Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jul. 31, 2015 | Sep. 03, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jul. 31, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | ESL | |
Entity Registrant Name | ESTERLINE TECHNOLOGIES CORP | |
Entity Central Index Key | 33,619 | |
Current Fiscal Year End Date | --10-02 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,545,713 |
CONSOLIDATED BALANCE SHEET (Una
CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands | Jul. 31, 2015 | Oct. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 187,682 | $ 238,144 |
Accounts receivable, net of allowances of $10,397 and $10,023 | 373,699 | 379,889 |
Inventories | ||
Raw materials and purchased parts | 174,346 | 165,839 |
Work in progress | 191,519 | 178,354 |
Finished goods | 103,835 | 89,402 |
Inventories | 469,700 | 433,595 |
Income tax refundable | 17,515 | 5,266 |
Deferred income tax benefits | 36,945 | 48,679 |
Prepaid expenses | 21,407 | 20,336 |
Other current assets | 17,196 | 2,149 |
Current assets of businesses held for sale | 14,398 | 41,446 |
Total Current Assets | 1,138,542 | 1,169,504 |
Property, Plant and Equipment | 723,746 | 721,460 |
Accumulated depreciation | 417,355 | 402,118 |
Total Property, Plant and Equipment | 306,391 | 319,342 |
Other Non-Current Assets | ||
Goodwill | 1,040,443 | 1,071,786 |
Intangibles, net | 459,968 | 471,377 |
Debt issuance costs, net of accumulated amortization of $2,789 and $5,743 | 11,035 | 4,295 |
Deferred income tax benefits | 75,612 | 71,307 |
Other assets | 22,103 | 14,179 |
Non-current assets of businesses held for sale | 31,558 | 71,677 |
Total Assets | 3,085,652 | 3,193,467 |
Current Liabilities | ||
Accounts payable | 111,415 | 115,284 |
Accrued liabilities | 267,386 | 262,536 |
Current maturities of long-term debt | 1,014 | 12,774 |
Deferred income tax liabilities | 2,993 | 1,773 |
Federal and foreign income taxes | 3,853 | 1,571 |
Current liabilities of businesses held for sale | 8,885 | 14,191 |
Total Current Liabilities | 395,546 | 408,129 |
Long-Term Liabilities | ||
Credit facilities | 200,000 | 100,000 |
Long-term debt, net of current maturities | 712,809 | 509,720 |
Deferred income tax liabilities | 133,499 | 149,165 |
Pension and post-retirement obligations | 56,758 | 62,693 |
Other liabilities | 30,512 | 46,884 |
Non-current liabilities of businesses held for sale | 1,859 | 18,876 |
Shareholders' Equity | ||
Common stock, par value $.20 per share, authorized 60,000,000 shares, issued 32,365,349 and 32,123,717 shares | 6,473 | 6,425 |
Additional paid-in capital | 679,647 | 655,723 |
Treasury stock at cost, repurchased 2,831,350 and 269,228 shares | (289,780) | (30,262) |
Retained earnings | 1,444,134 | 1,387,508 |
Accumulated other comprehensive loss | (295,835) | (131,577) |
Total Esterline Shareholders' Equity | 1,544,639 | 1,887,817 |
Noncontrolling interests | 10,030 | 10,183 |
Total Shareholders' Equity | 1,554,669 | 1,898,000 |
Total Liabilities and Shareholders' Equity | $ 3,085,652 | $ 3,193,467 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Jul. 31, 2015 | Oct. 31, 2014 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 10,397 | $ 10,023 |
Debt issuance costs, accumulated amortization | $ 2,789 | $ 5,743 |
Common stock, par value | $ 0.20 | $ 0.20 |
Common stock, shares authorized | 60,000,000 | 60,000,000 |
Common stock, shares issued | 32,365,349 | 32,123,717 |
Treasury stock, shares repurchased | 2,831,350 | 269,228 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Aug. 01, 2014 | Jul. 31, 2015 | Aug. 01, 2014 | |
Income Statement [Abstract] | ||||
Net Sales | $ 496,217 | $ 506,309 | $ 1,442,641 | $ 1,503,110 |
Cost of Sales | 326,421 | 329,222 | 963,844 | 976,063 |
Gross Profit | 169,796 | 177,087 | 478,797 | 527,047 |
Expenses | ||||
Selling, general & administrative | 91,968 | 88,884 | 286,366 | 270,051 |
Research, development and engineering | 29,245 | 24,259 | 78,700 | 75,441 |
Restructuring charges | 1,403 | 3,405 | 5,375 | 10,279 |
Other (income) expense | 0 | 0 | (12,744) | 0 |
Total Expenses | 122,616 | 116,548 | 357,697 | 355,771 |
Operating Earnings from Continuing Operations | 47,180 | 60,539 | 121,100 | 171,276 |
Interest Income | (144) | (145) | (447) | (400) |
Interest Expense | 10,618 | 7,865 | 25,023 | 24,924 |
Loss on Extinguishment of Debt | 0 | 533 | 329 | 533 |
Earnings from Continuing Operations Before Income Taxes | 36,706 | 52,286 | 96,195 | 146,219 |
Income Tax Expense | 6,405 | 12,403 | 19,097 | 31,415 |
Earnings from Continuing Operations Including Noncontrolling Interests | 30,301 | 39,883 | 77,098 | 114,804 |
Earnings Attributable to Noncontrolling Interests | (111) | (46) | (218) | (429) |
Earnings from Continuing Operations Attributable to Esterline, Net of Tax | 30,190 | 39,837 | 76,880 | 114,375 |
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | (1,693) | (929) | (20,254) | (8,485) |
Net Earnings Attributable to Esterline | $ 28,497 | $ 38,908 | $ 56,626 | $ 105,890 |
Earnings (Loss) Per Share Attributable to Esterline - Basic: | ||||
Continuing operations | $ 1 | $ 1.25 | $ 2.48 | $ 3.60 |
Discontinued operations | (0.06) | (0.03) | (0.65) | (0.27) |
Earnings (Loss) Per Share Attributable to Esterline - Basic | 0.94 | 1.22 | 1.83 | 3.33 |
Earnings (Loss) Per Share Attributable to Esterline - Diluted: | ||||
Continuing operations | 0.97 | 1.22 | 2.44 | 3.53 |
Discontinued operations | (0.05) | (0.03) | (0.64) | (0.26) |
Earnings (Loss) Per Share Attributable to Esterline - Diluted | $ 0.92 | $ 1.19 | $ 1.80 | $ 3.27 |
Comprehensive Income (Loss) | $ (990) | $ 16,479 | $ (107,632) | $ 86,162 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2015 | Aug. 01, 2014 | |
Cash Flows Provided (Used) by Operating Activities | ||
Net earnings including noncontrolling interests | $ 56,844 | $ 106,319 |
Adjustments to reconcile net earnings including noncontrolling interests to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 77,310 | 87,443 |
Deferred income taxes | (9,333) | (13,104) |
Share-based compensation | 8,618 | 9,833 |
Gain on release of non-income tax liability | (15,656) | 0 |
Loss on assets held for sale | 16,963 | 0 |
Working capital changes, net of effect of acquisitions: | ||
Accounts receivable | 17,943 | 23,480 |
Inventories | (18,313) | (42,411) |
Prepaid expenses | (2,588) | (6,202) |
Other current assets | 142 | (99) |
Accounts payable | (16,809) | (4,508) |
Accrued liabilities | (7,189) | (16,458) |
Federal and foreign income taxes | (8,501) | (7,983) |
Other liabilities | 3,243 | (1,440) |
Other, net | 1,526 | (155) |
Net Cash Provided (Used) by Operating Activities | 104,200 | 134,715 |
Cash Flows Provided (Used) by Investing Activities | ||
Purchase of capital assets | (37,777) | (35,009) |
Proceeds from sale of discontinued operations | 32,053 | 0 |
Acquisition of businesses, net of cash acquired | (171,070) | (44,745) |
Net Cash Provided (Used) by Investing Activities | (176,794) | (79,754) |
Cash Flows Provided (Used) by Financing Activities | ||
Proceeds provided by stock issuance under employee stock plans | 13,477 | 23,173 |
Excess tax benefits from stock option exercises | 1,877 | 6,392 |
Shares repurchased | (259,518) | (5,176) |
Repayment of long-term credit facilities | (235,000) | (40,000) |
Repayment of long-term debt | (167,065) | (34,076) |
Proceeds from issuance of long-term credit facilities | 335,000 | 25,000 |
Proceeds from issuance of long-term debt | 356,532 | 0 |
Proceeds from government assistance | 3,054 | 3,362 |
Dividends paid to noncontrolling interests | 0 | (780) |
Debt and other issuance costs | (8,213) | 0 |
Net Cash Provided (Used) by Financing Activities | 40,144 | (22,105) |
Effect of Foreign Exchange Rates on Cash and Cash Equivalents | (18,012) | (1,578) |
Net Increase (Decrease) in Cash and Cash Equivalents | (50,462) | 31,278 |
Cash and Cash Equivalents - Beginning of Year | 238,144 | 179,178 |
Cash and Cash Equivalents - End of Period | 187,682 | 210,456 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 15,939 | 26,066 |
Cash paid for taxes | $ 29,790 | $ 49,036 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jul. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation The consolidated balance sheet as of July 31, 2015, the consolidated statement of operations and comprehensive income (loss) for the three and nine month periods ended July 31, 2015, and August 1, 2014, and the consolidated statement of cash flows for the nine month periods ended July 31, 2015, and August 1, 2014, are unaudited but, in the opinion of management, all of the necessary adjustments, consisting of normal recurring accruals, have been made to present fairly the financial statements referred to above in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, the above statements do not include all of the footnotes required for complete financial statements. The results of operations and cash flows for the interim periods presented are not necessarily indicative of results that can be expected for the full year. The notes to the consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2014, provide a summary of significant accounting policies and additional financial information that should be read in conjunction with this Form 10-Q. The timing of the Company’s revenues is impacted by the purchasing patterns of customers and, as a result, revenues are not generated evenly throughout the year. Moreover, the Company’s first fiscal quarter, November through January, includes significant holiday periods in both Europe and North America. The first nine months of fiscal 2015 was 39 weeks, while the first nine months of fiscal 2014 was 40 weeks. On June 5, 2014, the Company’s board of directors authorized a change in the Company’s fiscal year end to the last Friday of September from the last Friday in October. The Company plans to report its financial results for the 11-month transition period of November 1, 2014, through October 2, 2015, on an Annual Report on Form 10-K and to thereafter file its annual report for each 12-month period ending the last Friday of September of each year, beginning with the 12-month period ending September 30, 2016. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 9 Months Ended |
Jul. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Note 2 – Recent Accounting Pronouncements In April 2014, the Financial Accounting Standards Board (FASB) issued guidance that modifies the criteria used to qualify divestitures for classification as discontinued operations and expands disclosure related to disposals of significant components. The amendment will become effective for the Company in fiscal 2016, with early adoption permitted; however, the Company does not expect to early adopt the amended guidance. The amended guidance is expected to decrease the likelihood that future disposals will qualify for discontinued operations treatment, meaning that the results of operation of some future disposals may be reported as continuing operations. In May 2014, FASB amended requirements for an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is permitted. The updated standard becomes effective for the Company in the first fiscal quarter of 2019. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on consolidated financial statements and related disclosures. In April 2015, FASB amended requirements related to the presentation of debt issuance costs. The updated standard requires debt issuance costs related to recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. The recognition and measurement of debt issuance costs are not affected by this amendment. The updated standard is effective for the Company in the first fiscal quarter of 2016. The Company does not expect that the standard will have a material impact on its consolidated financial statements and related disclosures. |
Earnings Per Share and Sharehol
Earnings Per Share and Shareholders Equity | 9 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Shareholders Equity | Note 3 – Earnings Per Share and Shareholders’ Equity Basic earnings per share is computed on the basis of the weighted average number of shares outstanding during the year. Diluted earnings per share includes the dilutive effect of stock options and restricted stock units. Common shares issuable from stock options excluded from the calculation of diluted earnings per share because they were anti-dilutive were 370,050 and 170,300 in the third fiscal quarter of 2015 and 2014, respectively. Shares used for calculating earnings per share are disclosed in the following table: In Thousands Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Shares used for basic earnings per share 30,397 31,995 31,003 31,818 Shares used for diluted earnings per share 30,914 32,591 31,531 32,427 The authorized capital stock of the Company consists of 25,000 shares of preferred stock ($100 par value), 475,000 shares of serial preferred stock ($1.00 par value), each issuable in series, and 60,000,000 shares of common stock ($.20 par value). As of July 31, 2015, and October 31, 2014, there were no shares of preferred stock or serial preferred stock outstanding. On June 19, 2014, the Company’s board of directors approved a $200 million share repurchase program. In March 2015, the Company’s board of directors approved an additional $200 million for the share repurchase program. Under the program, the Company is authorized to repurchase up to $400 million of outstanding shares of common stock from time to time, depending on market conditions, share price and other factors. Repurchases may be made in the open market or through private transactions, in accordance with SEC requirements. The Company may enter into a Rule 10(b)5-1 plan designed to facilitate the repurchase of all or a portion of the repurchase amount. The program does not require the Company to acquire a specific number of shares. Common stock repurchased can be reissued, and accordingly, the Company accounts for repurchased stock under the cost method of accounting. During the nine months ended July 31, 2015, the Company repurchased 2,562,122 shares under this program at an average price paid per share of $101.29, for an aggregate purchase price of $259.5 million. Changes in issued and outstanding common shares are summarized as follows: July 31, October 31, 2015 2014 Shares Issued: Balance, beginning of year 32,123,717 31,441,949 Shares issued under share-based compensation plans 241,632 681,768 Balance, end of current period 32,365,349 32,123,717 Treasury Stock: Balance, beginning of year 269,228 - Shares purchased 2,562,122 269,228 Balance, end of current period 2,831,350 269,228 Shares outstanding, end of period 29,533,999 31,854,489 The components of Accumulated Other Comprehensive Gain (Loss): In Thousands July 31, October 31, 2015 2014 Unrealized gain (loss) on derivative contracts $ (27,050 ) $ (14,179 ) Tax effect 7,317 3,890 (19,733 ) (10,289 ) Pension and post-retirement obligations (77,644 ) (90,225 ) Tax effect 25,941 30,072 (51,703 ) (60,153 ) Currency translation adjustment (224,399 ) (61,135 ) Accumulated other comprehensive gain (loss) $ (295,835 ) $ (131,577 ) |
Retirement Benefits
Retirement Benefits | 9 Months Ended |
Jul. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Benefits | Note 4 – Retirement Benefits The Company’s pension plans principally include a U.S. pension plan maintained by Esterline and a non-U.S. plan maintained by CMC Electronics, Inc. (CMC). The Company also sponsors a number of other non-U.S. defined benefit pension plans, primarily in Belgium, France and Germany. In fiscal 2014, the Company offered vested terminated participants of its U.S. pension plan a one-time opportunity to elect a lump-sum payment from the plan in lieu of a lifetime annuity. In the first fiscal quarter of 2015, the Company made a $16.6 million lump-sum payment to vested terminated pension plan participants from the plan, which resulted in an actuarial estimated settlement charge of $3.2 million. The charge was recorded in selling, general and administrative expenses. Components of periodic pension cost consisted of the following: In Thousands Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Components of Net Periodic Cost Service cost $ 3,028 $ 2,621 $ 8,728 $ 8,244 Interest cost 4,334 4,737 12,863 14,314 Expected return on plan assets (6,398 ) (6,504 ) (19,257 ) (19,398 ) Settlement 184 - 3,175 - Amortization of prior service cost 271 19 305 58 Amortization of actuarial (gain) loss 1,462 1,213 3,860 3,913 Net periodic cost (benefit) $ 2,881 $ 2,086 $ 9,674 $ 7,131 The Company’s principal post-retirement plans include non-U.S. plans, which are non-contributory healthcare and life insurance plans. The components of expense of these other retirement benefits consisted of the following: In Thousands Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Components of Net Periodic Cost Service cost $ 206 $ 233 $ 631 $ 696 Interest cost 134 187 411 560 Amortization of prior service cost (18 ) (17 ) (52 ) (51 ) Amortization of actuarial (gain) loss (23 ) (67 ) (72 ) (201 ) Net periodic cost (benefit) $ 299 $ 336 $ 918 $ 1,004 The Company amortizes prior service cost and actuarial gains and losses from accumulated other comprehensive income to expense over the remaining service period. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jul. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 5 – Fair Value Measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value. An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The hierarchy of fair value measurements is described below: Level 1 – Valuations are based on quoted prices that the Company has the ability to obtain in actively traded markets for identical assets and liabilities. Since valuations are based on quoted prices that are readily and regularly available in an active market or exchange traded market, a valuation of these instruments does not require a significant degree of judgment. Level 2 – Valuations are based on quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuations are based on model-based techniques for which some or all of the assumptions are obtained from indirect market information that is significant to the overall fair value measurement and which require a significant degree of management judgment. The following table sets forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis by level within the fair value hierarchy at July 31, 2015, and October 31, 2014. In Thousands Level 2 July 31, October 31, 2015 2014 Assets: Derivative contracts designated as hedging instruments $ 892 $ 24 Derivative contracts not designated as hedging instruments 1,213 1,081 Embedded derivatives 4,454 2,351 Liabilities: Derivative contracts designated as hedging instruments $ 28,277 $ 14,592 Derivative contracts not designated as hedging instruments 1,837 4,188 Embedded derivatives 132 15 In Thousands Level 3 July 31, October 31, 2015 2014 Liabilities: Contingent purchase obligation $ 3,750 $ 5,000 The Company’s embedded derivatives are the result of entering into sales or purchase contracts that are denominated in a currency other than the Company’s functional currency or the supplier’s or customer’s functional currency. The fair value is determined by calculating the difference between quoted exchange rates at the time the contract was entered into and the period-end exchange rate. These contracts are categorized as Level 2 in the fair value hierarchy. From time to time, the Company’s derivative contracts consist of foreign currency exchange contracts and interest rate swap agreements. These derivative contracts are over the counter, and their fair value is determined using modeling techniques that include market inputs such as interest rates, yield curves, and currency exchange rates. These contracts are categorized as Level 2 in the fair value hierarchy. The Company’s contingent purchase obligation consists of additional contingent consideration in connection with the acquisition of Sunbank Family of Companies, LLC (Sunbank) of $3.8 million as of July 31, 2015, and $5.0 million as of October 31, 2014. The Company paid the first installment of $1.3 million in the third fiscal quarter of 2015. The contingent consideration will be payable to the sellers if certain performance objectives are met following the acquisition in accordance with the terms of the purchase agreement. The values recorded on the balance sheet were derived from the estimated probability that the performance objectives will be met. The contingent purchase obligation is categorized as Level 3 in the fair value hierarchy. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Jul. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 6 – Derivative Financial Instruments The Company uses derivative financial instruments in the form of foreign currency forward exchange contracts and interest rate swap contracts for the purpose of minimizing exposure to changes in foreign currency exchange rates on business transactions and interest rates, respectively. The Company’s policy is to execute such instruments with banks the Company believes to be creditworthy and not to enter into derivative financial instruments for speculative purposes. These derivative financial instruments do not subject the Company to undue risk, as gains and losses on these instruments generally offset gains and losses on the underlying assets, liabilities, or anticipated transactions that are being hedged. All derivative financial instruments are recorded at fair value in the Consolidated Balance Sheet. For a derivative that has not been designated as an accounting hedge, the change in the fair value is recognized immediately through earnings. For a derivative that has been designated as an accounting hedge of an existing asset or liability (a fair value hedge), the change in the fair value of both the derivative and underlying asset or liability is recognized immediately through earnings. For a derivative designated as an accounting hedge of an anticipated transaction (a cash flow hedge), the change in the fair value is recorded on the Consolidated Balance Sheet in Accumulated Other Comprehensive Income (AOCI) to the extent the derivative is effective in mitigating the exposure related to the anticipated transaction. The change in the fair value related to the ineffective portion of the hedge, if any, is immediately recognized in earnings. The amount recorded within AOCI is reclassified into earnings in the same period during which the underlying hedged transaction affects earnings. The fair value of derivative instruments are presented on a gross basis, as the Company does not have any derivative contracts which are subject to master netting arrangements. At July 31, 2015, and October 31, 2014, the Company did not have any hedges with credit-risk-related contingent features or that required the posting of collateral. The cash flows from derivative contracts are recorded in operating activities in the Consolidated Statement of Cash Flows. Foreign Currency Forward Exchange Contracts The Company transacts business in various foreign currencies, which subjects the Company’s cash flows and earnings to exposure related to changes in foreign currency exchange rates. These exposures arise primarily from purchases or sales of products and services from third parties. Foreign currency forward exchange contracts provide for the purchase or sale of foreign currencies at specified future dates at specified exchange rates, and are used to offset changes in the fair value of certain assets or liabilities or forecasted cash flows resulting from transactions denominated in foreign currencies. At July 31, 2015, and October 31, 2014, the Company had outstanding foreign currency forward exchange contracts principally to sell U.S. dollars with notional amounts of $380.3 million and $396.2 million, respectively. These notional values consist primarily of contracts for the European euro, British pound sterling and Canadian dollar, and are stated in U.S. dollar equivalents at spot exchange rates at the respective dates. Interest Rate Swaps The Company manages its exposure to interest rate risk by maintaining an appropriate mix of fixed and variable rate debt, which over time should moderate the costs of debt financing. When considered necessary, the Company may use financial instruments in the form of interest rate swaps to help meet this objective. Embedded Derivative Instruments The Company’s embedded derivatives are the result of entering into sales or purchase contracts that are denominated in a currency other than the Company’s functional currency or the supplier’s or customer’s functional currency. Net Investment Hedge In April 2015, the Company issued €330.0 million in 3.625% Senior Notes due April 2023 (2023 Notes) and requiring semi-annual interest payments in April and October each year until maturity. The Company designated the 2023 Notes a hedge of the investment of certain foreign business units. The foreign currency gain or loss that is effective as a hedge is reported as a component of other comprehensive income (loss) in shareholders’ equity. To the extent that this hedge is ineffective, the foreign currency gain or loss is recorded in earnings. There was no ineffectiveness since inception of the hedge. The Company also designated the accrued interest on the 2023 Notes as a net investment hedge. In July 2011, the Company entered into a Euro Term Loan for €125.0 million under the secured credit facility. The Company designated the Euro Term Loan a hedge of the investment in a certain French business unit. The foreign currency gain or loss that is effective as a hedge is reported as a component of other comprehensive income (loss) in shareholders’ equity. To the extent that this hedge is ineffective, the foreign currency gain or loss is recorded in earnings. There was no ineffectiveness since inception of the hedge. On June 30, 2014, the Company paid off the remaining balance of the Euro Term Loan. As a result, the Company recorded a net loss of $0.5 million on extinguishment of debt in the third fiscal quarter of 2014. Fair Value of Derivative Instruments Fair value of derivative instruments in the Consolidated Balance Sheet at July 31, 2015, and October 31, 2014, consisted of: In Thousands Fair Value July 31, October 31, Classification 2015 2014 Foreign Currency Forward Exchange Contracts: Other current assets $ 1,739 $ 1,052 Other assets 366 53 Accrued liabilities 22,683 15,490 Other liabilities 7,431 3,290 Embedded Derivative Instruments: Other current assets $ 497 $ 296 Other assets 3,957 2,055 Accrued liabilities 132 15 Other liabilities - - The effect of derivative instruments on the Consolidated Statement of Operations and Comprehensive Income (Loss) for the three and nine month periods ended July 31, 2015, and August 1, 2014, consisted of: Fair Value Hedges We recognized the following gains (losses) on contracts designated as fair value hedges: In Thousands Three Months Ended Nine Months Ended Gain (Loss) July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Embedded derivatives: Recognized in sales $ 491 $ (651 ) $ 2,070 $ 215 Cash Flow Hedges We recognized the following gains (losses) on contracts designated as cash flow hedges: In Thousands Three Months Ended Nine Months Ended Gain (Loss) July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Foreign currency forward exchange contracts: Recognized in AOCI (effective portion) $ (1,468 ) $ 1,873 $ 6,305 $ (858 ) Reclassified from AOCI into sales (5,775 ) (893 ) (19,176 ) (3,638 ) Net Investment Hedges We recognized the following gains (losses) on contracts designated as net investment hedges: In Thousands Three Months Ended Nine Months Ended Gain (Loss) July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Euro Term Loan: Recognized in AOCI $ - $ 162 $ - $ 134 2023 Notes: Recognized in AOCI $ 7,095 $ - $ (5,940 ) $ - 2023 Notes Interest: Recognized in AOCI $ 34 $ - $ 34 $ - During the first nine months of fiscal 2015 and 2014, the Company recorded a gain of $1.0 million and a loss of $0.8 million, respectively, on foreign currency forward exchange contracts that have not been designated as accounting hedges. These foreign currency exchange gains (losses) are included in selling, general and administrative expense. There was no significant impact to the Company’s earnings related to the ineffective portion of any hedging instruments during the first nine months of fiscal 2015 and 2014. In addition, there was no significant impact to the Company’s earnings when a hedged firm commitment no longer qualified as a fair value hedge or when a hedged forecasted transaction no longer qualified as a cash flow hedge during the first nine months of fiscal 2015 and 2014. Amounts included in AOCI are reclassified into earnings when the hedged transaction settles. The Company expects to reclassify approximately $20.8 million of net loss into earnings over the next 12 months. The $20.8 million loss will reduce the Company’s U.S.-dollar-denominated sales covered by qualified forward contracts to the forward rate when the Company entered into the forward contracts. The maximum duration of the Company’s foreign currency cash flow hedge contracts at July 31, 2015, is 24 months. |
Income Taxes
Income Taxes | 9 Months Ended |
Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 7 – Income Taxes The income tax rate was 17.4% in the third fiscal quarter of 2015 compared with 23.7% in the prior-year period. In the third fiscal quarter of 2015, the Company recognized $0.9 million of discrete tax benefits principally related to the following items. The first item was approximately $1.2 million of tax benefits due to the release of reserves upon the expiration of a statute of limitations. The second item was approximately $0.3 million of discrete tax expense principally related to reconciling the prior year’s income tax return to the income tax provision. In the third fiscal quarter of 2014, the Company recognized $0.2 million of discrete tax expense. The income tax rate differed from the statutory rate in the third fiscal quarters of 2015 and 2014, as both years benefited from various tax credits and certain foreign interest expense deductions. The income tax rates were 19.9% and 21.5% for the first nine months of fiscal 2015 and 2014, respectively. In the first nine months of fiscal 2015, the Company recognized $0.1 million of discrete tax benefits principally related to the following items. The first item was approximately $1.5 million of discrete tax benefits due to the retroactive extension of the U.S. federal research and experimentation credits. The second item was approximately $1.2 million of tax benefits due to the release of reserves upon the expiration of a statute of limitations. The third item was approximately $2.6 million of discrete tax expense principally related to reconciling the prior year’s income tax return to the income tax provision. In the first nine months of fiscal 2014, the Company recognized approximately $0.9 million of discrete tax benefits principally related to the following items. The first item was approximately $0.7 million of tax benefits upon the release of reserves due to the expiration of a statute of limitations. The second item was a $0.5 million reduction of net deferred income tax liabilities as a result of the enactment of tax laws reducing the U.K. statutory income tax rate. The third item was approximately $0.3 million of discrete tax expense principally related to reconciling the prior year’s income tax return to the income tax provision. The income tax rate differed from the statutory rate in the first nine months of fiscal 2015 and 2014, as both years benefited from various tax credits and certain foreign interest expense deductions. It is reasonably possible that within the next twelve months approximately $0.9 million of tax benefits that are currently unrecognized could be recognized as a result of settlement of examinations and/or the expiration of applicable statutes of limitations. |
Debt
Debt | 9 Months Ended |
Jul. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Note 8 – Debt In March 2011, the Company entered into a secured credit facility for $460 million made available through a group of banks. The credit facility is secured by substantially all of the Company’s assets and interest is based on standard inter-bank offering rates. On April 9, 2015, the Company amended the secured credit facility to extend the expiration to April 9, 2020, increase the revolving credit facility to $500 million, and provide for a delayed-draw term loan facility of $250 million. Borrowing under the delayed-draw term loan facility, if utilized, may be used only for working capital and repayment or refinancing of our existing indebtedness and to pay the fees and expenses in connection therewith. The interest rate on the credit facility ranges from LIBOR plus 1.25% to LIBOR plus 2.00% depending on the leverage ratios at the time the funds are drawn. At July 31, 2015, the Company had $200.0 million outstanding under the secured credit facility at an interest rate of LIBOR plus 1.50%, which was 1.69% at July 31, 2015. In April 2013, the Company amended the secured credit facility to provide for a $175.0 million term loan (U.S. Term Loan). The interest rate on the U.S. Term Loan ranges from LIBOR plus 1.5% to LIBOR plus 2.25% depending on the leverage ratios at the time the funds are drawn. On April 8, 2015, the Company paid off the $175 million U.S. Term Loan. In connection with the redemption, the Company wrote off $0.3 million in unamortized debt issuance costs as a loss on extinguishment of debt in the second fiscal quarter of 2015. In August 2010, the Company issued $250.0 million in 7% Senior Notes due August 1, 2020 (2020 Notes), and requiring semi-annual interest payments in February and August of each year until maturity. The net proceeds from the sale of the notes, after deducting $4.4 million of debt issuance costs, were $245.6 million. The 2020 Notes are general unsecured senior obligations of the Company. The 2020 Notes are guaranteed, jointly and severally on a senior basis, by all the existing and future domestic subsidiaries of the Company unless designated as an “unrestricted subsidiary,” and those foreign subsidiaries that executed related subsidiary guarantees under the indenture covering the 2020 Notes. The 2020 Notes are subject to redemption at the option of the Company at any time prior to August 1, 2015, at a price equal to 100% of the principal amount, plus any accrued interest to the date of redemption and a make-whole provision. The 2020 Notes are also subject to redemption at the option of the Company, in whole or in part, on or after August 1, 2015, at redemption prices starting at 103.500% of the principal amount plus accrued interest during the period beginning August 1, 2015, and declining annually to 100% of principal and accrued interest on or after August 1, 2018. Subsequent to period end, on August 3, 2015, the Company borrowed $250 million under the delayed-draw term loan provided for under the amended credit facility. The delayed-draw term loan carries the same interest rate as the amended credit facility. On August 4, 2015, the proceeds from the delayed-draw term loan were used to redeem all of the 7% Senior Notes due 2020. As part of the redemption, the Company incurred an $8.75 million redemption premium and wrote off $2.4 million in unamortized debt issuance costs which will be expensed in the fourth fiscal quarter of 2015. In April 2015, the Company issued €330.0 million in 3.625% 2023 Notes requiring semi-annual interest payments in April and October of each year until maturity. The net proceeds from the sale of the notes, after deducting $5.7 million of debt issuance costs, were $350.8 million. The 2023 Notes are general unsecured senior obligations of the Company. The 2023 Notes are unconditionally guaranteed on a senior basis by the Company and certain subsidiaries of the Company that are guarantors under the Company’s existing secured credit facility. The 2023 Notes are subject to redemption at the option of the Company at any time prior to April 15, 2018, at a price equal to 100% of the principal amount, plus any accrued interest to the date of redemption and a make-whole provision. The Company may also redeem up to 35% of the 2023 Notes before April 15, 2018, with the net cash proceeds from equity offerings. The 2023 Notes are also subject to redemption at the option of the Company, in whole or in part, on or after April 15, 2018, at redemption prices starting at 102.719% of the principal amount plus accrued interest during the period beginning April 15, 2018, and declining annually to 100% of principal and accrued interest on or after April 15, 2021. Based on quoted market prices, the approximate fair value of the Company’s 2020 Notes was approximately $255.3 million and $266.9 million as of July 31, 2015, and October 31, 2014, respectively. Based on quoted market prices, the approximate fair value of the Company’s 2023 Notes was approximately $352.5 million as of July 31, 2015. The carrying amount of the secured credit facility approximates fair value. Estimates of fair value for the 2020 Notes and 2023 Notes are based on quoted market prices, and are considered Level 2 inputs as defined in the fair value hierarchy described in Note 5. Government refundable advances consist of payments received from the Canadian government to assist in research and development related to commercial aviation. The repayment of this advance is based on year-over-year commercial aviation revenue growth at CMC beginning in 2014. Imputed interest on the advance was 4.29% at July 31, 2015. The debt recognized was $43.2 million and $51.9 million as of July 31, 2015, and October 31, 2014, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jul. 31, 2015 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9 – Commitments and Contingencies As of July 31, 2015, and October 31, 2014, the Company had a liability of $1.5 million in both periods, related to environmental remediation at a previously sold business for which the Company provided indemnification. In the first fiscal quarter of 2015, the Company recognized a $15.7 million gain and a $2.4 million reduction in interest expense upon the lapse of a statutory period related to a liability for a non-income tax position of an acquired company. On March 5, 2014, the Company entered into a Consent Agreement with the U.S. Department of State’s Directorate of Defense Trade Controls Office of Defense Trade Controls Compliance (DTCC) to resolve alleged International Traffic in Arms Regulations (ITAR) civil violations. The Consent Agreement settled the pending ITAR compliance matter with the DTCC previously reported by the Company that resulted from voluntary reports the Company filed with DTCC that disclosed possible technical and administrative violations of the ITAR. The Consent Agreement has a three-year term and provides for: (i) a payment of $20 million, $10 million of which is suspended and eligible for offset credit based on verified expenditures for past and future remedial compliance measures; (ii) the appointment of an external Special Compliance Official to oversee compliance with the Consent Agreement and the ITAR; (iii) two external audits of the Company’s ITAR compliance program; and (iv) continued implementation of ongoing remedial compliance measures and additional remedial compliance measures related to automated systems and ITAR compliance policies, procedures, and training. The settlement amount in the Consent Agreement was consistent with the amount proposed by DTCC in August 2013, for which the Company estimated and recorded a $10 million charge in the third fiscal quarter ended July 26, 2013. The $10 million portion of the settlement that is not subject to suspension will be paid in installments, with $4 million paid in March 2014, $2 million paid in February 2015, and $2 million to be paid in each of March 2016 and 2017. The Company expects some part of recent investments made in its ITAR compliance program will be eligible for credit against the suspended portion of the settlement amount, which include: additional staffing, ongoing implementation of a new software system, employee training, and establishment of a regular compliance audit program and corrective action process. The Company expects recent and future investments in remedial compliance measures will be sufficient to cover the $10 million suspended payment. |
Employee Stock Plans
Employee Stock Plans | 9 Months Ended |
Jul. 31, 2015 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Plans | Note 10 – Employee Stock Plans As of July 31, 2015, the Company had three share-based compensation plans, which are described below. The compensation cost that has been charged against income for those plans was $8.6 million and $9.8 million for the first nine months of fiscal 2015 and 2014, respectively. During the first nine months of fiscal 2015 and 2014, the Company issued 241,632 and 600,540 shares, respectively, under its share-based compensation plans. Employee Stock Purchase Plan (ESPP) The ESPP is a “safe-harbor” designed plan whereby shares are purchased by participants at a discount of 5% of the market value on the purchase date and, therefore, compensation cost is not recorded. Employee Sharesave Scheme The Company offers shares under its employee sharesave scheme for U.K. employees. This plan allows participants the option to purchase shares at a 5% discount of the market price of the stock as of the beginning of the offering period. The term of these options is three years. The sharesave scheme is not a “safe-harbor” design, and therefore, compensation cost is recognized on this plan. Under the sharesave scheme, option exercise prices are equal to the fair market value of the Company’s common stock on the date of grant. The Company granted 25,984 and 29,242 options in the nine month periods ended July 31, 2015, and August 1, 2014, respectively. The weighted-average grant date fair value of options granted during the nine month periods ended July 31, 2015, and August 1, 2014, was $24.31 and $27.03 per share, respectively. Nine Months Ended July 31, August 1, 2015 2014 Volatility 25.80 % 33.69 % Risk-free interest rate 0.93 % 0.73 % Expected life (years) 3 3 Dividends 0 0 Equity Incentive Plan Under the equity incentive plan, option exercise prices are equal to the fair market value of the Company’s common stock on the date of grant. The Company granted 192,700 and 193,200 options to purchase shares in the nine month periods ended July 31, 2015, and August 1, 2014, respectively. The weighted-average grant date fair value of options granted during the nine month periods ended July 31, 2015, and August 1, 2014, was $48.48 and $45.23 per share, respectively. The fair value of each option granted by the Company was estimated using a Black-Scholes pricing model, which uses the assumptions noted in the following table. The Company uses historical data to estimate volatility of the Company’s common stock and option exercise and employee termination assumptions. The risk-free rate for the contractual life of the option is based on the U.S. Treasury zero coupon issues in effect at the time of the grant. Nine Months Ended July 31, August 1, 2015 2014 Volatility 40.73 - 41.89% 41.87 - 43.17% Risk-free interest rate 1.43 - 2.00% 1.73 - 2.99% Expected life (years) 5 - 9 5 - 9 Dividends 0 0 The Company granted 22,000 and 77,575 restricted stock units in the nine month periods ended July 31, 2015, and August 1, 2014, respectively. The weighted-average grant date fair value of restricted stock units granted during the nine month periods ended July 31, 2015, and August 1, 2014, was $112.53 and $84.50 per share, respectively. The fair value of each restricted stock unit granted by the Company is equal to the fair market value of the Company’s common stock on the date of grant. |
Acquisitions
Acquisitions | 9 Months Ended |
Jul. 31, 2015 | |
Business Combinations [Abstract] | |
Acquisitions | Note 11 – Acquisitions On January 31, 2015, the Company acquired the defense, aerospace and training display (DAT) business of Belgium-based Barco N.V. (Barco) for €150 million, or approximately $171 million, in cash before a working capital adjustment of approximately $15 million which decreased the purchase price and was received subsequent to the third fiscal quarter of 2015. The Company incurred a $2.9 million foreign currency exchange loss in the funding of the acquisition in the first fiscal quarter of 2015. Acquisition related costs of $3.4 million have been recognized as selling, general and administrative expense. The Company financed the acquisition primarily using international cash reserves, with the balance funded by borrowings under its existing credit facility. The display business develops and manufactures visualization solutions for a variety of demanding defense and commercial aerospace applications. The display business is included in our Avionics & Controls segment. The following summarizes the allocation of the estimated fair value of the assets acquired and liabilities assumed at the date of acquisition. The fair value adjustment for inventory was $7.1 million, which will be recognized as cost of goods sold over 13 months, the estimated inventory turnover. The fair value of acquired programs represented the value of visualization solutions sold under long-term supply agreements with aerospace companies, military contractors, and OEM manufacturers using similar technology. The valuation of the program included the values of program-specific technology, the backlog of contracts, and the relationship with customers which lead to potential future contracts. The valuation of the programs was based upon the discounted cash flow at a market-based discount rate. The purchase price includes the value of existing technologies, the introduction of new technologies, and the addition of new customers. These factors resulted in recording goodwill of $48.0 million. The amount allocated to goodwill is not deductible for income tax purposes. In Thousands As of January 31, 2015 Current assets $ 94,899 Property, plant and equipment 6,211 Intangible assets subject to amortization Programs (15 year average useful life) 56,513 Programs (3 year average useful life) 677 Trade name (3 year average useful life) 226 Goodwill 48,001 Other assets 3,401 Total assets acquired 209,928 Current liabilities assumed 33,492 Long-term liabilities assumed 5,366 Net assets acquired $ 171,070 On December 20, 2013, the Company acquired Sunbank for $51.7 million. The purchase price included $5 million in additional contingent consideration based upon achievement of certain sales levels over a two-year period, of which the Company paid the first installment of $1.3 million in the third fiscal quarter of 2015. The remaining $3.7 million in additional contingent consideration is expected to be paid. Sunbank is a manufacturer of electrical cable accessories, connectors and flexible conduit systems. Sunbank is included in the Sensors & Systems segment. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 9 Months Ended |
Jul. 31, 2015 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Note 12 – Comprehensive Income (Loss) The Company’s comprehensive income (loss) is as follows: In Thousands Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Net earnings $ 28,497 $ 38,908 $ 56,626 $ 105,890 Change in fair value of derivative financial instruments, net of tax (1) (5,276 ) 810 (9,444 ) (3,150 ) Change in pension and post-retirement obligations, net of tax (2) 1,951 507 8,450 2,653 Currency translation adjustment (26,162 ) (23,746 ) (163,264 ) (19,231 ) Comprehensive Income (Loss) $ (990 ) $ 16,479 $ (107,632 ) $ 86,162 1 Net of tax benefit (expense) of $1,967 and $(171) for the third fiscal quarter of 2015 and 2014, respectively. Net of tax benefit of $3,427 and $1,345 for the first nine months of fiscal 2015 and 2014, respectively. 2 Net of tax expense of $(843) and $(294) for the third fiscal quarter of 2015 and 2014, respectively. Net of tax expense of $(4,131) and $(1,310) for the first nine months of fiscal 2015 and 2014, respectively. |
Restructuring
Restructuring | 9 Months Ended |
Jul. 31, 2015 | |
Restructuring And Related Activities [Abstract] | |
Restructuring | Note 13 – Restructuring On December 5, 2013, the Company announced the acceleration of its plans to consolidate certain facilities and create cost efficiencies through shared services in sales, general and administrative and support functions. These integration activities are expected to result in charges and expenses for a total of $35 million in fiscal 2014 and fiscal 2015. Total restructuring expenses were $20.4 million in fiscal 2014. The costs are for exit and relocation of facilities, losses on the write off of certain property, plant and equipment, and severance. In the first nine months of fiscal 2015, restructuring expense totaled $10.1 million, as more fully described in the following table: In Thousands Write Off of Exit & Property, Relocation Plant & of Facilities Equipment Severance Total Cost of sales $ 3,512 $ 651 $ 588 $ 4,751 Restructuring charges 3,980 - 1,395 5,375 Total $ 7,492 $ 651 $ 1,983 $ 10,126 In the first nine months of fiscal 2014, restructuring expense totaled $14.3 million, as more fully described in the following table: In Thousands Write Off of Exit & Property, Relocation Plant & of Facilities Equipment Severance Total Cost of sales $ 4,029 $ 9 $ - $ 4,038 Restructuring charges 2,866 2,542 4,871 10,279 Total $ 6,895 $ 2,551 $ 4,871 $ 14,317 The Company has recorded an accrued liability of $4.2 million and $5.9 million for these activities as of July 31, 2015, and October 31, 2014, respectively. In Thousands Accrued Liabilities Beginning Balance as of October 25, 2013 $ - Amounts accrued and incurred 20,388 Amounts paid (11,688 ) Write-off (2,585 ) Currency translation adjustment (200 ) Balance as of October 31, 2014 $ 5,915 Amounts accrued and incurred 10,126 Amounts paid (10,968 ) Write-off (651 ) Currency translation adjustment (227 ) Balance as of July 31, 2015 $ 4,195 |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Jul. 31, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Discontinued Operations | Note 14 – Discontinued Operations On September 3, 2014, the Company approved a plan to sell certain non-core business units including Eclipse, a manufacturer of embedded communication intercept receivers for signal intelligence applications; Wallop Defence Systems, Ltd. (Wallop), a manufacturer of flare countermeasure devices; Pacific Aerospace and Electronics Inc. (PA&E), a manufacturer of hermetically sealed electrical connectors; and a small distribution business. These businesses were not separate reporting units as defined under U.S. GAAP and no indicator of impairment existed at August 1, 2014, requiring an impairment test of their corresponding reporting units’ goodwill or these businesses’ long-lived assets. Based upon the estimated fair values, the Company incurred an estimated after-tax loss of $49.5 million in the fourth fiscal quarter of 2014 on assets held for sale in discontinued operations. Principal assumptions used in measuring the estimated after-tax loss included estimated selling price of the discontinued business, discount rates, industry growth rates, and pricing of comparable transactions in the market. Eclipse and the distribution business are included in the Avionics & Controls segment, Wallop is included in the Advanced Materials segment, and PA&E is included in the Sensors & Systems segment. On June 5, 2015, the Company completed the sale of Eclipse for approximately $10 million. The Company retained ownership of the land, building and building improvements, which are being held for sale. On July 20, 2015, the Company completed the sale of PA&E for approximately $22 million. The selling price for both businesses is subject to customary working capital adjustments. During the third fiscal quarter of 2015, the Company incurred a loss of $1.7 million on discontinued operations. During the first nine months of fiscal 2015, the Company incurred a loss on discontinued operations of $20.3 million, including a $16.4 million loss on assets held for sale. For the first nine months of fiscal 2015, a $11.9 million loss on assets held for sale at Avionics & Controls was principally due the reduction of Eclipse’s estimated selling price based upon lower expectations of earnings for the business and continuing negotiations with the buyer. The $5.1 million write-off in Advanced Materials was due to the effects of valuing Wallop’s balance sheet at the current exchange rate incurred in the first nine months of fiscal 2015. During the first nine months of fiscal 2015, the Company recorded a $2.0 million increase in a liability related to environmental remediation at a previously sold business for which the Company provided indemnification. A loss of $1.3 million, net of tax, is reflected in discontinued operations. The operating results of the discontinued operations for the three month period ended July 31, 2015, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 4,436 $ 6,419 $ 5,424 $ - $ 16,279 Operating earnings (loss) (1,132 ) 1,533 (830 ) (803 ) (1,232 ) Gain (loss) on net assets held for sale (1,718 ) 619 (18 ) - (1,117 ) Tax expense (benefit) (695 ) 428 (127 ) (262 ) (656 ) Income (loss) from discontinued operations $ (2,155 ) $ 1,724 $ (721 ) $ (541 ) $ (1,693 ) The operating results of the discontinued operations for the nine month period ended July 31, 2015, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 18,349 $ 18,684 $ 11,529 $ - $ 48,562 Operating earnings (loss) (2,649 ) 3,270 (3,909 ) (1,988 ) (5,276 ) Gain (loss) on net assets held for sale (11,871 ) (3 ) (5,089 ) - (16,963 ) Tax expense (benefit) (1,252 ) 626 (686 ) (673 ) (1,985 ) Income (loss) from discontinued operations $ (13,268 ) $ 2,641 $ (8,312 ) $ (1,315 ) $ (20,254 ) The operating results of the discontinued operations for the three month period ended August 1, 2014, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 7,249 $ 5,860 $ 11,706 $ - $ 24,815 Operating earnings (loss) (1,847 ) 141 (196 ) - (1,902 ) Gain (loss) on net assets held for sale - - - - - Tax expense (benefit) (520 ) (461 ) 8 - (973 ) Income (loss) from discontinued operations $ (1,327 ) $ 602 $ (204 ) $ - $ (929 ) The operating results of the discontinued operations for the nine month period ended August 1, 2014, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 24,783 $ 16,798 $ 20,987 $ - $ 62,568 Operating earnings (loss) (6,566 ) (278 ) (5,020 ) (343 ) (12,207 ) Gain (loss) on net assets held for sale - - - - - Tax expense (benefit) (2,136 ) (595 ) (991 ) - (3,722 ) Income (loss) from discontinued operations $ (4,430 ) $ 317 $ (4,029 ) $ (343 ) $ (8,485 ) Assets and Liabilities Held for Sale within the Consolidated Balance Sheet at July 31, 2015, are comprised of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Total Accounts receivable, net $ 1,589 $ - $ 4,949 $ 6,538 Inventories 2,451 - 5,111 7,562 Prepaid expenses 21 - 277 298 Deferred income tax benefits - - - - Income tax refundable - - - - Current Assets of Businesses Held for Sale $ 4,061 $ - $ 10,337 $ 14,398 Net property, plant and equipment $ 5,324 $ - $ 16,817 $ 22,141 Intangibles, net 950 - 6,905 7,855 Deferred income tax benefits - - - - Other assets - - 1,562 1,562 Non-Current Assets of Businesses Held for Sale $ 6,274 $ - $ 25,284 $ 31,558 Accounts payable $ 1,533 $ - $ 5,389 $ 6,922 Accrued liabilities 506 - 1,457 1,963 Current Liabilities of Businesses Held for Sale $ 2,039 $ - $ 6,846 $ 8,885 Deferred income tax liabilities $ - $ - $ 1,795 $ 1,795 Other liabilities 64 - - 64 Non-Current Liabilities of Businesses Held for Sale $ 64 $ - $ 1,795 $ 1,859 Net Assets of Businesses Held for Sale $ 8,232 $ - $ 26,980 $ 35,212 Assets and Liabilities Held for Sale within the Consolidated Balance Sheet at October 31, 2014, were comprised of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Total Accounts receivable, net $ 5,154 $ 3,752 $ 2,106 $ 11,012 Inventories 12,646 7,972 5,258 25,876 Prepaid expenses 408 86 335 829 Deferred income tax benefits 671 680 - 1,351 Income tax refundable - - 2,378 2,378 Current Assets of Businesses Held for Sale $ 18,879 $ 12,490 $ 10,077 $ 41,446 Net property, plant and equipment $ 4,949 $ 4,105 $ 19,839 $ 28,893 Intangibles, net 22,228 10,659 8,327 41,214 Deferred income tax benefits - (30 ) - (30 ) Other assets - - 1,600 1,600 Non-Current Assets of Businesses Held for Sale $ 27,177 $ 14,734 $ 29,766 $ 71,677 Accounts payable $ 2,194 $ 873 $ 6,326 $ 9,393 Accrued liabilities 1,765 1,008 2,025 4,798 Current Liabilities of Businesses Held for Sale $ 3,959 $ 1,881 $ 8,351 $ 14,191 Deferred income tax liabilities $ 11,084 $ 6,243 $ 1,537 $ 18,864 Other liabilities - - 12 12 Non-Current Liabilities of Businesses Held for Sale $ 11,084 $ 6,243 $ 1,549 $ 18,876 Net Assets of Businesses Held for Sale $ 31,013 $ 19,100 $ 29,943 $ 80,056 |
Business Segment Information
Business Segment Information | 9 Months Ended |
Jul. 31, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 15 – Business Segment Information Business segment information for continuing operations includes the segments of Avionics & Controls, Sensors & Systems and Advanced Materials. In Thousands Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Sales Avionics & Controls $ 207,467 $ 192,860 $ 594,534 $ 571,366 Sensors & Systems 175,530 192,246 515,611 579,131 Advanced Materials 113,220 121,203 332,496 352,613 $ 496,217 $ 506,309 $ 1,442,641 $ 1,503,110 Earnings from Continuing Operations Before Income Taxes Avionics & Controls $ 23,473 $ 30,902 $ 52,024 $ 81,952 Sensors & Systems 23,356 18,055 55,491 61,811 Advanced Materials 24,396 27,724 65,908 75,911 Segment Earnings 71,225 76,681 173,423 219,674 Corporate expense (24,045 ) (16,142 ) (65,067 ) (48,398 ) Other income - - 12,744 - Interest income 144 145 447 400 Interest expense (10,618 ) (7,865 ) (25,023 ) (24,924 ) Loss on extinguishment of debt - (533 ) (329 ) (533 ) $ 36,706 $ 52,286 $ 96,195 $ 146,219 |
Guarantors
Guarantors | 9 Months Ended |
Jul. 31, 2015 | |
Guarantees [Abstract] | |
Guarantors | Note 16 – Guarantors The following schedules set forth condensed consolidating financial information as required by Rule 3-10 of Securities and Exchange Commission Regulation S-X as of July 31, 2015, and October 31, 2014, and for the applicable periods ended July 31, 2015, and August 1, 2014, for (a) Esterline Technologies Corporation (the Parent); (b) TA Mfg. Limited, the issuer of the 2023 Notes; (c) on a combined basis, the current subsidiary guarantors (Guarantor Subsidiaries) of the secured credit facility, the 2020 Notes and the 2023 Notes for the periods after April 2015; and (d) on a combined basis, the subsidiaries that are not guarantors (Non-Guarantor Subsidiaries) of the secured credit facility, the 2020 Notes and the 2023 Notes for the periods after April 2015. The Guarantor Subsidiaries are direct and indirect wholly-owned subsidiaries of Esterline Technologies Corporation and have fully and unconditionally, jointly and severally, guaranteed the secured credit facility, the 2020 Notes and the 2023 Notes. Condensed Consolidating Balance Sheet as of July 31, 2015. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total ASSETS Current Assets Cash and cash equivalents $ 16,454 $ 995 $ 1,376 $ 168,857 $ - $ 187,682 Accounts receivable, net 33 - 136,624 237,042 - 373,699 Inventories - - 193,345 276,355 - 469,700 Income tax refundable - - - 17,515 - 17,515 Deferred income tax benefits 29,330 - (14,519 ) 22,134 - 36,945 Prepaid expenses 93 - 7,648 13,666 - 21,407 Other current assets 74 - 111 17,011 - 17,196 Current assets of businesses held for sale - - - 14,398 - 14,398 Total Current Assets 45,984 995 324,585 766,978 - 1,138,542 Property, Plant & Equipment, Net 1,992 - 158,658 145,741 - 306,391 Goodwill - - 372,021 668,422 - 1,040,443 Intangibles, net - - 109,929 350,039 - 459,968 Debt issuance costs, net 5,380 5,655 - - - 11,035 Deferred income tax benefits 18,659 - 14,670 42,283 - 75,612 Other assets 281 - 10,386 11,436 - 22,103 Non-current assets of businesses held for sale - - 5,262 26,296 - 31,558 Amounts Due From (To) Subsidiaries - 353,831 817,896 - (1,171,727 ) - Investment in Subsidiaries 3,098,201 653,386 1,009,069 14,644 (4,775,300 ) - Total Assets $ 3,170,497 $ 1,013,867 $ 2,822,476 $ 2,025,839 $ (5,947,027 ) $ 3,085,652 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 2,846 $ - $ 36,884 $ 71,685 $ - $ 111,415 Accrued liabilities 19,441 4,124 80,197 163,624 - 267,386 Current maturities of long-term debt - - 898 116 - 1,014 Deferred income tax liabilities 15,159 - (14,669 ) 2,503 - 2,993 Federal and foreign income taxes (9,624 ) (51 ) (5,165 ) 18,693 - 3,853 Current liabilities of businesses held for sale - - - 8,885 - 8,885 Total Current Liabilities 27,822 4,073 98,145 265,506 - 395,546 Credit Facilities 170,000 - - 30,000 - 200,000 Long-Term Debt, Net 250,000 362,472 56,976 43,361 - 712,809 Deferred Income Tax Liabilities 24,867 - 14,658 93,974 - 133,499 Pension and Post-Retirement Obligations 18,591 - 754 37,413 - 56,758 Other Liabilities 14,134 - 194 16,184 - 30,512 Non-current liabilities of businesses held for sale - - - 1,859 - 1,859 Amounts Due To (From) Subsidiaries 1,110,414 - - 398,562 (1,508,976 ) - Shareholders' Equity 1,554,669 647,322 2,651,749 1,138,980 (4,438,051 ) 1,554,669 Total Liabilities and Shareholders' Equity $ 3,170,497 $ 1,013,867 $ 2,822,476 $ 2,025,839 $ (5,947,027 ) $ 3,085,652 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three month period ended July 31, 2015. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Net sales $ - $ - $ 225,105 $ 272,137 $ (1,025 ) $ 496,217 Cost of sales - - 147,206 180,240 (1,025 ) 326,421 - - 77,899 91,897 - 169,796 Expenses Selling, general and administrative - 55 38,794 53,119 - 91,968 Research, development & engineering - - 10,158 19,087 - 29,245 Restructuring charges - - 1,228 175 - 1,403 Other (income) expense - - - - - - Total Expenses - 55 50,180 72,381 - 122,616 Operating Earnings from Continuing Operations - (55 ) 27,719 19,516 - 47,180 Interest Income (3,928 ) (3,401 ) (3,766 ) (7,597 ) 18,548 (144 ) Interest Expense 8,790 3,500 8,838 8,038 (18,548 ) 10,618 Loss on Extinguishment of Debt (122 ) - - 122 - - Earnings (Loss) from Continuing Operations Before Income Taxes (4,740 ) (154 ) 22,647 18,953 - 36,706 Income Tax Expense (Benefit) (943 ) (31 ) 3,678 3,701 - 6,405 Earnings (Loss) from Continuing Operations Including Noncontrolling Interests (3,797 ) (123 ) 18,969 15,252 - 30,301 Earnings Attributable to Noncontrolling Interests - - - (111 ) - (111 ) Earnings (Loss) from Continuing Operations Attributable to Esterline, Net of Tax (3,797 ) (123 ) 18,969 15,141 - 30,190 Loss from Discontinued Operations Attributable to Esterline, Net of Tax (541 ) - 63 (1,215 ) - (1,693 ) Equity in Net Earnings of Consolidated Subsidiaries 32,835 10,457 27 - (43,319 ) - Net Earnings (Loss) Attributable to Esterline $ 28,497 $ 10,334 $ 19,059 $ 13,926 $ (43,319 ) $ 28,497 Comprehensive Income (Loss) $ (1,797 ) $ 14,871 $ 19,728 $ (4,972 ) $ (28,820 ) $ (990 ) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the nine month period ended July 31, 2015. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Net sales $ - $ - $ 668,970 $ 776,796 $ (3,125 ) $ 1,442,641 Cost of sales - - 440,583 526,386 (3,125 ) 963,844 - - 228,387 250,410 - 478,797 Expenses Selling, general and administrative - 71 113,087 173,208 - 286,366 Research, development & engineering - - 32,455 46,245 - 78,700 Restructuring charges - - 4,588 787 - 5,375 Other (income) expense - - - (12,744 ) - (12,744 ) Total Expenses - 71 150,130 207,496 - 357,697 Operating Earnings from Continuing Operations - (71 ) 78,257 42,914 - 121,100 Interest Income (11,922 ) (4,261 ) (18,232 ) (23,485 ) 57,453 (447 ) Interest Expense 21,991 4,389 33,633 22,463 (57,453 ) 25,023 Loss on Extinguishment of Debt 207 - - 122 - 329 Earnings (Loss) from Continuing Operations Before Income Taxes (10,276 ) (199 ) 62,856 43,814 - 96,195 Income Tax Expense (Benefit) (2,052 ) (40 ) 10,625 10,564 - 19,097 Earnings (Loss) from Continuing Operations Including Noncontrolling Interests (8,224 ) (159 ) 52,231 33,250 - 77,098 Earnings Attributable to Noncontrolling Interests - - - (218 ) - (218 ) Earnings (Loss) from Continuing Operations Attributable to Esterline, Net of Tax (8,224 ) (159 ) 52,231 33,032 - 76,880 Loss from Discontinued Operations Attributable to Esterline, Net of Tax (1,315 ) - (9,592 ) (9,347 ) - (20,254 ) Equity in Net Earnings of Consolidated Subsidiaries 66,165 31,991 140 - (98,296 ) - Net Earnings (Loss) Attributable to Esterline $ 56,626 $ 31,832 $ 42,779 $ 23,685 $ (98,296 ) $ 56,626 Comprehensive Income (Loss) $ (95,254 ) $ 25,408 $ 43,723 $ (109,270 ) $ 27,761 $ (107,632 ) Condensed Consolidating Statement of Cash Flows for the nine month period ended July 31, 2015. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Cash Flows Provided (Used) by Operating Activities Net earnings (loss) including noncontrolling interests $ 56,844 $ 31,832 $ 42,779 $ 23,685 $ (98,296 ) $ 56,844 Depreciation & amortization - - 28,339 48,971 - 77,310 Deferred income taxes (17,829 ) - 16,243 (7,747 ) - (9,333 ) Share-based compensation - 5 3,722 4,891 - 8,618 Gain on release of non-income tax liability - - - (15,656 ) - (15,656 ) Loss on assets held for sale - - 10,842 6,121 - 16,963 Working capital changes, net of effect of acquisitions: Accounts receivable 577 - 8,228 9,138 - 17,943 Inventories - - (5,268 ) (13,045 ) - (18,313 ) Prepaid expenses 54 - (918 ) (1,724 ) - (2,588 ) Other current assets 6 - 3 133 - 142 Accounts payable 1,095 - (4,430 ) (13,474 ) - (16,809 ) Accrued liabilities (2,286 ) - (12,976 ) 8,073 - (7,189 ) Federal and foreign income taxes (7,342 ) (51 ) (2,522 ) 1,414 - (8,501 ) Other liabilities 3,608 - (528 ) 163 - 3,243 Other, net (28,400 ) - (42,771 ) 72,697 - 1,526 6,327 31,786 40,743 123,640 (98,296 ) 104,200 Cash Flows Provided (Used) by Investing Activities Purchases of capital assets (804 ) - (14,480 ) (22,493 ) - (37,777 ) Proceeds from sale of discontinued operations - - 32,053 - - 32,053 Acquisition of businesses, net of cash acquired - - - (171,070 ) - (171,070 ) (804 ) - 17,573 (193,563 ) - (176,794 ) In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Cash Flows Provided (Used) by Financing Activities Proceeds provided by stock issuance under employee stock plans 13,477 - - - - 13,477 Excess tax benefits from stock option exercises 1,877 - - - - 1,877 Shares repurchased (259,518 ) - - - - (259,518 ) Repayment of long-term credit facilities (235,000 ) - - - - (235,000 ) Repayment of long-term debt (161,875 ) - (416 ) (4,774 ) - (167,065 ) Proceeds from issuance of long-term credit facilities 305,000 - - 30,000 - 335,000 Proceeds from issuance of long-term debt - 356,532 - - - 356,532 Proceeds from government assistance - - - 3,054 - 3,054 Dividends paid to noncontrolling interests - - - - - - Debt and other issuance costs (2,333 ) (5,880 ) - - - (8,213 ) Net change in intercompany financing 333,610 (380,925 ) (60,805 ) 9,824 98,296 - (4,762 ) (30,273 ) (61,221 ) 38,104 98,296 40,144 Effect of Foreign Exchange Rates on Cash and Cash Equivalents 1,059 (518 ) 827 (19,380 ) - (18,012 ) Net Increase (Decrease) in Cash and Cash Equivalents 1,820 995 (2,078 ) (51,199 ) - (50,462 ) Cash and Cash Equivalents - Beginning of Year 14,634 - 3,454 220,056 - 238,144 Cash and Cash Equivalents - End of Period $ 16,454 $ 995 $ 1,376 $ 168,857 $ - $ 187,682 Condensed Consolidating Balance Sheet as of October 31, 2014. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total ASSETS Current Assets Cash and cash equivalents $ 14,634 $ - $ 3,454 $ 220,056 $ - $ 238,144 Accounts receivable, net 610 - 143,158 236,121 - 379,889 Inventories - - 188,982 244,613 - 433,595 Income tax refundable - - - 5,266 - 5,266 Deferred income tax benefits 31,486 - (1,191 ) 18,384 - 48,679 Prepaid expenses 147 - 6,703 13,486 - 20,336 Other current assets 80 - 114 1,955 - 2,149 Current assets of businesses held for sale - - 26,800 14,646 - 41,446 Total Current Assets 46,957 - 368,020 754,527 - 1,169,504 Property, Plant & Equipment, Net 1,489 - 158,089 159,764 - 319,342 Goodwill - - 347,700 724,086 - 1,071,786 Intangibles, net - - 106,164 365,213 - 471,377 Debt issuance costs, net 4,134 - - 161 - 4,295 Deferred income tax benefits 20,455 - 30 50,822 - 71,307 Other assets 130 - 7,502 6,547 - 14,179 Non-current assets of businesses held for sale - - 40,737 30,940 - 71,677 Amounts Due From (To) Subsidiaries - - 797,342 - (797,342 ) - Investment in Subsidiaries 3,307,454 - 1,127,237 20,768 (4,455,459 ) - Total Assets $ 3,380,619 $ - $ 2,952,821 $ 2,112,828 $ (5,252,801 ) $ 3,193,467 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 1,751 $ - $ 36,905 $ 76,628 $ - $ 115,284 Accrued liabilities 20,178 - 93,168 149,190 - 262,536 Current maturities of long-term debt 8,750 - 349 3,675 - 12,774 Deferred income tax liabilities 76 - 8 1,689 - 1,773 Federal and foreign income taxes (2,282 ) - (2,643 ) 6,496 - 1,571 Current liabilities of businesses held for sale - - 4,010 10,181 - 14,191 Total Current Liabilities 28,473 - 131,797 247,859 - 408,129 Credit Facilities 100,000 - - - - 100,000 Long-Term Debt, Net 403,125 - 55,176 51,419 - 509,720 Deferred Income Tax Liabilities 58,615 - (17,333 ) 107,883 - 149,165 Pension and Post-Retirement Obligations 18,683 - 1,226 42,784 - 62,693 Other Liabilities 16,762 - 3,944 26,178 - 46,884 Non-current liabilities of businesses held for sale - - 17,327 1,549 - 18,876 Amounts Due To (From) Subsidiaries 856,961 - - 456,861 (1,313,822 ) - Shareholders' Equity 1,898,000 - 2,760,684 1,178,295 (3,938,979 ) 1,898,000 Total Liabilities and Shareholders' Equity $ 3,380,619 $ - $ 2,952,821 $ 2,112,828 $ (5,252,801 ) $ 3,193,467 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three month period ended August 1, 2014. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Net sales $ - $ - $ 239,134 $ 268,860 $ (1,685 ) $ 506,309 Cost of sales - - 150,139 180,768 (1,685 ) 329,222 - - 88,995 88,092 - 177,087 Expenses Selling, general and administrative - - 33,454 55,430 - 88,884 Research, development & engineering - - 10,932 13,327 - 24,259 Restructuring charges - - 2,577 828 - 3,405 Other (income) expense - - - - - - Total Expenses - - 46,963 69,585 - 116,548 Operating Earnings from Continuing Operations - - 42,032 18,507 - 60,539 Interest Income (3,837 ) - (1,948 ) (13,931 ) 19,571 (145 ) Interest Expense 5,777 - 6,832 14,827 (19,571 ) 7,865 Loss on Extinguishment of Debt - - - 533 - 533 Earnings (Loss) from Continuing Operations Before Income Taxes (1,940 ) - 37,148 17,078 - 52,286 Income Tax Expense (Benefit) (466 ) - 8,449 4,420 - 12,403 Earnings (Loss) from Continuing Operations Including Noncontrolling Interests (1,474 ) - 28,699 12,658 - 39,883 Earnings Attributable to Noncontrolling Interests - - - (46 ) - (46 ) Earnings (Loss) from Continuing Operations Attributable to Esterline, Net of Tax (1,474 ) - 28,699 12,612 - 39,837 Loss from Discontinued Operations Attributable to Esterline, Net of Tax - - (787 ) (142 ) - (929 ) Equity in Net Earnings of Consolidated Subsidiaries 40,382 - 883 114 (41,379 ) - Net Earnings (Loss) Attributable to Esterline $ 38,908 $ - $ 28,795 $ 12,584 $ (41,379 ) $ 38,908 Comprehensive Income (Loss) $ 15,707 $ - $ 26,224 $ (9,163 ) $ (16,289 ) $ 16,479 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the nine month period ended August 1, 2014. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Net sales $ - $ - $ 702,424 $ 804,889 $ (4,203 ) $ 1,503,110 Cost of sales - - 446,042 534,224 (4,203 ) 976,063 - - 256,382 270,665 - 527,047 Expenses Selling, general and administrative - - 107,162 162,889 - 270,051 Research, development & engineering - - 35,245 40,196 - 75,441 Restructuring charges - - 6,898 3,381 - 10,279 Other (income) expense - - - - - - Total Expenses - - 149,305 206,466 - 355,771 Operating Earnings from Continuing Operations - - 107,077 64,199 - 171,276 Interest Income (11,588 ) - (5,886 ) (42,303 ) 59,377 (400 ) Interest Expense 18,350 - 20,619 45,332 (59,377 ) 24,924 Loss on Extinguishment of Debt - - - 533 - 533 Earnings (Loss) from Continuing Operations Before Income Taxes (6,762 ) - 92,344 60,637 - 146,219 Income Tax Expense (Benefit) (1,462 ) - 20,686 12,191 - 31,415 Earnings (Loss) from Continuing Operations Including Noncontrolling Interests (5,300 ) - 71,658 48,446 - 114,804 Earnings Attributable to Noncontrolling Interests - - - (429 ) - (429 ) Earnings (Loss) from Continuing Operations Attributable to Esterline, Net of Tax (5,300 ) - 71,658 48,017 - 114,375 Loss from Discontinued Operations Attributable to Esterline, Net of Tax (343 ) - (3,645 ) (4,497 ) - (8,485 ) Equity in Net Earnings of Consolidated Subsidiaries 111,533 - 2,117 1,434 (115,084 ) - Net Earnings (Loss) Attributable to Esterline $ 105,890 $ - $ 70,130 $ 44,954 $ (115,084 ) $ 105,890 Comprehensive Income (Loss) $ 88,374 $ - $ 68,693 $ 35,471 $ (106,376 ) $ 86,162 Condensed Consolidating Statement of Cash Flows for the nine month period ended August 1, 2014. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Cash Flows Provided (Used) by Operating Activities Net earnings (loss) including noncontrolling interests $ 106,319 $ - $ 70,130 $ 44,954 $ (115,084 ) $ 106,319 Depreciation & amortization - - 32,336 55,107 - 87,443 Deferred income taxes (4,971 ) - (2 ) (8,131 ) - (13,104 ) Share-based compensation - - 4,248 5,585 - 9,833 Gain on release of non-income tax liability - - - - - - Loss on assets held for sale - - - - - - Working capital changes, net of effect of acquisitions: Accounts receivable 528 - 13,887 9,065 - 23,480 Inventories - - (17,289 ) (25,122 ) - (42,411 ) Prepaid expenses (52 ) - (1,913 ) (4,237 ) - (6,202 ) Other current assets 2 - (1 ) (100 ) - (99 ) Accounts payable 117 - 3,585 (8,210 ) - (4,508 ) Accrued liabilities (10,486 ) - (1,534 ) (4,438 ) - (16,458 ) Federal and foreign income taxes (4,462 ) - 21,809 (25,330 ) - (7,983 ) Other liabilities 5,415 - 95 (6,950 ) - (1,440 ) Other, net (497 ) - (10,962 ) 11,304 - (155 ) 91,913 - 114,389 43,497 (115,084 ) 134,715 Cash Flows Provided (Used) by Investing Activities Purchases of capital assets (186 ) - (11,748 ) (23,075 ) - (35,009 ) Proceeds from sale of discontinued operations - - - - - - Acquisition of businesses, net of cash acquired - - (44,745 ) - - (44,745 ) (186 ) - (56,493 ) (23,075 ) - (79,754 ) In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Cash Flows Provided (Used) by Financing Activities Proceeds provided by stock issuance under employee stock plans 23,173 - - - - 23,173 Excess tax benefits from stock option exercises 6,392 - - - - 6,392 Shares repurchased (5,176 ) - - - - (5,176 ) Repayment of long-term credit facilities (40,000 ) - - - - (40,000 ) Repayment of long-term debt (6,562 ) - (245 ) (27,269 ) - (34,076 ) Proceeds from issuance of long-term credit facilities 25,000 - - - - 25,000 Proceeds from issuance of long-term debt - - - - - - Proceeds from government assistance - - - 3,362 - 3,362 Dividends paid to noncontrolling interests - - - (780 ) - (780 ) Debt and other issuance costs - - - - - - Net change in intercompany financing (98,319 ) - (56,888 ) 40,123 115,084 - (95,492 ) - (57,133 ) 15,436 115,084 (22,105 ) Effect of Foreign Exchange Rates on Cash and Cash Equivalents (22 ) - (22 ) (1,534 ) - (1,578 ) Net Increase (Decrease) in Cash and Cash Equivalents (3,787 ) - 741 34,324 - 31,278 Cash and Cash Equivalents - Beginning of Year 7,826 - 4,876 166,476 - 179,178 Cash and Cash Equivalents - End of Period $ 4,039 $ - $ 5,617 $ 200,800 $ - $ 210,456 |
Recent Accounting Pronounceme22
Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Jul. 31, 2015 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | In April 2014, the Financial Accounting Standards Board (FASB) issued guidance that modifies the criteria used to qualify divestitures for classification as discontinued operations and expands disclosure related to disposals of significant components. The amendment will become effective for the Company in fiscal 2016, with early adoption permitted; however, the Company does not expect to early adopt the amended guidance. The amended guidance is expected to decrease the likelihood that future disposals will qualify for discontinued operations treatment, meaning that the results of operation of some future disposals may be reported as continuing operations. In May 2014, FASB amended requirements for an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The updated standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. Early adoption is permitted. The updated standard becomes effective for the Company in the first fiscal quarter of 2019. The Company has not yet selected a transition method and is currently evaluating the effect that the updated standard will have on consolidated financial statements and related disclosures. In April 2015, FASB amended requirements related to the presentation of debt issuance costs. The updated standard requires debt issuance costs related to recognized debt liability to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. The recognition and measurement of debt issuance costs are not affected by this amendment. The updated standard is effective for the Company in the first fiscal quarter of 2016. The Company does not expect that the standard will have a material impact on its consolidated financial statements and related disclosures. |
Earnings Per Share and Shareh23
Earnings Per Share and Shareholders Equity (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Shares Used for Calculating Earnings Per Share | Shares used for calculating earnings per share are disclosed in the following table: In Thousands Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Shares used for basic earnings per share 30,397 31,995 31,003 31,818 Shares used for diluted earnings per share 30,914 32,591 31,531 32,427 |
Schedule of Changes in Issued and Outstanding Common Shares and Treasury Stock | Changes in issued and outstanding common shares are summarized as follows: July 31, October 31, 2015 2014 Shares Issued: Balance, beginning of year 32,123,717 31,441,949 Shares issued under share-based compensation plans 241,632 681,768 Balance, end of current period 32,365,349 32,123,717 Treasury Stock: Balance, beginning of year 269,228 - Shares purchased 2,562,122 269,228 Balance, end of current period 2,831,350 269,228 Shares outstanding, end of period 29,533,999 31,854,489 |
Schedule of Components of Accumulated Other Comprehensive Loss | The components of Accumulated Other Comprehensive Gain (Loss): In Thousands July 31, October 31, 2015 2014 Unrealized gain (loss) on derivative contracts $ (27,050 ) $ (14,179 ) Tax effect 7,317 3,890 (19,733 ) (10,289 ) Pension and post-retirement obligations (77,644 ) (90,225 ) Tax effect 25,941 30,072 (51,703 ) (60,153 ) Currency translation adjustment (224,399 ) (61,135 ) Accumulated other comprehensive gain (loss) $ (295,835 ) $ (131,577 ) |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Compensation And Retirement Disclosure [Abstract] | |
Schedule of Net Periodic Pension Cost | The Company’s pension plans principally include a U.S. pension plan maintained by Esterline and a non-U.S. plan maintained by CMC Electronics, Inc. (CMC). The Company also sponsors a number of other non-U.S. defined benefit pension plans, primarily in Belgium, France and Germany. In fiscal 2014, the Company offered vested terminated participants of its U.S. pension plan a one-time opportunity to elect a lump-sum payment from the plan in lieu of a lifetime annuity. In the first fiscal quarter of 2015, the Company made a $16.6 million lump-sum payment to vested terminated pension plan participants from the plan, which resulted in an actuarial estimated settlement charge of $3.2 million. The charge was recorded in selling, general and administrative expenses. Components of periodic pension cost consisted of the following: In Thousands Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Components of Net Periodic Cost Service cost $ 3,028 $ 2,621 $ 8,728 $ 8,244 Interest cost 4,334 4,737 12,863 14,314 Expected return on plan assets (6,398 ) (6,504 ) (19,257 ) (19,398 ) Settlement 184 - 3,175 - Amortization of prior service cost 271 19 305 58 Amortization of actuarial (gain) loss 1,462 1,213 3,860 3,913 Net periodic cost (benefit) $ 2,881 $ 2,086 $ 9,674 $ 7,131 |
Schedule of Net Periodic Post-Retirement Costs | The Company’s principal post-retirement plans include non-U.S. plans, which are non-contributory healthcare and life insurance plans. The components of expense of these other retirement benefits consisted of the following: In Thousands Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Components of Net Periodic Cost Service cost $ 206 $ 233 $ 631 $ 696 Interest cost 134 187 411 560 Amortization of prior service cost (18 ) (17 ) (52 ) (51 ) Amortization of actuarial (gain) loss (23 ) (67 ) (72 ) (201 ) Net periodic cost (benefit) $ 299 $ 336 $ 918 $ 1,004 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s financial assets and liabilities that were measured at fair value on a recurring basis by level within the fair value hierarchy at July 31, 2015, and October 31, 2014. In Thousands Level 2 July 31, October 31, 2015 2014 Assets: Derivative contracts designated as hedging instruments $ 892 $ 24 Derivative contracts not designated as hedging instruments 1,213 1,081 Embedded derivatives 4,454 2,351 Liabilities: Derivative contracts designated as hedging instruments $ 28,277 $ 14,592 Derivative contracts not designated as hedging instruments 1,837 4,188 Embedded derivatives 132 15 In Thousands Level 3 July 31, October 31, 2015 2014 Liabilities: Contingent purchase obligation $ 3,750 $ 5,000 |
Derivative Financial Instrume26
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Fair Value of Derivative Instruments In Consolidated Balance Sheet | Fair value of derivative instruments in the Consolidated Balance Sheet at July 31, 2015, and October 31, 2014, consisted of: In Thousands Fair Value July 31, October 31, Classification 2015 2014 Foreign Currency Forward Exchange Contracts: Other current assets $ 1,739 $ 1,052 Other assets 366 53 Accrued liabilities 22,683 15,490 Other liabilities 7,431 3,290 Embedded Derivative Instruments: Other current assets $ 497 $ 296 Other assets 3,957 2,055 Accrued liabilities 132 15 Other liabilities - - |
Effect of Derivative Instruments on Consolidated Statement of Operations | The effect of derivative instruments on the Consolidated Statement of Operations and Comprehensive Income (Loss) for the three and nine month periods ended July 31, 2015, and August 1, 2014, consisted of: Fair Value Hedges We recognized the following gains (losses) on contracts designated as fair value hedges: In Thousands Three Months Ended Nine Months Ended Gain (Loss) July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Embedded derivatives: Recognized in sales $ 491 $ (651 ) $ 2,070 $ 215 Cash Flow Hedges We recognized the following gains (losses) on contracts designated as cash flow hedges: In Thousands Three Months Ended Nine Months Ended Gain (Loss) July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Foreign currency forward exchange contracts: Recognized in AOCI (effective portion) $ (1,468 ) $ 1,873 $ 6,305 $ (858 ) Reclassified from AOCI into sales (5,775 ) (893 ) (19,176 ) (3,638 ) Net Investment Hedges We recognized the following gains (losses) on contracts designated as net investment hedges: In Thousands Three Months Ended Nine Months Ended Gain (Loss) July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Euro Term Loan: Recognized in AOCI $ - $ 162 $ - $ 134 2023 Notes: Recognized in AOCI $ 7,095 $ - $ (5,940 ) $ - 2023 Notes Interest: Recognized in AOCI $ 34 $ - $ 34 $ - |
Employee Stock Plans (Tables)
Employee Stock Plans (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Employee Sharesave Scheme | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Fair Value of Option Granted using Black-Scholes Pricing Model | Nine Months Ended July 31, August 1, 2015 2014 Volatility 25.80 % 33.69 % Risk-free interest rate 0.93 % 0.73 % Expected life (years) 3 3 Dividends 0 0 |
Equity Incentive Plan | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Fair Value of Option Granted using Black-Scholes Pricing Model | The fair value of each option granted by the Company was estimated using a Black-Scholes pricing model, which uses the assumptions noted in the following table. Nine Months Ended July 31, August 1, 2015 2014 Volatility 40.73 - 41.89% 41.87 - 43.17% Risk-free interest rate 1.43 - 2.00% 1.73 - 2.99% Expected life (years) 5 - 9 5 - 9 Dividends 0 0 |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Business Combinations [Abstract] | |
Allocation of Estimated Fair Value of Assets Acquired and Liabilities Assumed | In Thousands As of January 31, 2015 Current assets $ 94,899 Property, plant and equipment 6,211 Intangible assets subject to amortization Programs (15 year average useful life) 56,513 Programs (3 year average useful life) 677 Trade name (3 year average useful life) 226 Goodwill 48,001 Other assets 3,401 Total assets acquired 209,928 Current liabilities assumed 33,492 Long-term liabilities assumed 5,366 Net assets acquired $ 171,070 |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Equity [Abstract] | |
Schedule of Comprehensive Income (Loss) | The Company’s comprehensive income (loss) is as follows: In Thousands Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Net earnings $ 28,497 $ 38,908 $ 56,626 $ 105,890 Change in fair value of derivative financial instruments, net of tax (1) (5,276 ) 810 (9,444 ) (3,150 ) Change in pension and post-retirement obligations, net of tax (2) 1,951 507 8,450 2,653 Currency translation adjustment (26,162 ) (23,746 ) (163,264 ) (19,231 ) Comprehensive Income (Loss) $ (990 ) $ 16,479 $ (107,632 ) $ 86,162 1 Net of tax benefit (expense) of $1,967 and $(171) for the third fiscal quarter of 2015 and 2014, respectively. Net of tax benefit of $3,427 and $1,345 for the first nine months of fiscal 2015 and 2014, respectively. 2 Net of tax expense of $(843) and $(294) for the third fiscal quarter of 2015 and 2014, respectively. Net of tax expense of $(4,131) and $(1,310) for the first nine months of fiscal 2015 and 2014, respectively. |
Restructuring (Tables)
Restructuring (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Restructuring And Related Activities [Abstract] | |
Schedule of Restructuring and Related Costs | In Thousands Write Off of Exit & Property, Relocation Plant & of Facilities Equipment Severance Total Cost of sales $ 3,512 $ 651 $ 588 $ 4,751 Restructuring charges 3,980 - 1,395 5,375 Total $ 7,492 $ 651 $ 1,983 $ 10,126 In Thousands Write Off of Exit & Property, Relocation Plant & of Facilities Equipment Severance Total Cost of sales $ 4,029 $ 9 $ - $ 4,038 Restructuring charges 2,866 2,542 4,871 10,279 Total $ 6,895 $ 2,551 $ 4,871 $ 14,317 |
Summary of Restructuring Activity | The Company has recorded an accrued liability of $4.2 million and $5.9 million for these activities as of July 31, 2015, and October 31, 2014, respectively. In Thousands Accrued Liabilities Beginning Balance as of October 25, 2013 $ - Amounts accrued and incurred 20,388 Amounts paid (11,688 ) Write-off (2,585 ) Currency translation adjustment (200 ) Balance as of October 31, 2014 $ 5,915 Amounts accrued and incurred 10,126 Amounts paid (10,968 ) Write-off (651 ) Currency translation adjustment (227 ) Balance as of July 31, 2015 $ 4,195 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Discontinued Operations And Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The operating results of the discontinued operations for the three month period ended July 31, 2015, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 4,436 $ 6,419 $ 5,424 $ - $ 16,279 Operating earnings (loss) (1,132 ) 1,533 (830 ) (803 ) (1,232 ) Gain (loss) on net assets held for sale (1,718 ) 619 (18 ) - (1,117 ) Tax expense (benefit) (695 ) 428 (127 ) (262 ) (656 ) Income (loss) from discontinued operations $ (2,155 ) $ 1,724 $ (721 ) $ (541 ) $ (1,693 ) The operating results of the discontinued operations for the nine month period ended July 31, 2015, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 18,349 $ 18,684 $ 11,529 $ - $ 48,562 Operating earnings (loss) (2,649 ) 3,270 (3,909 ) (1,988 ) (5,276 ) Gain (loss) on net assets held for sale (11,871 ) (3 ) (5,089 ) - (16,963 ) Tax expense (benefit) (1,252 ) 626 (686 ) (673 ) (1,985 ) Income (loss) from discontinued operations $ (13,268 ) $ 2,641 $ (8,312 ) $ (1,315 ) $ (20,254 ) The operating results of the discontinued operations for the three month period ended August 1, 2014, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 7,249 $ 5,860 $ 11,706 $ - $ 24,815 Operating earnings (loss) (1,847 ) 141 (196 ) - (1,902 ) Gain (loss) on net assets held for sale - - - - - Tax expense (benefit) (520 ) (461 ) 8 - (973 ) Income (loss) from discontinued operations $ (1,327 ) $ 602 $ (204 ) $ - $ (929 ) The operating results of the discontinued operations for the nine month period ended August 1, 2014, consisted of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Other Total Net Sales $ 24,783 $ 16,798 $ 20,987 $ - $ 62,568 Operating earnings (loss) (6,566 ) (278 ) (5,020 ) (343 ) (12,207 ) Gain (loss) on net assets held for sale - - - - - Tax expense (benefit) (2,136 ) (595 ) (991 ) - (3,722 ) Income (loss) from discontinued operations $ (4,430 ) $ 317 $ (4,029 ) $ (343 ) $ (8,485 ) Assets and Liabilities Held for Sale within the Consolidated Balance Sheet at July 31, 2015, are comprised of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Total Accounts receivable, net $ 1,589 $ - $ 4,949 $ 6,538 Inventories 2,451 - 5,111 7,562 Prepaid expenses 21 - 277 298 Deferred income tax benefits - - - - Income tax refundable - - - - Current Assets of Businesses Held for Sale $ 4,061 $ - $ 10,337 $ 14,398 Net property, plant and equipment $ 5,324 $ - $ 16,817 $ 22,141 Intangibles, net 950 - 6,905 7,855 Deferred income tax benefits - - - - Other assets - - 1,562 1,562 Non-Current Assets of Businesses Held for Sale $ 6,274 $ - $ 25,284 $ 31,558 Accounts payable $ 1,533 $ - $ 5,389 $ 6,922 Accrued liabilities 506 - 1,457 1,963 Current Liabilities of Businesses Held for Sale $ 2,039 $ - $ 6,846 $ 8,885 Deferred income tax liabilities $ - $ - $ 1,795 $ 1,795 Other liabilities 64 - - 64 Non-Current Liabilities of Businesses Held for Sale $ 64 $ - $ 1,795 $ 1,859 Net Assets of Businesses Held for Sale $ 8,232 $ - $ 26,980 $ 35,212 Assets and Liabilities Held for Sale within the Consolidated Balance Sheet at October 31, 2014, were comprised of the following: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Total Accounts receivable, net $ 5,154 $ 3,752 $ 2,106 $ 11,012 Inventories 12,646 7,972 5,258 25,876 Prepaid expenses 408 86 335 829 Deferred income tax benefits 671 680 - 1,351 Income tax refundable - - 2,378 2,378 Current Assets of Businesses Held for Sale $ 18,879 $ 12,490 $ 10,077 $ 41,446 Net property, plant and equipment $ 4,949 $ 4,105 $ 19,839 $ 28,893 Intangibles, net 22,228 10,659 8,327 41,214 Deferred income tax benefits - (30 ) - (30 ) Other assets - - 1,600 1,600 Non-Current Assets of Businesses Held for Sale $ 27,177 $ 14,734 $ 29,766 $ 71,677 Accounts payable $ 2,194 $ 873 $ 6,326 $ 9,393 Accrued liabilities 1,765 1,008 2,025 4,798 Current Liabilities of Businesses Held for Sale $ 3,959 $ 1,881 $ 8,351 $ 14,191 Deferred income tax liabilities $ 11,084 $ 6,243 $ 1,537 $ 18,864 Other liabilities - - 12 12 Non-Current Liabilities of Businesses Held for Sale $ 11,084 $ 6,243 $ 1,549 $ 18,876 Net Assets of Businesses Held for Sale $ 31,013 $ 19,100 $ 29,943 $ 80,056 |
Business Segment Information (T
Business Segment Information (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Segment Reporting [Abstract] | |
Business Segment Information for Continuing Operations | Business segment information for continuing operations includes the segments of Avionics & Controls, Sensors & Systems and Advanced Materials. In Thousands Three Months Ended Nine Months Ended July 31, August 1, July 31, August 1, 2015 2014 2015 2014 Sales Avionics & Controls $ 207,467 $ 192,860 $ 594,534 $ 571,366 Sensors & Systems 175,530 192,246 515,611 579,131 Advanced Materials 113,220 121,203 332,496 352,613 $ 496,217 $ 506,309 $ 1,442,641 $ 1,503,110 Earnings from Continuing Operations Before Income Taxes Avionics & Controls $ 23,473 $ 30,902 $ 52,024 $ 81,952 Sensors & Systems 23,356 18,055 55,491 61,811 Advanced Materials 24,396 27,724 65,908 75,911 Segment Earnings 71,225 76,681 173,423 219,674 Corporate expense (24,045 ) (16,142 ) (65,067 ) (48,398 ) Other income - - 12,744 - Interest income 144 145 447 400 Interest expense (10,618 ) (7,865 ) (25,023 ) (24,924 ) Loss on extinguishment of debt - (533 ) (329 ) (533 ) $ 36,706 $ 52,286 $ 96,195 $ 146,219 |
Guarantors (Tables)
Guarantors (Tables) | 9 Months Ended |
Jul. 31, 2015 | |
Guarantees [Abstract] | |
Condensed Consolidating Balance Sheet | Condensed Consolidating Balance Sheet as of July 31, 2015. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total ASSETS Current Assets Cash and cash equivalents $ 16,454 $ 995 $ 1,376 $ 168,857 $ - $ 187,682 Accounts receivable, net 33 - 136,624 237,042 - 373,699 Inventories - - 193,345 276,355 - 469,700 Income tax refundable - - - 17,515 - 17,515 Deferred income tax benefits 29,330 - (14,519 ) 22,134 - 36,945 Prepaid expenses 93 - 7,648 13,666 - 21,407 Other current assets 74 - 111 17,011 - 17,196 Current assets of businesses held for sale - - - 14,398 - 14,398 Total Current Assets 45,984 995 324,585 766,978 - 1,138,542 Property, Plant & Equipment, Net 1,992 - 158,658 145,741 - 306,391 Goodwill - - 372,021 668,422 - 1,040,443 Intangibles, net - - 109,929 350,039 - 459,968 Debt issuance costs, net 5,380 5,655 - - - 11,035 Deferred income tax benefits 18,659 - 14,670 42,283 - 75,612 Other assets 281 - 10,386 11,436 - 22,103 Non-current assets of businesses held for sale - - 5,262 26,296 - 31,558 Amounts Due From (To) Subsidiaries - 353,831 817,896 - (1,171,727 ) - Investment in Subsidiaries 3,098,201 653,386 1,009,069 14,644 (4,775,300 ) - Total Assets $ 3,170,497 $ 1,013,867 $ 2,822,476 $ 2,025,839 $ (5,947,027 ) $ 3,085,652 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 2,846 $ - $ 36,884 $ 71,685 $ - $ 111,415 Accrued liabilities 19,441 4,124 80,197 163,624 - 267,386 Current maturities of long-term debt - - 898 116 - 1,014 Deferred income tax liabilities 15,159 - (14,669 ) 2,503 - 2,993 Federal and foreign income taxes (9,624 ) (51 ) (5,165 ) 18,693 - 3,853 Current liabilities of businesses held for sale - - - 8,885 - 8,885 Total Current Liabilities 27,822 4,073 98,145 265,506 - 395,546 Credit Facilities 170,000 - - 30,000 - 200,000 Long-Term Debt, Net 250,000 362,472 56,976 43,361 - 712,809 Deferred Income Tax Liabilities 24,867 - 14,658 93,974 - 133,499 Pension and Post-Retirement Obligations 18,591 - 754 37,413 - 56,758 Other Liabilities 14,134 - 194 16,184 - 30,512 Non-current liabilities of businesses held for sale - - - 1,859 - 1,859 Amounts Due To (From) Subsidiaries 1,110,414 - - 398,562 (1,508,976 ) - Shareholders' Equity 1,554,669 647,322 2,651,749 1,138,980 (4,438,051 ) 1,554,669 Total Liabilities and Shareholders' Equity $ 3,170,497 $ 1,013,867 $ 2,822,476 $ 2,025,839 $ (5,947,027 ) $ 3,085,652 Condensed Consolidating Balance Sheet as of October 31, 2014. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total ASSETS Current Assets Cash and cash equivalents $ 14,634 $ - $ 3,454 $ 220,056 $ - $ 238,144 Accounts receivable, net 610 - 143,158 236,121 - 379,889 Inventories - - 188,982 244,613 - 433,595 Income tax refundable - - - 5,266 - 5,266 Deferred income tax benefits 31,486 - (1,191 ) 18,384 - 48,679 Prepaid expenses 147 - 6,703 13,486 - 20,336 Other current assets 80 - 114 1,955 - 2,149 Current assets of businesses held for sale - - 26,800 14,646 - 41,446 Total Current Assets 46,957 - 368,020 754,527 - 1,169,504 Property, Plant & Equipment, Net 1,489 - 158,089 159,764 - 319,342 Goodwill - - 347,700 724,086 - 1,071,786 Intangibles, net - - 106,164 365,213 - 471,377 Debt issuance costs, net 4,134 - - 161 - 4,295 Deferred income tax benefits 20,455 - 30 50,822 - 71,307 Other assets 130 - 7,502 6,547 - 14,179 Non-current assets of businesses held for sale - - 40,737 30,940 - 71,677 Amounts Due From (To) Subsidiaries - - 797,342 - (797,342 ) - Investment in Subsidiaries 3,307,454 - 1,127,237 20,768 (4,455,459 ) - Total Assets $ 3,380,619 $ - $ 2,952,821 $ 2,112,828 $ (5,252,801 ) $ 3,193,467 LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable $ 1,751 $ - $ 36,905 $ 76,628 $ - $ 115,284 Accrued liabilities 20,178 - 93,168 149,190 - 262,536 Current maturities of long-term debt 8,750 - 349 3,675 - 12,774 Deferred income tax liabilities 76 - 8 1,689 - 1,773 Federal and foreign income taxes (2,282 ) - (2,643 ) 6,496 - 1,571 Current liabilities of businesses held for sale - - 4,010 10,181 - 14,191 Total Current Liabilities 28,473 - 131,797 247,859 - 408,129 Credit Facilities 100,000 - - - - 100,000 Long-Term Debt, Net 403,125 - 55,176 51,419 - 509,720 Deferred Income Tax Liabilities 58,615 - (17,333 ) 107,883 - 149,165 Pension and Post-Retirement Obligations 18,683 - 1,226 42,784 - 62,693 Other Liabilities 16,762 - 3,944 26,178 - 46,884 Non-current liabilities of businesses held for sale - - 17,327 1,549 - 18,876 Amounts Due To (From) Subsidiaries 856,961 - - 456,861 (1,313,822 ) - Shareholders' Equity 1,898,000 - 2,760,684 1,178,295 (3,938,979 ) 1,898,000 Total Liabilities and Shareholders' Equity $ 3,380,619 $ - $ 2,952,821 $ 2,112,828 $ (5,252,801 ) $ 3,193,467 |
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) | Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three month period ended July 31, 2015. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Net sales $ - $ - $ 225,105 $ 272,137 $ (1,025 ) $ 496,217 Cost of sales - - 147,206 180,240 (1,025 ) 326,421 - - 77,899 91,897 - 169,796 Expenses Selling, general and administrative - 55 38,794 53,119 - 91,968 Research, development & engineering - - 10,158 19,087 - 29,245 Restructuring charges - - 1,228 175 - 1,403 Other (income) expense - - - - - - Total Expenses - 55 50,180 72,381 - 122,616 Operating Earnings from Continuing Operations - (55 ) 27,719 19,516 - 47,180 Interest Income (3,928 ) (3,401 ) (3,766 ) (7,597 ) 18,548 (144 ) Interest Expense 8,790 3,500 8,838 8,038 (18,548 ) 10,618 Loss on Extinguishment of Debt (122 ) - - 122 - - Earnings (Loss) from Continuing Operations Before Income Taxes (4,740 ) (154 ) 22,647 18,953 - 36,706 Income Tax Expense (Benefit) (943 ) (31 ) 3,678 3,701 - 6,405 Earnings (Loss) from Continuing Operations Including Noncontrolling Interests (3,797 ) (123 ) 18,969 15,252 - 30,301 Earnings Attributable to Noncontrolling Interests - - - (111 ) - (111 ) Earnings (Loss) from Continuing Operations Attributable to Esterline, Net of Tax (3,797 ) (123 ) 18,969 15,141 - 30,190 Loss from Discontinued Operations Attributable to Esterline, Net of Tax (541 ) - 63 (1,215 ) - (1,693 ) Equity in Net Earnings of Consolidated Subsidiaries 32,835 10,457 27 - (43,319 ) - Net Earnings (Loss) Attributable to Esterline $ 28,497 $ 10,334 $ 19,059 $ 13,926 $ (43,319 ) $ 28,497 Comprehensive Income (Loss) $ (1,797 ) $ 14,871 $ 19,728 $ (4,972 ) $ (28,820 ) $ (990 ) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the nine month period ended July 31, 2015. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Net sales $ - $ - $ 668,970 $ 776,796 $ (3,125 ) $ 1,442,641 Cost of sales - - 440,583 526,386 (3,125 ) 963,844 - - 228,387 250,410 - 478,797 Expenses Selling, general and administrative - 71 113,087 173,208 - 286,366 Research, development & engineering - - 32,455 46,245 - 78,700 Restructuring charges - - 4,588 787 - 5,375 Other (income) expense - - - (12,744 ) - (12,744 ) Total Expenses - 71 150,130 207,496 - 357,697 Operating Earnings from Continuing Operations - (71 ) 78,257 42,914 - 121,100 Interest Income (11,922 ) (4,261 ) (18,232 ) (23,485 ) 57,453 (447 ) Interest Expense 21,991 4,389 33,633 22,463 (57,453 ) 25,023 Loss on Extinguishment of Debt 207 - - 122 - 329 Earnings (Loss) from Continuing Operations Before Income Taxes (10,276 ) (199 ) 62,856 43,814 - 96,195 Income Tax Expense (Benefit) (2,052 ) (40 ) 10,625 10,564 - 19,097 Earnings (Loss) from Continuing Operations Including Noncontrolling Interests (8,224 ) (159 ) 52,231 33,250 - 77,098 Earnings Attributable to Noncontrolling Interests - - - (218 ) - (218 ) Earnings (Loss) from Continuing Operations Attributable to Esterline, Net of Tax (8,224 ) (159 ) 52,231 33,032 - 76,880 Loss from Discontinued Operations Attributable to Esterline, Net of Tax (1,315 ) - (9,592 ) (9,347 ) - (20,254 ) Equity in Net Earnings of Consolidated Subsidiaries 66,165 31,991 140 - (98,296 ) - Net Earnings (Loss) Attributable to Esterline $ 56,626 $ 31,832 $ 42,779 $ 23,685 $ (98,296 ) $ 56,626 Comprehensive Income (Loss) $ (95,254 ) $ 25,408 $ 43,723 $ (109,270 ) $ 27,761 $ (107,632 ) Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the three month period ended August 1, 2014. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Net sales $ - $ - $ 239,134 $ 268,860 $ (1,685 ) $ 506,309 Cost of sales - - 150,139 180,768 (1,685 ) 329,222 - - 88,995 88,092 - 177,087 Expenses Selling, general and administrative - - 33,454 55,430 - 88,884 Research, development & engineering - - 10,932 13,327 - 24,259 Restructuring charges - - 2,577 828 - 3,405 Other (income) expense - - - - - - Total Expenses - - 46,963 69,585 - 116,548 Operating Earnings from Continuing Operations - - 42,032 18,507 - 60,539 Interest Income (3,837 ) - (1,948 ) (13,931 ) 19,571 (145 ) Interest Expense 5,777 - 6,832 14,827 (19,571 ) 7,865 Loss on Extinguishment of Debt - - - 533 - 533 Earnings (Loss) from Continuing Operations Before Income Taxes (1,940 ) - 37,148 17,078 - 52,286 Income Tax Expense (Benefit) (466 ) - 8,449 4,420 - 12,403 Earnings (Loss) from Continuing Operations Including Noncontrolling Interests (1,474 ) - 28,699 12,658 - 39,883 Earnings Attributable to Noncontrolling Interests - - - (46 ) - (46 ) Earnings (Loss) from Continuing Operations Attributable to Esterline, Net of Tax (1,474 ) - 28,699 12,612 - 39,837 Loss from Discontinued Operations Attributable to Esterline, Net of Tax - - (787 ) (142 ) - (929 ) Equity in Net Earnings of Consolidated Subsidiaries 40,382 - 883 114 (41,379 ) - Net Earnings (Loss) Attributable to Esterline $ 38,908 $ - $ 28,795 $ 12,584 $ (41,379 ) $ 38,908 Comprehensive Income (Loss) $ 15,707 $ - $ 26,224 $ (9,163 ) $ (16,289 ) $ 16,479 Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) for the nine month period ended August 1, 2014. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Net sales $ - $ - $ 702,424 $ 804,889 $ (4,203 ) $ 1,503,110 Cost of sales - - 446,042 534,224 (4,203 ) 976,063 - - 256,382 270,665 - 527,047 Expenses Selling, general and administrative - - 107,162 162,889 - 270,051 Research, development & engineering - - 35,245 40,196 - 75,441 Restructuring charges - - 6,898 3,381 - 10,279 Other (income) expense - - - - - - Total Expenses - - 149,305 206,466 - 355,771 Operating Earnings from Continuing Operations - - 107,077 64,199 - 171,276 Interest Income (11,588 ) - (5,886 ) (42,303 ) 59,377 (400 ) Interest Expense 18,350 - 20,619 45,332 (59,377 ) 24,924 Loss on Extinguishment of Debt - - - 533 - 533 Earnings (Loss) from Continuing Operations Before Income Taxes (6,762 ) - 92,344 60,637 - 146,219 Income Tax Expense (Benefit) (1,462 ) - 20,686 12,191 - 31,415 Earnings (Loss) from Continuing Operations Including Noncontrolling Interests (5,300 ) - 71,658 48,446 - 114,804 Earnings Attributable to Noncontrolling Interests - - - (429 ) - (429 ) Earnings (Loss) from Continuing Operations Attributable to Esterline, Net of Tax (5,300 ) - 71,658 48,017 - 114,375 Loss from Discontinued Operations Attributable to Esterline, Net of Tax (343 ) - (3,645 ) (4,497 ) - (8,485 ) Equity in Net Earnings of Consolidated Subsidiaries 111,533 - 2,117 1,434 (115,084 ) - Net Earnings (Loss) Attributable to Esterline $ 105,890 $ - $ 70,130 $ 44,954 $ (115,084 ) $ 105,890 Comprehensive Income (Loss) $ 88,374 $ - $ 68,693 $ 35,471 $ (106,376 ) $ 86,162 |
Condensed Consolidating Statement of Cash Flows | Condensed Consolidating Statement of Cash Flows for the nine month period ended July 31, 2015. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Cash Flows Provided (Used) by Operating Activities Net earnings (loss) including noncontrolling interests $ 56,844 $ 31,832 $ 42,779 $ 23,685 $ (98,296 ) $ 56,844 Depreciation & amortization - - 28,339 48,971 - 77,310 Deferred income taxes (17,829 ) - 16,243 (7,747 ) - (9,333 ) Share-based compensation - 5 3,722 4,891 - 8,618 Gain on release of non-income tax liability - - - (15,656 ) - (15,656 ) Loss on assets held for sale - - 10,842 6,121 - 16,963 Working capital changes, net of effect of acquisitions: Accounts receivable 577 - 8,228 9,138 - 17,943 Inventories - - (5,268 ) (13,045 ) - (18,313 ) Prepaid expenses 54 - (918 ) (1,724 ) - (2,588 ) Other current assets 6 - 3 133 - 142 Accounts payable 1,095 - (4,430 ) (13,474 ) - (16,809 ) Accrued liabilities (2,286 ) - (12,976 ) 8,073 - (7,189 ) Federal and foreign income taxes (7,342 ) (51 ) (2,522 ) 1,414 - (8,501 ) Other liabilities 3,608 - (528 ) 163 - 3,243 Other, net (28,400 ) - (42,771 ) 72,697 - 1,526 6,327 31,786 40,743 123,640 (98,296 ) 104,200 Cash Flows Provided (Used) by Investing Activities Purchases of capital assets (804 ) - (14,480 ) (22,493 ) - (37,777 ) Proceeds from sale of discontinued operations - - 32,053 - - 32,053 Acquisition of businesses, net of cash acquired - - - (171,070 ) - (171,070 ) (804 ) - 17,573 (193,563 ) - (176,794 ) In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Cash Flows Provided (Used) by Financing Activities Proceeds provided by stock issuance under employee stock plans 13,477 - - - - 13,477 Excess tax benefits from stock option exercises 1,877 - - - - 1,877 Shares repurchased (259,518 ) - - - - (259,518 ) Repayment of long-term credit facilities (235,000 ) - - - - (235,000 ) Repayment of long-term debt (161,875 ) - (416 ) (4,774 ) - (167,065 ) Proceeds from issuance of long-term credit facilities 305,000 - - 30,000 - 335,000 Proceeds from issuance of long-term debt - 356,532 - - - 356,532 Proceeds from government assistance - - - 3,054 - 3,054 Dividends paid to noncontrolling interests - - - - - - Debt and other issuance costs (2,333 ) (5,880 ) - - - (8,213 ) Net change in intercompany financing 333,610 (380,925 ) (60,805 ) 9,824 98,296 - (4,762 ) (30,273 ) (61,221 ) 38,104 98,296 40,144 Effect of Foreign Exchange Rates on Cash and Cash Equivalents 1,059 (518 ) 827 (19,380 ) - (18,012 ) Net Increase (Decrease) in Cash and Cash Equivalents 1,820 995 (2,078 ) (51,199 ) - (50,462 ) Cash and Cash Equivalents - Beginning of Year 14,634 - 3,454 220,056 - 238,144 Cash and Cash Equivalents - End of Period $ 16,454 $ 995 $ 1,376 $ 168,857 $ - $ 187,682 Condensed Consolidating Statement of Cash Flows for the nine month period ended August 1, 2014. In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Cash Flows Provided (Used) by Operating Activities Net earnings (loss) including noncontrolling interests $ 106,319 $ - $ 70,130 $ 44,954 $ (115,084 ) $ 106,319 Depreciation & amortization - - 32,336 55,107 - 87,443 Deferred income taxes (4,971 ) - (2 ) (8,131 ) - (13,104 ) Share-based compensation - - 4,248 5,585 - 9,833 Gain on release of non-income tax liability - - - - - - Loss on assets held for sale - - - - - - Working capital changes, net of effect of acquisitions: Accounts receivable 528 - 13,887 9,065 - 23,480 Inventories - - (17,289 ) (25,122 ) - (42,411 ) Prepaid expenses (52 ) - (1,913 ) (4,237 ) - (6,202 ) Other current assets 2 - (1 ) (100 ) - (99 ) Accounts payable 117 - 3,585 (8,210 ) - (4,508 ) Accrued liabilities (10,486 ) - (1,534 ) (4,438 ) - (16,458 ) Federal and foreign income taxes (4,462 ) - 21,809 (25,330 ) - (7,983 ) Other liabilities 5,415 - 95 (6,950 ) - (1,440 ) Other, net (497 ) - (10,962 ) 11,304 - (155 ) 91,913 - 114,389 43,497 (115,084 ) 134,715 Cash Flows Provided (Used) by Investing Activities Purchases of capital assets (186 ) - (11,748 ) (23,075 ) - (35,009 ) Proceeds from sale of discontinued operations - - - - - - Acquisition of businesses, net of cash acquired - - (44,745 ) - - (44,745 ) (186 ) - (56,493 ) (23,075 ) - (79,754 ) In Thousands Non- TA Mfg. Guarantor Guarantor Parent Ltd. Subsidiaries Subsidiaries Eliminations Total Cash Flows Provided (Used) by Financing Activities Proceeds provided by stock issuance under employee stock plans 23,173 - - - - 23,173 Excess tax benefits from stock option exercises 6,392 - - - - 6,392 Shares repurchased (5,176 ) - - - - (5,176 ) Repayment of long-term credit facilities (40,000 ) - - - - (40,000 ) Repayment of long-term debt (6,562 ) - (245 ) (27,269 ) - (34,076 ) Proceeds from issuance of long-term credit facilities 25,000 - - - - 25,000 Proceeds from issuance of long-term debt - - - - - - Proceeds from government assistance - - - 3,362 - 3,362 Dividends paid to noncontrolling interests - - - (780 ) - (780 ) Debt and other issuance costs - - - - - - Net change in intercompany financing (98,319 ) - (56,888 ) 40,123 115,084 - (95,492 ) - (57,133 ) 15,436 115,084 (22,105 ) Effect of Foreign Exchange Rates on Cash and Cash Equivalents (22 ) - (22 ) (1,534 ) - (1,578 ) Net Increase (Decrease) in Cash and Cash Equivalents (3,787 ) - 741 34,324 - 31,278 Cash and Cash Equivalents - Beginning of Year 7,826 - 4,876 166,476 - 179,178 Cash and Cash Equivalents - End of Period $ 4,039 $ - $ 5,617 $ 200,800 $ - $ 210,456 |
Earnings Per Share and Shareh34
Earnings Per Share and Shareholders Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jul. 31, 2015 | Aug. 01, 2014 | Jul. 31, 2015 | Oct. 31, 2014 | Mar. 31, 2015 | Jun. 19, 2014 | |
Earnings Per Share And Shareholders Equity [Line Items] | ||||||
Anti-dilutive shares excluded from computation of earnings per share | 370,050 | 170,300 | ||||
Preferred stock shares authorized | 25,000 | 25,000 | ||||
Preferred stock, par value | $ 100 | $ 100 | ||||
Common stock, shares authorized | 60,000,000 | 60,000,000 | 60,000,000 | |||
Common stock, par value | $ 0.20 | $ 0.20 | $ 0.20 | |||
Preferred stock shares outstanding | 0 | 0 | 0 | |||
Approved and authorized amount under the stock repurchase program | $ 400,000,000 | $ 200,000,000 | ||||
Additional approved and authorized amount under the stock repurchase program | $ 200,000,000 | |||||
Stock repurchased during period, shares | 2,562,122 | 269,228 | ||||
Treasury Stock Acquired, Average Cost Per Share | $ 101.29 | |||||
Aggregate value of repurchased stock | $ 259,500,000 | |||||
Series B Preferred Stock | ||||||
Earnings Per Share And Shareholders Equity [Line Items] | ||||||
Preferred stock shares authorized | 475,000 | 475,000 | ||||
Preferred stock, par value | $ 1 | $ 1 | ||||
Preferred stock shares outstanding | 0 | 0 | 0 |
Shares Used for Calculating Ear
Shares Used for Calculating Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Aug. 01, 2014 | Jul. 31, 2015 | Aug. 01, 2014 | |
Earnings Per Share [Abstract] | ||||
Shares used for basic earnings per share | 30,397 | 31,995 | 31,003 | 31,818 |
Shares used for diluted earnings per share | 30,914 | 32,591 | 31,531 | 32,427 |
Schedule of Changes in Issued a
Schedule of Changes in Issued and Outstanding Common Shares and Treasury Stock (Detail) - shares | 9 Months Ended | 12 Months Ended |
Jul. 31, 2015 | Oct. 31, 2014 | |
Equity [Abstract] | ||
Balance, beginning of year | 32,123,717 | 31,441,949 |
Shares issued under share-based compensation plans | 241,632 | 681,768 |
Balance, end of current period | 32,365,349 | 32,123,717 |
Balance, beginning of year | 269,228 | 0 |
Shares purchased | 2,562,122 | 269,228 |
Balance, end of current period | 2,831,350 | 269,228 |
Shares outstanding, end of period | 29,533,999 | 31,854,489 |
Schedule of Components of Accum
Schedule of Components of Accumulated Other Comprehensive Gain (Loss) (Detail) - USD ($) $ in Thousands | Jul. 31, 2015 | Oct. 31, 2014 |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||
Unrealized gain (loss) on derivative contracts | $ (27,050) | $ (14,179) |
Tax effect | 7,317 | 3,890 |
Unrealized loss on derivative contracts, Total | (19,733) | (10,289) |
Pension and post-retirement obligations | (77,644) | (90,225) |
Tax effect | 25,941 | 30,072 |
Pension and post-retirement obligations, Total | (51,703) | (60,153) |
Currency translation adjustment | (224,399) | (61,135) |
Accumulated other comprehensive gain (loss) | $ (295,835) | $ (131,577) |
Retirement Benefits - Additiona
Retirement Benefits - Additional Information (Detail) $ in Millions | 3 Months Ended |
Jan. 30, 2015USD ($) | |
Compensation And Retirement Disclosure [Abstract] | |
Contractual termination | $ 16.6 |
Settlement charges | $ 3.2 |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension Cost (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Aug. 01, 2014 | Jul. 31, 2015 | Aug. 01, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 3,028 | $ 2,621 | $ 8,728 | $ 8,244 |
Interest cost | 4,334 | 4,737 | 12,863 | 14,314 |
Expected return on plan assets | (6,398) | (6,504) | (19,257) | (19,398) |
Settlement | 184 | 0 | 3,175 | 0 |
Amortization of prior service cost | 271 | 19 | 305 | 58 |
Amortization of actuarial (gain) loss | 1,462 | 1,213 | 3,860 | 3,913 |
Net periodic cost (benefit) | $ 2,881 | $ 2,086 | $ 9,674 | $ 7,131 |
Schedule of Net Periodic Post-R
Schedule of Net Periodic Post-Retirement Costs (Detail) - Postretirement Benefit Plans, Defined Benefit - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Aug. 01, 2014 | Jul. 31, 2015 | Aug. 01, 2014 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 206 | $ 233 | $ 631 | $ 696 |
Interest cost | 134 | 187 | 411 | 560 |
Amortization of prior service cost | (18) | (17) | (52) | (51) |
Amortization of actuarial (gain) loss | (23) | (67) | (72) | (201) |
Net periodic cost (benefit) | $ 299 | $ 336 | $ 918 | $ 1,004 |
Schedule of Financial Assets an
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jul. 31, 2015 | Oct. 31, 2014 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative contracts not designated as hedging instruments, Assets | $ 1,213 | $ 1,081 |
Embedded derivatives, Assets | 4,454 | 2,351 |
Derivative contracts not designated as hedging instruments, Liabilities | 1,837 | 4,188 |
Embedded derivatives, Liabilities | 132 | 15 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Contingent purchase obligation | 3,750 | 5,000 |
Designated as Hedging Instrument | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative contracts designated as hedging instruments, Assets | 892 | 24 |
Derivative contracts designated as hedging instruments, Liabilities | $ 28,277 | $ 14,592 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Sunbank Family Of Companies LLC. - USD ($) $ in Millions | Jul. 31, 2015 | Oct. 31, 2014 | Dec. 20, 2013 |
Fair Value Measurements [Line Items] | |||
Business Acquisition Contingent Consideration Payable | $ 3.8 | $ 5 | |
First installment of contingent consideration | $ 1.3 | $ 5 |
Derivative Financial Instrume43
Derivative Financial Instruments - Additional Information (Detail) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Apr. 30, 2015EUR (€) | Jul. 31, 2015USD ($) | Aug. 01, 2014USD ($) | Jul. 31, 2015USD ($) | Aug. 01, 2014USD ($) | Oct. 31, 2014USD ($) | Jul. 31, 2011EUR (€) | |
Derivative [Line Items] | |||||||
Net loss on extinguishment of debt | $ 0 | $ (533,000) | $ (329,000) | $ (533,000) | |||
Gain (Loss) on foreign currency forward exchange contracts not designated as an accounting hedge | 1,000,000 | $ (800,000) | |||||
Net Gain (Loss) expected to be reclassified into earnings over next 12 months | (20,800,000) | $ (20,800,000) | |||||
Maturities of forecasted transactions using forward exchange contracts | 24 months | ||||||
Fair Value Hedging | |||||||
Derivative [Line Items] | |||||||
Net loss on extinguishment of debt | $ (500,000) | ||||||
Fair Value Hedging | Euro Term Loan | |||||||
Derivative [Line Items] | |||||||
Derivative notional amount | € | € 125,000,000 | ||||||
3.625% Senior Notes Due April 2023 | |||||||
Derivative [Line Items] | |||||||
Debt instrument, interest rate | 3.625% | ||||||
Loan amount paid off date | Apr. 30, 2023 | ||||||
3.625% Senior Notes Due April 2023 | Net Investment Hedges | |||||||
Derivative [Line Items] | |||||||
Derivative notional amount | € | € 330,000,000 | ||||||
Foreign Exchange Forward | |||||||
Derivative [Line Items] | |||||||
Derivative notional amount | $ 380,300,000 | $ 380,300,000 | $ 396,200,000 |
Fair Value of Derivative Instru
Fair Value of Derivative Instruments in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jul. 31, 2015 | Oct. 31, 2014 |
Foreign Exchange Forward | Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | $ 1,739 | $ 1,052 |
Foreign Exchange Forward | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | 366 | 53 |
Foreign Exchange Forward | Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | 22,683 | 15,490 |
Foreign Exchange Forward | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | 7,431 | 3,290 |
Embedded Derivative Financial Instruments | Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | 497 | 296 |
Embedded Derivative Financial Instruments | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | 3,957 | 2,055 |
Embedded Derivative Financial Instruments | Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | 132 | 15 |
Embedded Derivative Financial Instruments | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | $ 0 | $ 0 |
Effect of Derivative Instrument
Effect of Derivative Instruments on Consolidated Statement of Operations and Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Aug. 01, 2014 | Jul. 31, 2015 | Aug. 01, 2014 | |
Net Investment Hedges | Euro Term Loan | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Recognized in AOCI | $ 0 | $ 162 | $ 0 | $ 134 |
Net Investment Hedges | 2023 Notes | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Recognized in AOCI | 7,095 | 0 | (5,940) | 0 |
Net Investment Hedges | 2023 Notes Interest | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Recognized in AOCI | 34 | 0 | 34 | 0 |
Embedded Derivatives | Fair Value Hedging | Sales | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Embedded derivatives | 491 | (651) | 2,070 | 215 |
Foreign Exchange Forward | Cash Flow Hedging | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Gain (loss) recognized in AOCI (effective portion) | (1,468) | 1,873 | 6,305 | (858) |
Gain (loss) reclassified from AOCI into sales | $ (5,775) | $ (893) | $ (19,176) | $ (3,638) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Aug. 01, 2014 | Jul. 31, 2015 | Aug. 01, 2014 | |
Income Taxes [Line Items] | ||||
Income tax rate | 17.40% | 23.70% | 19.90% | 21.50% |
Discrete tax expense (benefits) | $ (0.9) | $ 0.2 | $ (0.1) | $ (0.9) |
Change in unrecognized tax benefit within the next twelve months | 0.9 | 0.9 | ||
Related to reconciling the prior year’s income tax return to the income tax provision | ||||
Income Taxes [Line Items] | ||||
Discrete tax benefits due to release of reserves for uncertain tax positions | 1.2 | 1.2 | 0.7 | |
Discrete tax expense due to reconciliation of income tax return | $ 0.3 | 2.6 | 0.3 | |
Due to the retroactive extension of the U.S. federal research and experimentation credits | ||||
Income Taxes [Line Items] | ||||
Discrete tax benefit due to a change in Tax Laws | $ 1.5 | |||
As a result of the enactment of tax laws reducing the U.K. statutory income tax rate | ||||
Income Taxes [Line Items] | ||||
Discrete tax benefit due to a change in Tax Laws | $ 0.5 |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Millions | Aug. 04, 2015USD ($) | Aug. 03, 2015USD ($) | Apr. 09, 2015USD ($) | Apr. 08, 2015USD ($) | Apr. 30, 2015USD ($) | Apr. 30, 2013USD ($) | Aug. 31, 2010USD ($) | Oct. 30, 2015USD ($) | Jul. 31, 2015USD ($) | May. 01, 2015USD ($) | Aug. 01, 2014USD ($) | Jul. 31, 2015USD ($) | Aug. 01, 2014USD ($) | Apr. 30, 2015EUR (€) | Oct. 31, 2014USD ($) | Mar. 31, 2011USD ($) |
Debt Instrument [Line Items] | ||||||||||||||||
Credit facilities | $ 200,000,000 | $ 200,000,000 | $ 100,000,000 | |||||||||||||
Loss on extinguishment of debt | $ 0 | $ (533,000) | $ (329,000) | $ (533,000) | ||||||||||||
Imputed interest on advance | 4.29% | 4.29% | ||||||||||||||
Discounted value of debt | $ 43,200,000 | $ 43,200,000 | 51,900,000 | |||||||||||||
Senior Notes 7% Maturing in August 2020 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, carrying amount | $ 250,000,000 | |||||||||||||||
Debt instrument, interest rate | 7.00% | |||||||||||||||
Debt issuance costs | $ 4,400,000 | |||||||||||||||
Net proceeds from issuance of debt | $ 245,600,000 | |||||||||||||||
Senior Notes 7% Maturing in August 2020 | Debt Redemption After August 1, 2015 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument redemption price percentage plus accrued interest | 103.50% | |||||||||||||||
Senior Notes 7% Maturing in August 2020 | Debt Redemption After August 1, 2018 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument redemption price percentage plus accrued interest | 100.00% | |||||||||||||||
Senior Notes 7% Maturing in August 2020 | Debt Redemption Prior August 1, 2015 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument redemption price percentage plus accrued interest | 100.00% | |||||||||||||||
Senior Notes Due Twenty Twenty | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument, fair value | 255,300,000 | 255,300,000 | $ 266,900,000 | |||||||||||||
Senior Notes Due Twenty Twenty | Scenario Forecast | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Write off of unamortized Debt Issuance cost | $ 2,400,000 | |||||||||||||||
Senior Notes Due Twenty Twenty | Subsequent Event | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Loss on extinguishment of debt | $ 8,750,000 | |||||||||||||||
Debt instrument, interest rate | 7.00% | |||||||||||||||
3.625% Senior Notes Due April 2023 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Loan amount paid off date | Apr. 30, 2023 | |||||||||||||||
Debt instrument, carrying amount | € | € 330 | |||||||||||||||
Debt instrument, interest rate | 3.625% | |||||||||||||||
Debt issuance costs | $ 5,700,000 | |||||||||||||||
Net proceeds from issuance of debt | $ 350,800,000 | |||||||||||||||
Debt instrument, fair value | 352,500,000 | 352,500,000 | ||||||||||||||
3.625% Senior Notes Due April 2023 | Debt Redemption Prior April 15, 2018 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument redemption price percentage plus accrued interest | 100.00% | |||||||||||||||
Debt instrument redemption allowed percentage of principal amount redeemed | 35.00% | |||||||||||||||
3.625% Senior Notes Due April 2023 | Debt Redemption After April 15, 2018 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument redemption price percentage plus accrued interest | 102.719% | |||||||||||||||
3.625% Senior Notes Due April 2023 | Debt Redemption After April 15, 2021 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Debt instrument redemption price percentage plus accrued interest | 100.00% | |||||||||||||||
Delayed-Draw Term Loan Facility | Amended Credit Facility | Subsequent Event | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Funds borrowed under the delayed-draw term Loan | $ 250,000,000 | |||||||||||||||
Secured Debt | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Credit facility maximum borrowing capacity | $ 460,000,000 | |||||||||||||||
Credit facility expiration date | Apr. 9, 2020 | |||||||||||||||
Credit facilities | $ 200,000,000 | $ 200,000,000 | ||||||||||||||
Secured Debt | London Interbank Offered Rate (LIBOR) | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate, basis spread on variable rate | 1.50% | |||||||||||||||
Interest rate | 1.69% | 1.69% | ||||||||||||||
Credit facility interest rate description | The interest rate on the credit facility ranges from LIBOR plus 1.25% to LIBOR plus 2.00% depending on the leverage ratios at the time the funds are drawn. | |||||||||||||||
Secured Debt | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate, basis spread on variable rate | 1.25% | |||||||||||||||
Secured Debt | London Interbank Offered Rate (LIBOR) | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate, basis spread on variable rate | 2.00% | |||||||||||||||
Secured Debt | Revolving Credit Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Credit facility maximum borrowing capacity | $ 500,000,000 | |||||||||||||||
Secured Debt | Delayed-Draw Term Loan Facility | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Credit facility maximum borrowing capacity | $ 250,000,000 | |||||||||||||||
U S Term Loan | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Term Loan | $ 175,000,000 | |||||||||||||||
Loan amount paid off date | Apr. 7, 2015 | |||||||||||||||
Early payment of debt | $ 175,000,000 | |||||||||||||||
Loss on extinguishment of debt | $ (300,000) | |||||||||||||||
U S Term Loan | London Interbank Offered Rate (LIBOR) | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Credit facility interest rate description | The interest rate on the U.S. Term Loan ranges from LIBOR plus 1.5% to LIBOR plus 2.25% depending on the leverage ratios at the time the funds are drawn. | |||||||||||||||
U S Term Loan | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate, basis spread on variable rate | 1.50% | |||||||||||||||
U S Term Loan | London Interbank Offered Rate (LIBOR) | Maximum | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Interest rate, basis spread on variable rate | 2.25% | |||||||||||||||
7 % Senior Notes Due August 1, 2020 | ||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||
Loan amount paid off date | Aug. 1, 2020 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jan. 30, 2015 | Jul. 31, 2015 | Aug. 01, 2014 | Oct. 31, 2014 | Mar. 05, 2014 | Jul. 26, 2013 | |
Commitments And Contingencies Disclosure [Abstract] | ||||||
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | $ 1,500 | $ 1,500 | ||||
Gain on release of non-income tax liability | $ 15,700 | $ 15,656 | $ 0 | |||
Reduction in interest expense | $ 2,400 | |||||
Consent agreement term | The Consent Agreement has a three-year term and provides for: (i) a payment of $20 million, $10 million of which is suspended and eligible for offset credit based on verified expenditures for past and future remedial compliance measures; (ii) the appointment of an external Special Compliance Official to oversee compliance with the Consent Agreement and the ITAR; (iii) two external audits of the Company’s ITAR compliance program; and (iv) continued | |||||
Total penalty proposed by DDTC Office of Compliance | $ 20,000 | $ 10,000 | ||||
Penalty suspended and eligible for offset credit | $ 10,000 | |||||
Paid and Recorded in March 2014 | 4,000 | |||||
Paid and Recorded in February 2015 | 2,000 | |||||
Estimated and to be paid in March 2016 | 2,000 | |||||
Estimated and to be paid March 2017 | $ 2,000 |
Employee Stock Plans - Addition
Employee Stock Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Jul. 31, 2015 | Aug. 01, 2014 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation | $ 8,618 | $ 9,833 |
Shares issued under share-based compensation plans | 241,632 | 600,540 |
Restricted Stock Units (RSUs) | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted | 22,000 | 77,575 |
Weighted Average Grant Date Fair Value | $ 112.53 | $ 84.50 |
Employee Sharesave Scheme | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Discount rate of market value on purchase date | 5.00% | |
The term of options, years | 3 years | |
Number of options granted | 25,984 | 29,242 |
Weighted-average grant date fair value of options granted | $ 24.31 | $ 27.03 |
Equity Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of options granted | 192,700 | 193,200 |
Weighted-average grant date fair value of options granted | $ 48.48 | $ 45.23 |
Employee Stock Purchase Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Discount rate of market value on purchase date | 5.00% |
Schedule of Fair Value of Optio
Schedule of Fair Value of Option Granted using Black-Scholes Pricing Model (Detail) - USD ($) | 9 Months Ended | |
Jul. 31, 2015 | Aug. 01, 2014 | |
Employee Sharesave Scheme | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Volatility | 25.80% | 33.69% |
Risk-free interest rate | 0.93% | 0.73% |
Expected life (years) | 3 years | 3 years |
Dividends | $ 0 | $ 0 |
Equity Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Volatility, minimum | 40.73% | 41.87% |
Volatility, maximum | 41.89% | 43.17% |
Risk-free interest rate, minimum | 1.43% | 1.73% |
Risk-free interest rate, maximum | 2.00% | 2.99% |
Dividends | $ 0 | $ 0 |
Equity Incentive Plan | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life (years) | 5 years | 5 years |
Equity Incentive Plan | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Expected life (years) | 9 years | 9 years |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ in Thousands, € in Millions | Jan. 30, 2015USD ($) | Jan. 30, 2015EUR (€) | Dec. 20, 2013USD ($) | Jan. 30, 2015USD ($) | Jul. 31, 2015USD ($) | Jan. 31, 2015USD ($) | Oct. 31, 2014USD ($) |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 1,040,443 | $ 1,071,786 | |||||
Sunbank Family Of Companies LLC. | |||||||
Business Acquisition [Line Items] | |||||||
Business acquired | $ 51,700 | ||||||
First installment of contingent consideration | $ 5,000 | 1,300 | |||||
Contingent consideration achievement period of certain sales levels | 2 years | ||||||
Remaining additional contingent consideration | $ 3,700 | ||||||
Belgium-based | Barco N V | |||||||
Business Acquisition [Line Items] | |||||||
Business acquired | $ 171,000 | € 150 | |||||
Foreign currency exchange loss | $ (2,900) | ||||||
Business acquisition working capital adjustment | $ 15,000 | ||||||
Acquisition-related costs | 3,400 | ||||||
Estimated fair value adjustment for inventory, will be recognized as cost of goods sold | $ 7,100 | ||||||
Fair value adjustment for inventory, cost of goods sold period, months | 13 months | 13 months | |||||
Goodwill | $ 48,001 |
Allocation of Estimated Fair Va
Allocation of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Detail) - USD ($) $ in Thousands | Jul. 31, 2015 | Jan. 31, 2015 | Oct. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,040,443 | $ 1,071,786 | |
Belgium-based | Barco N V | |||
Business Acquisition [Line Items] | |||
Current assets | $ 94,899 | ||
Property, plant and equipment | 6,211 | ||
Goodwill | 48,001 | ||
Other assets | 3,401 | ||
Total assets acquired | 209,928 | ||
Current liabilities assumed | 33,492 | ||
Long-term liabilities assumed | 5,366 | ||
Net assets acquired | 171,070 | ||
Belgium-based | Programs | Barco N V | |||
Business Acquisition [Line Items] | |||
Intangible assets subject to amortization | 56,513 | ||
Belgium-based | Programs Two | Barco N V | |||
Business Acquisition [Line Items] | |||
Intangible assets subject to amortization | 677 | ||
Belgium-based | Trade Name | Barco N V | |||
Business Acquisition [Line Items] | |||
Intangible assets subject to amortization | $ 226 |
Allocation of Estimated Fair 53
Allocation of Estimated Fair Value of Assets Acquired and Liabilities Assumed (Parenthetical) (Detail) - Belgium-based - Barco N V | Jan. 30, 2015 |
Programs | |
Business Acquisition [Line Items] | |
Weighted average useful life, year | 15 years |
Programs Two | |
Business Acquisition [Line Items] | |
Weighted average useful life, year | 3 years |
Trade Name | |
Business Acquisition [Line Items] | |
Weighted average useful life, year | 3 years |
Schedule of Comprehensive Incom
Schedule of Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2015 | Aug. 01, 2014 | Jul. 31, 2015 | Aug. 01, 2014 | ||
Equity [Abstract] | |||||
Net earnings | $ 28,497 | $ 38,908 | $ 56,626 | $ 105,890 | |
Change in fair value of derivative financial instruments, net of tax | [1] | (5,276) | 810 | (9,444) | (3,150) |
Change in pension and post-retirement obligations, net of tax | [2] | 1,951 | 507 | 8,450 | 2,653 |
Currency translation adjustment | (26,162) | (23,746) | (163,264) | (19,231) | |
Comprehensive Income (Loss) | $ (990) | $ 16,479 | $ (107,632) | $ 86,162 | |
[1] | Net of tax benefit (expense) of $1,967 and $(171) for the third fiscal quarter of 2015 and 2014, respectively. Net of tax benefit of $3,427 and $1,345 for the first nine months of fiscal 2015 and 2014, respectively. | ||||
[2] | Net of tax expense of $(843) and $(294) for the third fiscal quarter of 2015 and 2014, respectively. Net of tax expense of $(4,131) and $(1,310) for the first nine months of fiscal 2015 and 2014, respectively. |
Schedule of Comprehensive Inc55
Schedule of Comprehensive Income (Loss) (Parenthetical) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Aug. 01, 2014 | Jul. 31, 2015 | Aug. 01, 2014 | |
Equity [Abstract] | ||||
Change in Fair Value of Derivative Financial Instruments, Tax Benefit (Expense) | $ 1,967 | $ (171) | $ 3,427 | $ 1,345 |
Pension and Post-retirement Obligations, Tax Benefit (Expense) | $ (843) | $ (294) | $ (4,131) | $ (1,310) |
Restructuring - Additional Info
Restructuring - Additional Information (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Jul. 31, 2015 | Aug. 01, 2014 | Oct. 31, 2014 | Dec. 05, 2013 | Oct. 25, 2013 | |
Restructuring And Related Activities [Abstract] | |||||
Total expected integration cost | $ 35,000 | ||||
Restructuring expense | $ 10,100 | $ 14,300 | $ 20,400 | ||
Accrued restructuring | $ 4,195 | $ 5,915 | $ 0 |
Schedule of Restructuring and R
Schedule of Restructuring and Related Costs (Detail) - USD ($) $ in Thousands | 9 Months Ended | |
Jul. 31, 2015 | Aug. 01, 2014 | |
Restructuring Cost And Reserve [Line Items] | ||
Exit & Relocation of Facilities | $ 7,492 | $ 6,895 |
Write Off of Property, Plant & Equipment | 651 | 2,551 |
Severance | 1,983 | 4,871 |
Restructuring charges | 10,126 | 14,317 |
Cost of Sales | ||
Restructuring Cost And Reserve [Line Items] | ||
Exit & Relocation of Facilities | 3,512 | 4,029 |
Write Off of Property, Plant & Equipment | 651 | 9 |
Severance | 588 | 0 |
Restructuring charges | 4,751 | 4,038 |
Restructuring Charges | ||
Restructuring Cost And Reserve [Line Items] | ||
Exit & Relocation of Facilities | 3,980 | 2,866 |
Write Off of Property, Plant & Equipment | 0 | 2,542 |
Severance | 1,395 | 4,871 |
Restructuring charges | $ 5,375 | $ 10,279 |
Summary of Restructuring Activi
Summary of Restructuring Activity (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jul. 31, 2015 | Oct. 31, 2014 | |
Restructuring And Related Activities [Abstract] | ||
Accrued Liabilities, Beginning Balance | $ 5,915 | |
Accrued Liabilities, Amounts accrued and incurred | 10,126 | $ 20,388 |
Accrued Liabilities, Amounts paid | (10,968) | (11,688) |
Accrued Liabilities, Write-off | (651) | (2,585) |
Accrued Liabilities, Currency translation adjustments | (227) | (200) |
Accrued Liabilities, Ending Balance | $ 4,195 | $ 5,915 |
Discontinued Operations - Addit
Discontinued Operations - Additional Information (Detail) - USD ($) $ in Thousands | Jul. 20, 2015 | Jun. 05, 2015 | Jul. 31, 2015 | Oct. 31, 2014 | Aug. 01, 2014 | Jul. 31, 2015 | Aug. 01, 2014 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Loss on assets held for sale | $ 49,500 | $ 16,963 | $ 0 | ||||
Income (loss) from discontinued operations | $ (1,693) | $ (929) | (20,254) | (8,485) | |||
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | 1,500 | $ 1,500 | 1,500 | ||||
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | (1,693) | (929) | (20,254) | (8,485) | |||
Previously Sold Business | |||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Environmental Exit Costs, Assets Previously Disposed, Liability for Remediation | 2,000 | 2,000 | |||||
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | (1,300) | ||||||
Eclipse | |||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Sale of discontinued operation | $ 10,000 | ||||||
PA&E | |||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Sale of discontinued operation | $ 22,000 | ||||||
Avionics & Controls | |||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Loss on assets held for sale | 11,900 | ||||||
Income (loss) from discontinued operations | (2,155) | (1,327) | (13,268) | (4,430) | |||
Advanced Materials | |||||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | |||||||
Loss on assets held for sale | 5,100 | ||||||
Income (loss) from discontinued operations | $ (721) | $ (204) | $ (8,312) | $ (4,029) |
Discontinued Operations Income
Discontinued Operations Income (Loss) Net of Tax (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Aug. 01, 2014 | Jul. 31, 2015 | Aug. 01, 2014 | |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Net Sales | $ 16,279 | $ 24,815 | $ 48,562 | $ 62,568 |
Operating earnings (loss) | (1,232) | (1,902) | (5,276) | (12,207) |
Gain (loss) on net assets held for sale | (1,117) | 0 | (16,963) | 0 |
Tax expense (benefit) | (656) | (973) | (1,985) | (3,722) |
Income (loss) from discontinued operations | (1,693) | (929) | (20,254) | (8,485) |
Avionics & Controls | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Net Sales | 4,436 | 7,249 | 18,349 | 24,783 |
Operating earnings (loss) | (1,132) | (1,847) | (2,649) | (6,566) |
Gain (loss) on net assets held for sale | (1,718) | 0 | (11,871) | 0 |
Tax expense (benefit) | (695) | (520) | (1,252) | (2,136) |
Income (loss) from discontinued operations | (2,155) | (1,327) | (13,268) | (4,430) |
Sensors & Systems | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Net Sales | 6,419 | 5,860 | 18,684 | 16,798 |
Operating earnings (loss) | 1,533 | 141 | 3,270 | (278) |
Gain (loss) on net assets held for sale | 619 | 0 | (3) | 0 |
Tax expense (benefit) | 428 | (461) | 626 | (595) |
Income (loss) from discontinued operations | 1,724 | 602 | 2,641 | 317 |
Advanced Materials | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Net Sales | 5,424 | 11,706 | 11,529 | 20,987 |
Operating earnings (loss) | (830) | (196) | (3,909) | (5,020) |
Gain (loss) on net assets held for sale | (18) | 0 | (5,089) | 0 |
Tax expense (benefit) | (127) | 8 | (686) | (991) |
Income (loss) from discontinued operations | (721) | (204) | (8,312) | (4,029) |
Other | ||||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||||
Net Sales | 0 | 0 | 0 | 0 |
Operating earnings (loss) | (803) | 0 | (1,988) | (343) |
Gain (loss) on net assets held for sale | 0 | 0 | 0 | 0 |
Tax expense (benefit) | (262) | 0 | (673) | 0 |
Income (loss) from discontinued operations | $ (541) | $ 0 | $ (1,315) | $ (343) |
Discontinued Operations Assets
Discontinued Operations Assets and Liabilities Held for Sale (Detail) - USD ($) $ in Thousands | Jul. 31, 2015 | Oct. 31, 2014 |
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | $ 6,538 | $ 11,012 |
Inventories | 7,562 | 25,876 |
Prepaid expenses | 298 | 829 |
Deferred income tax benefits | 0 | 1,351 |
Income tax refundable | 0 | 2,378 |
Current Assets of Businesses Held for Sale | 14,398 | 41,446 |
Net property, plant and equipment | 22,141 | 28,893 |
Intangibles, net | 7,855 | 41,214 |
Deferred income tax benefits | 0 | (30) |
Other assets | 1,562 | 1,600 |
Non-Current Assets of Businesses Held for Sale | 31,558 | 71,677 |
Accounts payable | 6,922 | 9,393 |
Accrued liabilities | 1,963 | 4,798 |
Current Liabilities of Businesses Held for Sale | 8,885 | 14,191 |
Deferred income tax liabilities | 1,795 | 18,864 |
Other liabilities | 64 | 12 |
Non-Current Liabilities of Businesses Held for Sale | 1,859 | 18,876 |
Net Assets of Businesses Held for Sale | 35,212 | 80,056 |
Avionics & Controls | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 1,589 | 5,154 |
Inventories | 2,451 | 12,646 |
Prepaid expenses | 21 | 408 |
Deferred income tax benefits | 0 | 671 |
Income tax refundable | 0 | 0 |
Current Assets of Businesses Held for Sale | 4,061 | 18,879 |
Net property, plant and equipment | 5,324 | 4,949 |
Intangibles, net | 950 | 22,228 |
Deferred income tax benefits | 0 | 0 |
Other assets | 0 | 0 |
Non-Current Assets of Businesses Held for Sale | 6,274 | 27,177 |
Accounts payable | 1,533 | 2,194 |
Accrued liabilities | 506 | 1,765 |
Current Liabilities of Businesses Held for Sale | 2,039 | 3,959 |
Deferred income tax liabilities | 0 | 11,084 |
Other liabilities | 64 | 0 |
Non-Current Liabilities of Businesses Held for Sale | 64 | 11,084 |
Net Assets of Businesses Held for Sale | 8,232 | 31,013 |
Sensors & Systems | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 0 | 3,752 |
Inventories | 0 | 7,972 |
Prepaid expenses | 0 | 86 |
Deferred income tax benefits | 0 | 680 |
Income tax refundable | 0 | 0 |
Current Assets of Businesses Held for Sale | 0 | 12,490 |
Net property, plant and equipment | 0 | 4,105 |
Intangibles, net | 0 | 10,659 |
Deferred income tax benefits | 0 | (30) |
Other assets | 0 | 0 |
Non-Current Assets of Businesses Held for Sale | 0 | 14,734 |
Accounts payable | 0 | 873 |
Accrued liabilities | 0 | 1,008 |
Current Liabilities of Businesses Held for Sale | 0 | 1,881 |
Deferred income tax liabilities | 0 | 6,243 |
Other liabilities | 0 | 0 |
Non-Current Liabilities of Businesses Held for Sale | 0 | 6,243 |
Net Assets of Businesses Held for Sale | 0 | 19,100 |
Advanced Materials | ||
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 4,949 | 2,106 |
Inventories | 5,111 | 5,258 |
Prepaid expenses | 277 | 335 |
Deferred income tax benefits | 0 | 0 |
Income tax refundable | 0 | 2,378 |
Current Assets of Businesses Held for Sale | 10,337 | 10,077 |
Net property, plant and equipment | 16,817 | 19,839 |
Intangibles, net | 6,905 | 8,327 |
Deferred income tax benefits | 0 | 0 |
Other assets | 1,562 | 1,600 |
Non-Current Assets of Businesses Held for Sale | 25,284 | 29,766 |
Accounts payable | 5,389 | 6,326 |
Accrued liabilities | 1,457 | 2,025 |
Current Liabilities of Businesses Held for Sale | 6,846 | 8,351 |
Deferred income tax liabilities | 1,795 | 1,537 |
Other liabilities | 0 | 12 |
Non-Current Liabilities of Businesses Held for Sale | 1,795 | 1,549 |
Net Assets of Businesses Held for Sale | $ 26,980 | $ 29,943 |
Business Segment Information fo
Business Segment Information for Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Aug. 01, 2014 | Jul. 31, 2015 | Aug. 01, 2014 | |
Segment Reporting Information [Line Items] | ||||
Sales | $ 496,217 | $ 506,309 | $ 1,442,641 | $ 1,503,110 |
Other income | 0 | 0 | 12,744 | 0 |
Interest income | 144 | 145 | 447 | 400 |
Interest expense | (10,618) | (7,865) | (25,023) | (24,924) |
Loss on extinguishment of debt | 0 | (533) | (329) | (533) |
Earnings from Continuing Operations Before Income Taxes | 36,706 | 52,286 | 96,195 | 146,219 |
Avionics & Controls | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 207,467 | 192,860 | 594,534 | 571,366 |
Sensors & Systems | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 175,530 | 192,246 | 515,611 | 579,131 |
Advanced Materials | ||||
Segment Reporting Information [Line Items] | ||||
Sales | 113,220 | 121,203 | 332,496 | 352,613 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Segment Earnings | 71,225 | 76,681 | 173,423 | 219,674 |
Operating Segments | Avionics & Controls | ||||
Segment Reporting Information [Line Items] | ||||
Segment Earnings | 23,473 | 30,902 | 52,024 | 81,952 |
Operating Segments | Sensors & Systems | ||||
Segment Reporting Information [Line Items] | ||||
Segment Earnings | 23,356 | 18,055 | 55,491 | 61,811 |
Operating Segments | Advanced Materials | ||||
Segment Reporting Information [Line Items] | ||||
Segment Earnings | 24,396 | 27,724 | 65,908 | 75,911 |
Corporate Non Segment | ||||
Segment Reporting Information [Line Items] | ||||
Corporate expense | $ (24,045) | $ (16,142) | $ (65,067) | $ (48,398) |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheet (Detail) - USD ($) $ in Thousands | Jul. 31, 2015 | Oct. 31, 2014 | Aug. 01, 2014 | Oct. 25, 2013 |
Current Assets | ||||
Cash and cash equivalents | $ 187,682 | $ 238,144 | $ 210,456 | $ 179,178 |
Accounts receivable, net | 373,699 | 379,889 | ||
Inventories | 469,700 | 433,595 | ||
Income tax refundable | 17,515 | 5,266 | ||
Deferred income tax benefits | 36,945 | 48,679 | ||
Prepaid expenses | 21,407 | 20,336 | ||
Other current assets | 17,196 | 2,149 | ||
Current assets of businesses held for sale | 14,398 | 41,446 | ||
Total Current Assets | 1,138,542 | 1,169,504 | ||
Property, Plant & Equipment, Net | 306,391 | 319,342 | ||
Goodwill | 1,040,443 | 1,071,786 | ||
Intangibles, net | 459,968 | 471,377 | ||
Debt issuance costs, net | 11,035 | 4,295 | ||
Deferred income tax benefits | 75,612 | 71,307 | ||
Other assets | 22,103 | 14,179 | ||
Non-current assets of businesses held for sale | 31,558 | 71,677 | ||
Amounts Due From (To) Subsidiaries | 0 | 0 | ||
Investment in Subsidiaries | 0 | 0 | ||
Total Assets | 3,085,652 | 3,193,467 | ||
Current Liabilities | ||||
Accounts payable | 111,415 | 115,284 | ||
Accrued liabilities | 267,386 | 262,536 | ||
Current maturities of long-term debt | 1,014 | 12,774 | ||
Deferred income tax liabilities | 2,993 | 1,773 | ||
Federal and foreign income taxes | 3,853 | 1,571 | ||
Current liabilities of businesses held for sale | 8,885 | 14,191 | ||
Total Current Liabilities | 395,546 | 408,129 | ||
Credit facilities | 200,000 | 100,000 | ||
Long-Term Debt, Net | 712,809 | 509,720 | ||
Deferred Income Tax Liabilities | 133,499 | 149,165 | ||
Pension and Post-Retirement Obligations | 56,758 | 62,693 | ||
Other Liabilities | 30,512 | 46,884 | ||
Non-current liabilities of businesses held for sale | 1,859 | 18,876 | ||
Amounts Due To (From) Subsidiaries | 0 | 0 | ||
Shareholders' Equity | 1,554,669 | 1,898,000 | ||
Total Liabilities and Shareholders' Equity | 3,085,652 | 3,193,467 | ||
Parent Company | ||||
Current Assets | ||||
Cash and cash equivalents | 16,454 | 14,634 | 4,039 | 7,826 |
Accounts receivable, net | 33 | 610 | ||
Inventories | 0 | 0 | ||
Income tax refundable | 0 | 0 | ||
Deferred income tax benefits | 29,330 | 31,486 | ||
Prepaid expenses | 93 | 147 | ||
Other current assets | 74 | 80 | ||
Current assets of businesses held for sale | 0 | 0 | ||
Total Current Assets | 45,984 | 46,957 | ||
Property, Plant & Equipment, Net | 1,992 | 1,489 | ||
Goodwill | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Debt issuance costs, net | 5,380 | 4,134 | ||
Deferred income tax benefits | 18,659 | 20,455 | ||
Other assets | 281 | 130 | ||
Non-current assets of businesses held for sale | 0 | 0 | ||
Amounts Due From (To) Subsidiaries | 0 | 0 | ||
Investment in Subsidiaries | 3,098,201 | 3,307,454 | ||
Total Assets | 3,170,497 | 3,380,619 | ||
Current Liabilities | ||||
Accounts payable | 2,846 | 1,751 | ||
Accrued liabilities | 19,441 | 20,178 | ||
Current maturities of long-term debt | 0 | 8,750 | ||
Deferred income tax liabilities | 15,159 | 76 | ||
Federal and foreign income taxes | (9,624) | (2,282) | ||
Current liabilities of businesses held for sale | 0 | 0 | ||
Total Current Liabilities | 27,822 | 28,473 | ||
Credit facilities | 170,000 | 100,000 | ||
Long-Term Debt, Net | 250,000 | 403,125 | ||
Deferred Income Tax Liabilities | 24,867 | 58,615 | ||
Pension and Post-Retirement Obligations | 18,591 | 18,683 | ||
Other Liabilities | 14,134 | 16,762 | ||
Non-current liabilities of businesses held for sale | 0 | 0 | ||
Amounts Due To (From) Subsidiaries | 1,110,414 | 856,961 | ||
Shareholders' Equity | 1,554,669 | 1,898,000 | ||
Total Liabilities and Shareholders' Equity | 3,170,497 | 3,380,619 | ||
TA Mfg. Ltd | ||||
Current Assets | ||||
Cash and cash equivalents | 995 | 0 | 0 | 0 |
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Income tax refundable | 0 | 0 | ||
Deferred income tax benefits | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Current assets of businesses held for sale | 0 | 0 | ||
Total Current Assets | 995 | 0 | ||
Property, Plant & Equipment, Net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Debt issuance costs, net | 5,655 | 0 | ||
Deferred income tax benefits | 0 | 0 | ||
Other assets | 0 | 0 | ||
Non-current assets of businesses held for sale | 0 | 0 | ||
Amounts Due From (To) Subsidiaries | 353,831 | 0 | ||
Investment in Subsidiaries | 653,386 | 0 | ||
Total Assets | 1,013,867 | 0 | ||
Current Liabilities | ||||
Accounts payable | 0 | 0 | ||
Accrued liabilities | 4,124 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Federal and foreign income taxes | (51) | 0 | ||
Current liabilities of businesses held for sale | 0 | 0 | ||
Total Current Liabilities | 4,073 | 0 | ||
Credit facilities | 0 | 0 | ||
Long-Term Debt, Net | 362,472 | 0 | ||
Deferred Income Tax Liabilities | 0 | 0 | ||
Pension and Post-Retirement Obligations | 0 | 0 | ||
Other Liabilities | 0 | 0 | ||
Non-current liabilities of businesses held for sale | 0 | 0 | ||
Amounts Due To (From) Subsidiaries | 0 | 0 | ||
Shareholders' Equity | 647,322 | 0 | ||
Total Liabilities and Shareholders' Equity | 1,013,867 | 0 | ||
Guarantor Subsidiaries | ||||
Current Assets | ||||
Cash and cash equivalents | 1,376 | 3,454 | 5,617 | 4,876 |
Accounts receivable, net | 136,624 | 143,158 | ||
Inventories | 193,345 | 188,982 | ||
Income tax refundable | 0 | 0 | ||
Deferred income tax benefits | (14,519) | (1,191) | ||
Prepaid expenses | 7,648 | 6,703 | ||
Other current assets | 111 | 114 | ||
Current assets of businesses held for sale | 0 | 26,800 | ||
Total Current Assets | 324,585 | 368,020 | ||
Property, Plant & Equipment, Net | 158,658 | 158,089 | ||
Goodwill | 372,021 | 347,700 | ||
Intangibles, net | 109,929 | 106,164 | ||
Debt issuance costs, net | 0 | 0 | ||
Deferred income tax benefits | 14,670 | 30 | ||
Other assets | 10,386 | 7,502 | ||
Non-current assets of businesses held for sale | 5,262 | 40,737 | ||
Amounts Due From (To) Subsidiaries | 817,896 | 797,342 | ||
Investment in Subsidiaries | 1,009,069 | 1,127,237 | ||
Total Assets | 2,822,476 | 2,952,821 | ||
Current Liabilities | ||||
Accounts payable | 36,884 | 36,905 | ||
Accrued liabilities | 80,197 | 93,168 | ||
Current maturities of long-term debt | 898 | 349 | ||
Deferred income tax liabilities | (14,669) | 8 | ||
Federal and foreign income taxes | (5,165) | (2,643) | ||
Current liabilities of businesses held for sale | 0 | 4,010 | ||
Total Current Liabilities | 98,145 | 131,797 | ||
Credit facilities | 0 | 0 | ||
Long-Term Debt, Net | 56,976 | 55,176 | ||
Deferred Income Tax Liabilities | 14,658 | (17,333) | ||
Pension and Post-Retirement Obligations | 754 | 1,226 | ||
Other Liabilities | 194 | 3,944 | ||
Non-current liabilities of businesses held for sale | 0 | 17,327 | ||
Amounts Due To (From) Subsidiaries | 0 | 0 | ||
Shareholders' Equity | 2,651,749 | 2,760,684 | ||
Total Liabilities and Shareholders' Equity | 2,822,476 | 2,952,821 | ||
Non-Guarantor Subsidiaries | ||||
Current Assets | ||||
Cash and cash equivalents | 168,857 | 220,056 | 200,800 | 166,476 |
Accounts receivable, net | 237,042 | 236,121 | ||
Inventories | 276,355 | 244,613 | ||
Income tax refundable | 17,515 | 5,266 | ||
Deferred income tax benefits | 22,134 | 18,384 | ||
Prepaid expenses | 13,666 | 13,486 | ||
Other current assets | 17,011 | 1,955 | ||
Current assets of businesses held for sale | 14,398 | 14,646 | ||
Total Current Assets | 766,978 | 754,527 | ||
Property, Plant & Equipment, Net | 145,741 | 159,764 | ||
Goodwill | 668,422 | 724,086 | ||
Intangibles, net | 350,039 | 365,213 | ||
Debt issuance costs, net | 0 | 161 | ||
Deferred income tax benefits | 42,283 | 50,822 | ||
Other assets | 11,436 | 6,547 | ||
Non-current assets of businesses held for sale | 26,296 | 30,940 | ||
Amounts Due From (To) Subsidiaries | 0 | 0 | ||
Investment in Subsidiaries | 14,644 | 20,768 | ||
Total Assets | 2,025,839 | 2,112,828 | ||
Current Liabilities | ||||
Accounts payable | 71,685 | 76,628 | ||
Accrued liabilities | 163,624 | 149,190 | ||
Current maturities of long-term debt | 116 | 3,675 | ||
Deferred income tax liabilities | 2,503 | 1,689 | ||
Federal and foreign income taxes | 18,693 | 6,496 | ||
Current liabilities of businesses held for sale | 8,885 | 10,181 | ||
Total Current Liabilities | 265,506 | 247,859 | ||
Credit facilities | 30,000 | 0 | ||
Long-Term Debt, Net | 43,361 | 51,419 | ||
Deferred Income Tax Liabilities | 93,974 | 107,883 | ||
Pension and Post-Retirement Obligations | 37,413 | 42,784 | ||
Other Liabilities | 16,184 | 26,178 | ||
Non-current liabilities of businesses held for sale | 1,859 | 1,549 | ||
Amounts Due To (From) Subsidiaries | 398,562 | 456,861 | ||
Shareholders' Equity | 1,138,980 | 1,178,295 | ||
Total Liabilities and Shareholders' Equity | 2,025,839 | 2,112,828 | ||
Eliminations | ||||
Current Assets | ||||
Cash and cash equivalents | 0 | 0 | $ 0 | $ 0 |
Accounts receivable, net | 0 | 0 | ||
Inventories | 0 | 0 | ||
Income tax refundable | 0 | 0 | ||
Deferred income tax benefits | 0 | 0 | ||
Prepaid expenses | 0 | 0 | ||
Other current assets | 0 | 0 | ||
Current assets of businesses held for sale | 0 | 0 | ||
Total Current Assets | 0 | 0 | ||
Property, Plant & Equipment, Net | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Intangibles, net | 0 | 0 | ||
Debt issuance costs, net | 0 | 0 | ||
Deferred income tax benefits | 0 | 0 | ||
Other assets | 0 | 0 | ||
Non-current assets of businesses held for sale | 0 | 0 | ||
Amounts Due From (To) Subsidiaries | (1,171,727) | (797,342) | ||
Investment in Subsidiaries | (4,775,300) | (4,455,459) | ||
Total Assets | (5,947,027) | (5,252,801) | ||
Current Liabilities | ||||
Accounts payable | 0 | 0 | ||
Accrued liabilities | 0 | 0 | ||
Current maturities of long-term debt | 0 | 0 | ||
Deferred income tax liabilities | 0 | 0 | ||
Federal and foreign income taxes | 0 | 0 | ||
Current liabilities of businesses held for sale | 0 | 0 | ||
Total Current Liabilities | 0 | 0 | ||
Credit facilities | 0 | 0 | ||
Long-Term Debt, Net | 0 | 0 | ||
Deferred Income Tax Liabilities | 0 | 0 | ||
Pension and Post-Retirement Obligations | 0 | 0 | ||
Other Liabilities | 0 | 0 | ||
Non-current liabilities of businesses held for sale | 0 | 0 | ||
Amounts Due To (From) Subsidiaries | (1,508,976) | (1,313,822) | ||
Shareholders' Equity | (4,438,051) | (3,938,979) | ||
Total Liabilities and Shareholders' Equity | $ (5,947,027) | $ (5,252,801) |
Condensed Consolidating Stateme
Condensed Consolidating Statement of Operations and Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jul. 31, 2015 | Aug. 01, 2014 | Jul. 31, 2015 | Aug. 01, 2014 | |
Guarantee Obligations [Line Items] | ||||
Net Sales | $ 496,217 | $ 506,309 | $ 1,442,641 | $ 1,503,110 |
Cost of Sales | 326,421 | 329,222 | 963,844 | 976,063 |
Gross Profit | 169,796 | 177,087 | 478,797 | 527,047 |
Expenses | ||||
Selling, general and administrative | 91,968 | 88,884 | 286,366 | 270,051 |
Research, development & engineering | 29,245 | 24,259 | 78,700 | 75,441 |
Restructuring charges | 1,403 | 3,405 | 5,375 | 10,279 |
Other (income) expense | 0 | 0 | (12,744) | 0 |
Total Expenses | 122,616 | 116,548 | 357,697 | 355,771 |
Operating Earnings from Continuing Operations | 47,180 | 60,539 | 121,100 | 171,276 |
Interest Income | (144) | (145) | (447) | (400) |
Interest Expense | 10,618 | 7,865 | 25,023 | 24,924 |
Loss on Extinguishment of Debt | 0 | 533 | 329 | 533 |
Earnings from Continuing Operations Before Income Taxes | 36,706 | 52,286 | 96,195 | 146,219 |
Income Tax Expense (Benefit) | 6,405 | 12,403 | 19,097 | 31,415 |
Earnings from Continuing Operations Including Noncontrolling Interests | 30,301 | 39,883 | 77,098 | 114,804 |
Earnings Attributable to Noncontrolling Interests | (111) | (46) | (218) | (429) |
Earnings from Continuing Operations Attributable to Esterline, Net of Tax | 30,190 | 39,837 | 76,880 | 114,375 |
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | (1,693) | (929) | (20,254) | (8,485) |
Equity in Net Earnings of Consolidated Subsidiaries | 0 | 0 | 0 | 0 |
Net Earnings Attributable to Esterline | 28,497 | 38,908 | 56,626 | 105,890 |
Comprehensive Income (Loss) | (990) | 16,479 | (107,632) | 86,162 |
Parent Company | ||||
Guarantee Obligations [Line Items] | ||||
Net Sales | 0 | 0 | 0 | 0 |
Cost of Sales | 0 | 0 | 0 | 0 |
Gross Profit | 0 | 0 | 0 | 0 |
Expenses | ||||
Selling, general and administrative | 0 | 0 | 0 | 0 |
Research, development & engineering | 0 | 0 | 0 | 0 |
Restructuring charges | 0 | 0 | 0 | 0 |
Other (income) expense | 0 | 0 | 0 | 0 |
Total Expenses | 0 | 0 | 0 | 0 |
Operating Earnings from Continuing Operations | 0 | 0 | 0 | 0 |
Interest Income | (3,928) | (3,837) | (11,922) | (11,588) |
Interest Expense | 8,790 | 5,777 | 21,991 | 18,350 |
Loss on Extinguishment of Debt | (122) | 0 | 207 | 0 |
Earnings from Continuing Operations Before Income Taxes | (4,740) | (1,940) | (10,276) | (6,762) |
Income Tax Expense (Benefit) | (943) | (466) | (2,052) | (1,462) |
Earnings from Continuing Operations Including Noncontrolling Interests | (3,797) | (1,474) | (8,224) | (5,300) |
Earnings Attributable to Noncontrolling Interests | 0 | 0 | 0 | 0 |
Earnings from Continuing Operations Attributable to Esterline, Net of Tax | (3,797) | (1,474) | (8,224) | (5,300) |
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | (541) | 0 | (1,315) | (343) |
Equity in Net Earnings of Consolidated Subsidiaries | 32,835 | 40,382 | 66,165 | 111,533 |
Net Earnings Attributable to Esterline | 28,497 | 38,908 | 56,626 | 105,890 |
Comprehensive Income (Loss) | (1,797) | 15,707 | (95,254) | 88,374 |
TA Mfg. Ltd | ||||
Guarantee Obligations [Line Items] | ||||
Net Sales | 0 | 0 | 0 | 0 |
Cost of Sales | 0 | 0 | 0 | 0 |
Gross Profit | 0 | 0 | 0 | 0 |
Expenses | ||||
Selling, general and administrative | 55 | 0 | 71 | 0 |
Research, development & engineering | 0 | 0 | 0 | 0 |
Restructuring charges | 0 | 0 | 0 | 0 |
Other (income) expense | 0 | 0 | 0 | 0 |
Total Expenses | 55 | 0 | 71 | 0 |
Operating Earnings from Continuing Operations | (55) | 0 | (71) | 0 |
Interest Income | (3,401) | 0 | (4,261) | 0 |
Interest Expense | 3,500 | 0 | 4,389 | 0 |
Loss on Extinguishment of Debt | 0 | 0 | 0 | 0 |
Earnings from Continuing Operations Before Income Taxes | (154) | 0 | (199) | 0 |
Income Tax Expense (Benefit) | (31) | 0 | (40) | 0 |
Earnings from Continuing Operations Including Noncontrolling Interests | (123) | 0 | (159) | 0 |
Earnings Attributable to Noncontrolling Interests | 0 | 0 | 0 | 0 |
Earnings from Continuing Operations Attributable to Esterline, Net of Tax | (123) | 0 | (159) | 0 |
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | 0 | 0 | 0 | 0 |
Equity in Net Earnings of Consolidated Subsidiaries | 10,457 | 0 | 31,991 | 0 |
Net Earnings Attributable to Esterline | 10,334 | 0 | 31,832 | 0 |
Comprehensive Income (Loss) | 14,871 | 0 | 25,408 | 0 |
Guarantor Subsidiaries | ||||
Guarantee Obligations [Line Items] | ||||
Net Sales | 225,105 | 239,134 | 668,970 | 702,424 |
Cost of Sales | 147,206 | 150,139 | 440,583 | 446,042 |
Gross Profit | 77,899 | 88,995 | 228,387 | 256,382 |
Expenses | ||||
Selling, general and administrative | 38,794 | 33,454 | 113,087 | 107,162 |
Research, development & engineering | 10,158 | 10,932 | 32,455 | 35,245 |
Restructuring charges | 1,228 | 2,577 | 4,588 | 6,898 |
Other (income) expense | 0 | 0 | 0 | 0 |
Total Expenses | 50,180 | 46,963 | 150,130 | 149,305 |
Operating Earnings from Continuing Operations | 27,719 | 42,032 | 78,257 | 107,077 |
Interest Income | (3,766) | (1,948) | (18,232) | (5,886) |
Interest Expense | 8,838 | 6,832 | 33,633 | 20,619 |
Loss on Extinguishment of Debt | 0 | 0 | 0 | 0 |
Earnings from Continuing Operations Before Income Taxes | 22,647 | 37,148 | 62,856 | 92,344 |
Income Tax Expense (Benefit) | 3,678 | 8,449 | 10,625 | 20,686 |
Earnings from Continuing Operations Including Noncontrolling Interests | 18,969 | 28,699 | 52,231 | 71,658 |
Earnings Attributable to Noncontrolling Interests | 0 | 0 | 0 | 0 |
Earnings from Continuing Operations Attributable to Esterline, Net of Tax | 18,969 | 28,699 | 52,231 | 71,658 |
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | 63 | (787) | (9,592) | (3,645) |
Equity in Net Earnings of Consolidated Subsidiaries | 27 | 883 | 140 | 2,117 |
Net Earnings Attributable to Esterline | 19,059 | 28,795 | 42,779 | 70,130 |
Comprehensive Income (Loss) | 19,728 | 26,224 | 43,723 | 68,693 |
Non-Guarantor Subsidiaries | ||||
Guarantee Obligations [Line Items] | ||||
Net Sales | 272,137 | 268,860 | 776,796 | 804,889 |
Cost of Sales | 180,240 | 180,768 | 526,386 | 534,224 |
Gross Profit | 91,897 | 88,092 | 250,410 | 270,665 |
Expenses | ||||
Selling, general and administrative | 53,119 | 55,430 | 173,208 | 162,889 |
Research, development & engineering | 19,087 | 13,327 | 46,245 | 40,196 |
Restructuring charges | 175 | 828 | 787 | 3,381 |
Other (income) expense | 0 | 0 | (12,744) | 0 |
Total Expenses | 72,381 | 69,585 | 207,496 | 206,466 |
Operating Earnings from Continuing Operations | 19,516 | 18,507 | 42,914 | 64,199 |
Interest Income | (7,597) | (13,931) | (23,485) | (42,303) |
Interest Expense | 8,038 | 14,827 | 22,463 | 45,332 |
Loss on Extinguishment of Debt | 122 | 533 | 122 | 533 |
Earnings from Continuing Operations Before Income Taxes | 18,953 | 17,078 | 43,814 | 60,637 |
Income Tax Expense (Benefit) | 3,701 | 4,420 | 10,564 | 12,191 |
Earnings from Continuing Operations Including Noncontrolling Interests | 15,252 | 12,658 | 33,250 | 48,446 |
Earnings Attributable to Noncontrolling Interests | (111) | (46) | (218) | (429) |
Earnings from Continuing Operations Attributable to Esterline, Net of Tax | 15,141 | 12,612 | 33,032 | 48,017 |
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | (1,215) | (142) | (9,347) | (4,497) |
Equity in Net Earnings of Consolidated Subsidiaries | 0 | 114 | 0 | 1,434 |
Net Earnings Attributable to Esterline | 13,926 | 12,584 | 23,685 | 44,954 |
Comprehensive Income (Loss) | (4,972) | (9,163) | (109,270) | 35,471 |
Eliminations | ||||
Guarantee Obligations [Line Items] | ||||
Net Sales | (1,025) | (1,685) | (3,125) | (4,203) |
Cost of Sales | (1,025) | (1,685) | (3,125) | (4,203) |
Gross Profit | 0 | 0 | 0 | 0 |
Expenses | ||||
Selling, general and administrative | 0 | 0 | 0 | 0 |
Research, development & engineering | 0 | 0 | 0 | 0 |
Restructuring charges | 0 | 0 | 0 | 0 |
Other (income) expense | 0 | 0 | 0 | 0 |
Total Expenses | 0 | 0 | 0 | 0 |
Operating Earnings from Continuing Operations | 0 | 0 | 0 | 0 |
Interest Income | 18,548 | 19,571 | 57,453 | 59,377 |
Interest Expense | (18,548) | (19,571) | (57,453) | (59,377) |
Loss on Extinguishment of Debt | 0 | 0 | 0 | 0 |
Earnings from Continuing Operations Before Income Taxes | 0 | 0 | 0 | 0 |
Income Tax Expense (Benefit) | 0 | 0 | 0 | 0 |
Earnings from Continuing Operations Including Noncontrolling Interests | 0 | 0 | 0 | 0 |
Earnings Attributable to Noncontrolling Interests | 0 | 0 | 0 | 0 |
Earnings from Continuing Operations Attributable to Esterline, Net of Tax | 0 | 0 | 0 | 0 |
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | 0 | 0 | 0 | 0 |
Equity in Net Earnings of Consolidated Subsidiaries | (43,319) | (41,379) | (98,296) | (115,084) |
Net Earnings Attributable to Esterline | (43,319) | (41,379) | (98,296) | (115,084) |
Comprehensive Income (Loss) | $ (28,820) | $ (16,289) | $ 27,761 | $ (106,376) |
Condensed Consolidating State65
Condensed Consolidating Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jul. 31, 2015 | Jan. 30, 2015 | Aug. 01, 2014 | Jul. 31, 2015 | Aug. 01, 2014 | |
Cash Flows Provided (Used) by Operating Activities | |||||
Net earnings (loss) including noncontrolling interests | $ 56,844 | $ 106,319 | |||
Depreciation & amortization | 77,310 | 87,443 | |||
Deferred income taxes | (9,333) | (13,104) | |||
Share-based compensation | 8,618 | 9,833 | |||
Gain on release of non-income tax liability | $ (15,700) | (15,656) | 0 | ||
Loss on assets held for sale | $ 1,117 | $ 0 | 16,963 | 0 | |
Working capital changes, net of effect of acquisitions: | |||||
Accounts receivable | 17,943 | 23,480 | |||
Inventories | (18,313) | (42,411) | |||
Prepaid expenses | (2,588) | (6,202) | |||
Other current assets | 142 | (99) | |||
Accounts payable | (16,809) | (4,508) | |||
Accrued liabilities | (7,189) | (16,458) | |||
Federal and foreign income taxes | (8,501) | (7,983) | |||
Other liabilities | 3,243 | (1,440) | |||
Other, net | 1,526 | (155) | |||
Net Cash Provided (Used) by Operating Activities | 104,200 | 134,715 | |||
Cash Flows Provided (Used) by Investing Activities | |||||
Purchase of capital assets | (37,777) | (35,009) | |||
Proceeds from sale of discontinued operations | 32,053 | 0 | |||
Acquisition of businesses, net of cash acquired | (171,070) | (44,745) | |||
Net Cash Provided (Used) by Investing Activities | (176,794) | (79,754) | |||
Cash Flows Provided (Used) by Financing Activities | |||||
Proceeds provided by stock issuance under employee stock plans | 13,477 | 23,173 | |||
Excess tax benefits from stock option exercises | 1,877 | 6,392 | |||
Shares repurchased | (259,518) | (5,176) | |||
Repayment of long-term credit facilities | (235,000) | (40,000) | |||
Repayment of long-term debt | (167,065) | (34,076) | |||
Proceeds from issuance of long-term credit facilities | 335,000 | 25,000 | |||
Proceeds from issuance of long-term debt | 356,532 | 0 | |||
Proceeds from government assistance | 3,054 | 3,362 | |||
Dividends paid to noncontrolling interests | 0 | (780) | |||
Debt and other issuance costs | (8,213) | 0 | |||
Net change in intercompany financing | 0 | 0 | |||
Net Cash Provided (Used) by Financing Activities | 40,144 | (22,105) | |||
Effect of Foreign Exchange Rates on Cash and Cash Equivalents | (18,012) | (1,578) | |||
Net Increase (Decrease) in Cash and Cash Equivalents | (50,462) | 31,278 | |||
Cash and Cash Equivalents - Beginning of Year | 238,144 | 238,144 | 179,178 | ||
Cash and Cash Equivalents - End of Period | 187,682 | 210,456 | 187,682 | 210,456 | |
Parent Company | |||||
Cash Flows Provided (Used) by Operating Activities | |||||
Net earnings (loss) including noncontrolling interests | 56,844 | 106,319 | |||
Depreciation & amortization | 0 | 0 | |||
Deferred income taxes | (17,829) | (4,971) | |||
Share-based compensation | 0 | 0 | |||
Gain on release of non-income tax liability | 0 | 0 | |||
Loss on assets held for sale | 0 | 0 | |||
Working capital changes, net of effect of acquisitions: | |||||
Accounts receivable | 577 | 528 | |||
Inventories | 0 | 0 | |||
Prepaid expenses | 54 | (52) | |||
Other current assets | 6 | 2 | |||
Accounts payable | 1,095 | 117 | |||
Accrued liabilities | (2,286) | (10,486) | |||
Federal and foreign income taxes | (7,342) | (4,462) | |||
Other liabilities | 3,608 | 5,415 | |||
Other, net | (28,400) | (497) | |||
Net Cash Provided (Used) by Operating Activities | 6,327 | 91,913 | |||
Cash Flows Provided (Used) by Investing Activities | |||||
Purchase of capital assets | (804) | (186) | |||
Proceeds from sale of discontinued operations | 0 | 0 | |||
Acquisition of businesses, net of cash acquired | 0 | 0 | |||
Net Cash Provided (Used) by Investing Activities | (804) | (186) | |||
Cash Flows Provided (Used) by Financing Activities | |||||
Proceeds provided by stock issuance under employee stock plans | 13,477 | 23,173 | |||
Excess tax benefits from stock option exercises | 1,877 | 6,392 | |||
Shares repurchased | (259,518) | (5,176) | |||
Repayment of long-term credit facilities | (235,000) | (40,000) | |||
Repayment of long-term debt | (161,875) | (6,562) | |||
Proceeds from issuance of long-term credit facilities | 305,000 | 25,000 | |||
Proceeds from issuance of long-term debt | 0 | 0 | |||
Proceeds from government assistance | 0 | 0 | |||
Dividends paid to noncontrolling interests | 0 | 0 | |||
Debt and other issuance costs | (2,333) | 0 | |||
Net change in intercompany financing | 333,610 | (98,319) | |||
Net Cash Provided (Used) by Financing Activities | (4,762) | (95,492) | |||
Effect of Foreign Exchange Rates on Cash and Cash Equivalents | 1,059 | (22) | |||
Net Increase (Decrease) in Cash and Cash Equivalents | 1,820 | (3,787) | |||
Cash and Cash Equivalents - Beginning of Year | 14,634 | 14,634 | 7,826 | ||
Cash and Cash Equivalents - End of Period | 16,454 | 4,039 | 16,454 | 4,039 | |
TA Mfg. Ltd | |||||
Cash Flows Provided (Used) by Operating Activities | |||||
Net earnings (loss) including noncontrolling interests | 31,832 | 0 | |||
Depreciation & amortization | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Share-based compensation | 5 | 0 | |||
Gain on release of non-income tax liability | 0 | 0 | |||
Loss on assets held for sale | 0 | 0 | |||
Working capital changes, net of effect of acquisitions: | |||||
Accounts receivable | 0 | 0 | |||
Inventories | 0 | 0 | |||
Prepaid expenses | 0 | 0 | |||
Other current assets | 0 | 0 | |||
Accounts payable | 0 | 0 | |||
Accrued liabilities | 0 | 0 | |||
Federal and foreign income taxes | (51) | 0 | |||
Other liabilities | 0 | 0 | |||
Other, net | 0 | 0 | |||
Net Cash Provided (Used) by Operating Activities | 31,786 | 0 | |||
Cash Flows Provided (Used) by Investing Activities | |||||
Purchase of capital assets | 0 | 0 | |||
Proceeds from sale of discontinued operations | 0 | 0 | |||
Acquisition of businesses, net of cash acquired | 0 | 0 | |||
Net Cash Provided (Used) by Investing Activities | 0 | 0 | |||
Cash Flows Provided (Used) by Financing Activities | |||||
Proceeds provided by stock issuance under employee stock plans | 0 | 0 | |||
Excess tax benefits from stock option exercises | 0 | 0 | |||
Shares repurchased | 0 | 0 | |||
Repayment of long-term credit facilities | 0 | 0 | |||
Repayment of long-term debt | 0 | 0 | |||
Proceeds from issuance of long-term credit facilities | 0 | 0 | |||
Proceeds from issuance of long-term debt | 356,532 | 0 | |||
Proceeds from government assistance | 0 | 0 | |||
Dividends paid to noncontrolling interests | 0 | 0 | |||
Debt and other issuance costs | (5,880) | 0 | |||
Net change in intercompany financing | (380,925) | 0 | |||
Net Cash Provided (Used) by Financing Activities | (30,273) | 0 | |||
Effect of Foreign Exchange Rates on Cash and Cash Equivalents | (518) | 0 | |||
Net Increase (Decrease) in Cash and Cash Equivalents | 995 | 0 | |||
Cash and Cash Equivalents - Beginning of Year | 0 | 0 | 0 | ||
Cash and Cash Equivalents - End of Period | 995 | 0 | 995 | 0 | |
Guarantor Subsidiaries | |||||
Cash Flows Provided (Used) by Operating Activities | |||||
Net earnings (loss) including noncontrolling interests | 42,779 | 70,130 | |||
Depreciation & amortization | 28,339 | 32,336 | |||
Deferred income taxes | 16,243 | (2) | |||
Share-based compensation | 3,722 | 4,248 | |||
Gain on release of non-income tax liability | 0 | 0 | |||
Loss on assets held for sale | 10,842 | 0 | |||
Working capital changes, net of effect of acquisitions: | |||||
Accounts receivable | 8,228 | 13,887 | |||
Inventories | (5,268) | (17,289) | |||
Prepaid expenses | (918) | (1,913) | |||
Other current assets | 3 | (1) | |||
Accounts payable | (4,430) | 3,585 | |||
Accrued liabilities | (12,976) | (1,534) | |||
Federal and foreign income taxes | (2,522) | 21,809 | |||
Other liabilities | (528) | 95 | |||
Other, net | (42,771) | (10,962) | |||
Net Cash Provided (Used) by Operating Activities | 40,743 | 114,389 | |||
Cash Flows Provided (Used) by Investing Activities | |||||
Purchase of capital assets | (14,480) | (11,748) | |||
Proceeds from sale of discontinued operations | 32,053 | 0 | |||
Acquisition of businesses, net of cash acquired | 0 | (44,745) | |||
Net Cash Provided (Used) by Investing Activities | 17,573 | (56,493) | |||
Cash Flows Provided (Used) by Financing Activities | |||||
Proceeds provided by stock issuance under employee stock plans | 0 | 0 | |||
Excess tax benefits from stock option exercises | 0 | 0 | |||
Shares repurchased | 0 | 0 | |||
Repayment of long-term credit facilities | 0 | 0 | |||
Repayment of long-term debt | (416) | (245) | |||
Proceeds from issuance of long-term credit facilities | 0 | 0 | |||
Proceeds from issuance of long-term debt | 0 | 0 | |||
Proceeds from government assistance | 0 | 0 | |||
Dividends paid to noncontrolling interests | 0 | 0 | |||
Debt and other issuance costs | 0 | 0 | |||
Net change in intercompany financing | (60,805) | (56,888) | |||
Net Cash Provided (Used) by Financing Activities | (61,221) | (57,133) | |||
Effect of Foreign Exchange Rates on Cash and Cash Equivalents | 827 | (22) | |||
Net Increase (Decrease) in Cash and Cash Equivalents | (2,078) | 741 | |||
Cash and Cash Equivalents - Beginning of Year | 3,454 | 3,454 | 4,876 | ||
Cash and Cash Equivalents - End of Period | 1,376 | 5,617 | 1,376 | 5,617 | |
Non-Guarantor Subsidiaries | |||||
Cash Flows Provided (Used) by Operating Activities | |||||
Net earnings (loss) including noncontrolling interests | 23,685 | 44,954 | |||
Depreciation & amortization | 48,971 | 55,107 | |||
Deferred income taxes | (7,747) | (8,131) | |||
Share-based compensation | 4,891 | 5,585 | |||
Gain on release of non-income tax liability | (15,656) | 0 | |||
Loss on assets held for sale | 6,121 | 0 | |||
Working capital changes, net of effect of acquisitions: | |||||
Accounts receivable | 9,138 | 9,065 | |||
Inventories | (13,045) | (25,122) | |||
Prepaid expenses | (1,724) | (4,237) | |||
Other current assets | 133 | (100) | |||
Accounts payable | (13,474) | (8,210) | |||
Accrued liabilities | 8,073 | (4,438) | |||
Federal and foreign income taxes | 1,414 | (25,330) | |||
Other liabilities | 163 | (6,950) | |||
Other, net | 72,697 | 11,304 | |||
Net Cash Provided (Used) by Operating Activities | 123,640 | 43,497 | |||
Cash Flows Provided (Used) by Investing Activities | |||||
Purchase of capital assets | (22,493) | (23,075) | |||
Proceeds from sale of discontinued operations | 0 | 0 | |||
Acquisition of businesses, net of cash acquired | (171,070) | 0 | |||
Net Cash Provided (Used) by Investing Activities | (193,563) | (23,075) | |||
Cash Flows Provided (Used) by Financing Activities | |||||
Proceeds provided by stock issuance under employee stock plans | 0 | 0 | |||
Excess tax benefits from stock option exercises | 0 | 0 | |||
Shares repurchased | 0 | 0 | |||
Repayment of long-term credit facilities | 0 | 0 | |||
Repayment of long-term debt | (4,774) | (27,269) | |||
Proceeds from issuance of long-term credit facilities | 30,000 | 0 | |||
Proceeds from issuance of long-term debt | 0 | 0 | |||
Proceeds from government assistance | 3,054 | 3,362 | |||
Dividends paid to noncontrolling interests | 0 | (780) | |||
Debt and other issuance costs | 0 | 0 | |||
Net change in intercompany financing | 9,824 | 40,123 | |||
Net Cash Provided (Used) by Financing Activities | 38,104 | 15,436 | |||
Effect of Foreign Exchange Rates on Cash and Cash Equivalents | (19,380) | (1,534) | |||
Net Increase (Decrease) in Cash and Cash Equivalents | (51,199) | 34,324 | |||
Cash and Cash Equivalents - Beginning of Year | 220,056 | 220,056 | 166,476 | ||
Cash and Cash Equivalents - End of Period | 168,857 | 200,800 | 168,857 | 200,800 | |
Eliminations | |||||
Cash Flows Provided (Used) by Operating Activities | |||||
Net earnings (loss) including noncontrolling interests | (98,296) | (115,084) | |||
Depreciation & amortization | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Share-based compensation | 0 | 0 | |||
Gain on release of non-income tax liability | 0 | 0 | |||
Loss on assets held for sale | 0 | 0 | |||
Working capital changes, net of effect of acquisitions: | |||||
Accounts receivable | 0 | 0 | |||
Inventories | 0 | 0 | |||
Prepaid expenses | 0 | 0 | |||
Other current assets | 0 | 0 | |||
Accounts payable | 0 | 0 | |||
Accrued liabilities | 0 | 0 | |||
Federal and foreign income taxes | 0 | 0 | |||
Other liabilities | 0 | 0 | |||
Other, net | 0 | 0 | |||
Net Cash Provided (Used) by Operating Activities | (98,296) | (115,084) | |||
Cash Flows Provided (Used) by Investing Activities | |||||
Purchase of capital assets | 0 | 0 | |||
Proceeds from sale of discontinued operations | 0 | 0 | |||
Acquisition of businesses, net of cash acquired | 0 | 0 | |||
Net Cash Provided (Used) by Investing Activities | 0 | 0 | |||
Cash Flows Provided (Used) by Financing Activities | |||||
Proceeds provided by stock issuance under employee stock plans | 0 | 0 | |||
Excess tax benefits from stock option exercises | 0 | 0 | |||
Shares repurchased | 0 | 0 | |||
Repayment of long-term credit facilities | 0 | 0 | |||
Repayment of long-term debt | 0 | 0 | |||
Proceeds from issuance of long-term credit facilities | 0 | 0 | |||
Proceeds from issuance of long-term debt | 0 | 0 | |||
Proceeds from government assistance | 0 | 0 | |||
Dividends paid to noncontrolling interests | 0 | 0 | |||
Debt and other issuance costs | 0 | 0 | |||
Net change in intercompany financing | 98,296 | 115,084 | |||
Net Cash Provided (Used) by Financing Activities | 98,296 | 115,084 | |||
Effect of Foreign Exchange Rates on Cash and Cash Equivalents | 0 | 0 | |||
Net Increase (Decrease) in Cash and Cash Equivalents | 0 | 0 | |||
Cash and Cash Equivalents - Beginning of Year | $ 0 | 0 | 0 | ||
Cash and Cash Equivalents - End of Period | $ 0 | $ 0 | $ 0 | $ 0 |