | |||
Revenue | (1,366) | (1,161) | 0 |
Income from Operations | 5 | (33) | 0 |
Identifiable Assets | $ (28) | $ (33) | $ 0 |
Business Segment Information (G
Business Segment Information (Geographical Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 892,518 | $ 778,032 | $ 787,955 |
Property and Equipment, Net | 101,083 | 90,269 | 99,930 |
U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 306,574 | 245,909 | 246,679 |
Property and Equipment, Net | 81,119 | 69,782 | 78,080 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 224,982 | 223,236 | 192,491 |
Property and Equipment, Net | 13,927 | 15,130 | 15,296 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 189,227 | 165,421 | 174,044 |
Property and Equipment, Net | 5,424 | 4,858 | 5,542 |
Asia, excluding China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 131,771 | 113,953 | 142,644 |
Property and Equipment, Net | 613 | 499 | 1,012 |
Americas, excluding U.S. | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 39,964 | $ 29,513 | $ 32,097 |
Business Acquisitions (Narrativ
Business Acquisitions (Narrative) (Details) - USD ($) $ in Thousands | Aug. 05, 2019 | Nov. 21, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 |
Business Acquisition [Line Items] | |||||
Revenue | $ 892,518 | $ 778,032 | $ 787,955 | ||
E2M Technologies B.V. | |||||
Business Acquisition [Line Items] | |||||
Cash paid at closing | $ 80,287 | ||||
Revenue | 29,554 | ||||
Acquisition costs | 1,287 | ||||
Intangible assets | $ 43,989 | ||||
Endevco | |||||
Business Acquisition [Line Items] | |||||
Cash paid at closing | $ 68,330 | ||||
Revenue | 4,409 | ||||
Acquisition costs | $ 1,388 | ||||
Intangible assets | $ 25,500 |
Business Acquisitions (Fair Val
Business Acquisitions (Fair Values Assigned to the Assets and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Aug. 05, 2019 | Nov. 21, 2018 | Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 |
Asset (Liability) | |||||
Purchased goodwill | $ 429,039 | $ 369,275 | $ 369,762 | ||
Supplemental information | |||||
Purchase price, net of cash acquired | $ 151,956 | $ 0 | $ 853 | ||
Finite-lived intangible asset lives (in Years) | 14 years 4 months 24 days | 14 years 9 months 18 days | |||
E2M Technologies B.V. | |||||
Asset (Liability) | |||||
Accounts receivable | $ 4,651 | ||||
Unbilled accounts receivable | 1,518 | ||||
Inventories | 11,063 | ||||
Prepaid expenses and other current assets | 123 | ||||
Property and equipment | 672 | ||||
Intangible assets | 43,989 | ||||
Other long-term assets | 60 | ||||
Purchased goodwill | 36,665 | ||||
Accounts payable | (3,657) | ||||
Accrued payroll and related costs | (1,328) | ||||
Advance payments from customers | (4,315) | ||||
Accrued income taxes | (290) | ||||
Other accrued liabilities | (127) | ||||
Deferred income taxes | (10,477) | ||||
Net assets acquired | 78,547 | ||||
Supplemental information | |||||
Consideration paid at closing | 79,772 | ||||
Post-closing purchase price adjustment | 515 | ||||
Less: Cash acquired | (1,740) | ||||
Purchase price, net of cash acquired | 78,547 | ||||
Endevco | |||||
Asset (Liability) | |||||
Inventories | $ 11,890 | ||||
Property and equipment | 1,078 | ||||
Intangible assets | 25,500 | ||||
Purchased goodwill | 23,292 | ||||
Deferred income taxes | (6,570) | ||||
Net assets acquired | 68,330 | ||||
Supplemental information | |||||
Consideration paid at closing | 70,000 | ||||
Post-closing purchase price adjustment | (1,670) | ||||
Purchase price, net of cash acquired | 68,330 | ||||
Customer lists | |||||
Supplemental information | |||||
Finite-lived intangible asset lives (in Years) | 15 years 7 months 6 days | 15 years 9 months 18 days | |||
Customer lists | E2M Technologies B.V. | |||||
Asset (Liability) | |||||
Intangible assets | $ 21,652 | ||||
Supplemental information | |||||
Finite-lived intangible asset lives (in Years) | 15 years | ||||
Customer lists | Endevco | |||||
Asset (Liability) | |||||
Intangible assets | 13,200 | ||||
Supplemental information | |||||
Finite-lived intangible asset lives (in Years) | 15 years | ||||
Trademarks and trade names | |||||
Supplemental information | |||||
Finite-lived intangible asset lives (in Years) | 18 years 4 months 24 days | 25 years 4 months 24 days | |||
Trademarks and trade names | E2M Technologies B.V. | |||||
Asset (Liability) | |||||
Intangible assets | $ 5,926 | ||||
Supplemental information | |||||
Finite-lived intangible asset lives (in Years) | 15 years | ||||
Trademarks and trade names | Endevco | |||||
Asset (Liability) | |||||
Intangible assets | 7,900 | ||||
Supplemental information | |||||
Finite-lived intangible asset lives (in Years) | 15 years | ||||
Technology | E2M Technologies B.V. | |||||
Asset (Liability) | |||||
Intangible assets | $ 12,650 | ||||
Supplemental information | |||||
Finite-lived intangible asset lives (in Years) | 15 years | ||||
Technology | Endevco | |||||
Asset (Liability) | |||||
Intangible assets | $ 4,400 | ||||
Supplemental information | |||||
Finite-lived intangible asset lives (in Years) | 15 years | ||||
Other intangible assets | |||||
Supplemental information | |||||
Finite-lived intangible asset lives (in Years) | 4 years | ||||
Other intangible assets | E2M Technologies B.V. | |||||
Asset (Liability) | |||||
Intangible assets | $ 3,761 | ||||
Supplemental information | |||||
Finite-lived intangible asset lives (in Years) | 4 years |
Commitments and Contingencies_2
Commitments and Contingencies (Minimum Annual Rental Commitments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Total lease expense | $ 9,055 | $ 7,924 | $ 7,506 |
2020 | 7,149 | ||
2021 | 5,291 | ||
2022 | 3,124 | ||
2023 | 1,602 | ||
2024 | 1,085 | ||
Thereafter | 1,789 | ||
Total | $ 20,040 |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Details) - USD ($) | 1 Months Ended | ||||
Dec. 31, 2019 | Nov. 01, 2019 | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 29, 2018 | |
Revolving Credit Facility | |||||
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity | $ 150,000,000 | $ 150,000,000 | $ 120,000,000 | ||
Revolving Credit Facility | Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Maximum borrowing capacity | $ 200,000,000 | ||||
Forecast | R&D Group | |||||
Subsequent Event [Line Items] | |||||
Percentage of voting interests acquired | 100.00% | ||||
Consideration transferred | $ 80,000,000 | ||||
Payments to acquire businesses | 55,000,000 | ||||
Business combination, net pre-acquisition earn-out | $ 25,000,000 |
Schedule II _ Summary of Cons_2
Schedule II – Summary of Consolidated Allowances for Doubtful Accounts (Details) - Allowance For Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Sep. 30, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Beginning balance | $ 5,004 | $ 5,371 | $ 3,923 |
Provisions / (recoveries) | 1,864 | 2,142 | 1,930 |
Amounts written-off / payments | (734) | (2,378) | (551) |
Currency translation | (171) | (131) | 69 |
Ending balance | $ 5,963 | $ 5,004 | $ 5,371 |
Uncategorized Items - mtsfy1910
Label | Element | Value |
Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (33,000) |
AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 640,000 |