Document And Entity Information
Document And Entity Information - USD ($) | 3 Months Ended | ||
Dec. 30, 2017 | Jan. 23, 2018 | Apr. 02, 2017 | |
Document Information | |||
Entity Registrant Name | MOOG INC. | ||
Entity Central Index Key | 67,887 | ||
Current Fiscal Year End Date | --09-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Dec. 30, 2017 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | Q1 | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,212,000,000 | ||
Class A Common Stock | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 32,397,457 | ||
Entity Listing, Par Value Per Share | $ 1 | ||
Class B Common Stock | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 3,380,636 | ||
Entity Listing, Par Value Per Share | $ 1 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Earnings - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | ||
Net sales | $ 627,535 | $ 589,670 |
Cost of sales | 443,426 | 417,164 |
Gross profit | 184,109 | 172,506 |
Research and development | 32,420 | 34,564 |
Selling, general and administrative | 95,950 | 85,063 |
Interest | 8,646 | 8,486 |
Other | (741) | 7,905 |
Earnings before income taxes | 47,834 | 36,488 |
Income taxes | 46,535 | 6,430 |
Net earnings attributable to Moog and noncontrolling interest | 1,299 | 30,058 |
Net earnings (loss) attributable to noncontrolling interest | 0 | (506) |
Net earnings attributable to Moog | $ 1,299 | $ 30,564 |
Net earnings per share attributable to Moog | ||
Basic | $ 0.04 | $ 0.85 |
Diluted | $ 0.04 | $ 0.84 |
Average common shares outstanding | ||
Basic | 35,772,406 | 35,869,052 |
Diluted | 36,201,054 | 36,272,767 |
Consolidated Condensed Stateme3
Consolidated Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings attributable to Moog and noncontrolling interest | $ 1,299 | $ 30,058 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment | 10,364 | (41,509) |
Retirement liability adjustment | 4,256 | 8,572 |
Change in accumulated income (loss) on derivatives | 1,234 | 574 |
Other comprehensive income (loss), net of tax | 15,854 | (32,363) |
Comprehensive income (loss) | 17,153 | (2,305) |
Comprehensive income (loss) attributable to noncontrolling interest | 0 | (506) |
Comprehensive income (loss) attributable to Moog | $ 17,153 | $ (1,799) |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Dec. 30, 2017 | Sep. 30, 2017 |
Current assets | ||
Cash and cash equivalents | $ 394,980 | $ 368,073 |
Receivables | 739,731 | 727,740 |
Inventories | 511,653 | 489,127 |
Prepaid expense and other current assets | 38,800 | 41,499 |
Total current assets | 1,685,164 | 1,626,439 |
Property, plant and equipment, net of accumulated depreciation | 527,356 | 522,991 |
Goodwill | 776,156 | 774,268 |
Intangible assets, net | 104,914 | 108,818 |
Deferred income taxes | 11,395 | 26,558 |
Other assets | 33,510 | 31,518 |
Total assets | 3,138,495 | 3,090,592 |
Current liabilities | ||
Short-term borrowings | 89 | 89 |
Current installments of long-term debt | 259 | 295 |
Accounts payable | 156,967 | 170,878 |
Accrued compensation | 122,763 | 148,406 |
Customer advances | 179,598 | 159,274 |
Contract loss reserves | 41,786 | 43,214 |
Other accrued liabilities | 112,072 | 107,278 |
Total current liabilities | 613,534 | 629,434 |
Long-term debt, excluding current installments | 962,006 | 956,653 |
Long-term pension and retirement obligations | 260,741 | 271,272 |
Deferred income taxes | 40,782 | 13,320 |
Other long-term liabilities | 33,483 | 5,609 |
Total liabilities | 1,910,546 | 1,876,288 |
Commitments and contingencies (Note 18) | 0 | 0 |
Shareholders' equity | ||
Additional paid-in capital | 498,699 | 492,246 |
Retained earnings | 1,849,118 | 1,847,819 |
Treasury shares | (739,210) | (739,157) |
Accumulated other comprehensive loss | (319,637) | (335,491) |
Total Moog shareholders' equity | 1,227,949 | 1,214,304 |
Total liabilities and shareholders' equity | 3,138,495 | 3,090,592 |
Class A Common Stock | ||
Shareholders' equity | ||
Common stock | 43,716 | 43,704 |
Class B Common Stock | ||
Shareholders' equity | ||
Common stock | 7,564 | 7,576 |
Stock Employee Compensation Trust (SECT) | ||
Shareholders' equity | ||
Common stock issued to trust | (98,990) | (89,919) |
Total Moog shareholders' equity | (98,990) | (89,919) |
Supplemental Retirement Plan (SERP) Trust | ||
Shareholders' equity | ||
Common stock issued to trust | (13,311) | (12,474) |
Total Moog shareholders' equity | $ (13,311) | $ (12,474) |
Consolidated Condensed Balance5
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 30, 2017 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation | $ 791,388 | $ 771,160 |
Consolidated Condensed Stateme6
Consolidated Condensed Statements of Shareholders' Equity Statement - 3 months ended Dec. 30, 2017 - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock At Cost | Stock Employee Compensation Trust (SECT) | Supplemental Retirement Plan (SERP) Trust | Accumulated Other Comprehensive Loss | Class A Common Stock | Class A Common StockTreasury Stock At Cost | Class A Common StockStock Employee Compensation Trust (SECT) | Class B Common Stock | Class B Common StockTreasury Stock At Cost | Class B Common StockStock Employee Compensation Trust (SECT) | Class B Common StockSupplemental Retirement Plan (SERP) Trust |
Beginning of period, Amount at Sep. 30, 2017 | $ 1,214,304 | $ 51,280 | $ 492,246 | $ 1,847,819 | $ (739,157) | $ (89,919) | $ (12,474) | $ (335,491) | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Issuance of shares | (1,633) | 2,681 | |||||||||||||
Equity-based compensation expense | 2,001 | ||||||||||||||
Adjustment to market - SECT, SERP and other | 6,085 | ||||||||||||||
Net earnings attributable to Moog | 1,299 | 1,299 | |||||||||||||
Class A and B shares purchased | (2,734) | ||||||||||||||
Purchase of shares - SECT | (3,823) | (3,823) | |||||||||||||
Adjustment to market | (5,248) | (837) | |||||||||||||
Other comprehensive income (loss) | 15,854 | 15,854 | |||||||||||||
End of period, Amount at Dec. 30, 2017 | $ 1,227,949 | $ 51,280 | $ 498,699 | $ 1,849,118 | $ (739,210) | $ (98,990) | $ (13,311) | $ (319,637) | |||||||
Beginning of period - Common Stock at Sep. 30, 2017 | 43,704,286 | 7,575,427 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Conversion of Class B to Class A | 11,300 | (11,300) | |||||||||||||
End of period - Common Stock at Dec. 30, 2017 | 43,715,586 | 7,564,127 | |||||||||||||
Beginning of period, Shares at Sep. 30, 2017 | (10,933,003) | (425,148) | (3,333,927) | (654,753) | (150,000) | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Class A and B shares issued related to equity awards, shares | 64,486 | 5,878 | |||||||||||||
Class A and B shares purchased, shares | (33,020) | (15) | |||||||||||||
Purchase of shares - SECT | 0 | (44,662) | |||||||||||||
End of period, Shares at Dec. 30, 2017 | (10,901,537) | (425,148) | (3,328,064) | (699,415) | (150,000) | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Common stock outstanding, shares | 32,388,901 | 3,386,648 |
Consolidated Condensed Stateme7
Consolidated Condensed Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings attributable to Moog and noncontrolling interest | $ 1,299 | $ 30,058 |
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | ||
Depreciation | 17,487 | 17,918 |
Amortization | 4,674 | 4,541 |
Deferred income taxes | 37,617 | 1,371 |
Equity-based compensation expense | 2,001 | 2,168 |
Other | 1,563 | 9,868 |
Changes in assets and liabilities providing (using) cash: | ||
Receivables | (10,350) | (11,012) |
Inventories | (22,236) | 6,996 |
Accounts payable | (14,393) | 6,737 |
Customer advances | 19,888 | 8,287 |
Accrued expenses | (27,233) | (17,479) |
Accrued income taxes | 6,965 | (8,885) |
Net pension and post retirement liabilities | (4,562) | (1,295) |
Other assets and liabilities | 31,450 | 1,309 |
Net cash provided by operating activities | 44,170 | 50,582 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchase of property, plant and equipment | (21,084) | (14,849) |
Other investing transactions | (537) | (976) |
Net cash (used) by investing activities | (21,621) | (15,825) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from revolving lines of credit | 103,500 | 62,400 |
Payments on revolving lines of credit | (108,610) | (67,400) |
Proceeds from long-term debt | 10,000 | 0 |
Payments on long-term debt | (44) | (50) |
Proceeds from sale of treasury stock | 1,048 | 2,135 |
Purchase of outstanding shares for treasury | (2,734) | (5,211) |
Proceeds from sale of stock held by SECT | 0 | 867 |
Purchase of stock held by SECT | (3,823) | (5,709) |
Net cash (used) by financing activities | (663) | (12,968) |
Effect of exchange rate changes on cash | 5,021 | (15,253) |
Increase in cash and cash equivalents | 26,907 | 6,536 |
Cash and cash equivalents at beginning of period | 368,073 | 325,128 |
Cash and cash equivalents at end of period | $ 394,980 | $ 331,664 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Dec. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated condensed financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting of normal recurring adjustments considered necessary for the fair presentation of results for the interim period have been included. The results of operations for the three months ended December 30, 2017 are not necessarily indicative of the results expected for the full year. The accompanying unaudited consolidated condensed financial statements should be read in conjunction with the financial statements and notes thereto included in our Form 10-K for the fiscal year ended September 30, 2017 . All references to years in these financial statements are to fiscal years. Certain prior year amounts have been reclassified to conform to current year's presentation. During 2018, we made a change to our segment reporting structure and merged our former Components segment into Space and Defense Controls and Industrial Systems. The Goodwill and Segment footnotes have been restated to reflect these changes. Recent Accounting Pronouncements Not Yet Adopted Standard Description Financial Statement Effect or Other Significant Matters ASU no. 2014-09 Revenue from Contracts with Customers (And All Related ASUs) The standard requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The provisions of the standard, as well as all subsequently issued clarifications to the standard, are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The standard can be adopted using either a full retrospective or modified retrospective approach. We plan to adopt the standard using the modified retrospective method, under which prior years' results are not restated, but supplemental information will be provided in our disclosures that will present fiscal 2019 results before adoption of the standard. In addition, a cumulative adjustment will be necessary to Shareholder's Equity at the beginning of fiscal 2019. We are assessing the impact of the standard on our financial statements and related disclosures, internal controls and financial policies and information technology systems. We have not yet quantified the impact on our financial statements and related disclosures. Planned date of adoption: Q1 2019 ASU no. 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities The standard requires most equity investments to be measured at fair value, with subsequent changes in fair value recognized in net income. The amendment also impacts the measurement of financial liabilities under the fair value option as well as certain presentation and disclosure requirements for financial instruments. The provisions of the standard are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted for some, but not all, provisions. The amendment requires certain provisions to be applied prospectively and others to be applied by means of a cumulative-effect adjustment. We are currently evaluating the effect on our financial statements and related disclosures. Planned date of adoption: Q1 2019 ASU no. 2016-02 Leases (And All Related ASUs) The standard requires most lease arrangements to be recognized in the balance sheet as lease assets and lease liabilities. The standard also requires additional disclosures about the leasing arrangements. The provisions of the standard are effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. We are currently evaluating the effect on our financial statements and related disclosures. Planned date of adoption: Q1 2020 ASU no. 2017-07 Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost The standard amends existing guidance on the presentation of net periodic benefit cost in the income statement and what qualifies for capitalization on the balance sheet. The provisions of the standard are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted as of the beginning of an annual period. The amendment requires income statement presentation provisions to be applied retrospectively and capitalization in assets provisions to be applied prospectively. We are currently evaluating the effect on our financial statements and related disclosures. Planned date of adoption: Q1 2019 ASU no. 2017-12 Targeted Improvements to Accounting for Hedging Activities The standard expands the hedging strategies eligible for hedge accounting, while simplifying presentation and disclosure by eliminating separate measurement and reporting of hedge ineffectiveness. The provisions of the standard are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the effect on our financial statements and related disclosures. Planned date of adoption: Q1 2020 We consider the applicability and impact of all ASUs. ASUs not listed above were assessed and determined to be either not applicable, or had or are expected to have minimal impact on our financial statements and related disclosures. |
Acquisitions, Divestitures and
Acquisitions, Divestitures and Equity Method Investments | 3 Months Ended |
Dec. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions, Divestitures and Equity Method Investments | Acquisitions, Divestitures and Equity Method Investments On October 3, 2017, we, in collaboration with SIA Engineering Company, announced the joint venture company, Moog Aircraft Services Asia ("MASA"), in Singapore, of which we currently hold a 51% ownership. MASA is intended to provide maintenance, repair and overhaul services for our manufactured flight control systems. As we hold a majority ownership in MASA, but share voting control, we are accounting for this investment using the equity method. At December 30, 2017 , we have made total contributions of $1,541 to MASA and intend to make two additional contributions during 2018 . This operation is included in our Aircraft Controls segment. In 2017, we sold non-core businesses of our Space and Defense Controls segment for $7,210 in cash and recorded losses in other expense of $13,119 related to the sales. On April 2, 2017, we acquired Rotary Transfer Systems, a manufacturer of electromechanical systems, located in Germany and France for a purchase price, net of acquired cash, of $42,593 , consisting of $40,545 in cash and $2,048 in assumed pension obligations. This operation is included in our Industrial Systems segment. The purchase price allocation is subject to adjustments as we obtain additional information for our estimates during the measurement period. |
Receivables
Receivables | 3 Months Ended |
Dec. 30, 2017 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consist of: December 30, September 30, Accounts receivable $ 275,939 $ 286,773 Long-term contract receivables: Amounts billed 130,452 148,087 Unbilled recoverable costs and accrued profits 289,784 282,154 Total long-term contract receivables 420,236 430,241 Other 48,139 15,077 Total receivables 744,314 732,091 Less allowance for doubtful accounts (4,583 ) (4,351 ) Receivables $ 739,731 $ 727,740 We securitize certain trade receivables in transactions that are accounted for as secured borrowings (Securitization Program). We maintain a subordinated interest in a portion of the pool of trade receivables that are securitized. The retained interest, which is included in Receivables in the consolidated condensed balance sheets, is recorded at fair value, which approximates the total amount of the designated pool of accounts receivable. Refer to Note 6, Indebtedness, for additional disclosures related to the Securitization Program. |
Inventories
Inventories | 3 Months Ended |
Dec. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net of reserves, consist of: December 30, September 30, Raw materials and purchased parts $ 201,228 $ 189,517 Work in progress 239,875 229,202 Finished goods 70,550 70,408 Inventories $ 511,653 $ 489,127 There are no material inventoried costs relating to long-term contracts where revenue is accounted for using the percentage of completion, cost-to-cost method of accounting as of December 30, 2017 or September 30, 2017 . |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 3 Months Ended |
Dec. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill are as follows: Aircraft Space and Industrial Total Balance at September 30, 2017 $ 181,375 $ 259,951 $ 332,942 $ 774,268 Foreign currency translation 430 111 1,347 1,888 Balance at December 30, 2017 $ 181,805 $ 260,062 $ 334,289 $ 776,156 In 2018, we changed our segment reporting structure as our former Components segment was separated and merged into Space and Defense Controls and Industrial Systems. As a result, the September 30, 2017 balances for those segments were restated to reflect this change. Goodwill for Space and Defense Controls and Industrial Systems increased by $86,995 and $224,194 , respectively, than what was previously reported. Goodwill in our Space and Defense Controls segment is net of a $4,800 accumulated impairment loss at December 30, 2017 . Goodwill in our Medical Devices reporting unit, included in our Industrial Systems segment, is net of a $38,200 accumulated impairment loss at December 30, 2017 . The components of intangible assets are as follows: December 30, 2017 September 30, 2017 Weighted- Gross Carrying Accumulated Gross Carrying Accumulated Customer-related 11 $ 177,239 $ (131,433 ) $ 175,872 $ (128,019 ) Technology-related 9 72,215 (56,018 ) 71,924 (55,069 ) Program-related 19 66,889 (31,876 ) 66,458 (30,675 ) Marketing-related 9 26,659 (19,727 ) 26,552 (19,251 ) Other 10 4,445 (3,479 ) 4,379 (3,353 ) Intangible assets 12 $ 347,447 $ (242,533 ) $ 345,185 $ (236,367 ) Substantially all acquired intangible assets other than goodwill are being amortized. Customer-related intangible assets primarily consist of customer relationships. Technology-related intangible assets primarily consist of technology, patents, intellectual property and software. Program-related intangible assets consist of long-term programs represented by current contracts and probable follow on work. Marketing-related intangible assets primarily consist of trademarks, trade names and non-compete agreements. Amortization of acquired intangible assets was $4,600 for the three months ended December 30, 2017 and $4,477 for the three months ended December 31, 2016 . Based on acquired intangible assets recorded at December 30, 2017 , amortization is expected to be approximately $18,400 in 2018 , $17,300 in 2019 , $15,100 in 2020 , $9,400 in 2021 and $7,200 in 2022 . |
Indebtedness
Indebtedness | 3 Months Ended |
Dec. 30, 2017 | |
Debt Disclosure [Abstract] | |
Indebtedness | Indebtedness We maintain short-term line of credit facilities with banks throughout the world that are principally demand lines subject to revision by the banks. Long-term debt consists of: December 30, September 30, U.S. revolving credit facility $ 535,000 $ 540,110 Senior notes 300,000 300,000 Securitization program 130,000 120,000 Obligations under capital leases 263 306 Senior debt 965,263 960,416 Less deferred debt issuance cost (2,998 ) (3,468 ) Less current installments (259 ) (295 ) Long-term debt $ 962,006 $ 956,653 Our U.S. revolving credit facility matures on June 28, 2021 . Our U.S. revolving credit facility has a capacity of $1,100,000 and provides an expansion option, which permits us to request an increase of up to $200,000 to the credit facility upon satisfaction of certain conditions. The credit facility is secured by substantially all of our U.S. assets. The loan agreement contains various covenants which, among others, specify interest coverage and maximum leverage and capital expenditures. We are in compliance with all covenants. At December 30, 2017 , we had $300,000 aggregate principal amount of 5.25% senior notes due December 1, 2022 with interest paid semiannually on June 1 and December 1 of each year. The senior notes are unsecured obligations, guaranteed on a senior unsecured basis by certain subsidiaries and contain normal incurrence-based covenants and limitations such as the ability to incur additional indebtedness, pay dividends, make other restricted payments and investments, create liens and certain corporate acts such as mergers and consolidations. The Securitization Program was extended on October 23, 2017 and now matures on October 23, 2019 . The Securitization Program provides up to $130,000 of borrowing capacity. Under the Securitization Program, we sell certain trade receivables and related rights to an affiliate, which in turn sells an undivided variable percentage ownership interest in the trade receivables to a financial institution, while maintaining a subordinated interest in a portion of the pool of trade receivables. Interest for the Securitization Program is based on 30-day LIBOR plus an applicable margin. A commitment fee is also charged based on a percentage of the unused amounts available and is not material . The agreement governing the Securitization Program contains restrictions and covenants which include limitations on the making of certain restricted payments, creation of certain liens, and certain corporate acts such as mergers, consolidations and sale of substantially all assets. The Securitization Program has a minimum borrowing requirement equal to the lesser of either 80% of our borrowing capacity or 100% of our borrowing base, which is a subset of the trade receivables sold under this agreement. As of December 30, 2017 , our minimum borrowing requirement was $104,000 . |
Product Warranties
Product Warranties | 3 Months Ended |
Dec. 30, 2017 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product Warranties In the ordinary course of business, we warrant our products against defects in design, materials and workmanship typically over periods ranging from twelve to sixty months. We determine warranty reserves needed by product line based on historical experience and current facts and circumstances. Activity in the warranty accrual is summarized as follows: Three Months Ended December 30, December 31, Warranty accrual at beginning of period $ 25,848 $ 21,363 Warranties issued during current period 4,757 3,414 Adjustments to pre-existing warranties (70 ) (265 ) Reductions for settling warranties (2,915 ) (1,044 ) Foreign currency translation 128 (585 ) Warranty accrual at end of period $ 27,748 $ 22,883 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Dec. 30, 2017 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We principally use derivative financial instruments to manage interest rate risk associated with long-term debt and foreign exchange risk related to foreign operations and foreign currency transactions. We enter into derivative financial instruments with a number of major financial institutions to minimize counterparty credit risk. Derivatives designated as hedging instruments Interest rate swaps are used to adjust the proportion of total debt that is subject to variable and fixed interest rates. The interest rate swaps are designated as hedges of the amount of future cash flows related to interest payments on variable-rate debt that, in combination with the interest payments on the debt, convert a portion of the variable-rate debt to fixed-rate debt. At December 30, 2017 , we had interest rate swaps with notional amounts totaling $150,000 . The interest rate swaps effectively convert this amount of variable-rate debt to fixed-rate debt at 2.62% , including the applicable margin of 1.38% as of December 30, 2017 . The interest will revert back to variable rates based on LIBOR plus the applicable margin upon the maturity of the interest rate swaps. These interest rate swaps mature at various times through June 23, 2020 . We use foreign currency contracts as cash flow hedges to effectively fix the exchange rates on future payments and revenue. To mitigate exposure in movements between various currencies, including the Philippine peso and the British pound, we had outstanding foreign currency forwards with notional amounts of $51,608 at December 30, 2017 . These contracts mature at various times through November 29, 2019 . These interest rate swaps and foreign currency contracts are recorded in the consolidated condensed balance sheets at fair value and the related gains or losses are deferred in shareholders’ equity as a component of Accumulated Other Comprehensive Income (Loss) (AOCIL). These deferred gains and losses are reclassified into the consolidated condensed statements of earnings during the periods in which the related payments or receipts affect earnings. However, to the extent the interest rate swaps and foreign currency contracts are not perfectly effective in offsetting the change in the value of the payments and revenue being hedged, the ineffective portion of these contracts is recognized in earnings immediately. Ineffectiveness was not material in the first three months of 2018 or 2017 . Derivatives not designated as hedging instruments We also have foreign currency exposure on balances, primarily intercompany, that are denominated in foreign currencies and are adjusted to current values using period-end exchange rates. The resulting gains or losses are recorded in the consolidated condensed statements of earnings. To minimize foreign currency exposure, we had foreign currency contracts with notional amounts of $107,528 at December 30, 2017 . The foreign currency contracts are recorded in the consolidated condensed balance sheets at fair value and resulting gains or losses are recorded in the consolidated condensed statements of earnings. We recorded the following gains or losses on foreign currency contracts which are included in other income or expense and generally offset the gains or losses from the foreign currency adjustments on the intercompany balances that are also included in other income or expense: Three Months Ended December 30, December 31, Net gain (loss) $ (628 ) $ 1,394 Summary of derivatives The fair value and classification of derivatives is summarized as follows: December 30, September 30, Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 639 $ 551 Foreign currency contracts Other assets 298 50 Interest rate swaps Other current assets 989 552 Interest rate swaps Other assets 471 314 Total asset derivatives $ 2,397 $ 1,467 Foreign currency contracts Other accrued liabilities $ 601 $ 1,434 Foreign currency contracts Other long-term liabilities — 244 Interest rate swaps Other accrued liabilities — 10 Interest rate swaps Other long-term liabilities — 15 Total liability derivatives $ 601 $ 1,703 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 314 $ 95 Foreign currency contracts Other accrued liabilities $ 515 $ 383 |
Fair Value
Fair Value | 3 Months Ended |
Dec. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate fair value. The definition of the fair value hierarchy is as follows: Level 1 – Quoted prices in active markets for identical assets and liabilities. Level 2 – Observable inputs other than quoted prices in active markets for similar assets and liabilities. Level 3 – Inputs for which significant valuation assumptions are unobservable in a market and therefore value is based on the best available data, some of which is internally developed and considers risk premiums that a market participant would require. Our derivatives are valued using various pricing models or discounted cash flow analyses that incorporate observable market data, such as interest rate yield curves and currency rates, and are classified as Level 2 within the valuation hierarchy. The following table presents the fair values and classification of our financial assets and liabilities measured on a recurring basis, all of which are classified as Level 2. Classification December 30, September 30, Foreign currency contracts Other current assets $ 953 $ 646 Foreign currency contracts Other assets 298 50 Interest rate swaps Other current assets 989 552 Interest rate swaps Other assets 471 314 Total assets $ 2,711 $ 1,562 Foreign currency contracts Other accrued liabilities $ 1,116 $ 1,817 Foreign currency contracts Other long-term liabilities — 244 Interest rate swaps Other accrued liabilities — 10 Interest rate swaps Other long-term liabilities — 15 Total liabilities $ 1,116 $ 2,086 Our only financial instrument for which the carrying value differs from its fair value is long-term debt. At December 30, 2017 , the fair value of long-term debt was $974,451 compared to its carrying value of $965,263 . The fair value of long-term debt is classified as Level 2 within the fair value hierarchy and was estimated based on quoted market prices. |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Dec. 30, 2017 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Net periodic benefit costs for our defined benefit pension plans are as follows: Three Months Ended December 30, December 31, U.S. Plans Service cost $ 5,634 $ 6,022 Interest cost 8,073 7,636 Expected return on plan assets (13,576 ) (13,628 ) Amortization of prior service cost (credit) 47 47 Amortization of actuarial loss 6,902 8,419 Pension expense for U.S. defined benefit plans $ 7,080 $ 8,496 Non-U.S. Plans Service cost $ 1,470 $ 1,532 Interest cost 1,055 751 Expected return on plan assets (1,243 ) (1,131 ) Amortization of prior service cost (credit) (14 ) (27 ) Amortization of actuarial loss 624 1,120 Pension expense for non-U.S. defined benefit plans $ 1,892 $ 2,245 Pension expense for our defined contribution plans consists of: Three Months Ended December 30, December 31, U.S. defined contribution plans $ 3,972 $ 3,670 Non-U.S. defined contribution plans 1,709 1,360 Total pension expense for defined contribution plans $ 5,681 $ 5,030 In 2018, expected contributions for our U.S. defined benefit pension plans is approximately $149,000 . |
Restructuring
Restructuring | 3 Months Ended |
Dec. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Restructuring activity for severance and other costs is as follows: Total Balance at September 30, 2017 $ 1,168 Cash payments - 2016 plan (254 ) Balance at December 30, 2017 $ 914 Restructuring is expected to be paid by July 1, 2019 and is classified as current or long-term liabilities based on payment arrangements. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three months ended December 30, 2017 was 97.3% . The effective rate for this period was significantly impacted by the enactment of the Tax Cuts and Jobs Act (the "Act") of 2017. The Act was enacted on December 22, 2017. It reduces the US 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. As of December 30, 2017 , we have not completed the accounting for the tax effects of enactment of the Act; however, as described below, we have made a reasonable estimate of the effects on the one-time transition tax, withholding taxes deemed to be repatriated and existing deferred tax balances. These amounts are provisional and subject to change as the determination of the impact of the income tax effects will require additional analysis of historical records, annual data and further interpretation of the Act from yet to be issued U.S. Treasury regulations. During the three months ended December 30, 2017 we recorded a $31,000 , one-time transition tax on undistributed foreign earnings deemed to be repatriated and a tax charge of $15,250 as an additional provision for withholding taxes on undistributed earnings not considered to be permanently reinvested. No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations. Determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis difference in these entities is not practicable. These charges are partially offset by a $12,225 benefit due to the remeasurement of deferred tax assets and liabilities arising from a lower U.S. corporate tax rate, which took into account our decision to accelerate pension contributions into our 2017 pension plan year. This allows the pension contribution tax deduction to be taken in our 2017 federal income tax return which is taxed at the 35% federal rate. The effective tax rate for the three months ended December 31, 2016 was 17.6% . The effective tax rate for this period is lower than would be expected by applying the U.S. federal statutory tax rate to earnings before income taxes primarily from tax benefits associated with selling our European space businesses. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Dec. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in AOCIL, net of tax, by component for the three months ended December 30, 2017 are as follows: Accumulated foreign currency translation Accumulated retirement liability Accumulated gain (loss) on derivatives Total AOCIL at September 30, 2017 $ (83,166 ) $ (251,865 ) $ (460 ) $ (335,491 ) Other comprehensive income (loss) before reclassifications 10,364 (363 ) 905 10,906 Amounts reclassified from AOCIL — 4,619 329 4,948 Other comprehensive income (loss) 10,364 4,256 1,234 15,854 AOCIL at December 30, 2017 $ (72,802 ) $ (247,609 ) $ 774 $ (319,637 ) The amounts reclassified from AOCIL into earnings are as follows: Three Months Ended Statement of earnings classification December 30, December 31, Retirement liability: Prior service cost (credit) $ (85 ) $ 19 Actuarial losses 7,396 9,417 Reclassification from AOCIL into earnings (1) 7,311 9,436 Tax effect (2,692 ) (3,427 ) Net reclassification from AOCIL into earnings $ 4,619 $ 6,009 Derivatives: Foreign currency contracts Sales $ (118 ) $ 1,297 Foreign currency contracts Cost of sales 696 467 Interest rate swaps Interest (14 ) 115 Reclassification from AOCIL into earnings 564 1,879 Tax effect (235 ) (591 ) Net reclassification from AOCIL into earnings $ 329 $ 1,288 (1) The reclassifications are included in the computation of net periodic pension cost and postretirement benefit cost. The amounts deferred in AOCIL are as follows: Net deferral in AOCIL - effective portion Three Months Ended December 30, December 31, Foreign currency contracts $ 828 $ (1,786 ) Interest rate swaps 617 694 Net gain (loss) 1,445 (1,092 ) Tax effect (540 ) 378 Net deferral in AOCIL of derivatives $ 905 $ (714 ) |
Stock Employee Compensation Tru
Stock Employee Compensation Trust and Supplemental Retirement Plan Trust | 3 Months Ended |
Dec. 30, 2017 | |
Share-based Compensation [Abstract] | |
Stock Employee Compensation Trust and Supplemental Retirement Plan Trust | Stock Employee Compensation Trust and Supplemental Retirement Plan Trust The Stock Employee Compensation Trust (SECT) assists in administering and provides funding for equity-based compensation plans and benefit programs, including the Moog Inc. Retirement Savings Plan (RSP). The Supplemental Retirement Plan (SERP) Trust provides funding for benefits under the Moog Inc. SERP. Both the SECT and the SERP Trust hold shares as investments. The shares in the SECT and SERP Trust are not considered outstanding for purposes of calculating earnings per share. However, in accordance with the trust agreements governing the SECT and SERP Trust, the trustees vote all shares held by the SECT and SERP Trust on all matters submitted to shareholders. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Dec. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings per Share Basic and diluted weighted-average shares outstanding are as follows: Three Months Ended December 30, December 31, Basic weighted-average shares outstanding 35,772,406 35,869,052 Dilutive effect of equity-based awards 428,648 403,715 Diluted weighted-average shares outstanding 36,201,054 36,272,767 For the three months ended December 30, 2017 and December 31, 2016 , there were 13,530 and 111,574 common shares from equity-based awards, respectively, excluded from the calculation of diluted earnings per share as they would be anti-dilutive. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 30, 2017 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment Information | Segment Information Effective October 1, 2017, we made changes to our segment reporting structure that resulted in three reporting segments. Our former Components segment has been separated and merged into Space and Defense Controls and Industrial Systems. All amounts have been restated to reflect this change. Below are sales and operating profit by segment for the three months ended December 30, 2017 and December 31, 2016 and a reconciliation of segment operating profit to earnings before income taxes. Operating profit is net sales less cost of sales and other operating expenses, excluding interest expense, equity-based compensation expense and other corporate expenses. Cost of sales and other operating expenses are directly identifiable to the respective segment or allocated on the basis of sales, number of employees or profit. Three Months Ended December 30, December 31, Net sales: Aircraft Controls $ 278,534 $ 268,450 Space and Defense Controls 133,393 122,590 Industrial Systems 215,608 198,630 Net sales $ 627,535 $ 589,670 Operating profit: Aircraft Controls $ 30,768 $ 23,111 Space and Defense Controls 16,289 9,088 Industrial Systems 19,246 20,163 Total operating profit 66,303 52,362 Deductions from operating profit: Interest expense 8,646 8,486 Equity-based compensation expense 2,001 2,168 Corporate and other expenses, net 7,822 5,220 Earnings before income taxes $ 47,834 $ 36,488 The amounts reclassified for net sales and operating profit as a result of the revised segment reporting structure for the three months ended December 31, 2016 are as follows: December 31, Net sales: Space and Defense Controls $ 29,660 Industrial Systems 86,231 Total $ 115,891 Operating profit: Space and Defense Controls $ 1,992 Industrial Systems 9,462 Total $ 11,454 Segment assets for Space and Defense Controls and Industrial Systems are approximately $613,000 and $1,142,000 , respectively, as of December 30, 2017 as a result of the change to our segment reporting structure. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, we are involved in legal proceedings. We are not a party to any pending legal proceedings which management believes will result in a material adverse effect on our financial condition, results of operations or cash flows. We are engaged in administrative proceedings with governmental agencies and legal proceedings with governmental agencies and other third parties in the normal course of our business, including litigation under Superfund laws, regarding environmental matters. We believe that adequate reserves have been established for our share of the estimated cost for all currently pending environmental administrative or legal proceedings and do not expect that these environmental matters will have a material adverse effect on our financial condition, results of operations or cash flows. In the ordinary course of business we could be subject to ongoing claims or disputes from our customers, the ultimate settlement of which could have a material adverse impact on our consolidated results of operations. While the receivables and any loss provisions recorded to date reflect management's best estimate of the projected costs to complete a given project, there may still be significant effort required to complete the ultimate deliverable. Future variability in internal cost as well as future profitability is dependent upon a number of factors including deliveries, performance and government budgetary pressures. The inability to achieve a satisfactory contractual solution, further unplanned delays, additional developmental cost growth or variations in any of the estimates used in the existing contract analysis could lead to further loss provisions. Additional losses could have a material adverse impact on our financial condition, results of operations or cash flows in the period in which the loss may be recognized. We are contingently liable for $48,793 of standby letters of credit issued by a bank to third parties on our behalf at December 30, 2017 . |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Dec. 30, 2017 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related Party Transactions On November 20, 2017, John Scannell was elected to the Board of Directors of M&T Bank Corporation and M&T Bank. We currently engage with M&T Bank in the ordinary course of business for various financing activities, all of which were initiated prior to the election of Mr. Scannell to the Board. M&T Bank provides credit extension for routine purchases, which for the three months ended December 30, 2017 totaled $5,459 . At December 30, 2017, we held a $15,000 interest rate swap with M&T Bank and outstanding leases with a total original cost of $27,955 . M&T Bank also maintains an interest of approximately 12% in our U.S. revolving credit facility. Further details of the U.S. revolving credit facility can be found in Note 6, Indebtedness. |
Basis Of Presentation (Policies
Basis Of Presentation (Policies) | 3 Months Ended |
Dec. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | The accompanying unaudited consolidated condensed financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting of normal recurring adjustments considered necessary for the fair presentation of results for the interim period have been included. The results of operations for the three months ended December 30, 2017 are not necessarily indicative of the results expected for the full year. The accompanying unaudited consolidated condensed financial statements should be read in conjunction with the financial statements and notes thereto included in our Form 10-K for the fiscal year ended September 30, 2017 . All references to years in these financial statements are to fiscal years. |
Reclassification | Certain prior year amounts have been reclassified to conform to current year's presentation. During 2018, we made a change to our segment reporting structure and merged our former Components segment into Space and Defense Controls and Industrial Systems. The Goodwill and Segment footnotes have been restated to reflect these changes. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Not Yet Adopted Standard Description Financial Statement Effect or Other Significant Matters ASU no. 2014-09 Revenue from Contracts with Customers (And All Related ASUs) The standard requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The provisions of the standard, as well as all subsequently issued clarifications to the standard, are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The standard can be adopted using either a full retrospective or modified retrospective approach. We plan to adopt the standard using the modified retrospective method, under which prior years' results are not restated, but supplemental information will be provided in our disclosures that will present fiscal 2019 results before adoption of the standard. In addition, a cumulative adjustment will be necessary to Shareholder's Equity at the beginning of fiscal 2019. We are assessing the impact of the standard on our financial statements and related disclosures, internal controls and financial policies and information technology systems. We have not yet quantified the impact on our financial statements and related disclosures. Planned date of adoption: Q1 2019 ASU no. 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities The standard requires most equity investments to be measured at fair value, with subsequent changes in fair value recognized in net income. The amendment also impacts the measurement of financial liabilities under the fair value option as well as certain presentation and disclosure requirements for financial instruments. The provisions of the standard are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted for some, but not all, provisions. The amendment requires certain provisions to be applied prospectively and others to be applied by means of a cumulative-effect adjustment. We are currently evaluating the effect on our financial statements and related disclosures. Planned date of adoption: Q1 2019 ASU no. 2016-02 Leases (And All Related ASUs) The standard requires most lease arrangements to be recognized in the balance sheet as lease assets and lease liabilities. The standard also requires additional disclosures about the leasing arrangements. The provisions of the standard are effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. We are currently evaluating the effect on our financial statements and related disclosures. Planned date of adoption: Q1 2020 ASU no. 2017-07 Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost The standard amends existing guidance on the presentation of net periodic benefit cost in the income statement and what qualifies for capitalization on the balance sheet. The provisions of the standard are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted as of the beginning of an annual period. The amendment requires income statement presentation provisions to be applied retrospectively and capitalization in assets provisions to be applied prospectively. We are currently evaluating the effect on our financial statements and related disclosures. Planned date of adoption: Q1 2019 ASU no. 2017-12 Targeted Improvements to Accounting for Hedging Activities The standard expands the hedging strategies eligible for hedge accounting, while simplifying presentation and disclosure by eliminating separate measurement and reporting of hedge ineffectiveness. The provisions of the standard are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the effect on our financial statements and related disclosures. Planned date of adoption: Q1 2020 We consider the applicability and impact of all ASUs. ASUs not listed above were assessed and determined to be either not applicable, or had or are expected to have minimal impact on our financial statements and related disclosures. |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Receivables consist of: December 30, September 30, Accounts receivable $ 275,939 $ 286,773 Long-term contract receivables: Amounts billed 130,452 148,087 Unbilled recoverable costs and accrued profits 289,784 282,154 Total long-term contract receivables 420,236 430,241 Other 48,139 15,077 Total receivables 744,314 732,091 Less allowance for doubtful accounts (4,583 ) (4,351 ) Receivables $ 739,731 $ 727,740 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, net of reserves | Inventories, net of reserves, consist of: December 30, September 30, Raw materials and purchased parts $ 201,228 $ 189,517 Work in progress 239,875 229,202 Finished goods 70,550 70,408 Inventories $ 511,653 $ 489,127 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carry Amount of Goodwill | The changes in the carrying amount of goodwill are as follows: Aircraft Space and Industrial Total Balance at September 30, 2017 $ 181,375 $ 259,951 $ 332,942 $ 774,268 Foreign currency translation 430 111 1,347 1,888 Balance at December 30, 2017 $ 181,805 $ 260,062 $ 334,289 $ 776,156 |
Components of Intangible Assets | The components of intangible assets are as follows: December 30, 2017 September 30, 2017 Weighted- Gross Carrying Accumulated Gross Carrying Accumulated Customer-related 11 $ 177,239 $ (131,433 ) $ 175,872 $ (128,019 ) Technology-related 9 72,215 (56,018 ) 71,924 (55,069 ) Program-related 19 66,889 (31,876 ) 66,458 (30,675 ) Marketing-related 9 26,659 (19,727 ) 26,552 (19,251 ) Other 10 4,445 (3,479 ) 4,379 (3,353 ) Intangible assets 12 $ 347,447 $ (242,533 ) $ 345,185 $ (236,367 ) |
Indebtedness (Tables)
Indebtedness (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Debt Disclosure [Abstract] | |
Components of Long-term debt | Long-term debt consists of: December 30, September 30, U.S. revolving credit facility $ 535,000 $ 540,110 Senior notes 300,000 300,000 Securitization program 130,000 120,000 Obligations under capital leases 263 306 Senior debt 965,263 960,416 Less deferred debt issuance cost (2,998 ) (3,468 ) Less current installments (259 ) (295 ) Long-term debt $ 962,006 $ 956,653 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Product Warranties Disclosures [Abstract] | |
Summary of Activity in Warranty Accrual | Activity in the warranty accrual is summarized as follows: Three Months Ended December 30, December 31, Warranty accrual at beginning of period $ 25,848 $ 21,363 Warranties issued during current period 4,757 3,414 Adjustments to pre-existing warranties (70 ) (265 ) Reductions for settling warranties (2,915 ) (1,044 ) Foreign currency translation 128 (585 ) Warranty accrual at end of period $ 27,748 $ 22,883 |
Derivative Financial Instrume32
Derivative Financial Instruments (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Derivative Instruments and Hedges, Assets [Abstract] | |
Gains And Losses On Foreign Currency Forwards Included In Other Income Or Expense | We recorded the following gains or losses on foreign currency contracts which are included in other income or expense and generally offset the gains or losses from the foreign currency adjustments on the intercompany balances that are also included in other income or expense: Three Months Ended December 30, December 31, Net gain (loss) $ (628 ) $ 1,394 |
Fair Value And Classification Of Derivatives On The Consolidated Balance Sheets | The fair value and classification of derivatives is summarized as follows: December 30, September 30, Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 639 $ 551 Foreign currency contracts Other assets 298 50 Interest rate swaps Other current assets 989 552 Interest rate swaps Other assets 471 314 Total asset derivatives $ 2,397 $ 1,467 Foreign currency contracts Other accrued liabilities $ 601 $ 1,434 Foreign currency contracts Other long-term liabilities — 244 Interest rate swaps Other accrued liabilities — 10 Interest rate swaps Other long-term liabilities — 15 Total liability derivatives $ 601 $ 1,703 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 314 $ 95 Foreign currency contracts Other accrued liabilities $ 515 $ 383 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Values And Classification Of Financial Assets And Liabilities Measured On A Recurring Basis | The following table presents the fair values and classification of our financial assets and liabilities measured on a recurring basis, all of which are classified as Level 2. Classification December 30, September 30, Foreign currency contracts Other current assets $ 953 $ 646 Foreign currency contracts Other assets 298 50 Interest rate swaps Other current assets 989 552 Interest rate swaps Other assets 471 314 Total assets $ 2,711 $ 1,562 Foreign currency contracts Other accrued liabilities $ 1,116 $ 1,817 Foreign currency contracts Other long-term liabilities — 244 Interest rate swaps Other accrued liabilities — 10 Interest rate swaps Other long-term liabilities — 15 Total liabilities $ 1,116 $ 2,086 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Net Periodic Benefit Costs | Net periodic benefit costs for our defined benefit pension plans are as follows: Three Months Ended December 30, December 31, U.S. Plans Service cost $ 5,634 $ 6,022 Interest cost 8,073 7,636 Expected return on plan assets (13,576 ) (13,628 ) Amortization of prior service cost (credit) 47 47 Amortization of actuarial loss 6,902 8,419 Pension expense for U.S. defined benefit plans $ 7,080 $ 8,496 Non-U.S. Plans Service cost $ 1,470 $ 1,532 Interest cost 1,055 751 Expected return on plan assets (1,243 ) (1,131 ) Amortization of prior service cost (credit) (14 ) (27 ) Amortization of actuarial loss 624 1,120 Pension expense for non-U.S. defined benefit plans $ 1,892 $ 2,245 |
Defined Contribution Plan Disclosures | Pension expense for our defined contribution plans consists of: Three Months Ended December 30, December 31, U.S. defined contribution plans $ 3,972 $ 3,670 Non-U.S. defined contribution plans 1,709 1,360 Total pension expense for defined contribution plans $ 5,681 $ 5,030 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve Activity | Restructuring activity for severance and other costs is as follows: Total Balance at September 30, 2017 $ 1,168 Cash payments - 2016 plan (254 ) Balance at December 30, 2017 $ 914 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of AOCI | The changes in AOCIL, net of tax, by component for the three months ended December 30, 2017 are as follows: Accumulated foreign currency translation Accumulated retirement liability Accumulated gain (loss) on derivatives Total AOCIL at September 30, 2017 $ (83,166 ) $ (251,865 ) $ (460 ) $ (335,491 ) Other comprehensive income (loss) before reclassifications 10,364 (363 ) 905 10,906 Amounts reclassified from AOCIL — 4,619 329 4,948 Other comprehensive income (loss) 10,364 4,256 1,234 15,854 AOCIL at December 30, 2017 $ (72,802 ) $ (247,609 ) $ 774 $ (319,637 ) |
Reclassification from AOCI | The amounts reclassified from AOCIL into earnings are as follows: Three Months Ended Statement of earnings classification December 30, December 31, Retirement liability: Prior service cost (credit) $ (85 ) $ 19 Actuarial losses 7,396 9,417 Reclassification from AOCIL into earnings (1) 7,311 9,436 Tax effect (2,692 ) (3,427 ) Net reclassification from AOCIL into earnings $ 4,619 $ 6,009 Derivatives: Foreign currency contracts Sales $ (118 ) $ 1,297 Foreign currency contracts Cost of sales 696 467 Interest rate swaps Interest (14 ) 115 Reclassification from AOCIL into earnings 564 1,879 Tax effect (235 ) (591 ) Net reclassification from AOCIL into earnings $ 329 $ 1,288 |
Activity and Classification of Derivative Deferral in AOCI | The amounts deferred in AOCIL are as follows: Net deferral in AOCIL - effective portion Three Months Ended December 30, December 31, Foreign currency contracts $ 828 $ (1,786 ) Interest rate swaps 617 694 Net gain (loss) 1,445 (1,092 ) Tax effect (540 ) 378 Net deferral in AOCIL of derivatives $ 905 $ (714 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Earnings Per Share [Abstract] | |
Basic And Diluted Weighted-Average Shares Outstanding | Basic and diluted weighted-average shares outstanding are as follows: Three Months Ended December 30, December 31, Basic weighted-average shares outstanding 35,772,406 35,869,052 Dilutive effect of equity-based awards 428,648 403,715 Diluted weighted-average shares outstanding 36,201,054 36,272,767 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 30, 2017 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Sales And Operating Profit By Segment And Reconciliation Of Segment Operating Profit To Earnings Before Income Taxes | Three Months Ended December 30, December 31, Net sales: Aircraft Controls $ 278,534 $ 268,450 Space and Defense Controls 133,393 122,590 Industrial Systems 215,608 198,630 Net sales $ 627,535 $ 589,670 Operating profit: Aircraft Controls $ 30,768 $ 23,111 Space and Defense Controls 16,289 9,088 Industrial Systems 19,246 20,163 Total operating profit 66,303 52,362 Deductions from operating profit: Interest expense 8,646 8,486 Equity-based compensation expense 2,001 2,168 Corporate and other expenses, net 7,822 5,220 Earnings before income taxes $ 47,834 $ 36,488 |
Reconciliation of Revenue from Segments to Consolidated | The amounts reclassified for net sales and operating profit as a result of the revised segment reporting structure for the three months ended December 31, 2016 are as follows: December 31, Net sales: Space and Defense Controls $ 29,660 Industrial Systems 86,231 Total $ 115,891 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | Operating profit: Space and Defense Controls $ 1,992 Industrial Systems 9,462 Total $ 11,454 |
Acquisitions, Divestitures an39
Acquisitions, Divestitures and Equity Investments (Narrative) (Details) - USD ($) $ in Thousands | Oct. 03, 2017 | Apr. 02, 2017 | Dec. 30, 2017 |
Aircraft Controls | |||
Business Acquisitions, Divestitures and Equity Method Investments | |||
Ownership Percentage, Equity Method Investment | 51.00% | ||
Contributions Made on Equity Method Investment | $ 1,541 | ||
Planned Contributions on Equity Method Investment | two | ||
Space And Defense Controls | |||
Business Acquisitions, Divestitures and Equity Method Investments | |||
Proceeds from Divestiture of Businesses | $ 7,210 | ||
Space And Defense Controls | Other Expense | |||
Business Acquisitions, Divestitures and Equity Method Investments | |||
Loss on Divestiture | $ (13,119) | ||
Industrial Systems | |||
Business Acquisitions, Divestitures and Equity Method Investments | |||
Purchase Price Net of Acquired Cash | $ 42,593 | ||
Cash Paid to Acquire a Business | 40,545 | ||
Industrial Systems | Pension Obligations | |||
Business Acquisitions, Divestitures and Equity Method Investments | |||
Liabilities Incurred in Business Combination | $ 2,048 |
Receivables (Schedule of Receiv
Receivables (Schedule of Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 30, 2017 | Sep. 30, 2017 | |
Receivables [Abstract] | ||
Accounts receivable | $ 275,939 | $ 286,773 |
Long-term contract receivable - Amounts billed | 130,452 | 148,087 |
Long-term contract receivable - Unbilled recoverable costs and accrued profits | 289,784 | 282,154 |
Total long-term contract receivables | 420,236 | 430,241 |
Other | 48,139 | 15,077 |
Total receivables | 744,314 | 732,091 |
Less allowance for doubtful accounts | (4,583) | (4,351) |
Receivables | $ 739,731 | $ 727,740 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory)(Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Sep. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials and purchased parts | $ 201,228 | $ 189,517 |
Work in progress | 239,875 | 229,202 |
Finished goods | 70,550 | 70,408 |
Inventories | $ 511,653 | $ 489,127 |
Goodwill And Intangible Asset42
Goodwill And Intangible Assets (Changes In Carrying Amount Of Goodwill) (Details) $ in Thousands | 3 Months Ended |
Dec. 30, 2017USD ($) | |
Goodwill | |
Beginning balance | $ 774,268 |
Foreign currency translation | 1,888 |
Ending balance | 776,156 |
Aircraft Controls | |
Goodwill | |
Beginning balance | 181,375 |
Foreign currency translation | 430 |
Ending balance | 181,805 |
Space And Defense Controls | |
Goodwill | |
Beginning balance | 259,951 |
Foreign currency translation | 111 |
Ending balance | 260,062 |
Industrial Systems | |
Goodwill | |
Beginning balance | 332,942 |
Foreign currency translation | 1,347 |
Ending balance | $ 334,289 |
Goodwill And Intangible Asset43
Goodwill And Intangible Assets (Goodwill Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Dec. 30, 2017 | |
Space And Defense Controls | ||
Goodwill [Line Items] | ||
Goodwill, accumulated impairment loss | $ 4,800 | |
Industrial Systems | ||
Goodwill [Line Items] | ||
Goodwill, accumulated impairment loss | $ 38,200 | |
Goodwill | Space And Defense Controls | ||
Goodwill [Line Items] | ||
Prior period reclassification adjustment | $ 86,995 | |
Goodwill | Industrial Systems | ||
Goodwill [Line Items] | ||
Prior period reclassification adjustment | $ 224,194 |
Goodwill And Intangible Asset44
Goodwill And Intangible Assets (Components Of Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2017 | Sep. 30, 2017 | |
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 12 years | |
Gross Carrying Amount | $ 347,447 | $ 345,185 |
Accumulated Amortization | $ (242,533) | (236,367) |
Customer-Related | ||
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 11 years | |
Gross Carrying Amount | $ 177,239 | 175,872 |
Accumulated Amortization | $ (131,433) | (128,019) |
Technology-Related | ||
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 9 years | |
Gross Carrying Amount | $ 72,215 | 71,924 |
Accumulated Amortization | $ (56,018) | (55,069) |
Program-Related | ||
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 19 years | |
Gross Carrying Amount | $ 66,889 | 66,458 |
Accumulated Amortization | $ (31,876) | (30,675) |
Marketing-Related | ||
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 9 years | |
Gross Carrying Amount | $ 26,659 | 26,552 |
Accumulated Amortization | $ (19,727) | (19,251) |
Other Intangible Assets | ||
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 10 years | |
Gross Carrying Amount | $ 4,445 | 4,379 |
Accumulated Amortization | $ (3,479) | $ (3,353) |
Goodwill And Intangible Asset45
Goodwill And Intangible Assets (Intangibles Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of acquired intangible assets | $ 4,600 | $ 4,477 |
Future amortization expenses, 2018 | 18,400 | |
Future amortization expenses, 2019 | 17,300 | |
Future amortization expenses, 2020 | 15,100 | |
Future amortization expenses, 2021 | 9,400 | |
Future amortization expenses, 2022 | $ 7,200 |
Indebtedness (Components of Lon
Indebtedness (Components of Long-term debt) (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Sep. 30, 2017 |
Debt Disclosure [Abstract] | ||
U.S. revolving credit facility | $ 535,000 | $ 540,110 |
Senior notes | 300,000 | 300,000 |
Securitization program | 130,000 | 120,000 |
Obligations under capital leases | 263 | 306 |
Senior debt | 965,263 | 960,416 |
Less deferred debt issuance cost | (2,998) | (3,468) |
Less current installments | (259) | (295) |
Long-term debt | $ 962,006 | $ 956,653 |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) - USD ($) $ in Thousands | Oct. 23, 2017 | Jun. 28, 2016 | Dec. 30, 2017 | Nov. 21, 2014 |
Revolving Credit Facility | ||||
Line of Credit Facility | ||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,100,000 | |||
Expansion option to increase credit facility | $ 200,000 | |||
Senior Notes | ||||
Line of Credit Facility | ||||
Debt Instrument, Face Amount | $ 300,000 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |||
Securitization Program | ||||
Line of Credit Facility | ||||
Maximum credit facility amount that can borrow | $ 130,000 | |||
Percentage of borrowing capacity on the Securitization Program | 80.00% | |||
Percentage of borrowing base on the Securitization Program | 100.00% | |||
Minimum borrowing requirement for the Securitization Program | $ 104,000 |
Product Warranties (Narrative)
Product Warranties (Narrative) (Details) | 3 Months Ended |
Dec. 30, 2017 | |
Minimum | |
Product Warranties | |
Warranty period | twelve |
Maximum | |
Product Warranties | |
Warranty period | sixty |
Product Warranties (Summary Of
Product Warranties (Summary Of Activity In Warranty Accrual) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Warranty accrual at beginning of period | $ 25,848 | $ 21,363 |
Warranties issued during current period | 4,757 | 3,414 |
Adjustments to pre-existing warranties | (70) | (265) |
Reductions for settling warranties | (2,915) | (1,044) |
Foreign currency translation | 128 | (585) |
Warranty accrual at end of period | $ 27,748 | $ 22,883 |
Derivative Financial Instrume50
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Designated as Hedging Instrument | ||
Derivative | ||
Cash Flow Hedge Ineffectiveness is Immaterial | not material | not material |
Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivative | ||
Notional Amount, Derivative | $ 150,000 | |
Conversion Rate Of Interest Rate Swaps From Variable to Fixed | 2.62% | |
Basis Spread on Variable Rate Derivative | 1.38% | |
Designated as Hedging Instrument | Foreign Currency Contracts | ||
Derivative | ||
Notional Amount, Derivative | $ 51,608 | |
Not Designated as Hedging Instrument | Foreign Currency Contracts | ||
Derivative | ||
Notional Amount, Derivative | $ 107,528 |
Derivative Financial Instrume51
Derivative Financial Instruments (Gains And Losses On Foreign Currency Forwards Included In Other Income Or Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Derivative Instrument Detail [Abstract] | ||
Net gain (loss) | $ (628) | $ 1,394 |
Derivative Financial Instrume52
Derivative Financial Instruments (Fair Value And Classification Of Derivatives On The Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 30, 2017 | Sep. 30, 2017 |
Designated as Hedging Instrument | Other Current Assets | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Derivative assets as hedging instruments, fair value | $ 639 | $ 551 |
Designated as Hedging Instrument | Other Current Assets | Interest Rate Swaps | ||
Derivative Instruments, Fair Value | ||
Derivative assets as hedging instruments, fair value | 989 | 552 |
Designated as Hedging Instrument | Other Assets | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Derivative assets as hedging instruments, fair value | 298 | 50 |
Designated as Hedging Instrument | Other Assets | Interest Rate Swaps | ||
Derivative Instruments, Fair Value | ||
Derivative assets as hedging instruments, fair value | 471 | 314 |
Designated as Hedging Instrument | Total asset derivative | ||
Derivative Instruments, Fair Value | ||
Derivative assets as hedging instruments, fair value | 2,397 | 1,467 |
Designated as Hedging Instrument | Other Accrued Liabilities | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Derivative liabilities as hedging instruments, fair value | 601 | 1,434 |
Designated as Hedging Instrument | Other Accrued Liabilities | Interest Rate Swaps | ||
Derivative Instruments, Fair Value | ||
Derivative liabilities as hedging instruments, fair value | 0 | 10 |
Designated as Hedging Instrument | Other Long-Term Liabilities | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Derivative liabilities as hedging instruments, fair value | 0 | 244 |
Designated as Hedging Instrument | Other Long-Term Liabilities | Interest Rate Swaps | ||
Derivative Instruments, Fair Value | ||
Derivative liabilities as hedging instruments, fair value | 0 | 15 |
Designated as Hedging Instrument | Total liability derivatives | ||
Derivative Instruments, Fair Value | ||
Derivative liabilities as hedging instruments, fair value | 601 | 1,703 |
Not Designated As Hedging Instruments | Other Current Assets | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Derivative assets as hedging instruments, fair value | 314 | 95 |
Not Designated As Hedging Instruments | Other Accrued Liabilities | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Derivative liabilities as hedging instruments, fair value | $ 515 | $ 383 |
Fair Value (Fair Values And Cla
Fair Value (Fair Values And Classification Of Financial Assets And Liabilities Measured On A Recurring Basis) (Details) - Level 2 - USD ($) $ in Thousands | Dec. 30, 2017 | Sep. 30, 2017 |
Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forwards, fair value assets | $ 953 | $ 646 |
Interest rate swap, fair value assets | 989 | 552 |
Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forwards, fair value assets | 298 | 50 |
Interest rate swap, fair value assets | 471 | 314 |
Total Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total fair value assets | 2,711 | 1,562 |
Other Accrued Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forwards, fair value liabilities | 1,116 | 1,817 |
Interest rate swap, fair value liabilities | 0 | 10 |
Other Long-Term Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forwards, fair value liabilities | 0 | 244 |
Interest rate swap, fair value liabilities | 0 | 15 |
Total Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total fair value liabilities | $ 1,116 | $ 2,086 |
Fair Value Fair Value (Narrativ
Fair Value Fair Value (Narrative) (Details) $ in Thousands | Dec. 30, 2017USD ($) |
Fair Value Disclosures [Abstract] | |
Fair value of long-term debt | $ 974,451 |
Carrying value of long-term debt | $ 965,263 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Details) - Defined Benefit Pension Plans - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
U.S. Plans | ||
Defined Benefit Plan Disclosure | ||
Service cost | $ 5,634 | $ 6,022 |
Interest cost | 8,073 | 7,636 |
Expected return on plan assets | (13,576) | (13,628) |
Amortization of prior service cost (credit) | 47 | 47 |
Amortization of actuarial loss | 6,902 | 8,419 |
Pension expense for defined benefit plans | 7,080 | 8,496 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure | ||
Service cost | 1,470 | 1,532 |
Interest cost | 1,055 | 751 |
Expected return on plan assets | (1,243) | (1,131) |
Amortization of prior service cost (credit) | (14) | (27) |
Amortization of actuarial loss | 624 | 1,120 |
Pension expense for defined benefit plans | $ 1,892 | $ 2,245 |
Employee Benefit Plans (Defined
Employee Benefit Plans (Defined Contribution Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Defined Contribution Pension Plans | ||
Defined Contribution Plan Disclosure | ||
Defined contribution plan expense | $ 5,681 | $ 5,030 |
U.S. Plans | ||
Defined Contribution Plan Disclosure | ||
Defined contribution plan expense | 3,972 | 3,670 |
Non-U.S. Plans | ||
Defined Contribution Plan Disclosure | ||
Defined contribution plan expense | $ 1,709 | $ 1,360 |
Employee Benefit Plans (Narrati
Employee Benefit Plans (Narrative) (Details) $ in Thousands | Dec. 30, 2017USD ($) |
U.S. Plans | |
Defined Benefit Plan Disclosure | |
Expected future employer contributions for the fiscal year | $ 149,000 |
Restructuring (Schedule of Rest
Restructuring (Schedule of Restructuring Reserve Activity) (Details) - 2016 Plan $ in Thousands | 3 Months Ended |
Dec. 30, 2017USD ($) | |
Restructuring Reserve | |
Restructuring accrual at beginning of period | $ 1,168 |
Cash payments | (254) |
Restructuring accrual at end of period | $ 914 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands | Dec. 22, 2017 | Oct. 01, 2017 | Dec. 30, 2017 | Dec. 31, 2016 |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rate | 97.30% | 17.60% | ||
Federal statutory income tax rate | 21.00% | 35.00% | ||
Transition Tax on Undistributed Foreign Earnings Deemed To Be Repatriated | $ 31,000 | |||
Withholding Taxes on Undistributed Foreign Earnings Deemed To Be Repatriated | 15,250 | |||
Additional Income Tax Provision For Remaining Undistributed Foreign Earnings | 0 | |||
Income tax benefit due to remeasurement of deferred tax assets and liabilities | $ 12,225 |
Accumulated Other Comprehensi60
Accumulated Other Comprehensive Income (Loss) (Changes in AOCI by Component) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Accumulated foreign currency translation at beginning of period | $ (83,166) | |
Other comprehensive income (loss) before reclassifications - Foreign currency translation | 10,364 | |
Amounts reclassified from AOCIL - Foreign currency translation | 0 | |
Other comprehensive income (loss) - Foreign currency translation | 10,364 | |
Accumulated foreign currency translation at end of period | (72,802) | |
Accumulated retirement liability at beginning of period | (251,865) | |
Other comprehensive income (loss) before reclassifications - Retirement liability | (363) | |
Amounts reclassified from AOCIL - Retirement liability | 4,619 | $ 6,009 |
Other comprehensive income (loss) retirement liability | 4,256 | 8,572 |
Accumulated retirement liability at end of period | (247,609) | |
Accumulated loss on derivatives at beginning of period | (460) | |
Other comprehensive income (loss) before reclassification - Derivatives | 905 | (714) |
Amounts reclassified from AOCIL - Derivatives | 329 | 1,288 |
Other comprehensive income (loss) - Derivatives | 1,234 | 574 |
Accumulated loss on derivatives at end of period | 774 | |
Accumulated other comprehensive loss at beginning of period | (335,491) | |
Other comprehensive income (loss) before reclassifications - Total | 10,906 | |
Amounts reclassified from AOCIL - Total | 4,948 | |
Other comprehensive income (loss), net of tax | 15,854 | $ (32,363) |
Accumulated other comprehensive loss at end of period | $ (319,637) |
Accumulated Other Comprehensi61
Accumulated Other Comprehensive Income (Loss) (Reclassification from AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Prior service cost | $ (85) | $ 19 |
Actuarial losses | 7,396 | 9,417 |
Reclassification from AOCIL into earnings | 7,311 | 9,436 |
Tax effect | (2,692) | (3,427) |
Net reclassification from AOCIL into earnings | 4,619 | 6,009 |
Reclassification from AOCIL into earnings | 564 | 1,879 |
Tax effect | (235) | (591) |
Net reclassification from AOCIL into earnings | 329 | 1,288 |
Foreign Currency Contracts | Sales | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Derivatives | (118) | 1,297 |
Foreign Currency Contracts | Cost Of Sales | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Derivatives | 696 | 467 |
Interest Rate Swaps | Interest | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Derivatives | $ (14) | $ 115 |
Accumulated Other Comprehensi62
Accumulated Other Comprehensive Income (Loss) (Activity and Classification of Derivative Deferral in AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Derivative Instruments, Gain (Loss) | ||
Net gain (loss) | $ 1,445 | $ (1,092) |
Tax effect | (540) | 378 |
Net deferral in AOCIL of derivatives | 905 | (714) |
Foreign Currency Contracts | ||
Derivative Instruments, Gain (Loss) | ||
Net deferral in AOCIL of derivatives (effective portion) | 828 | (1,786) |
Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) | ||
Net deferral in AOCIL of derivatives (effective portion) | $ 617 | $ 694 |
Earnings Per Share (Basic And D
Earnings Per Share (Basic And Diluted Weighted-Average Shares Outstanding) (Details) - shares | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Basic weighted-average shares outstanding | 35,772,406 | 35,869,052 |
Dilutive effect of equity-based awards | 428,648 | 403,715 |
Diluted weighted-average shares outstanding | 36,201,054 | 36,272,767 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from calculation of diluted earnings per share | 13,530 | 111,574 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Thousands | 3 Months Ended | |
Dec. 30, 2017USD ($) | Sep. 30, 2017USD ($) | |
Segment Reporting Information | ||
Number of Reportable Segments | 3 | |
Assets | $ 3,138,495 | $ 3,090,592 |
Space And Defense Controls | ||
Segment Reporting Information | ||
Assets | 613,000 | |
Industrial Systems | ||
Segment Reporting Information | ||
Assets | $ 1,142,000 |
Segment Information (Sales And
Segment Information (Sales And Operating Profit By Segment And Reconciliation Of Segment Operating Profit To Earnings Before Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 30, 2017 | Dec. 31, 2016 | |
Net sales: | ||
Net sales | $ 627,535 | $ 589,670 |
Operating profit: | ||
Operating profit | 66,303 | 52,362 |
Deductions from operating profit: | ||
Interest expense | 8,646 | 8,486 |
Equity-based compensation expense | 2,001 | 2,168 |
Corporate expenses and other, net | 7,822 | 5,220 |
Earnings before income taxes | 47,834 | 36,488 |
Aircraft Controls | ||
Net sales: | ||
Net sales | 278,534 | 268,450 |
Operating profit: | ||
Operating profit | 30,768 | 23,111 |
Space And Defense Controls | ||
Net sales: | ||
Net sales | 133,393 | 122,590 |
Operating profit: | ||
Operating profit | 16,289 | 9,088 |
Industrial Systems | ||
Net sales: | ||
Net sales | 215,608 | 198,630 |
Operating profit: | ||
Operating profit | $ 19,246 | $ 20,163 |
Segment Information (Reconcilia
Segment Information (Reconciliation of Revenue from Segments to Consolidated) (Details) - Net sales $ in Thousands | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Segment Reporting, Revenue Reconciling Item | |
Prior period reclassification adjustment | $ 115,891 |
Space And Defense Controls | |
Segment Reporting, Revenue Reconciling Item | |
Prior period reclassification adjustment | 29,660 |
Industrial Systems | |
Segment Reporting, Revenue Reconciling Item | |
Prior period reclassification adjustment | $ 86,231 |
Segment Information (Reconcil68
Segment Information (Reconciliation of Operating Profit from Segments to Consolidated) (Details) - Operating Income (Loss) [Member] $ in Thousands | 3 Months Ended |
Dec. 31, 2016USD ($) | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | |
Prior period reclassification adjustment | $ 11,454 |
Space And Defense Controls | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | |
Prior period reclassification adjustment | 1,992 |
Industrial Systems | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | |
Prior period reclassification adjustment | $ 9,462 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Thousands | Dec. 30, 2017USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Standby letters of credit | $ 48,793 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) $ in Thousands | 3 Months Ended |
Dec. 30, 2017USD ($) | |
Related Party Transaction | |
Related Party US Revolving Credit Facility Interest Percentage | 12.00% |
Bank Affiliate | Credit Extension on Routine Purchases | |
Related Party Transaction | |
Related Party Transaction, Amounts of Transaction | $ 5,459 |
Bank Affiliate | Interest Rate Swaps | |
Related Party Transaction | |
Related Party Transaction, Amounts of Transaction | 15,000 |
Bank Affiliate | Lease Agreements | |
Related Party Transaction | |
Related Party Transaction, Amounts of Transaction | $ 27,955 |