Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 28, 2018 | Feb. 01, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 28, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | ESL | |
Entity Registrant Name | ESTERLINE TECHNOLOGIES CORP | |
Entity Central Index Key | 33,619 | |
Current Fiscal Year End Date | --09-27 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 29,692,498 |
CONSOLIDATED BALANCE SHEET (Una
CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 391,182 | $ 372,406 |
Accounts receivable, net of allowances of $16,647 and $16,203 | 439,401 | 441,696 |
Inventories | ||
Raw materials and purchased parts | 188,162 | 180,559 |
Work in progress | 159,214 | 173,505 |
Finished goods | 104,814 | 103,162 |
Inventories | 452,190 | 457,226 |
Income tax refundable | 10,697 | 9,077 |
Prepaid expenses | 24,393 | 19,975 |
Other current assets | 4,272 | 3,497 |
Total Current Assets | 1,322,135 | 1,303,877 |
Property, Plant and Equipment | 833,838 | 831,392 |
Accumulated depreciation | 524,104 | 516,586 |
Total Property, Plant and Equipment | 309,734 | 314,806 |
Other Non-Current Assets | ||
Goodwill | 1,013,461 | 1,030,667 |
Intangibles, net | 289,869 | 306,085 |
Deferred income tax benefits | 44,873 | 44,008 |
Other assets | 37,309 | 33,249 |
Non-current assets of businesses held for sale | 0 | 4,225 |
Total Assets | 3,017,381 | 3,036,917 |
Current Liabilities | ||
Accounts payable | 123,979 | 147,438 |
Accrued liabilities | 228,865 | 232,730 |
Current maturities of long-term debt | 17,439 | 17,546 |
U.S. and foreign income taxes | 7,763 | 5,160 |
Current liabilities of businesses held for sale | 0 | 144 |
Total Current Liabilities | 378,046 | 403,018 |
Long-Term Liabilities | ||
Long-term debt, net of current maturities | 646,845 | 654,922 |
Deferred income tax liabilities | 26,095 | 28,899 |
Pension and post-retirement obligations | 56,909 | 57,755 |
Long-term U.S. income taxes payable | 33,204 | 32,902 |
Other liabilities | 18,776 | 16,294 |
Shareholders' Equity | ||
Common stock, par value $.20 per share, authorized 60,000,000 shares, issued 33,421,720 and 33,190,467 shares | 6,684 | 6,638 |
Additional paid-in capital | 768,897 | 751,031 |
Treasury stock at cost, repurchased 3,737,327 and 3,737,327 shares | (351,964) | (351,964) |
Retained earnings | 1,772,240 | 1,732,327 |
Accumulated other comprehensive loss | (349,485) | (306,189) |
Total Esterline Shareholders' Equity | 1,846,372 | 1,831,843 |
Noncontrolling interests | 11,134 | 11,284 |
Total Shareholders' Equity | 1,857,506 | 1,843,127 |
Total Liabilities and Shareholders' Equity | $ 3,017,381 | $ 3,036,917 |
CONSOLIDATED BALANCE SHEET (Par
CONSOLIDATED BALANCE SHEET (Parenthetical) (Unaudited) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 | Sep. 29, 2017 |
Statement Of Financial Position [Abstract] | |||
Accounts receivable, allowances | $ 16,647 | $ 16,203 | |
Common stock, par value | $ 0.20 | $ 0.20 | |
Common stock, shares authorized | 60,000,000 | 60,000,000 | |
Common stock, shares issued | 33,421,720 | 33,190,467 | 33,117,473 |
Treasury stock, shares repurchased | 3,737,327 | 3,737,327 | 3,135,927 |
CONSOLIDATED STATEMENT OF OPERA
CONSOLIDATED STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | ||
Income Statement [Abstract] | |||
Net Sales | $ 484,987 | [1] | $ 482,045 |
Cost of Sales | 318,857 | 334,316 | |
Gross Profit | 166,130 | 147,729 | |
Expenses | |||
Selling, general & administrative | 92,738 | 99,897 | |
Research, development and engineering | 20,404 | 25,966 | |
Transaction costs | 4,021 | 0 | |
License fee income | 0 | (3,025) | |
Total Expenses | 117,163 | 122,838 | |
Operating Earnings from Continuing Operations | 48,967 | 24,891 | |
Interest Income | (827) | (298) | |
Interest Expense | 6,774 | 7,604 | |
Other Income | (2,143) | (1,742) | |
Earnings from Continuing Operations Before Income Taxes | 45,163 | 19,327 | |
Income Tax Expense | 11,280 | 53,789 | |
Earnings from Continuing Operations Including Noncontrolling Interests | 33,883 | (34,462) | |
Loss (Earnings) Attributable to Noncontrolling Interests | 71 | (353) | |
Earnings (Loss) from Continuing Operations Attributable to Esterline, Net of Tax | 33,954 | (34,815) | |
Loss from Discontinued Operations Attributable to Esterline, Net of Tax | (156) | (166) | |
Net Earnings (Loss) Attributable to Esterline | $ 33,798 | $ (34,981) | |
Earnings (Loss) Per Share Attributable to Esterline - Basic: | |||
Continuing operations | $ 1.15 | $ (1.16) | |
Discontinued operations | (0.01) | (0.01) | |
Earnings (Loss) Per Share | 1.14 | (1.17) | |
Earnings (Loss) Per Share Attributable to Esterline - Diluted: | |||
Continuing operations | 1.14 | (1.16) | |
Discontinued operations | (0.01) | (0.01) | |
Earnings (Loss) Per Share | $ 1.13 | $ (1.17) | |
Net Earnings (Loss) | $ 33,798 | $ (34,981) | |
Change in Fair Value of Derivative Financial Instruments | (10,984) | (560) | |
Income Tax Expense (Benefit) | (2,955) | (110) | |
Change in Fair Value of Derivative Financial Instruments, Net of Tax | (8,029) | (450) | |
Change in Pension and Post-Retirement Obligations | 1,101 | 842 | |
Income Tax Expense | 295 | 297 | |
Change in Pension and Post-Retirement Obligations, Net of Tax | 806 | 545 | |
Foreign Currency Translation Adjustment | (36,073) | 6,354 | |
Comprehensive Income (Loss) | $ (9,498) | $ (28,532) | |
[1] | Based on country from which the sale originated and the sale was recorded. |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Cash Flows Provided (Used) by Operating Activities | ||
Net earnings (loss) including noncontrolling interests | $ 33,727 | $ (34,628) |
Adjustments to reconcile net earnings (loss) including noncontrolling interests to net cash provided (used) by operating activities: | ||
Depreciation and amortization | 24,246 | 26,216 |
Deferred income taxes | (3,800) | 4,456 |
Share-based compensation | 2,861 | 3,998 |
Loss on disposal of fixed assets | 0 | 2,007 |
Gain on assets held for sale | 0 | (89) |
Working capital changes: | ||
Accounts receivable | 38,023 | 61,148 |
Inventories | (27,576) | (15,790) |
Prepaid expenses | (4,673) | (3,427) |
Other current assets | (2,012) | (590) |
Accounts payable | (22,815) | (5,870) |
Accrued liabilities | (14,740) | (21,652) |
U.S. and foreign income taxes | 835 | 5,241 |
Long-term U.S. income taxes payable | 302 | 38,640 |
Other liabilities | (138) | (649) |
Other, net | (3,539) | 3,427 |
Net Cash Provided (Used) by Operating Activities | 20,701 | 62,438 |
Cash Flows Provided (Used) by Investing Activities | ||
Purchase of capital assets | (11,136) | (13,402) |
Proceeds from sale of capital assets | 4,268 | 0 |
Net Cash Provided (Used) by Investing Activities | (6,868) | (13,402) |
Cash Flows Provided (Used) by Financing Activities | ||
Proceeds provided by stock issuance under employee stock plans | 15,682 | 1,171 |
Withholding taxes on restricted stock units vested | (630) | (227) |
Shares repurchased | 0 | (20,445) |
Repayment of long-term credit facilities | 0 | (5,000) |
Repayment of long-term debt | (489) | (3,553) |
Proceeds from issuance of long-term credit facilities | 0 | 25,000 |
Net Cash Provided (Used) by Financing Activities | 14,563 | (3,054) |
Effect of Foreign Exchange Rates on Cash and Cash Equivalents | (9,620) | 1,064 |
Net Increase (Decrease) in Cash and Cash Equivalents | 18,776 | 47,046 |
Cash and Cash Equivalents - Beginning of Period | 372,406 | 307,826 |
Cash and Cash Equivalents - End of Period | 391,182 | 354,872 |
Supplemental Cash Flow Information: | ||
Cash paid for interest | 8,537 | 10,478 |
Cash paid for taxes | $ 14,769 | $ 6,179 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 28, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | Note 1 – Basis of Presentation The consolidated balance sheet as of December 28, 2018, the consolidated statement of operations and comprehensive income (loss) for the three-month periods ended December 28, 2018, and December 29, 2017, and the consolidated statement of cash flows for the three-month periods ended December 28, 2018, and December 29, 2017, 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 September 28, 2018, 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, October through December, includes significant holiday periods in both Europe and North America, resulting in fewer business days. On October 9, 2018, the Company entered into an Agreement and Plan of Merger (as amended by the First Amendment to Agreement and Plan of Merger, dated as of October 10, 2018, the “Merger Agreement”) with TransDigm Group Incorporated, a Delaware corporation (“TransDigm”), and Thunderbird Merger Sub Inc., a Delaware corporation and wholly owned subsidiary of TransDigm (“Merger Sub”). Upon the terms and subject to the conditions set forth in the Merger Agreement, at the closing, Merger Sub will merge with and into the Company, with the Company continuing as the surviving corporation in the merger and as a wholly owned subsidiary of TransDigm (the “Merger”). The Merger Agreement and the First Amendment to the Merger Agreement have been filed as exhibits to the Company’s Current Reports on Form 8-K filed with the SEC on October 10, 2018, and October 11, 2018, respectively. The Company incurred $4.0 million of Merger-related costs in the first quarter of fiscal 2019. These costs consisted of legal and advisory fees. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Dec. 28, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Note 2 – Recent Accounting Pronouncements Recently Adopted In August 2016 the Financial Accounting Standards Board (FASB) issued new guidance addressing how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard was implemented in the first quarter of fiscal 2019 and there was no impact to the Company’s Consolidated Statement of Cash Flows. In October 2016 the FASB issued new guidance regarding income taxes. The new guidance requires the tax effects of intercompany transactions, other than sales of inventory, to be recognized currently, eliminating an exception under current GAAP in which the tax effects of intra-entity asset transfers are deferred until the transferred asset is sold to a third party or otherwise recovered through uses. The standard was implemented in the first quarter of fiscal 2019 and there was no impact to the Company’s Consolidated Statement of Operations and Comprehensive Income (Loss) and the Consolidated Balance Sheet. On September 29, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers using the modified retrospective method applied to those contracts not yet completed as of September 29, 2018. Results for reporting periods beginning after September 29, 2018, are presented under ASC 606, while prior-period amounts are not adjusted and continue to be reported in accordance with the Company’s historical accounting under ASC 605. The cumulative effect from the adoption of the new revenue standard as of September 29, 2018, was as follows: In Thousands Adjustments As of Due to As of September 28, Adoption September 29, 2018 of ASC 606 2018 Balance Sheet Accounts receivable, net $ 441,696 $ 41,262 $ 482,958 Inventories 457,226 (24,682 ) 432,544 Deferred income tax benefits 44,008 (2,081 ) 41,927 Accrued liabilities 232,730 8,450 241,180 Deferred income tax liabilities 28,899 (65 ) 28,834 Retained earnings 1,732,327 6,114 1,738,441 The most significant impacts upon adoption of ASC 606 on September 29, 2018, include the following items: • Unbilled revenue of $41.3 million was recorded at transition in accounts receivable, net, partially offset by a $24.7 million reduction in inventories in the Company’s Consolidated Balance Sheet with the impact primarily related to the recognition of more contract consideration under a cost-to-cost percentage of completion basis under ASC 606 as compared to historical guidance under ASC 605. • Deferred revenue of $8.5 million was recorded at transition in accrued liabilities in the Company’s Consolidated Balance Sheet, primarily related to customer funding received under non-recurring engineering (NRE) contracts that do not transfer control of a distinct good or service to the customer. The impact of adoption on the Company’s Consolidated Statement of Operations and Comprehensive Income (Loss) for the three months ended and as of December 28, 2018, was as follows: In Thousands Three Months Ended December 28, 2018 Balances Adjustments Without Increase/ Adoption As Reported (Decrease) of ASC 606 Net sales $ 484,987 $ (6,459 ) $ 478,528 Cost of sales 318,857 (4,318 ) 314,539 Selling, general & administrative 92,738 (3 ) 92,735 Research, development and engineering 20,404 10 20,414 Income tax expense 11,280 (519 ) 10,761 Earnings from continuing operations including noncontrolling interests $ 33,883 $ (1,629 ) $ 32,254 The most significant impacts to financial statement results as reported under ASC 606 as compared with ASC 605 for the current reporting period was the recognition of more contract consideration under a cost-to-cost percentage of completion basis rather than at the point in time that products were shipped, delivered, or accepted. On September 29, 2018, the Company adopted the amendments to ASC 715 that improve the presentation of net periodic pension and postretirement benefit costs. The Company retrospectively adopted the presentation of service cost separate from the other components of net periodic costs and included it as a component of employee compensation cost in operating income. The interest cost, expected return on assets, amortization of prior service costs, and net actuarial gain/loss components of net periodic benefit costs have been reclassified from operating income to other income, net. Additionally, the Company elected to apply the practical expedient which allows it to reclassify amounts disclosed previously in Note 4 of the Company’s 2018 Form 10-Q for the three-month period ended December 29, 2017, as the basis for applying retrospective presentation for comparative periods. The effect of the retrospective change on the Company’s Consolidated Statement of Operations and Comprehensive Income (Loss) for the first three-month period ended December 29, 2017, was to increase previously reporting cost of sales, selling, general and administrative expense and research, development and engineering by $0.6 million, $1.0 million and $0.1 million, respectively, and increase other income by $1.7 million. Recent Accounting Pronouncements Not Yet Adopted In February 2016 the FASB issued a new lease accounting standard, which provides revised guidance on accounting for lease arrangements by both lessors and lessees. The central requirement of the new standard is that lessees must recognize lease-related assets and liabilities for all leases with a term longer than 12 months. The Company is evaluating the effect the standard will have on the Company’s consolidated financial statements and related disclosures. The new standard is effective for the Company in fiscal year 2020, with early adoption permitted. In June 2016 the FASB issued a new standard on the measurement of credit losses, which will impact the Company’s measurement of trade receivables. The new standard replaces the current incurred loss model with a forward-looking expected loss model that is likely to result in earlier recognition of losses. The Company is evaluating the effect the updated standard will have on the Company’s consolidated financial statements and related disclosures. The new standard is effective for the Company in 2021, with early adoption permitted, but not earlier than 2020. In August 2017 the FASB amended its guidance on the financial reporting of hedging relationships. The new guidance eliminates the requirement to separately measure and report hedge ineffectiveness, expands permissible cash flow hedges on contractually specified components, and simplifies hedge documentation and effectiveness assessment. The guidance will be effective at the beginning of the Company’s first quarter of fiscal year 2020 and will require a modified retrospective approach on existing cash flow and net investment hedges. The presentation and disclosure requirements will be applied prospectively. The Company is currently evaluating the impact this guidance will have on the Company’s consolidated financial statements and the timing of adoption. |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Dec. 28, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 3 – Revenue Recognition As explained above in Note 2, the Company accounts for revenues in accordance with ASC 606, Revenue from Contracts with Customers The majority of the Company’s revenues relate to follow-on orders from contracts to design, develop, and/or manufacture complex aerospace or defense parts, components or systems. The Company accounts for a contract when it has approval and commitment from both parties, the rights of the parties are identified, payment terms are identified, the contract has commercial substance, and collectability of consideration is probable. For most of the Company’s long-term contracts to design, develop, and manufacture complex aerospace or defense equipment, the Company provides a series of distinct goods that are substantially the same and that have the same pattern of transfer to the customer. As such, the Company typically accounts for each of these long-term contracts as one performance obligation. In other long-term contracts, the Company is obligated to provide customers with distinct shipset installments, the control of which transfers at various points in time over multiple reporting periods. In those cases, the Company accounts for each shipset installment as a separate performance obligation. At the time that the Company receives follow-on purchase orders, the production of one shipset is typically no longer dependent upon the design, development, or production of another shipset, such that each shipset is distinct. The Company typically accounts for each shipset in follow-on orders as a separate performance obligation. Customer orders generally require the Company to deliver one or more shipsets of the same distinct good such that the transaction price is allocated evenly to each shipset. For other contracts where the Company promises to provide different distinct goods or services within the same contract, the Company allocates the total transaction price to each distinct good or service based on their estimated relative standalone selling prices. In cases where observable standalone sales of distinct goods or services have occurred, the observable standalone sales are used to determine the standalone selling prices. In other cases, the Company typically uses the expected-cost-plus-a-margin approach to estimate the standalone selling price of each performance obligation. To determine the proper revenue recognition model for the Company’s contracts with customers, the Company evaluates whether the Company transfers control of the performance obligations in those contracts to the customer over time or at a point in time. This assessment requires significant judgment and is primarily based on the Company’s determination of whether the distinct goods that the Company is creating have an alternative use in their completed state and whether the Company has an enforceable right to payment for performance completed to date, including any work in process. For distinct goods that the Company transfers control of at a point in time, the Company recognizes revenue at the point of shipment, delivery, or acceptance depending primarily on when risk of loss passes to the customer and whether the customer’s acceptance of the goods is more than a formality. For distinct goods for which the Company transfers control of over time, the Company typically uses the cost-to-cost measure of progress to recognize revenue, because it best depicts the progress of the Company’s performance in transferring control of those distinct goods to the customer. This is because the Company’s production-type contracts typically include significant work-in-process that the customer controls during the manufacturing process. Application of the cost-to-cost measure of progress requires significant judgment related to determining the costs that should be included in the ratio and the estimate of total costs that the Company expects to incur at completion of the performance obligation. The Company recognizes adjustments in estimated profit on contracts under the cumulative catch-up method. None of the effects of such changes in estimates were material to the Consolidated Statements of Operations and Comprehensive Income (Loss) for any period presented. Under the typical payment terms of the Company’s long-term contracts to design, develop, and/or manufacture complex aerospace or defense components or systems, the customer pays us upon meeting contractually specified milestones. Revenue recognized may differ from billings because those milestones do not always align with the Company’s cost-to-cost measure of progress or the point at which the distinct goods are shipped, delivered, or accepted. Revenues recognized in excess of billings (unbilled receivables) are presented as accounts receivable, net, on the balance sheet, whereas billings in excess of revenue (deferred revenue) are presented as accrued liabilities on the balance sheet. Under the typical payment terms of purchase orders issued under the provisions of long-term agreements, the Company bills its customers upon shipment of the ordered goods. Revenue recognized may differ from billings because the point of shipment does not always align with the point at or period over which the Company recognizes revenue. This difference would also contribute to the balance of accounts receivable, net or accrued liabilities depending on the relationship of revenue recognized to billings, as described above. Certain of the Company’s long-term contracts require the Company to perform non-recurring engineering (NRE) activities to design and develop products that customers may or may not provide funding. Determining the proper recognition of that funding requires significant judgment and is based primarily on the determination of whether the Company transfers a distinct good or service to the customer under the contract. In cases where the Company transfers all intellectual property (IP) rights related to the design to the customer, or the customer makes an upfront, firm commitment to purchase finalized shipsets at the end of the development effort, the Company determines that the contract transfers a distinct good to the customer. In those cases, the Company’s recognition of the funding follows management’s determination of whether the assets that the Company is creating have an alternative use and whether the Company has an enforceable right to payment for performance completed to date. In cases where the Company does not transfer all related IP rights to the customer and the customer does not make a firm commitment to purchase finalized shipsets at the end of the development effort, the Company defers the funding and amortizes it over estimated future shipsets. The Company incurs costs for engineering and development of products directly related to existing or anticipated contracts with customers. Such costs generate or enhance the Company’s ability to satisfy its performance obligations under these contracts. The Company capitalizes these costs as contract fulfillment costs to the extent the costs are recoverable and relate to undelivered products, and subsequently amortizes the costs when (or as) control of the products to which such costs relate is transferred to the customer. Remaining Performance Obligations Total backlog was $1.6 billion at December 28, 2018, compared with $1.5 billion at September 28, 2018. Total backlog represents the Company’s remaining performance obligations. The table below discloses, by segment, the aggregate amount of the transaction price allocated to remaining performance obligations as of December 28, 2018, and when the Company expects to recognize this revenue. In Thousands Remaining Performance Obligations 2019 2020 2021 2022 2023 Thereafter Total Avionics & Controls $ 437,362 $ 134,444 $ 63,764 $ 37,607 $ 27,646 $ 33,466 $ 734,289 Sensors & Systems 310,342 44,625 13,363 13,135 1,682 12,662 395,809 Advanced Materials 212,718 99,365 59,103 38,258 37,636 27,200 474,280 $ 960,422 $ 278,434 $ 136,230 $ 89,000 $ 66,964 $ 73,328 $ 1,604,378 |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Dec. 28, 2018 | |
Accounts Receivable Net [Abstract] | |
Accounts Receivable | Note 4 – Accounts Receivable In Thousands December 28, September 28, 2018 2018 Trade and other receivables $ 401,264 $ 442,838 Less allowance for doubtful accounts (16,647 ) (16,203 ) Net trade receivables 384,617 426,635 Unbilled receivables 54,784 15,061 $ 439,401 $ 441,696 Substantially all amounts of unbilled receivables are expected to be billed and collected within one year. |
Earnings Per Share and Sharehol
Earnings Per Share and Shareholders Equity | 3 Months Ended |
Dec. 28, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Shareholders Equity | Note 5 – 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, restricted stock units and share units related to the Company’s performance share plan to the extent that performance share plan objectives are met. There were no common shares issuable from stock options excluded from the calculation of diluted earnings per share because they were anti-dilutive in the three-month period ending December 28, 2018. Shares used for calculating earnings per share are disclosed in the following table: In Thousands Three Months Ended December 28, December 29, 2018 2017 Shares used for basic earnings per share 29,530 29,903 Shares used for diluted earnings per share 29,887 29,903 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 December 28, 2018, and September 28, 2018, there were no shares of preferred stock or serial preferred stock outstanding. In 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 three months ended December 29, 2017, the Company repurchased 287,500 shares under this program at an average price paid per share of $71.11, for an aggregate purchase price of $20.4 million. There were no shares repurchased during the three months ended December 28, 2018. Since the program began, the Company has repurchased 3,737,327 shares for an aggregate purchase price of $352.0 million, with $48.0 million in shares remaining available for repurchase in the future. Changes in issued and outstanding common shares are summarized as follows: Three Months Ended Year Ended December 28, September 28, 2018 2018 Shares Issued: Balance, beginning of year 33,190,467 33,117,473 Shares issued under share-based compensation plans 231,253 72,994 Balance, end of current period 33,421,720 33,190,467 Treasury Stock: Balance, beginning of year (3,737,327 ) (3,135,927 ) Shares purchased - (601,400 ) Balance, end of current period (3,737,327 ) (3,737,327 ) Shares outstanding, end of period 29,684,393 29,453,140 The components of Accumulated Other Comprehensive Loss: In Thousands December 28, September 28, 2018 2018 Unrealized loss on derivative contracts $ (16,365 ) $ (5,381 ) Tax effect 4,628 1,673 (11,737 ) (3,708 ) Pension and post-retirement obligations (54,716 ) (55,817 ) Tax effect 14,158 22,135 (40,558 ) (33,682 ) Cumulative effect of accounting change - (7,682 ) Currency translation adjustment (297,190 ) (261,117 ) Accumulated other comprehensive loss $ (349,485 ) $ (306,189 ) |
Retirement Benefits
Retirement Benefits | 3 Months Ended |
Dec. 28, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Benefits | Note 6 – 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. Components of periodic pension cost consisted of the following: In Thousands Three Months Ended December 28, December 29, 2018 2017 Components of Net Periodic Cost Service cost $ 3,872 $ 3,374 Interest cost 4,724 4,106 Expected return on plan assets (7,149 ) (6,808 ) Amortization of prior service cost 146 126 Amortization of actuarial loss 127 797 Net periodic cost $ 1,720 $ 1,595 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 | 3 Months Ended |
Dec. 28, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 7 – 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 not observable and therefore 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 December 28, 2018, and September 28, 2018. In Thousands Level 2 December 28, September 28, 2018 2018 Assets: Derivative contracts designated as hedging instruments $ 16 $ 1,374 Derivative contracts not designated as hedging instruments 50 38 Embedded derivatives 6,853 1,296 Liabilities: Derivative contracts designated as hedging instruments $ 16,381 $ 6,756 Derivative contracts not designated as hedging instruments 1,212 1,026 Embedded derivatives 623 684 In Thousands Level 3 December 28, September 28, 2018 2018 Assets: Estimated value of assets held for sale $ - $ 4,225 Liabilities: Estimated value of liabilities held for sale $ - $ 144 The Company’s embedded derivatives are the result of entering into sales or purchase contracts that are denominated in a currency other than the Company’s functional currency or the supplier’s or customer’s functional currency. The fair value is determined by calculating the difference between quoted exchange rates at the time the contract was entered into and the period-end exchange rate. These contracts are categorized as Level 2 in the fair value hierarchy. The Company’s derivative contracts consist of foreign currency exchange contracts and, from time to time, interest rate swap agreements. These derivative contracts are over the counter, and their fair value is determined using modeling techniques that include market inputs such as interest rates, yield curves, and currency exchange rates. These contracts are categorized as Level 2 in the fair value hierarchy. The Company’s Board of Directors previously approved the plan to sell certain non-core business units. Based upon the estimated fair values, the Company adjusted the carrying value of the assets and liabilities of the businesses to fair value. Principal assumptions used in measuring the estimated value of assets and liabilities held for sale included estimated selling price of the discontinued business, discount rates, industry growth rates, and pricing of comparable transactions in the market. The valuations are categorized as Level 3 in the fair value hierarchy. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Dec. 28, 2018 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 8 – 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 is presented on a gross basis, as the Company does not have any derivative contracts which are subject to master netting arrangements. The Company did not have any hedges with credit-risk-related contingent features or that required the posting of collateral as of December 28, 2018, and September 28, 2018. 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 December 28, 2018, and September 28, 2018, the Company had outstanding foreign currency forward exchange contracts principally to sell U.S. dollars with notional amounts of $476.1 million and $452.0 million, respectively. The notional value of the Company’s foreign currency forward contracts includes $105.0 million related to the hedge of a portion of the Company’s net monetary assets, including the embedded derivatives in its backlog. These notional values consist primarily of contracts for the British pound sterling, Canadian dollar, and European euro and are stated in U.S. dollar equivalents at spot exchange rates at the respective dates. Interest Rate Swaps The Company manages its exposure to interest rate risk by maintaining an appropriate mix of fixed and variable rate debt, which over time should moderate the costs of debt financing. When considered necessary, the Company may use financial instruments in the form of interest rate swaps to help meet this objective. Embedded Derivative Instruments The Company’s embedded derivatives are the result of entering into sales or purchase contracts that are denominated in a currency other than the Company’s functional currency or the supplier’s or customer’s functional currency. Net Investment Hedge In April 2015 the Company issued €330.0 million in 3.625% Senior Notes due April 2023 (2023 Notes) and requiring semi-annual interest payments in April and October each year until maturity. The Company designated the 2023 Notes and accrued interest as a hedge of the investment of certain foreign business units. The foreign currency gain or loss that is effective as a hedge is reported as a component of accumulated 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 of the hedge since inception. Fair Value of Derivative Instruments Fair value of derivative instruments in the Consolidated Balance Sheet at December 28, 2018, and September 28, 2018, consisted of: In Thousands Fair Value December 28, September 28, Classification 2018 2018 Foreign Currency Forward Exchange Contracts: Other current assets $ 56 $ 1,176 Other assets 10 236 Accrued liabilities 13,507 6,643 Other liabilities 4,086 1,139 Embedded Derivative Instruments: Other current assets $ 2,967 $ 1,050 Other assets 3,886 246 Accrued liabilities 460 398 Other liabilities 163 286 The effect of derivative instruments on the Consolidated Statement of Operations and Comprehensive Income (Loss) for the three-month periods ended December 28, 2018, and December 29, 2017, consisted of: Fair Value Hedges and Embedded Derivatives The Company recognized the following gains (losses) on contracts designated as fair value hedges and embedded derivatives: In Thousands Three Months Ended Gain (Loss) December 28, December 29, 2018 2017 Fair Value Hedges: Recognized in cost of sales $ (1,685 ) $ (378 ) Recognized in selling, general & administrative (3,857 ) (323 ) Embedded derivatives: Recognized in sales $ 2,055 $ 345 Cash Flow Hedges The Company recognized the following gains (losses) on contracts designated as cash flow hedges: In Thousands Three Months Ended Gain (Loss) December 28, December 29, 2018 2017 Foreign currency forward exchange contracts: Recognized in AOCI (effective portion) $ (9,327 ) $ (2,493 ) Reclassified from AOCI into sales (1,657 ) 1,933 Net Investment Hedges The Company recognized the following gains (losses) on contracts designated as net investment hedges: In Thousands Three Months Ended Gain (Loss) December 28, December 29, 2018 2017 2023 Notes and Accrued Interest: Recognized in AOCI $ 5,361 $ (6,297 ) During the first quarter of fiscal 2019 and 2018, the Company recorded gains of $3.5 million and $1.5 million, respectively, on foreign currency forward exchange contracts that have not been designated as accounting hedges. These foreign currency exchange gains 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 quarter of fiscal 2019 and 2018. 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 quarter of fiscal 2019 and 2018. Amounts included in AOCI are reclassified into earnings when the hedged transaction settles. The Company expects to reclassify approximately $12.6 million of net loss into earnings over the next 12 months. The maximum duration of the Company’s foreign currency cash flow hedge contracts at December 28, 2018, was 24 months. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 28, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 – Income Taxes The income tax rate for the first quarter of fiscal 2019 was 25.0%. The income tax rate for the first quarter of fiscal 2018 was 26.9% and was 278.3% after the effect of the provision taxes due to the Tax Cuts and Jobs Act (the Act). The Company conducts business in numerous tax jurisdictions, principally in the U.S., U.K. and France. As a result, the Company’s income tax rate for fiscal 2019 reflects the estimated annual global effective tax rate applied to year-to-date pre-tax earnings. The Act was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. The SEC recognized that a company’s review of certain income tax effects of the Act may be incomplete at the time financial statements are issued. During the first year following the effectiveness of the Act, the SEC issued Staff Accounting Bulletin 118 (SAB 118), which provides that if a company does not have the necessary information available for certain effects of the Act, the Company may record provisional numbers and adjust those amounts during the measurement period not to extend beyond one year. In fiscal 2018 the Company recorded a provisional net charge of $49.9 million related to the Act based on reasonable estimates for those tax effects. During the first quarter of fiscal 2019, the Company completed the accounting for the tax effects of enactment of the Act and recorded a tax benefit of $0.2 million, resulting in a total net charge of $49.7 million. The Company has now completed the accounting estimates for all of the enactment-date income tax effects of the Act in accordance with the SAB 118 measurement period. On February 5, 2019, the U.S. Treasury Department published in the Federal Register final regulations relating to the transition tax imposed by the Act. The final regulations result in an increase in transition tax of approximately $2 million. In accordance with U.S. GAAP, the additional transition tax will be recorded at the enactment date in the second quarter of fiscal 2019 as a change in tax law. During the next 12 months, it is reasonably possible that approximately $0.8 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. We recognize interest related to unrecognized tax benefits in income tax expense. |
Debt
Debt | 3 Months Ended |
Dec. 28, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Note 10 – Debt Long-term debt at December 28, 2018, and September 28, 2018, consisted of the following: In Thousands December 28, September 28, 2018 2018 U.S. Term Loan, due April 2020 $ 180,000 $ 180,000 3.625% Senior Notes, due April 2023 377,619 382,965 Government refundable advances 41,362 43,873 Obligations under capital leases 68,744 69,310 Debt issuance costs (3,441 ) (3,680 ) 664,284 672,468 Less current maturities 17,439 17,546 Carrying amount of long-term debt $ 646,845 $ 654,922 U.S. Credit Facility On April 9, 2015, the Company amended its secured credit facility to extend the maturity to April 9, 2020, increase the revolving credit facility to $500 million, and provide for a delayed-draw term loan facility of $250 million. The Company recorded $2.3 million in debt issuance costs. The credit facility is secured by substantially all the Company’s assets, and interest is based on standard inter-bank offering rates. The interest rate ranges from LIBOR plus 1.25% to LIBOR plus 2.00% depending on leverage ratios at the time the funds are drawn. At December 28, 2018, the Company had no outstanding borrowings under the secured credit facility. U.S. Term Loan, due April 2020 On August 3, 2015, the Company borrowed $250 million under the delayed-draw term loan facility (U.S. Term Loan, due 2020). The interest rate on the U.S. Term Loan, due 2020, ranges from LIBOR plus 1.25% to LIBOR plus 2.00%. At December 28, 2018, the interest rate was LIBOR plus 1.50%, or 3.85%. The loan amortizes at 1.25% of the original principal balance quarterly through March 2020, with the remaining balance due in April 2020. 3.625% Senior Notes, due April 2023 In April 2015 TA Mfg. Limited, a wholly owned subsidiary of the Company, issued €330.0 million in 3.625% Notes, due 2023 requiring semi-annual interest payments in April and October of each year until maturity. The notes are designated as a net investment hedge and translated to U.S. dollars each period, with the associated gains or losses recorded to AOCI. The net proceeds from the sale of the notes, after deducting $5.9 million of debt issuance costs, were $350.8 million. The 2023 Notes are general unsecured senior obligations of the Company. The 2023 Notes are unconditionally guaranteed on a senior basis by the Company and certain subsidiaries of the Company that are guarantors under the Company’s existing secured credit facility. The 2023 Notes are also subject to redemption at the option of the Company, in whole or in part, at redemption prices starting at 102.719% of the principal amount plus accrued interest during the period beginning April 15, 2018, and declining annually to 100% of principal and accrued interest on or after April 15, 2021. Based on quoted market prices, the fair value of the Company’s 2023 Notes was $383.0 million and $392.1 million as of December 28, 2018, and September 28, 2018, respectively. The carrying amount of the U.S. Term Loan, due 2020, approximates fair value. The estimate of fair value for the 2023 Notes is based on Level 2 inputs as defined in the fair value hierarchy described in Note 7. Government Refundable Advances Government refundable advances consist of payments received from the Canadian government to assist in research and development related to commercial aviation. The requirement to repay this advance is solely based on year-over-year commercial aviation revenue growth at CMC beginning in 2014. Imputed interest on the advance was negative 1.65% at December 28, 2018. The debt recognized was $41.4 million and $43.9 million at December 28, 2018, and September 28, 2018, respectively. Obligations Under Capital Leases The Company leases building and equipment under capital leases. The present value of the minimum capital lease payments, net of the current portion, totaled $66.4 million and $67.1 million as of December 28, 2018, and September 28, 2018, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 28, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11 – Commitments and Contingencies On December 18, 2018, an energetic incident occurred at one of the Company’s countermeasure facilities. The incident resulted in an injury to one employee, damage to a building, and the destruction of inventory and certain equipment. Operations at the factory are currently halted for investigation of the incident, repairs to the building and equipment, and implementation of process and facility improvements. Management expects the factory to be operating at a limited level of capacity in the second quarter of fiscal 2019 and at planned capacity in the third quarter of fiscal 2019. On October 31, 2018, the Company’s Darchem Engineering Ltd. (Darchem) subsidiary, through an unincorporated joint venture between Darchem and an independent contractor, known as EDEL, entered into a long-term contract as a subcontractor to manufacture and install pool liners for the Hinkley Point – C nuclear plant in the U.K. (the Manufacturing Contract). EDEL was formed to facilitate a single point of contact for the project and to simplify the billing processes to the customer. Accordingly, the assets and liabilities of the joint venture are not significant. Darchem’s portion of the $165.0 million Manufacturing Contract is approximately $116.0 million. Darchem and the third-party contractor have equal voting rights to direct and manage EDEL’s activities. Each party will only incur economic consequences, whether losses or gains, specific to its own role in the delivery of its specific scope of work under the Manufacturing Contract. Darchem does not have a controlling financial interest in the joint venture, and Darchem is not deemed to be the primary beneficiary of the joint venture. Darchem accounts for its investment in the joint venture on the equity method of accounting. Revenues and expenses for Darchem’s share of the contract are recorded over time in accordance with ASC 606. The maximum potential future payments for delays and liquidated damages that could be required under the contract is equal to 50% of the contract value or approximately $82.5 million. The maximum potential future payments would be mitigated by a required performance bond equal to 10% of the total contract, or $16.5 million, and a 3% retention, or $5.0 million. Pursuant to the Manufacturing Contract, the Company is required to execute a parent guarantee covering the obligations of EDEL to the customer, including the third-party contractor’s scope of work which is approximately 30% of the total contract value, or approximately $49.5 million. Separately, the sub-contractor’s parent company will furnish an indemnity to the Company in relation to the sub-contractor’s scope of work. Management determined the valuation of liability of the parent guarantee is not material. The Company is party to various lawsuits and claims, both as a plaintiff and defendant, and has contingent liabilities arising from the conduct of business, none of which, in the opinion of management, is expected to have a material effect on the Company’s financial position or results of operations. The Company believes that it has made appropriate and adequate provisions for contingent liabilities. |
Employee Stock Plans
Employee Stock Plans | 3 Months Ended |
Dec. 28, 2018 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Plans | Note 12 – Employee Stock Plans As of December 28, 2018, 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 $2.9 million and $4.0 million for the first three months of fiscal 2019 and 2018, respectively. During the first three months of fiscal 2019 and 2018, the Company issued 231,253 and 27,693 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. There were no grants in the three-month periods ended December 28, 2018, and December 29, 2017. 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. There were no stock options granted during the three-month period ended December 28, 2018. The Company granted 197,700 options to purchase shares in the three-month period ended December 29, 2017. The weighted-average grant date fair value of options granted during the three-month period ended December 29, 2017, was $31.20 per share. 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. Three Months Ended December 29, 2017 Volatility 34.32% Risk-free interest rate 2.15 - 2.47% Expected life (years) 5 - 9 Dividends 0 The Company granted 121,313 and 33,600 restricted stock units in the three-month periods ended December 28, 2018, and December 29, 2017, respectively. The weighted-average grant date fair value of restricted stock units granted during the three-month periods ended December 28, 2018, and December 29, 2017, was $117.35 and $91.79 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. There were no performance share plan (PSP) shares granted in the three-month period ended December 28, 2018. The Company granted 33,700 PSP shares in the three-month period ended December 29, 2017. PSP shares will be paid out in shares of Esterline common stock at the end of the three-year performance period. The PSP shares granted in each period equaled the number of shares participants would receive if the Company achieves target performance over the relevant period. The actual number of shares that will be paid out upon completion of the performance period is based on actual performance and may range from 0% to 300% of the target number of shares. |
Business Segment Information
Business Segment Information | 3 Months Ended |
Dec. 28, 2018 | |
Segment Reporting [Abstract] | |
Business Segment Information | Note 13 – 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 December 28, December 29, 2018 2017 Sales Avionics & Controls $ 210,744 $ 202,703 Sensors & Systems 179,448 175,468 Advanced Materials 94,795 103,874 $ 484,987 $ 482,045 Earnings from Continuing Operations Before Income Taxes Avionics & Controls $ 29,293 $ 19,181 Sensors & Systems 23,053 11,522 Advanced Materials 20,125 13,898 Segment Earnings 72,471 44,601 Corporate expense (23,504 ) (19,710 ) Interest income 827 298 Interest expense (6,774 ) (7,604 ) Other income 2,143 1,742 $ 45,163 $ 19,327 Disaggregation of Sales The following table presents the Company’s total net sales disaggregated by end market, customer type, timing of transfer to the customer and geography for the three months ended December 28, 2018: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Total Markets Commercial Aerospace $ 71,827 $ 114,309 $ 45,930 $ 232,066 Defense 71,620 30,912 44,077 146,609 General Industry 67,297 34,227 4,788 106,312 $ 210,744 $ 179,448 $ 94,795 $ 484,987 The Company’s sales by geographic area are as follows: In Thousands Three Months Ended December 28, 2018 Sales 1 Domestic Unaffiliated customers - U.S. $ 201,583 Unaffiliated customers - export 44,327 Intercompany 6,172 252,082 Canada Unaffiliated customers 48,791 Intercompany 1,690 50,481 France Unaffiliated customers 91,624 Intercompany 11,254 102,878 United Kingdom Unaffiliated customers 53,237 Intercompany 4,932 58,169 All other Foreign Unaffiliated customers 45,426 Intercompany 24,916 70,342 Eliminations (48,965 ) $ 484,987 1 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Dec. 28, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Recent Accounting Pronouncements | Recently Adopted In August 2016 the Financial Accounting Standards Board (FASB) issued new guidance addressing how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The standard was implemented in the first quarter of fiscal 2019 and there was no impact to the Company’s Consolidated Statement of Cash Flows. In October 2016 the FASB issued new guidance regarding income taxes. The new guidance requires the tax effects of intercompany transactions, other than sales of inventory, to be recognized currently, eliminating an exception under current GAAP in which the tax effects of intra-entity asset transfers are deferred until the transferred asset is sold to a third party or otherwise recovered through uses. The standard was implemented in the first quarter of fiscal 2019 and there was no impact to the Company’s Consolidated Statement of Operations and Comprehensive Income (Loss) and the Consolidated Balance Sheet. On September 29, 2018, the Company adopted ASC 606, Revenue from Contracts with Customers using the modified retrospective method applied to those contracts not yet completed as of September 29, 2018. Results for reporting periods beginning after September 29, 2018, are presented under ASC 606, while prior-period amounts are not adjusted and continue to be reported in accordance with the Company’s historical accounting under ASC 605. The cumulative effect from the adoption of the new revenue standard as of September 29, 2018, was as follows: In Thousands Adjustments As of Due to As of September 28, Adoption September 29, 2018 of ASC 606 2018 Balance Sheet Accounts receivable, net $ 441,696 $ 41,262 $ 482,958 Inventories 457,226 (24,682 ) 432,544 Deferred income tax benefits 44,008 (2,081 ) 41,927 Accrued liabilities 232,730 8,450 241,180 Deferred income tax liabilities 28,899 (65 ) 28,834 Retained earnings 1,732,327 6,114 1,738,441 The most significant impacts upon adoption of ASC 606 on September 29, 2018, include the following items: • Unbilled revenue of $41.3 million was recorded at transition in accounts receivable, net, partially offset by a $24.7 million reduction in inventories in the Company’s Consolidated Balance Sheet with the impact primarily related to the recognition of more contract consideration under a cost-to-cost percentage of completion basis under ASC 606 as compared to historical guidance under ASC 605. • Deferred revenue of $8.5 million was recorded at transition in accrued liabilities in the Company’s Consolidated Balance Sheet, primarily related to customer funding received under non-recurring engineering (NRE) contracts that do not transfer control of a distinct good or service to the customer. The impact of adoption on the Company’s Consolidated Statement of Operations and Comprehensive Income (Loss) for the three months ended and as of December 28, 2018, was as follows: In Thousands Three Months Ended December 28, 2018 Balances Adjustments Without Increase/ Adoption As Reported (Decrease) of ASC 606 Net sales $ 484,987 $ (6,459 ) $ 478,528 Cost of sales 318,857 (4,318 ) 314,539 Selling, general & administrative 92,738 (3 ) 92,735 Research, development and engineering 20,404 10 20,414 Income tax expense 11,280 (519 ) 10,761 Earnings from continuing operations including noncontrolling interests $ 33,883 $ (1,629 ) $ 32,254 The most significant impacts to financial statement results as reported under ASC 606 as compared with ASC 605 for the current reporting period was the recognition of more contract consideration under a cost-to-cost percentage of completion basis rather than at the point in time that products were shipped, delivered, or accepted. On September 29, 2018, the Company adopted the amendments to ASC 715 that improve the presentation of net periodic pension and postretirement benefit costs. The Company retrospectively adopted the presentation of service cost separate from the other components of net periodic costs and included it as a component of employee compensation cost in operating income. The interest cost, expected return on assets, amortization of prior service costs, and net actuarial gain/loss components of net periodic benefit costs have been reclassified from operating income to other income, net. Additionally, the Company elected to apply the practical expedient which allows it to reclassify amounts disclosed previously in Note 4 of the Company’s 2018 Form 10-Q for the three-month period ended December 29, 2017, as the basis for applying retrospective presentation for comparative periods. The effect of the retrospective change on the Company’s Consolidated Statement of Operations and Comprehensive Income (Loss) for the first three-month period ended December 29, 2017, was to increase previously reporting cost of sales, selling, general and administrative expense and research, development and engineering by $0.6 million, $1.0 million and $0.1 million, respectively, and increase other income by $1.7 million. Recent Accounting Pronouncements Not Yet Adopted In February 2016 the FASB issued a new lease accounting standard, which provides revised guidance on accounting for lease arrangements by both lessors and lessees. The central requirement of the new standard is that lessees must recognize lease-related assets and liabilities for all leases with a term longer than 12 months. The Company is evaluating the effect the standard will have on the Company’s consolidated financial statements and related disclosures. The new standard is effective for the Company in fiscal year 2020, with early adoption permitted. In June 2016 the FASB issued a new standard on the measurement of credit losses, which will impact the Company’s measurement of trade receivables. The new standard replaces the current incurred loss model with a forward-looking expected loss model that is likely to result in earlier recognition of losses. The Company is evaluating the effect the updated standard will have on the Company’s consolidated financial statements and related disclosures. The new standard is effective for the Company in 2021, with early adoption permitted, but not earlier than 2020. In August 2017 the FASB amended its guidance on the financial reporting of hedging relationships. The new guidance eliminates the requirement to separately measure and report hedge ineffectiveness, expands permissible cash flow hedges on contractually specified components, and simplifies hedge documentation and effectiveness assessment. The guidance will be effective at the beginning of the Company’s first quarter of fiscal year 2020 and will require a modified retrospective approach on existing cash flow and net investment hedges. The presentation and disclosure requirements will be applied prospectively. The Company is currently evaluating the impact this guidance will have on the Company’s consolidated financial statements and the timing of adoption. |
Recent Accounting Pronounceme_3
Recent Accounting Pronouncements (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Summary of Cumulative Effect from Adoption of New Revenue Standard | The cumulative effect from the adoption of the new revenue standard as of September 29, 2018, was as follows: In Thousands Adjustments As of Due to As of September 28, Adoption September 29, 2018 of ASC 606 2018 Balance Sheet Accounts receivable, net $ 441,696 $ 41,262 $ 482,958 Inventories 457,226 (24,682 ) 432,544 Deferred income tax benefits 44,008 (2,081 ) 41,927 Accrued liabilities 232,730 8,450 241,180 Deferred income tax liabilities 28,899 (65 ) 28,834 Retained earnings 1,732,327 6,114 1,738,441 |
Summary of Impact of Adoption on Consolidated Statement of Operations and Comprehensive Income (Loss) | The impact of adoption on the Company’s Consolidated Statement of Operations and Comprehensive Income (Loss) for the three months ended and as of December 28, 2018, was as follows: In Thousands Three Months Ended December 28, 2018 Balances Adjustments Without Increase/ Adoption As Reported (Decrease) of ASC 606 Net sales $ 484,987 $ (6,459 ) $ 478,528 Cost of sales 318,857 (4,318 ) 314,539 Selling, general & administrative 92,738 (3 ) 92,735 Research, development and engineering 20,404 10 20,414 Income tax expense 11,280 (519 ) 10,761 Earnings from continuing operations including noncontrolling interests $ 33,883 $ (1,629 ) $ 32,254 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Revenue From Contract With Customer [Abstract] | |
Schedule of Remaining Performance Obligation | The table below discloses, by segment, the aggregate amount of the transaction price allocated to remaining performance obligations as of December 28, 2018, and when the Company expects to recognize this revenue. In Thousands Remaining Performance Obligations 2019 2020 2021 2022 2023 Thereafter Total Avionics & Controls $ 437,362 $ 134,444 $ 63,764 $ 37,607 $ 27,646 $ 33,466 $ 734,289 Sensors & Systems 310,342 44,625 13,363 13,135 1,682 12,662 395,809 Advanced Materials 212,718 99,365 59,103 38,258 37,636 27,200 474,280 $ 960,422 $ 278,434 $ 136,230 $ 89,000 $ 66,964 $ 73,328 $ 1,604,378 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Accounts Receivable Net [Abstract] | |
Summary of Accounts Receivable | In Thousands December 28, September 28, 2018 2018 Trade and other receivables $ 401,264 $ 442,838 Less allowance for doubtful accounts (16,647 ) (16,203 ) Net trade receivables 384,617 426,635 Unbilled receivables 54,784 15,061 $ 439,401 $ 441,696 |
Earnings Per Share and Shareh_2
Earnings Per Share and Shareholders Equity (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
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 December 28, December 29, 2018 2017 Shares used for basic earnings per share 29,530 29,903 Shares used for diluted earnings per share 29,887 29,903 |
Schedule of Changes in Issued and Outstanding Common Shares and Treasury Stock | Changes in issued and outstanding common shares are summarized as follows: Three Months Ended Year Ended December 28, September 28, 2018 2018 Shares Issued: Balance, beginning of year 33,190,467 33,117,473 Shares issued under share-based compensation plans 231,253 72,994 Balance, end of current period 33,421,720 33,190,467 Treasury Stock: Balance, beginning of year (3,737,327 ) (3,135,927 ) Shares purchased - (601,400 ) Balance, end of current period (3,737,327 ) (3,737,327 ) Shares outstanding, end of period 29,684,393 29,453,140 |
Schedule of Components of Accumulated Other Comprehensive Loss | The components of Accumulated Other Comprehensive Loss: In Thousands December 28, September 28, 2018 2018 Unrealized loss on derivative contracts $ (16,365 ) $ (5,381 ) Tax effect 4,628 1,673 (11,737 ) (3,708 ) Pension and post-retirement obligations (54,716 ) (55,817 ) Tax effect 14,158 22,135 (40,558 ) (33,682 ) Cumulative effect of accounting change - (7,682 ) Currency translation adjustment (297,190 ) (261,117 ) Accumulated other comprehensive loss $ (349,485 ) $ (306,189 ) |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
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. Components of periodic pension cost consisted of the following: In Thousands Three Months Ended December 28, December 29, 2018 2017 Components of Net Periodic Cost Service cost $ 3,872 $ 3,374 Interest cost 4,724 4,106 Expected return on plan assets (7,149 ) (6,808 ) Amortization of prior service cost 146 126 Amortization of actuarial loss 127 797 Net periodic cost $ 1,720 $ 1,595 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
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 December 28, 2018, and September 28, 2018. In Thousands Level 2 December 28, September 28, 2018 2018 Assets: Derivative contracts designated as hedging instruments $ 16 $ 1,374 Derivative contracts not designated as hedging instruments 50 38 Embedded derivatives 6,853 1,296 Liabilities: Derivative contracts designated as hedging instruments $ 16,381 $ 6,756 Derivative contracts not designated as hedging instruments 1,212 1,026 Embedded derivatives 623 684 In Thousands Level 3 December 28, September 28, 2018 2018 Assets: Estimated value of assets held for sale $ - $ 4,225 Liabilities: Estimated value of liabilities held for sale $ - $ 144 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
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 December 28, 2018, and September 28, 2018, consisted of: In Thousands Fair Value December 28, September 28, Classification 2018 2018 Foreign Currency Forward Exchange Contracts: Other current assets $ 56 $ 1,176 Other assets 10 236 Accrued liabilities 13,507 6,643 Other liabilities 4,086 1,139 Embedded Derivative Instruments: Other current assets $ 2,967 $ 1,050 Other assets 3,886 246 Accrued liabilities 460 398 Other liabilities 163 286 |
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-month periods ended December 28, 2018, and December 29, 2017, consisted of: Fair Value Hedges and Embedded Derivatives The Company recognized the following gains (losses) on contracts designated as fair value hedges and embedded derivatives: In Thousands Three Months Ended Gain (Loss) December 28, December 29, 2018 2017 Fair Value Hedges: Recognized in cost of sales $ (1,685 ) $ (378 ) Recognized in selling, general & administrative (3,857 ) (323 ) Embedded derivatives: Recognized in sales $ 2,055 $ 345 Cash Flow Hedges The Company recognized the following gains (losses) on contracts designated as cash flow hedges: In Thousands Three Months Ended Gain (Loss) December 28, December 29, 2018 2017 Foreign currency forward exchange contracts: Recognized in AOCI (effective portion) $ (9,327 ) $ (2,493 ) Reclassified from AOCI into sales (1,657 ) 1,933 Net Investment Hedges The Company recognized the following gains (losses) on contracts designated as net investment hedges: In Thousands Three Months Ended Gain (Loss) December 28, December 29, 2018 2017 2023 Notes and Accrued Interest: Recognized in AOCI $ 5,361 $ (6,297 ) |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt at December 28, 2018, and September 28, 2018, consisted of the following: In Thousands December 28, September 28, 2018 2018 U.S. Term Loan, due April 2020 $ 180,000 $ 180,000 3.625% Senior Notes, due April 2023 377,619 382,965 Government refundable advances 41,362 43,873 Obligations under capital leases 68,744 69,310 Debt issuance costs (3,441 ) (3,680 ) 664,284 672,468 Less current maturities 17,439 17,546 Carrying amount of long-term debt $ 646,845 $ 654,922 |
Employee Stock Plans (Tables)
Employee Stock Plans (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
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. Three Months Ended December 29, 2017 Volatility 34.32% Risk-free interest rate 2.15 - 2.47% Expected life (years) 5 - 9 Dividends 0 |
Business Segment Information (T
Business Segment Information (Tables) | 3 Months Ended |
Dec. 28, 2018 | |
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 December 28, December 29, 2018 2017 Sales Avionics & Controls $ 210,744 $ 202,703 Sensors & Systems 179,448 175,468 Advanced Materials 94,795 103,874 $ 484,987 $ 482,045 Earnings from Continuing Operations Before Income Taxes Avionics & Controls $ 29,293 $ 19,181 Sensors & Systems 23,053 11,522 Advanced Materials 20,125 13,898 Segment Earnings 72,471 44,601 Corporate expense (23,504 ) (19,710 ) Interest income 827 298 Interest expense (6,774 ) (7,604 ) Other income 2,143 1,742 $ 45,163 $ 19,327 |
Summary of Company's Total Net Sales Disaggregated by End Market, Customer Type, Timing of Transfer to the Customer and Geography | The following table presents the Company’s total net sales disaggregated by end market, customer type, timing of transfer to the customer and geography for the three months ended December 28, 2018: In Thousands Avionics & Sensors & Advanced Controls Systems Materials Total Markets Commercial Aerospace $ 71,827 $ 114,309 $ 45,930 $ 232,066 Defense 71,620 30,912 44,077 146,609 General Industry 67,297 34,227 4,788 106,312 $ 210,744 $ 179,448 $ 94,795 $ 484,987 |
Summary of Company's Sales by Geographic Area | The Company’s sales by geographic area are as follows: In Thousands Three Months Ended December 28, 2018 Sales 1 Domestic Unaffiliated customers - U.S. $ 201,583 Unaffiliated customers - export 44,327 Intercompany 6,172 252,082 Canada Unaffiliated customers 48,791 Intercompany 1,690 50,481 France Unaffiliated customers 91,624 Intercompany 11,254 102,878 United Kingdom Unaffiliated customers 53,237 Intercompany 4,932 58,169 All other Foreign Unaffiliated customers 45,426 Intercompany 24,916 70,342 Eliminations (48,965 ) $ 484,987 1 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Dec. 28, 2018 | Oct. 09, 2018 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Merger related costs | $ 4 | |
Trans Digm | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Business acquisition, share price | $ 122.50 |
Summary of Cumulative Effect fr
Summary of Cumulative Effect from Adoption of New Revenue Standard (Detail) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 29, 2018 | Sep. 28, 2018 |
Balance Sheet | |||
Accounts receivable, net | $ 439,401 | $ 441,696 | |
Inventories | 452,190 | 457,226 | |
Deferred income tax benefits | 44,873 | 44,008 | |
Accrued liabilities | 228,865 | 232,730 | |
Deferred income tax liabilities | 26,095 | 28,899 | |
Retained earnings | $ 1,772,240 | $ 1,732,327 | |
Accounting Standards Update 2014-09 | |||
Balance Sheet | |||
Accounts receivable, net | $ 482,958 | ||
Inventories | 432,544 | ||
Deferred income tax benefits | 41,927 | ||
Accrued liabilities | 241,180 | ||
Deferred income tax liabilities | 28,834 | ||
Retained earnings | 1,738,441 | ||
Accounting Standards Update 2014-09 | Adjustments Due to Adoption of ASC 606 | |||
Balance Sheet | |||
Accounts receivable, net | 41,262 | ||
Inventories | (24,682) | ||
Deferred income tax benefits | (2,081) | ||
Accrued liabilities | 8,450 | ||
Deferred income tax liabilities | (65) | ||
Retained earnings | $ 6,114 |
Recent Accounting Pronounceme_4
Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 29, 2017 | Dec. 28, 2018 | Sep. 29, 2018 | Sep. 28, 2018 | |
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Accounts receivable, net | $ 439,401 | $ 441,696 | ||
Accrued liabilities | $ 228,865 | $ 232,730 | ||
Cost of Sales | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Effect of retrospective change on Consolidated Statement of Operations and Comprehensive Income (Loss) | $ 600 | |||
Selling, General and Administrative Expense | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Effect of retrospective change on Consolidated Statement of Operations and Comprehensive Income (Loss) | 1,000 | |||
Research, Development and Engineering | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Effect of retrospective change on Consolidated Statement of Operations and Comprehensive Income (Loss) | 100 | |||
Other Income | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Effect of retrospective change on Consolidated Statement of Operations and Comprehensive Income (Loss) | $ 1,700 | |||
Accounting Standards Update 2014-09 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Accounts receivable, net | $ 482,958 | |||
Accrued liabilities | 241,180 | |||
Accounting Standards Update 2014-09 | Adjustments Due to Adoption of ASC 606 | ||||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | ||||
Accounts receivable, net | 41,262 | |||
Reduction in inventories | 24,700 | |||
Accrued liabilities | $ 8,450 |
Summary of Impact of Adoption o
Summary of Impact of Adoption on Consolidated Statement of Operations and ComprehensiveIncome (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | ||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Net sales | $ 484,987 | [1] | $ 482,045 |
Cost of sales | 318,857 | 334,316 | |
Selling, general & administrative | 92,738 | 99,897 | |
Research, development and engineering | 20,404 | 25,966 | |
Income tax expense | 11,280 | 53,789 | |
Earnings from continuing operations including noncontrolling interests | 33,883 | $ (34,462) | |
Accounting Standards Update 2014-09 | Adjustments Increase/(Decrease) | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Net sales | (6,459) | ||
Cost of sales | (4,318) | ||
Selling, general & administrative | (3) | ||
Research, development and engineering | 10 | ||
Income tax expense | (519) | ||
Earnings from continuing operations including noncontrolling interests | (1,629) | ||
Accounting Standards Update 2014-09 | Balances Without Adoption of ASC 606 | |||
New Accounting Pronouncements Or Change In Accounting Principle [Line Items] | |||
Net sales | 478,528 | ||
Cost of sales | 314,539 | ||
Selling, general & administrative | 92,735 | ||
Research, development and engineering | 20,414 | ||
Income tax expense | 10,761 | ||
Earnings from continuing operations including noncontrolling interests | $ 32,254 | ||
[1] | Based on country from which the sale originated and the sale was recorded. |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 |
Revenue From Contract With Customer [Abstract] | ||
Remaining performance obligation | $ 1,604,378 | $ 1,500,000 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Remaining Performance Obligation (Detail) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 1,604,378 | $ 1,500,000 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-12-29 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 960,422 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 9 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-09-28 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 278,434 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-09-26 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 136,230 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-09-25 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 89,000 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 66,964 | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-09-30 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 73,328 | |
Avionics & Controls | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 734,289 | |
Avionics & Controls | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-12-29 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 437,362 | |
Avionics & Controls | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-09-28 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 134,444 | |
Avionics & Controls | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-09-26 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 63,764 | |
Avionics & Controls | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-09-25 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 37,607 | |
Avionics & Controls | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 27,646 | |
Avionics & Controls | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-09-30 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 33,466 | |
Sensors & Systems | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 395,809 | |
Sensors & Systems | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-12-29 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 310,342 | |
Sensors & Systems | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-09-28 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 44,625 | |
Sensors & Systems | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-09-26 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 13,363 | |
Sensors & Systems | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-09-25 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 13,135 | |
Sensors & Systems | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 1,682 | |
Sensors & Systems | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-09-30 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 12,662 | |
Advanced Materials | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 474,280 | |
Advanced Materials | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2018-12-29 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 212,718 | |
Advanced Materials | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2019-09-28 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 99,365 | |
Advanced Materials | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2020-09-26 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 59,103 | |
Advanced Materials | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2021-09-25 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 38,258 | |
Advanced Materials | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 37,636 | |
Advanced Materials | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-09-30 | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 27,200 |
Revenue Recognition - Schedul_2
Revenue Recognition - Schedule of Remaining Performance Obligation (Detail 1) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 |
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 1,604,378 | $ 1,500,000 |
Avionics & Controls | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 734,289 | |
Sensors & Systems | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | 395,809 | |
Advanced Materials | ||
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction [Line Items] | ||
Remaining performance obligation | $ 474,280 |
Accounts Receivable - Summary o
Accounts Receivable - Summary of Accounts Receivable (Detail) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 |
Accounts Receivable Net [Abstract] | ||
Trade and other receivables | $ 401,264 | $ 442,838 |
Less allowance for doubtful accounts | (16,647) | (16,203) |
Net trade receivables | 384,617 | 426,635 |
Unbilled receivables | 54,784 | 15,061 |
Accounts receivable | $ 439,401 | $ 441,696 |
Earnings Per Share and Shareh_3
Earnings Per Share and Shareholders Equity - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Dec. 28, 2018 | Dec. 29, 2017 | Sep. 28, 2018 | Mar. 31, 2015 | Oct. 31, 2014 | |
Earnings Per Share And Shareholders Equity [Line Items] | |||||
Anti-dilutive shares excluded from computation of earnings per share | 0 | ||||
Preferred stock shares authorized | 25,000 | ||||
Preferred stock, par value | $ 100 | ||||
Common stock, shares authorized | 60,000,000 | 60,000,000 | |||
Common stock, par value | $ 0.20 | $ 0.20 | |||
Preferred stock shares outstanding | 0 | 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 | 0 | 287,500 | 601,400 | ||
Average price paid per share of repurchased stock | $ 71.11 | ||||
Aggregate value of repurchased stock | $ 20,400,000 | ||||
Remaining value of shares to repurchase in future | $ 48,000,000 | ||||
Stock repurchased during period, shares | 3,737,327 | ||||
Aggregate value of repurchased stock | $ 352,000,000 | ||||
Series B Preferred Stock | |||||
Earnings Per Share And Shareholders Equity [Line Items] | |||||
Preferred stock shares authorized | 475,000 | ||||
Preferred stock, par value | $ 1 | ||||
Preferred stock shares outstanding | 0 | 0 |
Shares Used for Calculating Ear
Shares Used for Calculating Earnings Per Share (Detail) - shares shares in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Earnings Per Share [Abstract] | ||
Shares used for basic earnings per share | 29,530 | 29,903 |
Shares used for diluted earnings per share | 29,887 | 29,903 |
Schedule of Changes in Issued a
Schedule of Changes in Issued and Outstanding Common Shares and Treasury Stock (Detail) - shares | 3 Months Ended | 12 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | Sep. 28, 2018 | |
Equity [Abstract] | |||
Shares issued, balance, beginning of year | 33,190,467 | 33,117,473 | 33,117,473 |
Shares issued under share-based compensation plans | 231,253 | 72,994 | |
Shares issued, balance, end of current period | 33,421,720 | 33,190,467 | |
Treasury stock, balance, beginning of year | (3,737,327) | (3,135,927) | (3,135,927) |
Treasur stock, shares purchased | 0 | (287,500) | (601,400) |
Treasury stock, balance, end of current period | (3,737,327) | (3,737,327) | |
Shares outstanding, end of period | 29,684,393 | 29,453,140 |
Schedule of Components of Accum
Schedule of Components of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | ||
Unrealized loss on derivative contracts | $ (16,365) | $ (5,381) |
Tax effect | 4,628 | 1,673 |
Unrealized loss on derivative contracts, Total | (11,737) | (3,708) |
Pension and post-retirement obligations | (54,716) | (55,817) |
Tax effect | 14,158 | 22,135 |
Pension and post-retirement obligations, Total | (40,558) | (33,682) |
Cumulative effect of accounting change | 0 | (7,682) |
Currency translation adjustment | (297,190) | (261,117) |
Accumulated other comprehensive loss | $ (349,485) | $ (306,189) |
Schedule of Net Periodic Pensio
Schedule of Net Periodic Pension Cost (Detail) - Pension Plans, Defined Benefit - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 3,872 | $ 3,374 |
Interest cost | 4,724 | 4,106 |
Expected return on plan assets | (7,149) | (6,808) |
Amortization of prior service cost | 146 | 126 |
Amortization of actuarial loss | 127 | 797 |
Net periodic cost | $ 1,720 | $ 1,595 |
Schedule of Financial Assets an
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 |
Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Derivative contracts designated as hedging instruments, Assets | $ 16 | $ 1,374 |
Derivative contracts not designated as hedging instruments, Assets | 50 | 38 |
Embedded derivatives, Assets | 6,853 | 1,296 |
Derivative contracts designated as hedging instruments, Liabilities | 16,381 | 6,756 |
Derivative contracts not designated as hedging instruments, Liabilities | 1,212 | 1,026 |
Embedded derivatives, Liabilities | 623 | 684 |
Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Estimated value of assets held for sale | 0 | 4,225 |
Estimated value of liabilities held for sale | $ 0 | $ 144 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) € in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
Apr. 30, 2015EUR (€) | Dec. 28, 2018USD ($) | Dec. 29, 2017USD ($) | Sep. 28, 2018USD ($) | |
Derivative [Line Items] | ||||
Gains on foreign currency forward exchange contracts not designated as an accounting hedge | $ 3.5 | $ 1.5 | ||
Net loss expected to be reclassified into earnings over next 12 months | $ 12.6 | |||
Maturities of forecasted transactions using forward exchange contracts | 24 months | |||
3.625% Senior Notes, Due April 2023 | ||||
Derivative [Line Items] | ||||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | |
Debt instruments maturity date | Apr. 30, 2023 | Apr. 30, 2023 | Apr. 30, 2023 | |
Net Investment Hedges | 3.625% Senior Notes, Due April 2023 | ||||
Derivative [Line Items] | ||||
Derivative notional amount | € | € 330 | |||
Foreign Exchange Forward | ||||
Derivative [Line Items] | ||||
Derivative notional amount | $ 476.1 | $ 452 | ||
Foreign Exchange Forward Contracts Related to Net Monetary Assets | Cash Flow Hedging | ||||
Derivative [Line Items] | ||||
Derivative notional amount | $ 105 |
Fair Value of Derivative Instru
Fair Value of Derivative Instruments in Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 |
Foreign Exchange Forward | Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | $ 56 | $ 1,176 |
Foreign Exchange Forward | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | 10 | 236 |
Foreign Exchange Forward | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | 4,086 | 1,139 |
Foreign Exchange Forward | Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | 13,507 | 6,643 |
Embedded Derivative Financial Instruments | Other Current Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | 2,967 | 1,050 |
Embedded Derivative Financial Instruments | Other Assets | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Assets | 3,886 | 246 |
Embedded Derivative Financial Instruments | Other Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | 163 | 286 |
Embedded Derivative Financial Instruments | Accrued Liabilities | ||
Derivatives Fair Value [Line Items] | ||
Derivative Instruments, Liabilities | $ 460 | $ 398 |
Effect of Derivative Instrument
Effect of Derivative Instruments on Consolidated Statement of Operations and Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Fair Value Hedges | Cost of Sales | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gains (losses) on contracts | $ (1,685) | $ (378) |
Fair Value Hedges | Selling, General & Administrative | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gains (losses) on contracts | (3,857) | (323) |
Net Investment Hedges | 2023 Notes and Accrued Interest | ||
Derivative Instruments Gain Loss [Line Items] | ||
Recognized in AOCI | 5,361 | (6,297) |
Embedded Derivative Financial Instruments | Sales | ||
Derivative Instruments Gain Loss [Line Items] | ||
Gains (losses) on contracts | 2,055 | 345 |
Foreign Exchange Forward | Cash Flow Hedging | ||
Derivative Instruments Gain Loss [Line Items] | ||
Recognized in AOCI (effective portion) | (9,327) | (2,493) |
Reclassified from AOCI into sales | $ (1,657) | $ 1,933 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | Feb. 05, 2019 | Dec. 28, 2018 | Dec. 29, 2017 | Sep. 28, 2018 |
Income Taxes [Line Items] | ||||
U.S. statutory income tax rate | 21.00% | 35.00% | ||
Recognized provisional net charge as component of income tax due to tax effects | $ 49.9 | |||
Tax Cuts and Jobs Act of 2017, accounting complete | 0 | |||
Income tax benefit for remeasurement of deferred tax liability from change in tax rate | $ 0.2 | |||
Net charge recorded as component of income tax due to tax effects | 49.7 | |||
Unrecognized tax benefit reasonably possible to be recognized by the end of fiscal year | $ 0.8 | |||
New Guidance for Accounting Standard Update | Adjustments for New Accounting Principle, Early Adoption | ||||
Income Taxes [Line Items] | ||||
Income tax rate | 25.00% | 26.90% | ||
New Guidance for Accounting Standard Update | Adjustments for New Accounting Principle, Early Adoption | After Effect of Tax Cuts and Jobs Act | ||||
Income Taxes [Line Items] | ||||
Income tax rate | 278.30% | |||
Subsequent Event | ||||
Income Taxes [Line Items] | ||||
Federal transition tax payable | $ 2 |
Long-Term Debt (Detail)
Long-Term Debt (Detail) - USD ($) $ in Thousands | Dec. 28, 2018 | Sep. 28, 2018 |
Debt Instrument [Line Items] | ||
Government refundable advances | $ 41,362 | $ 43,873 |
Obligations under capital leases | 68,744 | 69,310 |
Debt issuance costs | (3,441) | (3,680) |
Total long-term debt | 664,284 | 672,468 |
Less current maturities | 17,439 | 17,546 |
Carrying amount of long-term debt | 646,845 | 654,922 |
U.S. Term Loan, due April 2020 | ||
Debt Instrument [Line Items] | ||
Term Loan | 180,000 | 180,000 |
3.625% Senior Notes, due April 2023 | ||
Debt Instrument [Line Items] | ||
Senior Notes | $ 377,619 | $ 382,965 |
Long-Term Debt (Parenthetical)
Long-Term Debt (Parenthetical) (Detail) | 1 Months Ended | 3 Months Ended | 12 Months Ended |
Apr. 30, 2015 | Dec. 28, 2018 | Sep. 28, 2018 | |
3.625% Senior Notes, due April 2023 | |||
Debt Instrument [Line Items] | |||
Long-term debt interest rate | 3.625% | 3.625% | 3.625% |
Debt instruments maturity date | Apr. 30, 2023 | Apr. 30, 2023 | Apr. 30, 2023 |
U.S. Term Loan, due April 2020 | |||
Debt Instrument [Line Items] | |||
Debt instruments maturity date | Apr. 30, 2020 | Apr. 30, 2020 |
Debt - Additional Information (
Debt - Additional Information (Detail) € in Millions | Aug. 03, 2015USD ($) | Apr. 09, 2015USD ($) | Apr. 30, 2015USD ($) | Dec. 28, 2018USD ($) | Sep. 28, 2018USD ($) | Apr. 30, 2015EUR (€) |
Debt Instrument [Line Items] | ||||||
Imputed interest on advance | 1.65% | |||||
Government refundable advances | $ 41,362,000 | $ 43,873,000 | ||||
Present value of minimum lease payment | $ 66,400,000 | $ 67,100,000 | ||||
U.S. Term Loan, due April 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Loan amortization rate | 1.25% | |||||
Loan amortization end date | Mar. 31, 2020 | |||||
Debt instruments maturity date | Apr. 30, 2020 | Apr. 30, 2020 | ||||
3.625% Senior Notes, Due April 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instruments maturity date | Apr. 30, 2023 | Apr. 30, 2023 | Apr. 30, 2023 | |||
Debt instrument, interest rate | 3.625% | 3.625% | 3.625% | |||
Fair market value of long-term debt and short-term borrowings | $ 383,000,000 | $ 392,100,000 | ||||
3.625% Senior Notes, Due April 2023 | TA Mfg Limited | ||||||
Debt Instrument [Line Items] | ||||||
Debt issuance costs | $ 5,900,000 | |||||
Debt instrument, face amount | € | € 330 | |||||
Debt instrument, interest rate | 3.625% | |||||
Net proceeds from issuance of debt | $ 350,800,000 | |||||
3.625% Senior Notes, Due April 2023 | TA Mfg Limited | 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 | TA Mfg Limited | Debt Redemption After April 15, 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Debt instrument redemption price percentage plus accrued interest | 100.00% | |||||
London Interbank Offered Rate (LIBOR) | U.S. Term Loan, due April 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, basis spread on variable rate | 1.50% | |||||
Interest rate | 3.85% | |||||
London Interbank Offered Rate (LIBOR) | Minimum | U.S. Term Loan, due April 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, basis spread on variable rate | 1.25% | |||||
London Interbank Offered Rate (LIBOR) | Maximum | U.S. Term Loan, due April 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate, basis spread on variable rate | 2.00% | |||||
Delayed-Draw Term Loan Facility | U.S. Term Loan, due April 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Funds borrowed under the delayed-draw term Loan | $ 250,000,000 | |||||
Secured Debt | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility expiration date | Apr. 9, 2020 | |||||
Debt issuance costs | $ 2,300,000 | |||||
Credit facilities | $ 0 | |||||
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 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) - Manufacturing Contract Commitment | Oct. 31, 2018USD ($) |
Other Commitments [Line Items] | |
Contractual obligation | $ 165,000,000 |
Maximum potential future payment expressed as percentage of contract value | 50.00% |
Maximum potential future payment amount | $ 82,500,000 |
Performance bond available to mitigate potential future payments as percentage of contract | 10.00% |
Performance bond available to mitigate potential future payments | $ 16,500,000 |
Retention amount available to mitigate potential future payments as percentage of contract | 3.00% |
Retention amount available to mitigate potential future payments | $ 5,000,000 |
Guarantee obligations percentage | 30.00% |
Guarantee obligations value | $ 49,500,000 |
Darchem | |
Other Commitments [Line Items] | |
Contractual obligation | $ 116,000,000 |
Employee Stock Plans - Addition
Employee Stock Plans - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 28, 2018 | Dec. 29, 2017 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation | $ 2,861 | $ 3,998 |
Shares issued under share-based compensation plans | 231,253 | 27,693 |
Restricted Stock Units | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted | 121,313 | 33,600 |
Weighted Average Grant Date Fair Value | $ 117.35 | $ 91.79 |
Performance Share Plan Shares | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted | 0 | 33,700 |
Performance period | 3 years | |
Performance Share Plan Shares | Minimum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Percentage of the target number of shares paid out | 0.00% | |
Performance Share Plan Shares | Maximum | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Percentage of the target number of shares paid out | 300.00% | |
Employee Share-save 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 | 0 | 0 |
Equity Incentive Plan | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Number of options granted | 0 | 197,700 |
Weighted-average grant date fair value of options granted | $ 31.20 | |
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) - Equity Incentive Plan | 3 Months Ended |
Dec. 29, 2017USD ($) | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Volatility | 34.32% |
Risk-free interest rate, minimum | 2.15% |
Risk-free interest rate, maximum | 2.47% |
Dividends | $ 0 |
Maximum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected life (years) | 9 years |
Minimum | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Expected life (years) | 5 years |
Business Segment Information fo
Business Segment Information for Continuing Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | ||
Segment Reporting Information [Line Items] | |||
Sales | $ 484,987 | [1] | $ 482,045 |
Interest income | 827 | 298 | |
Interest expense | (6,774) | (7,604) | |
Other income | 2,143 | 1,742 | |
Earnings from Continuing Operations Before Income Taxes | 45,163 | 19,327 | |
Avionics & Controls | |||
Segment Reporting Information [Line Items] | |||
Sales | 210,744 | 202,703 | |
Sensors & Systems | |||
Segment Reporting Information [Line Items] | |||
Sales | 179,448 | 175,468 | |
Advanced Materials | |||
Segment Reporting Information [Line Items] | |||
Sales | 94,795 | 103,874 | |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Segment Earnings | 72,471 | 44,601 | |
Operating Segments | Avionics & Controls | |||
Segment Reporting Information [Line Items] | |||
Segment Earnings | 29,293 | 19,181 | |
Operating Segments | Sensors & Systems | |||
Segment Reporting Information [Line Items] | |||
Segment Earnings | 23,053 | 11,522 | |
Operating Segments | Advanced Materials | |||
Segment Reporting Information [Line Items] | |||
Segment Earnings | 20,125 | 13,898 | |
Corporate Non Segment | |||
Segment Reporting Information [Line Items] | |||
Corporate expense | $ (23,504) | $ (19,710) | |
[1] | Based on country from which the sale originated and the sale was recorded. |
Summary of Company's Total Net
Summary of Company's Total Net Sales Disaggregated by End Market, Customer Type, Timing of Transfer to the Customer and Geography (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 28, 2018 | Dec. 29, 2017 | ||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | $ 484,987 | [1] | $ 482,045 |
Commercial Aerospace | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | 232,066 | ||
Defense | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | 146,609 | ||
General Industry | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | 106,312 | ||
Avionics & Controls | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | 210,744 | 202,703 | |
Avionics & Controls | Commercial Aerospace | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | 71,827 | ||
Avionics & Controls | Defense | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | 71,620 | ||
Avionics & Controls | General Industry | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | 67,297 | ||
Sensors & Systems | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | 179,448 | 175,468 | |
Sensors & Systems | Commercial Aerospace | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | 114,309 | ||
Sensors & Systems | Defense | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | 30,912 | ||
Sensors & Systems | General Industry | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | 34,227 | ||
Advanced Materials | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | 94,795 | $ 103,874 | |
Advanced Materials | Commercial Aerospace | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | 45,930 | ||
Advanced Materials | Defense | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | 44,077 | ||
Advanced Materials | General Industry | |||
Disaggregation Of Revenue [Line Items] | |||
Net Sales | $ 4,788 | ||
[1] | Based on country from which the sale originated and the sale was recorded. |
Summary of Company's Sales by G
Summary of Company's Sales by Geographic Area (Detail) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 28, 2018 | Dec. 29, 2017 | |||
Segment Reporting Information [Line Items] | ||||
Sales | $ 484,987 | [1] | $ 482,045 | |
US | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | 252,082 | ||
Canada | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | 50,481 | ||
France | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | 102,878 | ||
United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | 58,169 | ||
All Other Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | 70,342 | ||
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | (48,965) | ||
Unaffiliated Customers - U.S. | US | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | 201,583 | ||
Unaffiliated Customers - Export | US | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | 44,327 | ||
Intercompany | US | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | 6,172 | ||
Intercompany | Canada | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | 1,690 | ||
Intercompany | France | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | 11,254 | ||
Intercompany | United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | 4,932 | ||
Intercompany | All Other Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | 24,916 | ||
Unaffiliated Customers | Canada | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | 48,791 | ||
Unaffiliated Customers | France | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | 91,624 | ||
Unaffiliated Customers | United Kingdom | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | 53,237 | ||
Unaffiliated Customers | All Other Foreign | ||||
Segment Reporting Information [Line Items] | ||||
Sales | [1] | $ 45,426 | ||
[1] | Based on country from which the sale originated and the sale was recorded. |