Document and Entity Information
Document and Entity Information - DEI Document - shares | 3 Months Ended | |
Dec. 28, 2019 | Jan. 20, 2020 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 28, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-05129 | |
Entity Registrant Name | MOOG Inc. | |
Entity Incorporation, State or Country Code | NY | |
Entity Tax Identification Number | 16-0757636 | |
Entity Address, Address Line One | 400 Jamison Rd | |
Entity Address, City or Town | East Aurora, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 14052-0018 | |
City Area Code | 716 | |
Local Phone Number | 652-2000 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Central Index Key | 0000067887 | |
Current Fiscal Year End Date | --10-03 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Shell Company | false | |
Class A Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class A common stock | |
Trading Symbol | MOG.A | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 31,332,013 | |
Class B Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Class B common stock | |
Trading Symbol | MOG.B | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 2,513,960 |
Consolidated Condensed Statemen
Consolidated Condensed Statements of Earnings - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 754,843 | $ 679,676 |
Cost of sales | 543,586 | 480,174 |
Gross profit | 211,257 | 199,502 |
Research and development | 28,208 | 31,876 |
Selling, general and administrative | 98,367 | 96,326 |
Interest | 10,232 | 9,682 |
Other | 7,546 | 5,135 |
Earnings before income taxes | 66,904 | 56,483 |
Income taxes | 16,877 | 13,714 |
Net earnings | $ 50,027 | $ 42,769 |
Net earnings per share | ||
Basic | $ 1.45 | $ 1.23 |
Diluted | 1.44 | 1.22 |
Dividends declared per share | $ 0.25 | $ 0.25 |
Average common shares outstanding | ||
Basic | 34,510,851 | 34,815,255 |
Diluted | 34,787,404 | 35,125,829 |
Consolidated Condensed Statem_2
Consolidated Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net earnings | $ 50,027 | $ 42,769 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment | 21,533 | (9,387) |
Retirement liability adjustment | 4,363 | 6,119 |
Change in accumulated income (loss) on derivatives | 1,402 | 664 |
Other comprehensive income (loss) | 27,298 | (2,604) |
Comprehensive income (loss) | $ 77,325 | $ 40,165 |
Consolidated Condensed Balance
Consolidated Condensed Balance Sheets - USD ($) $ in Thousands | Dec. 28, 2019 | Sep. 28, 2019 |
Current assets | ||
Cash and cash equivalents | $ 124,226 | $ 89,702 |
Restricted cash | 3,065 | 2,846 |
Receivables | 989,214 | 957,287 |
Inventories, net | 559,232 | 534,974 |
Prepaid expense and other current assets | 43,588 | 44,164 |
Total current assets | 1,719,325 | 1,628,973 |
Property, plant and equipment, net | 613,487 | 586,767 |
Operating lease right-of-use assets | 62,669 | 0 |
Goodwill | 812,602 | 784,240 |
Intangible assets, net | 103,783 | 79,646 |
Deferred income taxes | 20,069 | 19,992 |
Other assets | 16,143 | 14,619 |
Total assets | 3,348,078 | 3,114,237 |
Current liabilities | ||
Current installments of long-term debt | 0 | 249 |
Accounts payable | 231,692 | 257,677 |
Accrued compensation | 113,230 | 143,765 |
Contract advances | 177,107 | 137,242 |
Contract loss and contract-related reserves | 62,221 | 60,914 |
Accrued liabilities and other | 211,290 | 188,725 |
Total current liabilities | 733,319 | 727,658 |
Long-term debt, excluding current installments | 977,573 | 832,984 |
Long-term pension and retirement obligations | 163,286 | 160,034 |
Deferred income taxes | 54,238 | 40,528 |
Other long-term liabilities | 82,971 | 30,552 |
Total liabilities | 2,011,387 | 1,791,756 |
Shareholders' equity | ||
Additional paid-in capital | 518,822 | 510,546 |
Retained earnings | 2,170,105 | 2,128,739 |
Treasury shares | (828,453) | (769,569) |
Accumulated other comprehensive loss | (388,179) | (415,477) |
Total shareholders' equity | 1,336,691 | 1,322,481 |
Total liabilities and shareholders' equity | 3,348,078 | 3,114,237 |
Class A Common Stock | ||
Shareholders' equity | ||
Common stock | 43,796 | 43,795 |
Class B Common Stock | ||
Shareholders' equity | ||
Common stock | 7,484 | 7,485 |
Stock Employee Compensation Trust (SECT) | ||
Shareholders' equity | ||
Common stock issued to trust | (115,503) | (111,492) |
Total shareholders' equity | (115,503) | (111,492) |
Supplemental Retirement Plan (SERP) Trust | ||
Shareholders' equity | ||
Common stock issued to trust | (71,381) | (71,546) |
Total shareholders' equity | $ (71,381) | $ (71,546) |
Consolidated Condensed Statem_3
Consolidated Condensed Statements of Shareholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock At Cost | Stock Employee Compensation Trust (SECT) | Supplemental Retirement Plan (SERP) Trust | Accumulated Other Comprehensive Loss | Class A Common Stock | Class A Common 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 at Sep. 29, 2018 | $ 1,224,986 | $ 51,280 | $ 502,257 | $ 1,974,125 | $ (738,494) | $ (118,449) | $ (72,941) | $ (372,792) | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Issuance of shares | (2,201) | 5,796 | |||||||||||||
Equity-based compensation expense | 2,008 | ||||||||||||||
Adjustment to market - SECT, SERP and other | (14,780) | ||||||||||||||
Net earnings | 42,769 | 42,769 | |||||||||||||
Dividends | (8,703) | ||||||||||||||
Adoption of ASC 606 | ASC 606 | 14,923 | ||||||||||||||
Class A and B shares purchased | (10,541) | ||||||||||||||
Issuance of shares - SECT | 8,761 | ||||||||||||||
Purchase of shares - SECT | (1,930) | (1,930) | |||||||||||||
Adjustment to market | 9,436 | 5,344 | |||||||||||||
Other comprehensive income (loss) | (2,604) | (2,604) | |||||||||||||
End of period at Dec. 29, 2018 | 1,273,264 | 51,280 | 487,284 | 2,023,114 | (743,239) | (102,182) | (67,597) | (375,396) | |||||||
Beginning of period - Common Stock at Sep. 29, 2018 | 43,784,489 | 7,495,224 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Conversion of Class B to Class A | 946 | (946) | |||||||||||||
End of period - Common Stock at Dec. 29, 2018 | 43,785,435 | 7,494,278 | |||||||||||||
Beginning of period, Shares at Sep. 29, 2018 | (10,872,575) | (425,148) | (3,323,996) | (983,772) | (876,170) | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Class A and B shares issued related to equity compensation, shares | 23,741 | 58,793 | |||||||||||||
Class A and B shares purchased, shares | (48,573) | (83,296) | |||||||||||||
Issuance of shares - SECT | 107,577 | ||||||||||||||
Purchase of shares - SECT | (23,669) | ||||||||||||||
End of period, Shares at Dec. 29, 2018 | (10,897,407) | (425,148) | (3,348,499) | (899,864) | (876,170) | ||||||||||
Beginning of period at Sep. 28, 2019 | 1,322,481 | 51,280 | 510,546 | 2,128,739 | (769,569) | (111,492) | (71,546) | (415,477) | |||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Issuance of shares | 4,489 | 527 | |||||||||||||
Equity-based compensation expense | 2,381 | ||||||||||||||
Adjustment to market - SECT, SERP and other | 1,406 | ||||||||||||||
Net earnings | 50,027 | 50,027 | |||||||||||||
Dividends | (8,661) | ||||||||||||||
Adoption of ASC 606 | ASC 606 | 0 | ||||||||||||||
Class A and B shares purchased | (59,411) | ||||||||||||||
Issuance of shares - SECT | 0 | ||||||||||||||
Purchase of shares - SECT | (2,440) | (2,440) | |||||||||||||
Adjustment to market | (1,571) | 165 | |||||||||||||
Other comprehensive income (loss) | 27,298 | 27,298 | |||||||||||||
End of period at Dec. 28, 2019 | $ 1,336,691 | $ 51,280 | $ 518,822 | $ 2,170,105 | $ (828,453) | $ (115,503) | $ (71,381) | $ (388,179) | |||||||
Beginning of period - Common Stock at Sep. 28, 2019 | 43,794,935 | 7,484,778 | |||||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Conversion of Class B to Class A | 1,400 | (1,400) | |||||||||||||
End of period - Common Stock at Dec. 28, 2019 | 43,796,335 | 7,483,378 | |||||||||||||
Beginning of period, Shares at Sep. 28, 2019 | (11,101,512) | (425,148) | (3,345,489) | (886,300) | (826,170) | ||||||||||
Increase (Decrease) in Stockholders' Equity | |||||||||||||||
Class A and B shares issued related to equity compensation, shares | 3,078 | 94,567 | |||||||||||||
Class A and B shares purchased, shares | (669,106) | (9,680) | |||||||||||||
Issuance of shares - SECT | 0 | ||||||||||||||
Purchase of shares - SECT | (28,596) | ||||||||||||||
End of period, Shares at Dec. 28, 2019 | (11,767,540) | (425,148) | (3,260,602) | (914,896) | (826,170) |
Consolidated Condensed Statem_4
Consolidated Condensed Statements of Shareholders' Equity (Parenthetical) - shares | Dec. 28, 2019 | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 29, 2018 |
Stock Employee Compensation Trust (SECT) | Class A Common Stock | ||||
Shares, Issued | 425,148 | 425,148 | 425,148 | 425,148 |
Consolidated Condensed Statem_5
Consolidated Condensed Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net earnings | $ 50,027 | $ 42,769 |
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | ||
Depreciation | 18,386 | 17,848 |
Amortization | 3,281 | 3,746 |
Deferred income taxes | 3,205 | 92 |
Equity-based compensation expense | 2,381 | 2,008 |
Other | (1,017) | 1,020 |
Changes in assets and liabilities providing (using) cash: | ||
Receivables | (18,879) | 12,810 |
Inventories | (13,782) | (24,399) |
Accounts payable | (29,153) | (13,199) |
Contract advances | 40,215 | 31,531 |
Accrued expenses | (26,998) | (18,473) |
Accrued income taxes | 4,709 | 511 |
Net pension and post retirement liabilities | 8,327 | 8,368 |
Other assets and liabilities | 1,404 | (394) |
Net cash provided by operating activities | 42,106 | 64,238 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Acquisitions of businesses, net of cash acquired | (53,906) | 0 |
Purchase of property, plant and equipment | (27,310) | (24,375) |
Other investing transactions | (3,684) | 2,785 |
Net cash used by investing activities | (84,900) | (21,590) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Net short-term (borrowings) repayments | 0 | (1,490) |
Proceeds from revolving lines of credit | 272,000 | 131,100 |
Payments on revolving lines of credit | (617,500) | (175,200) |
Payments on long-term debt | 0 | (85) |
Proceeds from senior notes, net of issuance costs | 492,750 | 0 |
Payments on finance lease obligations | (88) | 0 |
Payments of dividends | (8,661) | (8,703) |
Purchase of outstanding shares for treasury | (57,776) | (9,450) |
Proceeds from sale of stock held by SECT | 0 | 6,636 |
Purchase of stock held by SECT | (2,440) | (1,930) |
Other financing transactions | (1,895) | 0 |
Net cash provided (used) by financing activities | 76,390 | (59,122) |
Effect of exchange rate changes on cash | 1,147 | (473) |
Decrease in cash, cash equivalents and restricted cash | 34,743 | (16,947) |
Cash, cash equivalents and restricted cash at beginning of period | 92,548 | 127,706 |
Cash, cash equivalents and restricted cash at end of period | 127,291 | 110,759 |
SUPPLEMENTAL CASH FLOW INFORMATION | ||
Treasury shares issued as compensation | 5,016 | 5,720 |
Equipment acquired through financing | $ 568 | $ 0 |
Basis Of Presentation
Basis Of Presentation | 3 Months Ended |
Dec. 28, 2019 | |
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 28, 2019 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 28, 2019 . 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. Management does not consider the amounts reclassified to be material. Recent Accounting Pronouncements Adopted Standard Description Financial Statement Effect or Other Significant Matters 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 adopted this standard using the modified retrospective method, without adjusting prior comparative periods. We recorded an initial right-of-use (ROU) assets of $68,126 and lease liabilities of $71,776, which included reclassifying deferred rent as a component of the ROU asset on the Consolidated Condensed Balance Sheets. There were no material changes to our Consolidated Condensed Statements of Earnings or Consolidated Condensed Statements of Cash Flows . We have completed the necessary changes to our financial statements and related disclosures, internal controls, financial policies and information systems. See Note 7 - Leases, for additional disclosure. Date adopted: Recent Accounting Pronouncements Not Yet Adopted Standard Description Financial Statement Effect or Other Significant Matters ASU no. 2018-15 Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract The standard amends ASC 350 to include in its scope implementation costs of a Cloud Computing Arrangement (CCA) that is a service contract and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in a CCA that is considered a service contract. The ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are currently evaluating the effect on our financial statements and related disclosures. Planned date of adoption: ASU no. 2016-13 Measurement of Credit Losses on Financial Instruments The standard replaces the incurred loss model with the current expected credit loss (CECL) model to estimate credit losses for financial assets measured at amortized cost and certain off-balance sheet credit exposures. The CECL model requires a Company to estimate credit losses expected over the life of the financial assets based on historical experience, current conditions and reasonable and supportable forecasts. The provisions of the standard are effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The amendment requires a modified retrospective approach by recording a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. We are currently evaluating the effect on our financial statements and related disclosures. Planned date of adoption: 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 an immaterial impact on our financial statements and related disclosures. Impact of Change in Accounting Principle Beginning in the first quarter of 2020, we changed our method of accounting for the determination of the market-related value of assets for a class of assets within the qualified U.S. defined benefit plan (the plan). This class of assets is currently comprised solely of the fixed income funds asset class held in the portfolio for the plan and provides a natural hedge (liability-hedging assets) against the changes in the recorded amount of net periodic pension cost. Refer to Note 13 - Employee Benefit Plans, in our Form 10-K for the fiscal year ended September 28, 2019, for our fair value disclosure by asset classification. Our previous method of accounting was to calculate the market-related value of assets for all the plan’s assets recognizing investment gains and losses ratably over a five-year period. We have elected to use the fair value of our liability-hedging assets, which represent approximately 80% of the plan’s assets, to determine the market-related value of the assets beginning in the first quarter of 2020. This change in accounting principle is preferable as the recognition of the gains and losses on this class of assets will affect net periodic pension cost in the period in which they occur. No change is being made to the accounting principle for the other classes of pension assets, which represent the remaining 20% of the pension asset portfolio for the plan. The gains and losses for these other plan assets will continue to be amortized into earnings over a five-year period. The change in accounting principle requires retrospective application and prospective disclosure. The tables below represent the impact of this change on the Consolidated Condensed Statements of Earnings and the Consolidated Condensed Statements of Comprehensive Income (Loss) for the three months ended December 28, 2019 , the Consolidated Condensed Balance Sheets for the period ended December 28, 2019 , the Consolidated Condensed Statements of Earnings and the Consolidated Statements of Comprehensive Income (Loss) for the three months ended December 29, 2018 and the Consolidated Condensed Balance Sheets for the periods ended December 29, 2018, September 28, 2019 and September 29, 2018, respectively. The change in accounting principle had no impact on the Consolidated Condensed Statements of Cash Flows for these periods. The tables below represent the impact of the change in accounting principle on the Consolidated Condensed Statement of Earnings and the Consolidated Statements of Comprehensive Income (Loss) for the three months ended December 28, 2019 . Three Months Ended As Reported (With Change), December 28, 2019 Impact of Change Without Change, December 28, 2019 Other $ 7,546 $ 2,876 $ 10,422 Earnings before income taxes 66,904 (2,876 ) 64,028 Income taxes 16,877 (679 ) 16,198 Net earnings $ 50,027 $ (2,197 ) $ 47,830 Net earnings per share Basic $ 1.45 $ (0.06 ) $ 1.39 Diluted $ 1.44 $ (0.07 ) $ 1.37 Retirement liability adjustment $ 4,363 $ 2,197 $ 6,560 Other comprehensive income (loss), net of tax $ 27,298 $ 2,197 $ 29,495 Comprehensive income (loss) $ 77,325 $ — $ 77,325 The table below represents the impact of the change in accounting principle on the Consolidated Condensed Balance Sheet as of December 28, 2019 . As Reported (With Change), December 28, 2019 Impact of Change Without Change, December 28, 2019 Shareholders’ equity Retained earnings $ 2,170,105 $ 2,392 $ 2,172,497 Accumulated other comprehensive loss (388,179 ) (2,392 ) (390,571 ) Total shareholders’ equity $ 1,336,691 $ — $ 1,336,691 The tables below represent the impact of the change in accounting principle on the Consolidated Condensed Statement of Earnings and the Consolidated Condensed Statements of Comprehensive Income (Loss) for the three months ended December 29, 2018 . Three Months Ended As Previously Reported, December 29, 2018 Impact of Change As Reported, December 29, 2018 Other $ 3,434 $ 1,701 $ 5,135 Earnings before income taxes 58,184 (1,701 ) 56,483 Income taxes 14,115 (401 ) 13,714 Net earnings $ 44,069 $ (1,300 ) $ 42,769 Net earnings per share Basic $ 1.27 $ (0.04 ) $ 1.23 Diluted $ 1.25 $ (0.03 ) $ 1.22 Retirement liability adjustment $ 4,819 $ 1,300 $ 6,119 Other comprehensive income (loss), net of tax $ (3,904 ) $ 1,300 $ (2,604 ) Comprehensive income (loss) $ 40,165 $ — $ 40,165 The table below represents the impact of the change in accounting principle on the Consolidated Condensed Balance Sheet as of December 29, 2018 . As Previously Reported, December 29, 2018 Impact of Change As Reported, December 29, 2018 Shareholders’ equity Retained earnings $ 2,023,803 $ (689 ) $ 2,023,114 Accumulated other comprehensive loss (376,085 ) 689 (375,396 ) Total shareholders’ equity $ 1,273,264 $ — $ 1,273,264 The table below represents the impact of the change in accounting principle on the Consolidated Condensed Balance Sheet as of September 28, 2019 . As Previously Reported, September 28, 2019 Impact of Change As Reported, September 28, 2019 Shareholders’ equity Retained earnings $ 2,133,328 $ (4,589 ) $ 2,128,739 Accumulated other comprehensive loss (420,066 ) 4,589 (415,477 ) Total shareholders’ equity $ 1,322,481 $ — $ 1,322,481 The table below represents the impact of the change in accounting principle on the Consolidated Condensed Balance Sheet as of September 29, 2018 . As Previously Reported, September 29, 2018 Impact of Change As Reported, September 29, 2018 Shareholders’ equity Retained earnings $ 1,973,514 $ 611 $ 1,974,125 Accumulated other comprehensive loss (372,181 ) (611 ) (372,792 ) Total shareholders’ equity $ 1,224,986 $ — $ 1,224,986 See Note 13 - Employee Benefit Plans and Note 16 - Accumulated Other Comprehensive Income (Loss) for adjusted reporting for prior periods. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition and Contracts with Customers | Revenue from Contracts with Customers We recognize revenue from contracts with customers using the five-step model prescribed in ASC 606. The first step is identifying the contract. The identification of a contract with a customer requires an assessment of each party’s rights and obligations regarding the products or services to be transferred, including an evaluation of termination clauses and presently enforceable rights and obligations. Each party’s rights and obligations and the associated terms and conditions are typically determined in purchase orders. For sales that are governed by master supply agreements under which provisions define specific program requirements, purchase orders are issued under these agreements to reflect presently enforceable rights and obligations for the units of products and services being purchased. Contracts are sometimes modified to account for changes in contract specifications and requirements. When this occurs, we assess the modification as prescribed in ASC 606 and determine whether the existing contract needs to be modified (and revenue cumulatively caught up), whether the existing contract needs to be terminated and a new contract needs to be created, or whether the existing contract remains and a new contract needs to be created. This is determined based on the rights and obligations within the modification as well as the associated transaction price. The next step is identifying the performance obligations. A performance obligation is a promise to transfer goods or services to a customer that is distinct in the context of the contract, as defined by ASC 606. We identify a performance obligation for each promise in a contract to transfer a distinct good or service to the customer. As part of our assessment, we consider all goods and/or services promised in the contract, regardless of whether they are explicitly stated or implied by customary business practices. The products and services in our contracts are typically not distinct from one another due to their complexity and reliance on each other or, in many cases, we provide a significant integration service. Accordingly, many of our contracts are accounted for as one performance obligation. In limited cases, our contracts have more than one distinct performance obligation, which occurs when we perform activities that are not highly complex or interrelated or involve different product life cycles. Warranties are provided on certain contracts, but do not typically provide for services beyond standard assurances and are therefore not distinct performance obligations under ASC 606. The third step is determining the transaction price, which represents the amount of consideration we expect to be entitled to receive from a customer in exchange for providing the goods or services. There are times when this consideration is variable, for example a volume discount, and must be estimated. Sales, use, value-added, and excise taxes are excluded from the transaction price, where applicable. The fourth step is allocating the transaction price. The transaction price must be allocated to the performance obligations identified in the contract based on relative stand-alone selling prices when available, or an estimate for each distinct good or service in the contract when standalone prices are not available. Our contracts with customers generally require payment under normal commercial terms after delivery. Payment terms are typically within 30 to 60 days of delivery. The timing of satisfaction of our performance obligations does not significantly vary from the typical timing of payment. The final step is the recognition of revenue. We recognize revenue as the performance obligations are satisfied. ASC 606 provides guidance to help determine if we are satisfying the performance obligation at a point in time or over time. In determining when performance obligations are satisfied, we consider factors such as contract terms, payment terms and whether there is an alternative use of the product or service. In essence, we recognize revenue when or as control of the promised goods or services transfer to the customer. Under ASC 606, revenue recognized over time using an input method that uses costs incurred to date to measure progress toward completion ("cost-to-cost") was 64% for the three months ended December 28, 2019 . The over time method of revenue recognition is predominantly used in Aircraft Controls and Space and Defense Controls. We use this method for U.S. Government contracts and repair and overhaul arrangements as we are creating or enhancing assets that the customer controls as the assets are being created or enhanced. In addition, many of our large commercial contracts qualify for over-time accounting as our performance does not create an asset with an alternative use and we have an enforceable right to payment for performance completed to date. Our over-time contracts are primarily firm fixed price. Revenue is recognized on contracts using the cost-to-cost method of accounting as work progresses toward completion as determined by the ratio of cumulative costs incurred to date to estimated total contract costs at completion, multiplied by the total estimated contract revenue, less cumulative revenue recognized in prior periods. We believe that cumulative costs incurred to date as a percentage of estimated total contract costs at completion is an appropriate measure of progress toward satisfaction of performance obligations as this measure most accurately depicts the progress of our work and transfer of control to our customers. Changes in estimates affecting sales, costs and profits are recognized in the period in which the change becomes known using the cumulative catch-up method of accounting, resulting in the cumulative effect of changes reflected in the period. Estimates are reviewed and updated quarterly for substantially all contracts. For the three months ended December 28, 2019 and December 29, 2018 we recognized revenues of $14,619 and $11,759 , resp ectively for adjustments made to performance obligations satisfied (or partially satisfied) in previous periods. Contract costs include only allocable, allowable and reasonable costs which are included in cost of sales when incurred. For applicable U.S. Government contracts, contract costs are determined in accordance with the Federal Acquisition Regulations and the related Cost Accounting Standards. The nature of these costs includes development engineering costs and product manufacturing costs such as direct material, direct labor, other direct costs and indirect overhead costs. Contract profit is recorded as a result of the revenue recognized less costs incurred in any reporting period. Variable consideration and contract modifications, such as performance incentives, penalties, contract claims or change orders are considered in estimating revenues, costs and profits when they can be reliably estimated and realization is considered probable. Revenue recognized on contracts for unresolved claims or unapproved contract change orders was not material for the three months ended December 28, 2019 . As of December 28, 2019 , we had contract reserves of $62,221 . For contracts with anticipated losses at completion, a provision for the entire amount of the estimated remaining loss is charged against income in the period in which the loss becomes known. Contract losses are determined considering all direct and indirect contract costs, exclusive of any selling, general or administrative cost allocations that are treated as period expenses. Loss reserves are more common on firm fixed-price contracts that involve, to varying degrees, the design and development of new and unique controls or control systems to meet the customers’ specifications. In accordance with ASC 606, we calculate contract losses at the contract level, versus the performance obligation level. Recall reserves are recorded when additional work is needed on completed products for them to meet contract specifications. Contract-related loss reserves are recorded for the additional work needed on completed and delivered products in order for them to meet contract specifications. Revenue recognized at the point in time control was transferred to the customer was 36% for the three months ended December 28, 2019 . This method of revenue recognition is used most frequently in Industrial Systems. We use this method for commercial contracts in which the asset being created has an alternative use. We determine the point in time control transfers to the customer by weighing the five indicators provided by ASC 606 - the entity has a present right to payment; the customer has legal title; the customer has physical possession; the customer has the significant risks and rewards of ownership; and the customer has accepted the asset. When control has transferred to the customer, profit is generated as cost of sales is recorded and as revenue is recognized. Inventory costs include all product manufacturing costs such as direct material, direct labor, other direct costs and indirect overhead cost allocations. Shipping and handling costs are considered costs to fulfill a contract and not considered performance obligations. They are included in cost of sales as incurred. Contract Assets and Liabilities Unbilled receivables (contract assets) primarily represent revenues recognized for performance obligations that have been satisfied but for which amounts have not been billed. These are included as Receivables on the Consolidated Condensed Balance Sheets. Contract advances (contract liabilities) relate to payments received from customers in advance of the satisfaction of performance obligations for a contract. We do not consider contract advances to be significant financing components as the intent of these payments in advance are for reasons other than providing a significant financing benefit and are customary in our industry. Total contract assets and contract liabilities are as follows: December 28, September 28, 2019 Unbilled receivables $ 497,356 $ 468,824 Contract advances 177,107 137,242 Net contract assets $ 320,249 $ 331,582 The increase in contract assets reflects the net impact of additional unbilled revenues recorded in excess of revenue recognized during the period. The increase in contract liabilities reflects the net impact of additional deferred revenues recorded in excess of revenue recognized during the period. For the three months ended December 28, 2019 , we recognized $35,759 of revenue that was included in the contract liability balance at the beginning of the period. Remaining Performance Obligations As of December 28, 2019 , the aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied (or partially unsatisfied), also known as backlog, was approximately $2,430,000 . We expect to recognize approximately 69% of that amount as sales over the next twelve months and the balance thereafter. Disaggregation of Revenue See Note 19, Segments, for disclosures related to disaggregation of revenue. |
Acquisitions, Divestitures and
Acquisitions, Divestitures and Equity Method Investments | 3 Months Ended |
Dec. 28, 2019 | |
Business Combinations [Abstract] | |
Acquisitions, Divestitures and Equity Method Investments | Acquisitions, Divestitures and Equity Method Investments On November 28, 2019, we acquired Gesellschaft für Antriebstechnik mbH and GAT Inc. (GAT), headquartered in Geisenheim, Germany for a purchase price of $53,906 , net of acquired cash. GAT designs and manufactures high-end fluid rotating unions and slip rings. 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. In the first quarter of 2020, we sold a non-core business of our Industrial Systems segment for $1,775 in net consideration and recorded a gain in other income of $169 . In the first quarter of 2019, we sold a non-core business of our Industrial Systems segment for $4,191 in cash and recorded a gain in other income of $2,641 . |
Receivables
Receivables | 3 Months Ended |
Dec. 28, 2019 | |
Receivables [Abstract] | |
Receivables | Receivables Receivables consist of: December 28, September 28, Accounts receivable $ 243,988 $ 255,079 Over-time contract receivables: Billed receivables 241,740 222,075 Unbilled receivables 497,356 468,824 Total over-time contract receivables 739,096 690,899 Other 11,041 16,711 Less allowance for doubtful accounts (4,911 ) (5,402 ) Receivables $ 989,214 $ 957,287 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 9, Indebtedness, for additional disclosures related to the Securitization Program. |
Inventories
Inventories | 3 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories, net of reserves, consist of: December 28, September 28, Raw materials and purchased parts $ 189,051 $ 189,875 Work in progress 288,633 276,538 Finished goods 81,548 68,561 Inventories $ 559,232 $ 534,974 There are no material inventoried costs relating to over-time contracts where revenue is accounted for using the cost-to-cost method of accounting as of December 28, 2019 and September 28, 2019 . |
Property, Plant and Equipment
Property, Plant and Equipment | 3 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment, net | Property, Plant and Equipment Property, plant and equipment consists of: December 28, September 28, Land $ 36,584 $ 33,111 Buildings and improvements 483,370 469,867 Machinery and equipment 803,236 775,378 Computer equipment and software 139,495 137,221 Property, plant and equipment, at cost 1,462,685 1,415,577 Less accumulated depreciation and amortization (849,198 ) (828,810 ) Property, plant and equipment, net $ 613,487 $ 586,767 |
Leases
Leases | 3 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure | Leases On September 29, 2019, we adopted ASC 842: Leases, and the related amendments (ASC 842), using the modified retrospective method, as described in Note 1, Basis of Presentation, without adjusting prior comparative periods. We lease certain manufacturing facilities, office space and machinery and equipment globally. At inception we evaluate whether a contractual arrangement contains a lease. Specifically, we consider whether we control the underlying asset and have the right to obtain substantially all the economic benefits or outputs from the asset. If the contractual arrangement contains a lease, we then determine the classification of the lease, operating or finance, using the classification criteria described in ASC 842. We then determine the term of the lease based on terms and conditions of the contractual arrangement, including whether the options to extend or terminate the lease are reasonably certain to be exercised. We have elected to not separate lease components from non-lease components, such as common area maintenance charges and instead, account for the lease and non-lease components as a single component. Our lease ROU assets represent our right to use an underlying asset for the lease term and our lease liabilities represent our obligation to make lease payments. Operating lease ROU assets are included in Operating lease right-of-use assets and operating lease liabilities are included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Condensed Balance Sheets. Finance lease ROU assets are included in Property, plant and equipment and finance lease liabilities are included in Accrued liabilities and other and Other long-term liabilities on the Consolidated Condensed Balance Sheets. Operating lease cost is included in Cost of sales and Selling, general and administrative on the Consolidated Condensed Statements of Earnings. Finance lease cost is included in Cost of sales, Selling, general and administrative and Interest on the Consolidated Condensed Statements of Earnings. The ROU assets and lease liabilities for both operating and finance leases are recognized as of the commencement date at the net present value of the fixed minimum lease payments over the term of the lease, using the discount rate described below. Variable lease payments are recorded in the period in which the obligation for the payment is incurred. Variable lease payments based on an index or rate are initially measured using the index or rate as of the commencement date of the lease and included in the fixed minimum lease payments. For short-term leases that have a term of 12 months or less as of the commencement date, we do not recognize a ROU asset or lease liability on our balance sheet; we recognize expense as the lease payments are made over the lease term. The discount rate used to calculate the present value of our leases is the rate implicit in lease. If the information necessary to determine the rate implicit in the lease is not available, we use our incremental borrowing rate for collateralized debt, which is determined using our credit rating and other information available as of the lease commencement date. The components of lease expense were as follows: Three Months Ended December 28, 2019 Operating lease cost $ 6,160 Finance lease cost: Amortization of right-of-use assets $ 76 Interest on lease liabilities 48 Total finance lease cost $ 124 Supplemental cash flow information related to leases was as follows: Three Months Ended December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow for operating leases $ 6,027 Operating cash flow for finance leases 48 Financing cash flow for finance leases 88 Assets obtained in exchange for lease obligations: Operating leases 568 Finance leases — Supplemental balance sheet information related to leases was as follows: December 28, 2019 Operating Leases Operating lease right-of-use assets $ 62,669 Accrued liabilities and other $ 13,737 Other long-term liabilities 52,581 Total operating lease liabilities $ 66,318 Finance Leases Property, plant, and equipment, at cost $ 3,818 Accumulated depreciation (415 ) Property, plant, and equipment, net $ 3,403 Accrued liabilities and other $ 228 Other long-term liabilities 3,198 Total finance lease liabilities $ 3,426 Weighted average remaining lease term in years Operating leases 8.2 Finance leases 31.2 Weighted average discount rate Operating leases 4.7 % Finance leases 5.8 % Maturities of lease liabilities were as follows: December 28, 2019 Operating Leases Finance Leases 2020 $ 12,485 $ 308 2021 15,147 406 2022 12,568 319 2023 8,775 234 2024 5,549 176 Thereafter 27,238 6,630 Total lease payments 81,762 8,073 Less: imputed interest (15,444 ) (4,647 ) Total $ 66,318 $ 3,426 |
Goodwill And Intangible Assets
Goodwill And Intangible Assets | 3 Months Ended |
Dec. 28, 2019 | |
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 28, 2019 $ 176,939 $ 261,684 $ 345,617 $ 784,240 Acquisitions — — 20,828 20,828 Divestitures — — (635 ) (635 ) Foreign currency translation 3,145 51 4,973 8,169 Balance at December 28, 2019 $ 180,084 $ 261,735 $ 370,783 $ 812,602 Goodwill in our Space and Defense Controls segment is net of a $4,800 accumulated impairment loss at December 28, 2019 . Goodwill in our Medical Devices reporting unit, included in our Industrial Systems segment, is net of a $38,200 accumulated impairment loss at December 28, 2019 . The components of intangible assets are as follows: December 28, 2019 September 28, 2019 Weighted- Gross Carrying Accumulated Gross Carrying Accumulated Customer-related 11 $ 132,778 $ (99,640 ) $ 132,697 $ (100,091 ) Technology-related 9 78,119 (51,428 ) 62,015 (35,680 ) Program-related 19 65,165 (38,621 ) 69,220 (52,192 ) Marketing-related 9 37,355 (20,334 ) 23,139 (19,899 ) Other 10 4,153 (3,764 ) 4,061 (3,624 ) Intangible assets 12 $ 317,570 $ (213,787 ) $ 291,132 $ (211,486 ) Substantially all acquired intangible assets other than goodwill are being amortized. Customer-related intangible assets primarily consist of customer relationships. Technology-related intangible assets primarily consist of technology, patents, intellectual property and software. Program-related intangible assets consist of long-term programs represented by current contracts and probable follow on work. Marketing-related intangible assets primarily consist of trademarks, trade names and non-compete agreements. Amortization of acquired intangible assets is as follows: Three Months Ended December 28, 2019 December 29, 2018 Acquired intangible asset amortization $ 3,223 $ 3,683 Based on acquired intangible assets recorded at December 28, 2019 , amortization is estimated to be approximately: 2020 2021 2022 2023 2024 Estimated future amortization of acquired intangible assets $ 14,300 $ 11,800 $ 10,200 $ 9,300 $ 8,800 |
Indebtedness
Indebtedness | 3 Months Ended |
Dec. 28, 2019 | |
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 28, September 28, U.S. revolving credit facility $ 50,387 $ 395,712 SECT revolving credit facility 7,000 7,000 Senior notes 4.25% 500,000 — Senior notes 5.25% 300,000 300,000 Securitization program 130,000 130,000 Obligations under capital leases — 679 Senior debt 987,387 833,391 Less deferred debt issuance cost (9,814 ) (158 ) Less current installments — (249 ) Long-term debt $ 977,573 $ 832,984 On October 15, 2019 , we amended and restated our U.S. revolving credit facility, which matures on October 15, 2024 . 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 $400,000 to the credit facility upon satisfaction of certain conditions. The credit facility is secured by substantially all of our U.S. assets. The loan agreement contains various covenants which, among others, specify interest coverage and maximum leverage. We are in compliance with all covenants. The SECT has a revolving credit facility with a borrowing capacity of $35,000 , maturing on July 26, 2022 . Interest is based on LIBOR plus an applicable margin. A commitment fee is also charged based on a percentage of the unused amounts available and is not material. On December 13, 2019 , we completed the sale of $500,000 aggregate principal amount of 4.25% senior notes due December 15, 2027 with interest paid semiannually on June 15 and December 15 of each year, which will commence on June 15, 2020 . The senior notes are unsecured obligations, guaranteed on a senior unsecured basis by certain subsidiaries and contain normal incurrence-based covenants and limitations such as the ability to incur additional indebtedness, pay dividends, make other restricted payments and investments, create liens and certain corporate acts such as mergers and consolidations. The aggregate net proceeds of $492,750 were used to repay indebtedness under our U.S. revolving credit facility, thereby increasing the unused portion of our U.S. revolving credit facility. On December 13, 2019 , we issued a notice of redemption to the holders of our 5.25% senior notes due on December 1, 2022, to redeem and retire all of the outstanding notes. The notes were redeemed on January 13, 2020 at 101.313% pursuant to an early redemption right. We redeemed the aggregate principal amount of $300,000 using proceeds drawn from our U.S. revolving credit facility. The associated loss on the redemption includes $3,939 of call premium paid to external bondholders. The Securitization Program was extended on October 16, 2019 and matures on October 29, 2021 and effectively increases our borrowing capacity by up to $130,000 . 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 28, 2019 , our minimum borrowing requirement was $104,000 . |
Other Accrued Liabilities
Other Accrued Liabilities | 3 Months Ended |
Dec. 28, 2019 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Other Accrued Liabilities | Other accrued liabilities consists of: December 28, 2019 September 28, 2019 Contract reserves $ 62,221 $ 60,914 Employee benefits 42,540 37,040 Warranty accrual 29,369 28,061 Accrued income taxes 29,912 26,532 Other 47,248 36,178 Other accrued liabilities $ 211,290 $ 188,725 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 28, December 29, Warranty accrual at beginning of period $ 28,061 $ 25,537 Additions from acquisitions 542 — Warranties issued during current period 3,843 3,365 Adjustments to pre-existing warranties (181 ) (91 ) Reductions for settling warranties (3,172 ) (4,371 ) Foreign currency translation 276 (183 ) Warranty accrual at end of period $ 29,369 $ 24,257 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Dec. 28, 2019 | |
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 28, 2019 , we had interest rate swaps with notional amounts totaling $45,000 . The interest rate swaps effectively convert this amount of variable-rate debt to fixed-rate debt at 3.18% , including the applicable margin of 1.50% as of December 28, 2019 . 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, the British pound and the Czech koruna, we had outstanding foreign currency forwards with notional amounts of $44,475 at December 28, 2019 . These contracts mature at various times through May 28, 2021 . We use forward currency contracts to hedge our net investment in certain foreign subsidiaries. As of December 28, 2019 , we had no outstanding net investment hedges. These interest rate swaps, foreign currency contracts and net investment hedges 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, as necessary, 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 2020 or 2019 . 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 $85,957 at December 28, 2019 . 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 Statements of Earnings location December 28, December 29, Net gain (loss) Foreign currency contracts Other $ 1,571 $ (1,650 ) Summary of derivatives The fair value and classification of derivatives is summarized as follows: Balance Sheets location December 28, September 28, Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 1,633 $ 1,060 Foreign currency contracts Other assets 246 261 Interest rate swaps Other current assets 4 57 Total asset derivatives $ 1,883 $ 1,378 Foreign currency contracts Accrued liabilities and other $ 62 $ 736 Foreign currency contracts Other long-term liabilities — 152 Total liability derivatives $ 62 $ 888 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 280 $ 93 Foreign currency contracts Accrued liabilities and other $ 256 $ 359 |
Fair Value
Fair Value | 3 Months Ended |
Dec. 28, 2019 | |
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. Balance Sheets location December 28, September 28, Foreign currency contracts Other current assets $ 1,913 $ 1,153 Foreign currency contracts Other assets 246 261 Interest rate swaps Other current assets 4 57 Total assets $ 2,163 $ 1,471 Foreign currency contracts Accrued liabilities and other $ 318 $ 1,095 Foreign currency contracts Other long-term liabilities — 152 Total liabilities $ 318 $ 1,247 Our only financial instrument for which the carrying value differs from its fair value is long-term debt. At December 28, 2019 , the fair value of long-term debt was $998,099 compared to its carrying value of $987,387 |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Dec. 28, 2019 | |
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 28, December 29, U.S. Plans Service cost $ 5,759 $ 5,251 Interest cost 7,649 9,231 Expected return on plan assets (11,021 ) (11,264 ) Amortization of prior service cost (credit) 33 46 Amortization of actuarial loss 6,329 6,660 Pension expense for U.S. defined benefit plans $ 8,749 $ 9,924 Non-U.S. Plans Service cost $ 1,671 $ 1,246 Interest cost 697 1,101 Expected return on plan assets (1,139 ) (1,298 ) Amortization of prior service cost (credit) — (5 ) Amortization of actuarial loss 1,216 640 Pension expense for non-U.S. defined benefit plans $ 2,445 $ 1,684 Pension expense for our defined contribution plans consists of: Three Months Ended December 28, December 29, U.S. defined contribution plans $ 5,398 $ 4,614 Non-U.S. defined contribution plans 1,402 1,196 Total pension expense for defined contribution plans $ 6,800 $ 5,810 |
Restructuring
Restructuring | 3 Months Ended |
Dec. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring Restructuring activity for severance and other costs is as follows: Space and Defense Controls Industrial Systems Total Balance at September 28, 2019 $ 27 $ 4,096 $ 4,123 Adjustments to provision (2 ) (643 ) (645 ) Cash payments - 2018 plan (26 ) (244 ) (269 ) Foreign currency translation — 79 79 Balance at December 28, 2019 $ — $ 3,288 $ 3,288 As of December 28, 2019 , the restructuring accrual consists of $3,288 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 28, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the three months ended December 28, 2019 and December 29, 2018 was 25.2% and 24.3% respectively. The effective tax rate for this period is higher than would be expected by applying the U.S. federal statutory tax rate of 21% to earnings before income taxes primarily due to tax on earnings generated outside of the U.S. The effective tax rate for the three months ended December 28, 2019 includes the impact of the Global Intangible Low-Taxed Income ("GILTI"), which imposes U.S. tax on certain foreign subsidiary income in the year it is earned, and Foreign-Derived Intangible Income ("FDII") deduction. Our accounting policy is to treat tax on GILTI as a current period cost included in tax expense in the year incurred. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Dec. 28, 2019 | |
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 28, 2019 are as follows: Accumulated foreign currency translation (1) Accumulated retirement liability Accumulated gain (loss) on derivatives Total AOCIL at September 28, 2019 $ (129,399 ) $ (285,734 ) $ (344 ) $ (415,477 ) Other comprehensive income (loss) before reclassifications 22,026 (1,237 ) 1,401 22,190 Amounts reclassified from AOCIL (493 ) 5,600 1 5,108 Other comprehensive income (loss) 21,533 4,363 1,402 27,298 AOCIL at December 28, 2019 $ (107,866 ) $ (281,371 ) $ 1,058 $ (388,179 ) (1) Net gains and losses on net investment hedges are recorded as cumulative translation adjustments in AOCIL to the extent that the instruments are effective in hedging the designated risk. The amounts reclassified from AOCIL into earnings are as follows: Three Months Ended Statements of Earnings location December 28, December 29, Retirement liability: Prior service cost (credit) $ (32 ) $ (76 ) Actuarial losses 7,394 7,629 Reclassification from AOCIL into earnings (2) 7,362 7,553 Tax effect (1,762 ) (1,848 ) Net reclassification from AOCIL into earnings $ 5,600 $ 5,705 Derivatives: Foreign currency contracts Sales $ 2 $ (33 ) Foreign currency contracts Cost of sales 40 660 Interest rate swaps Interest (41 ) (400 ) Reclassification from AOCIL into earnings 1 227 Tax effect — (57 ) Net reclassification from AOCIL into earnings $ 1 $ 170 (2) The reclassifications are included in the computation of non-service pension expense, which is included in Other on the Consolidated Condensed Statement of Earnings. The amounts deferred in AOCIL are as follows: Net deferral in AOCIL - effective portion Three Months Ended December 28, December 29, Foreign currency contracts $ 1,794 $ 899 Interest rate swaps (4 ) (235 ) Net gain (loss) 1,790 664 Tax effect (389 ) (170 ) Net deferral in AOCIL of derivatives $ 1,401 $ 494 |
Stock Employee Compensation Tru
Stock Employee Compensation Trust and Supplemental Retirement Plan Trust | 3 Months Ended |
Dec. 28, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Employee Compensation Trust and Supplemental Retirement Plan Trust | Stock Employee Compensation Trust and Supplemental Retirement Plan TrustThe 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) and the Employee Stock Purchase Plan (ESPP). The Supplemental Retirement Plan (SERP) Trust provides funding for benefits under the SERP provisions of the Moog Inc. Plan to Equalize Retirement Income and Supplemental Retirement Income. Both the SECT and the SERP Trust hold Moog shares as investments. The shares in the SECT and SERP Trust are not considered outstanding for purposes of calculating earnings per share. However, in accordance with the trust agreements governing the SECT and SERP Trust, the trustees vote all shares held by the SECT and SERP Trust on all matters submitted to shareholders. |
Earnings Per Share and Dividend
Earnings Per Share and Dividends | 3 Months Ended |
Dec. 28, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share and Dividends | Basic and diluted weighted-average shares outstanding are as follows: Three Months Ended December 28, December 29, Basic weighted-average shares outstanding 34,510,851 34,815,255 Dilutive effect of equity-based awards 276,553 310,574 Diluted weighted-average shares outstanding 34,787,404 35,125,829 For the three months ended December 28, 2019 and December 29, 2018 , there were 34,635 and 44,465 common shares from equity-based awards, respectively, excluded from the calculation of diluted earnings per share as they would be anti-dilutive. We declared and paid cash dividends of $0.25 per share on our Class A and Class B common stock in the first quarters of 2020 and 2019 |
Segment Information
Segment Information | 3 Months Ended |
Dec. 28, 2019 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment Information | Segment Information Disaggregation of net sales by segment for the three months ended December 28, 2019 and December 29, 2018 are as follows: Three Months Ended Market Type December 28, December 29, Net sales: Military $ 173,694 $ 146,801 Commercial 166,260 157,244 Aircraft Controls 339,954 304,045 Space 62,740 50,176 Defense 123,500 105,892 Space and Defense Controls 186,240 156,068 Energy 29,939 29,297 Industrial Automation 106,831 109,130 Simulation and Test 28,468 29,050 Medical 63,411 52,086 Industrial Systems 228,649 219,563 Net sales $ 754,843 $ 679,676 Three Months Ended Customer Type December 28, December 29, Net sales: Commercial $ 166,260 $ 157,244 U.S. Government (including OEM) 132,209 117,181 Other 41,485 29,620 Aircraft Controls 339,954 304,045 Commercial 34,152 30,053 U.S. Government (including OEM) 134,687 114,465 Other 17,401 11,550 Space and Defense Controls 186,240 156,068 Commercial 220,519 210,568 U.S. Government (including OEM) 6,421 6,442 Other 1,709 2,553 Industrial Systems 228,649 219,563 Commercial 420,931 397,865 U.S. Government (including OEM) 273,317 238,088 Other 60,595 43,723 Net sales $ 754,843 $ 679,676 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. Operating profit by segment for the three months ended December 28, 2019 and December 29, 2018 and a reconciliation of segment operating profit to earnings before income taxes are as follows: Three Months Ended December 28, December 29, Operating profit: Aircraft Controls $ 38,592 $ 33,199 Space and Defense Controls 25,282 18,473 Industrial Systems 26,799 27,705 Total operating profit 90,673 79,377 Deductions from operating profit: Interest expense 10,232 9,682 Equity-based compensation expense 2,381 2,008 Non-service pension expense 3,601 4,894 Corporate and other expenses, net 7,555 6,310 Earnings before income taxes $ 66,904 $ 56,483 |
Related Party Transactions
Related Party Transactions | 3 Months Ended |
Dec. 28, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related Party Transactions John Scannell, Moog's Chairman of the Board and Director and Chief Executive Officer, is a member of the Board of Directors of M&T Bank Corporation and M&T Bank. We currently engage with M&T Bank in the ordinary course of business for various financing activities, all of which were initiated prior to the election of Mr. Scannell to the Board. M&T Bank provides credit extension for routine purchases, which for the three months ended December 28, 2019 and December 29, 2018 totaled $4,574 and $5,289 , respectively. At December 28, 2019 , we held a $15,000 interest rate swap with M&T Bank and outstanding leases with a total original cost of $25,526 . 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 9, Indebtedness. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 28, 2019 | |
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 lease certain facilities and equipment under operating lease arrangements. These arrangements may include fair market renewal or purchase options. Rent expense under operating leases amounted to $25,510 at September 28, 2019 and $26,594 at September 29, 2018 . As of September 28, 2019 , future minimum rental payments required under non-cancellable operating leases are $20,993 in 2020 , $19,118 in 2021 , $15,636 in 2022 , $11,344 in 2023 , $7,151 in 2024 and $41,670 thereafter. We are contingently liable for $35,728 of standby letters of credit issued to third parties on our behalf at December 28, 2019 . |
Subsequent Event
Subsequent Event | 3 Months Ended |
Dec. 28, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event On January 23, 2020, the Board of Directors declared a $0.25 per share quarterly dividend payable on issued and outstanding shares of our Class A and Class B common stock on March 2, 2020 to shareholders of record at the close of business on February 14, 2020. |
Basis Of Presentation (Policies
Basis Of Presentation (Policies) | 3 Months Ended |
Dec. 28, 2019 | |
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 28, 2019 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 28, 2019 . 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. Management does not consider the amounts reclassified to be material. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted Standard Description Financial Statement Effect or Other Significant Matters 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 adopted this standard using the modified retrospective method, without adjusting prior comparative periods. We recorded an initial right-of-use (ROU) assets of $68,126 and lease liabilities of $71,776, which included reclassifying deferred rent as a component of the ROU asset on the Consolidated Condensed Balance Sheets. There were no material changes to our Consolidated Condensed Statements of Earnings or Consolidated Condensed Statements of Cash Flows . We have completed the necessary changes to our financial statements and related disclosures, internal controls, financial policies and information systems. See Note 7 - Leases, for additional disclosure. Date adopted: Recent Accounting Pronouncements Not Yet Adopted Standard Description Financial Statement Effect or Other Significant Matters ASU no. 2018-15 Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract The standard amends ASC 350 to include in its scope implementation costs of a Cloud Computing Arrangement (CCA) that is a service contract and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in a CCA that is considered a service contract. The ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. We are currently evaluating the effect on our financial statements and related disclosures. Planned date of adoption: ASU no. 2016-13 Measurement of Credit Losses on Financial Instruments The standard replaces the incurred loss model with the current expected credit loss (CECL) model to estimate credit losses for financial assets measured at amortized cost and certain off-balance sheet credit exposures. The CECL model requires a Company to estimate credit losses expected over the life of the financial assets based on historical experience, current conditions and reasonable and supportable forecasts. The provisions of the standard are effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The amendment requires a modified retrospective approach by recording a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. We are currently evaluating the effect on our financial statements and related disclosures. Planned date of adoption: 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 an immaterial impact on our financial statements and related disclosures. |
Basis Of Presentation Basis Of
Basis Of Presentation Basis Of Presentation (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The tables below represent the impact of the change in accounting principle on the Consolidated Condensed Statement of Earnings and the Consolidated Statements of Comprehensive Income (Loss) for the three months ended December 28, 2019 . Three Months Ended As Reported (With Change), December 28, 2019 Impact of Change Without Change, December 28, 2019 Other $ 7,546 $ 2,876 $ 10,422 Earnings before income taxes 66,904 (2,876 ) 64,028 Income taxes 16,877 (679 ) 16,198 Net earnings $ 50,027 $ (2,197 ) $ 47,830 Net earnings per share Basic $ 1.45 $ (0.06 ) $ 1.39 Diluted $ 1.44 $ (0.07 ) $ 1.37 Retirement liability adjustment $ 4,363 $ 2,197 $ 6,560 Other comprehensive income (loss), net of tax $ 27,298 $ 2,197 $ 29,495 Comprehensive income (loss) $ 77,325 $ — $ 77,325 The table below represents the impact of the change in accounting principle on the Consolidated Condensed Balance Sheet as of December 28, 2019 . As Reported (With Change), December 28, 2019 Impact of Change Without Change, December 28, 2019 Shareholders’ equity Retained earnings $ 2,170,105 $ 2,392 $ 2,172,497 Accumulated other comprehensive loss (388,179 ) (2,392 ) (390,571 ) Total shareholders’ equity $ 1,336,691 $ — $ 1,336,691 The tables below represent the impact of the change in accounting principle on the Consolidated Condensed Statement of Earnings and the Consolidated Condensed Statements of Comprehensive Income (Loss) for the three months ended December 29, 2018 . Three Months Ended As Previously Reported, December 29, 2018 Impact of Change As Reported, December 29, 2018 Other $ 3,434 $ 1,701 $ 5,135 Earnings before income taxes 58,184 (1,701 ) 56,483 Income taxes 14,115 (401 ) 13,714 Net earnings $ 44,069 $ (1,300 ) $ 42,769 Net earnings per share Basic $ 1.27 $ (0.04 ) $ 1.23 Diluted $ 1.25 $ (0.03 ) $ 1.22 Retirement liability adjustment $ 4,819 $ 1,300 $ 6,119 Other comprehensive income (loss), net of tax $ (3,904 ) $ 1,300 $ (2,604 ) Comprehensive income (loss) $ 40,165 $ — $ 40,165 The table below represents the impact of the change in accounting principle on the Consolidated Condensed Balance Sheet as of December 29, 2018 . As Previously Reported, December 29, 2018 Impact of Change As Reported, December 29, 2018 Shareholders’ equity Retained earnings $ 2,023,803 $ (689 ) $ 2,023,114 Accumulated other comprehensive loss (376,085 ) 689 (375,396 ) Total shareholders’ equity $ 1,273,264 $ — $ 1,273,264 The table below represents the impact of the change in accounting principle on the Consolidated Condensed Balance Sheet as of September 28, 2019 . As Previously Reported, September 28, 2019 Impact of Change As Reported, September 28, 2019 Shareholders’ equity Retained earnings $ 2,133,328 $ (4,589 ) $ 2,128,739 Accumulated other comprehensive loss (420,066 ) 4,589 (415,477 ) Total shareholders’ equity $ 1,322,481 $ — $ 1,322,481 The table below represents the impact of the change in accounting principle on the Consolidated Condensed Balance Sheet as of September 29, 2018 . As Previously Reported, September 29, 2018 Impact of Change As Reported, September 29, 2018 Shareholders’ equity Retained earnings $ 1,973,514 $ 611 $ 1,974,125 Accumulated other comprehensive loss (372,181 ) (611 ) (372,792 ) Total shareholders’ equity $ 1,224,986 $ — $ 1,224,986 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Contract Assets and Liabilities | Total contract assets and contract liabilities are as follows: December 28, September 28, 2019 Unbilled receivables $ 497,356 $ 468,824 Contract advances 177,107 137,242 Net contract assets $ 320,249 $ 331,582 |
Receivables (Tables)
Receivables (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Receivables consist of: December 28, September 28, Accounts receivable $ 243,988 $ 255,079 Over-time contract receivables: Billed receivables 241,740 222,075 Unbilled receivables 497,356 468,824 Total over-time contract receivables 739,096 690,899 Other 11,041 16,711 Less allowance for doubtful accounts (4,911 ) (5,402 ) Receivables $ 989,214 $ 957,287 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, net of reserves | Inventories, net of reserves, consist of: December 28, September 28, Raw materials and purchased parts $ 189,051 $ 189,875 Work in progress 288,633 276,538 Finished goods 81,548 68,561 Inventories $ 559,232 $ 534,974 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of: December 28, September 28, Land $ 36,584 $ 33,111 Buildings and improvements 483,370 469,867 Machinery and equipment 803,236 775,378 Computer equipment and software 139,495 137,221 Property, plant and equipment, at cost 1,462,685 1,415,577 Less accumulated depreciation and amortization (849,198 ) (828,810 ) Property, plant and equipment, net $ 613,487 $ 586,767 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Leases [Abstract] | |
Schedule of Lease, Cost | The components of lease expense were as follows: Three Months Ended December 28, 2019 Operating lease cost $ 6,160 Finance lease cost: Amortization of right-of-use assets $ 76 Interest on lease liabilities 48 Total finance lease cost $ 124 |
Schedule of Supplemental Cash Flow Lease Information | Supplemental cash flow information related to leases was as follows: Three Months Ended December 28, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flow for operating leases $ 6,027 Operating cash flow for finance leases 48 Financing cash flow for finance leases 88 Assets obtained in exchange for lease obligations: Operating leases 568 Finance leases — |
Schedule of Supplemental Balance Sheet Lease Information | Supplemental balance sheet information related to leases was as follows: December 28, 2019 Operating Leases Operating lease right-of-use assets $ 62,669 Accrued liabilities and other $ 13,737 Other long-term liabilities 52,581 Total operating lease liabilities $ 66,318 Finance Leases Property, plant, and equipment, at cost $ 3,818 Accumulated depreciation (415 ) Property, plant, and equipment, net $ 3,403 Accrued liabilities and other $ 228 Other long-term liabilities 3,198 Total finance lease liabilities $ 3,426 Weighted average remaining lease term in years Operating leases 8.2 Finance leases 31.2 Weighted average discount rate Operating leases 4.7 % Finance leases 5.8 % |
Schedule of Maturities of Lessee Leases | Maturities of lease liabilities were as follows: December 28, 2019 Operating Leases Finance Leases 2020 $ 12,485 $ 308 2021 15,147 406 2022 12,568 319 2023 8,775 234 2024 5,549 176 Thereafter 27,238 6,630 Total lease payments 81,762 8,073 Less: imputed interest (15,444 ) (4,647 ) Total $ 66,318 $ 3,426 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
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 28, 2019 $ 176,939 $ 261,684 $ 345,617 $ 784,240 Acquisitions — — 20,828 20,828 Divestitures — — (635 ) (635 ) Foreign currency translation 3,145 51 4,973 8,169 Balance at December 28, 2019 $ 180,084 $ 261,735 $ 370,783 $ 812,602 |
Components of Intangible Assets | The components of intangible assets are as follows: December 28, 2019 September 28, 2019 Weighted- Gross Carrying Accumulated Gross Carrying Accumulated Customer-related 11 $ 132,778 $ (99,640 ) $ 132,697 $ (100,091 ) Technology-related 9 78,119 (51,428 ) 62,015 (35,680 ) Program-related 19 65,165 (38,621 ) 69,220 (52,192 ) Marketing-related 9 37,355 (20,334 ) 23,139 (19,899 ) Other 10 4,153 (3,764 ) 4,061 (3,624 ) Intangible assets 12 $ 317,570 $ (213,787 ) $ 291,132 $ (211,486 ) |
Finite-lived Intangible Assets Amortization Expense | Amortization of acquired intangible assets is as follows: Three Months Ended December 28, 2019 December 29, 2018 Acquired intangible asset amortization $ 3,223 $ 3,683 |
Estimated Future Amortization of Acquired Intangible Assets | Based on acquired intangible assets recorded at December 28, 2019 , amortization is estimated to be approximately: 2020 2021 2022 2023 2024 Estimated future amortization of acquired intangible assets $ 14,300 $ 11,800 $ 10,200 $ 9,300 $ 8,800 |
Indebtedness (Tables)
Indebtedness (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Debt Disclosure [Abstract] | |
Components of Long-term debt | Long-term debt consists of: December 28, September 28, U.S. revolving credit facility $ 50,387 $ 395,712 SECT revolving credit facility 7,000 7,000 Senior notes 4.25% 500,000 — Senior notes 5.25% 300,000 300,000 Securitization program 130,000 130,000 Obligations under capital leases — 679 Senior debt 987,387 833,391 Less deferred debt issuance cost (9,814 ) (158 ) Less current installments — (249 ) Long-term debt $ 977,573 $ 832,984 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | Other accrued liabilities consists of: December 28, 2019 September 28, 2019 Contract reserves $ 62,221 $ 60,914 Employee benefits 42,540 37,040 Warranty accrual 29,369 28,061 Accrued income taxes 29,912 26,532 Other 47,248 36,178 Other accrued liabilities $ 211,290 $ 188,725 |
Schedule of Product Warranty Liability | Activity in the warranty accrual is summarized as follows: Three Months Ended December 28, December 29, Warranty accrual at beginning of period $ 28,061 $ 25,537 Additions from acquisitions 542 — Warranties issued during current period 3,843 3,365 Adjustments to pre-existing warranties (181 ) (91 ) Reductions for settling warranties (3,172 ) (4,371 ) Foreign currency translation 276 (183 ) Warranty accrual at end of period $ 29,369 $ 24,257 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
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 Statements of Earnings location December 28, December 29, Net gain (loss) Foreign currency contracts Other $ 1,571 $ (1,650 ) |
Fair Value And Classification Of Derivatives On The Consolidated Balance Sheets | The fair value and classification of derivatives is summarized as follows: Balance Sheets location December 28, September 28, Derivatives designated as hedging instruments: Foreign currency contracts Other current assets $ 1,633 $ 1,060 Foreign currency contracts Other assets 246 261 Interest rate swaps Other current assets 4 57 Total asset derivatives $ 1,883 $ 1,378 Foreign currency contracts Accrued liabilities and other $ 62 $ 736 Foreign currency contracts Other long-term liabilities — 152 Total liability derivatives $ 62 $ 888 Derivatives not designated as hedging instruments: Foreign currency contracts Other current assets $ 280 $ 93 Foreign currency contracts Accrued liabilities and other $ 256 $ 359 |
Fair Value (Tables)
Fair Value (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
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. Balance Sheets location December 28, September 28, Foreign currency contracts Other current assets $ 1,913 $ 1,153 Foreign currency contracts Other assets 246 261 Interest rate swaps Other current assets 4 57 Total assets $ 2,163 $ 1,471 Foreign currency contracts Accrued liabilities and other $ 318 $ 1,095 Foreign currency contracts Other long-term liabilities — 152 Total liabilities $ 318 $ 1,247 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
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 28, December 29, U.S. Plans Service cost $ 5,759 $ 5,251 Interest cost 7,649 9,231 Expected return on plan assets (11,021 ) (11,264 ) Amortization of prior service cost (credit) 33 46 Amortization of actuarial loss 6,329 6,660 Pension expense for U.S. defined benefit plans $ 8,749 $ 9,924 Non-U.S. Plans Service cost $ 1,671 $ 1,246 Interest cost 697 1,101 Expected return on plan assets (1,139 ) (1,298 ) Amortization of prior service cost (credit) — (5 ) Amortization of actuarial loss 1,216 640 Pension expense for non-U.S. defined benefit plans $ 2,445 $ 1,684 |
Defined Contribution Plan Disclosures | Pension expense for our defined contribution plans consists of: Three Months Ended December 28, December 29, U.S. defined contribution plans $ 5,398 $ 4,614 Non-U.S. defined contribution plans 1,402 1,196 Total pension expense for defined contribution plans $ 6,800 $ 5,810 |
Restructuring (Tables)
Restructuring (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve Activity | Restructuring activity for severance and other costs is as follows: Space and Defense Controls Industrial Systems Total Balance at September 28, 2019 $ 27 $ 4,096 $ 4,123 Adjustments to provision (2 ) (643 ) (645 ) Cash payments - 2018 plan (26 ) (244 ) (269 ) Foreign currency translation — 79 79 Balance at December 28, 2019 $ — $ 3,288 $ 3,288 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of AOCIL | The changes in AOCIL, net of tax, by component for the three months ended December 28, 2019 are as follows: Accumulated foreign currency translation (1) Accumulated retirement liability Accumulated gain (loss) on derivatives Total AOCIL at September 28, 2019 $ (129,399 ) $ (285,734 ) $ (344 ) $ (415,477 ) Other comprehensive income (loss) before reclassifications 22,026 (1,237 ) 1,401 22,190 Amounts reclassified from AOCIL (493 ) 5,600 1 5,108 Other comprehensive income (loss) 21,533 4,363 1,402 27,298 AOCIL at December 28, 2019 $ (107,866 ) $ (281,371 ) $ 1,058 $ (388,179 ) |
Reclassification from AOCIL | The amounts reclassified from AOCIL into earnings are as follows: Three Months Ended Statements of Earnings location December 28, December 29, Retirement liability: Prior service cost (credit) $ (32 ) $ (76 ) Actuarial losses 7,394 7,629 Reclassification from AOCIL into earnings (2) 7,362 7,553 Tax effect (1,762 ) (1,848 ) Net reclassification from AOCIL into earnings $ 5,600 $ 5,705 Derivatives: Foreign currency contracts Sales $ 2 $ (33 ) Foreign currency contracts Cost of sales 40 660 Interest rate swaps Interest (41 ) (400 ) Reclassification from AOCIL into earnings 1 227 Tax effect — (57 ) Net reclassification from AOCIL into earnings $ 1 $ 170 |
Activity and Classification of Derivative Deferral in AOCIL | The amounts deferred in AOCIL are as follows: Net deferral in AOCIL - effective portion Three Months Ended December 28, December 29, Foreign currency contracts $ 1,794 $ 899 Interest rate swaps (4 ) (235 ) Net gain (loss) 1,790 664 Tax effect (389 ) (170 ) Net deferral in AOCIL of derivatives $ 1,401 $ 494 |
Earnings Per Share and Divide_2
Earnings Per Share and Dividends (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
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 28, December 29, Basic weighted-average shares outstanding 34,510,851 34,815,255 Dilutive effect of equity-based awards 276,553 310,574 Diluted weighted-average shares outstanding 34,787,404 35,125,829 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 28, 2019 | |
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 Customer Type December 28, December 29, Net sales: Commercial $ 166,260 $ 157,244 U.S. Government (including OEM) 132,209 117,181 Other 41,485 29,620 Aircraft Controls 339,954 304,045 Commercial 34,152 30,053 U.S. Government (including OEM) 134,687 114,465 Other 17,401 11,550 Space and Defense Controls 186,240 156,068 Commercial 220,519 210,568 U.S. Government (including OEM) 6,421 6,442 Other 1,709 2,553 Industrial Systems 228,649 219,563 Commercial 420,931 397,865 U.S. Government (including OEM) 273,317 238,088 Other 60,595 43,723 Net sales $ 754,843 $ 679,676 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. Operating profit by segment for the three months ended December 28, 2019 and December 29, 2018 and a reconciliation of segment operating profit to earnings before income taxes are as follows: Three Months Ended December 28, December 29, Operating profit: Aircraft Controls $ 38,592 $ 33,199 Space and Defense Controls 25,282 18,473 Industrial Systems 26,799 27,705 Total operating profit 90,673 79,377 Deductions from operating profit: Interest expense 10,232 9,682 Equity-based compensation expense 2,381 2,008 Non-service pension expense 3,601 4,894 Corporate and other expenses, net 7,555 6,310 Earnings before income taxes $ 66,904 $ 56,483 three months ended December 28, 2019 and December 29, 2018 are as follows: Three Months Ended Market Type December 28, December 29, Net sales: Military $ 173,694 $ 146,801 Commercial 166,260 157,244 Aircraft Controls 339,954 304,045 Space 62,740 50,176 Defense 123,500 105,892 Space and Defense Controls 186,240 156,068 Energy 29,939 29,297 Industrial Automation 106,831 109,130 Simulation and Test 28,468 29,050 Medical 63,411 52,086 Industrial Systems 228,649 219,563 Net sales $ 754,843 $ 679,676 |
Basis Of Presentation Basis o_2
Basis Of Presentation Basis of Presentation (Impact of Change in Accounting Principle on Consolidated Condensed Statement of Earnings) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle | ||
Other | $ 7,546 | $ 5,135 |
Earnings before income taxes | 66,904 | 56,483 |
Income taxes | 16,877 | 13,714 |
Net earnings | $ 50,027 | $ 42,769 |
Earnings per share - Basic | $ 1.45 | $ 1.23 |
Earnings per share - Diluted | $ 1.44 | $ 1.22 |
Retirement liability adjustment | $ 4,363 | $ 6,119 |
Other comprehensive income (loss) | 27,298 | (2,604) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 77,325 | 40,165 |
Previously Reported | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Other | 3,434 | |
Earnings before income taxes | 58,184 | |
Income taxes | 14,115 | |
Net earnings | $ 44,069 | |
Earnings per share - Basic | $ 1.27 | |
Earnings per share - Diluted | $ 1.25 | |
Retirement liability adjustment | $ 4,819 | |
Other comprehensive income (loss) | (3,904) | |
Restatement Adjustment | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Other | 2,876 | 1,701 |
Earnings before income taxes | (2,876) | (1,701) |
Income taxes | (679) | (401) |
Net earnings | $ (2,197) | $ (1,300) |
Earnings per share - Basic | $ (0.06) | $ (0.04) |
Earnings per share - Diluted | $ (0.07) | $ (0.03) |
Retirement liability adjustment | $ 2,197 | $ 1,300 |
Other comprehensive income (loss) | 2,197 | 1,300 |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 0 | 0 |
Previous Accounting Guidance | ||
New Accounting Pronouncements or Change in Accounting Principle | ||
Other | 10,422 | |
Earnings before income taxes | 64,028 | |
Income taxes | 16,198 | |
Net earnings | $ 47,830 | |
Earnings per share - Basic | $ 1.39 | |
Earnings per share - Diluted | $ 1.37 | |
Retirement liability adjustment | $ 6,560 | |
Other comprehensive income (loss) | 29,495 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 77,325 | $ 40,165 |
Basis Of Presentation Basis o_3
Basis Of Presentation Basis of Presentation (Impact on Change in Accounting Principle on Consolidated Condensed Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Sep. 28, 2019 | Dec. 29, 2018 | Sep. 29, 2018 |
New Accounting Pronouncements or Change in Accounting Principle | ||||
Retained earnings | $ 2,170,105 | $ 2,128,739 | $ 2,023,114 | $ 1,974,125 |
Accumulated other comprehensive loss | (388,179) | (415,477) | (375,396) | (372,792) |
Total shareholders' equity | 1,336,691 | 1,322,481 | 1,273,264 | 1,224,986 |
Previously Reported | ||||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Retained earnings | 2,133,328 | 2,023,803 | 1,973,514 | |
Accumulated other comprehensive loss | (420,066) | (376,085) | (372,181) | |
Total shareholders' equity | 1,322,481 | 1,273,264 | 1,224,986 | |
Restatement Adjustment | ||||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Retained earnings | 2,392 | (4,589) | (689) | 611 |
Accumulated other comprehensive loss | (2,392) | 4,589 | 689 | (611) |
Total shareholders' equity | 0 | $ 0 | $ 0 | $ 0 |
Previous Accounting Guidance | ||||
New Accounting Pronouncements or Change in Accounting Principle | ||||
Retained earnings | 2,172,497 | |||
Accumulated other comprehensive loss | (390,571) | |||
Total shareholders' equity | $ 1,336,691 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Revenue from Contracts with Customers (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 28, 2019 | Dec. 29, 2018 | Sep. 28, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue for adjustments made to performance obligations satisified in prior year | $ 14,619 | $ 11,759 | |
Contract loss and contract-related reserves | 62,221 | $ 60,914 | |
Revenue recognized due to contract liabilities | 35,759 | ||
Remaining performance obligation, amount | $ 2,430,000 | ||
Remaining performance obligation, percentage | 69.00% | ||
Remaining performance obligation, expected timing of satisfaction | 12 months | ||
Transferred over time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, net percent | 64.00% | ||
Transferred at Point in Time | |||
Disaggregation of Revenue [Line Items] | |||
Revenue, net percent | 36.00% | ||
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Payment terms | 30 | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Payment terms | 60 days |
Revenue from Contracts with C_4
Revenue from Contracts with Customers (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Sep. 28, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Unbilled receivables | $ 497,356 | $ 468,824 |
Contract advances | 177,107 | 137,242 |
Net contract assets | $ 320,249 | $ 331,582 |
Acquisitions, Divestitures an_2
Acquisitions, Divestitures and Equity Investments (Narrative) (Details) - USD ($) $ in Thousands | Nov. 28, 2019 | Dec. 28, 2019 | Dec. 29, 2018 |
Business Acquisitions, Divestitures and Equity Method Investments | |||
Net cash paid to acquire a business | $ 53,906 | $ 0 | |
Industrial Systems | |||
Business Acquisitions, Divestitures and Equity Method Investments | |||
Proceeds from Divestiture of Businesses | 1,775 | 4,191 | |
Industrial Systems | Other Income | |||
Business Acquisitions, Divestitures and Equity Method Investments | |||
Gain on Divestiture | $ 169 | $ 2,641 | |
GAT Inc. | Industrial Systems | |||
Business Acquisitions, Divestitures and Equity Method Investments | |||
Net cash paid to acquire a business | $ 53,906 |
Receivables (Schedule of Receiv
Receivables (Schedule of Receivables) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Dec. 28, 2019 | Sep. 28, 2019 | |
Receivables [Abstract] | ||
Accounts receivable | $ 243,988 | $ 255,079 |
Over-time contract receivables - Billed | 241,740 | 222,075 |
Over-time contract receivables - Unbilled | 497,356 | 468,824 |
Total over-time contract receivables | 739,096 | 690,899 |
Other | 11,041 | 16,711 |
Less allowance for doubtful accounts | (4,911) | (5,402) |
Receivables | $ 989,214 | $ 957,287 |
Inventories (Schedule of Invent
Inventories (Schedule of Inventory) (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Sep. 28, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and purchased parts | $ 189,051 | $ 189,875 |
Work in progress | 288,633 | 276,538 |
Finished goods | 81,548 | 68,561 |
Inventories | $ 559,232 | $ 534,974 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Sep. 28, 2019 |
Property, Plant and Equipment [Abstract] | ||
Land | $ 36,584 | $ 33,111 |
Buildings and Improvements, Gross | 483,370 | 469,867 |
Machinery and Equipment, Gross | 803,236 | 775,378 |
Computer equipment and software, gross | 139,495 | 137,221 |
Property, Plant and Equipment, Gross | 1,462,685 | 1,415,577 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | (849,198) | (828,810) |
Property, plant and equipment, net | $ 613,487 | $ 586,767 |
Leases (Components of Lease Exp
Leases (Components of Lease Expense) (Details) $ in Thousands | 3 Months Ended |
Dec. 28, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 6,160 |
Finance lease cost - Amortization of right-of-use assets | 76 |
Finance lease cost - Interest on lease liabilities | 48 |
Total finance lease cost | $ 124 |
Leases (Supplemental Cash Flow
Leases (Supplemental Cash Flow Lease Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Leases [Abstract] | ||
Operating cash flow for operating leases | $ 6,027 | |
Operating cash flow for finance leases | 48 | |
Financing cash flow for finance leases | 88 | $ 0 |
Assets obtained in exchange for lease obligations - operating leases | 568 | |
Assets obtained in exchanged for lease obligations - Finance leases | $ 0 |
Leases (Supplemental Balance Sh
Leases (Supplemental Balance Sheet Lease Information) (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Sep. 28, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 62,669 | $ 0 |
Operating lease - Accrued liabilities and other | 13,737 | |
Operating lease - Other long-term liabilities | 52,581 | |
Total operating leases liabilities | 66,318 | |
Finance leases - Property, plant and equipment, at cost | 3,818 | |
Finance leases - Accumulated depreciation | (415) | |
Finance leases - Property, plant, and equipment, net | 3,403 | |
Finance leases - Accrued liabilities and other | 228 | |
Finance leases - Other long-term liabilities | 3,198 | |
Total finance lease liabilities | $ 3,426 | |
Weighted average remaining lease term - Operating leases | 8 years 2 months 12 days | |
Weighted average remaining lease term - Financing leases | 31 years 2 months 12 days | |
Weighted average discount rate - Operating leases | 4.70% | |
Weighted average discount rate - Finance leases | 5.80% |
Leases Leases (Schedule of Matu
Leases Leases (Schedule of Maturities of Lease Liabilities) (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Leases [Abstract] | |
Operating leases maturity - 2020 | $ 12,485 |
Operating leases maturity - 2021 | 15,147 |
Operating leases maturity - 2022 | 12,568 |
Operating leases maturity - 2023 | 8,775 |
Operating leases maturity - 2024 | 5,549 |
Operating leases maturity - Thereafter | 27,238 |
Operating leases - Total lease payments | 81,762 |
Operating leases - imputed interest | (15,444) |
Operating leases - Total | 66,318 |
Finance leases maturity - 2020 | 308 |
Finance leases maturity - 2021 | 406 |
Finance leases maturity - 2022 | 319 |
Finance leases maturity - 2023 | 234 |
Finance leases maturity - 2024 | 176 |
Finance leases maturity - Thereafter | 6,630 |
Finance leases - Total lease payments | 8,073 |
Finance leases - imputed interest | (4,647) |
Finance leases - Total | $ 3,426 |
Goodwill And Intangible Asset_2
Goodwill And Intangible Assets (Changes In Carrying Amount Of Goodwill) (Details) $ in Thousands | 3 Months Ended |
Dec. 28, 2019USD ($) | |
Goodwill | |
Beginning balance | $ 784,240 |
Acquisitions | 20,828 |
Divestitures | (635) |
Foreign currency translation | 8,169 |
Ending balance | 812,602 |
Aircraft Controls | |
Goodwill | |
Beginning balance | 176,939 |
Acquisitions | 0 |
Divestitures | 0 |
Foreign currency translation | 3,145 |
Ending balance | 180,084 |
Space And Defense Controls | |
Goodwill | |
Beginning balance | 261,684 |
Acquisitions | 0 |
Divestitures | 0 |
Foreign currency translation | 51 |
Ending balance | 261,735 |
Industrial Systems | |
Goodwill | |
Beginning balance | 345,617 |
Acquisitions | 20,828 |
Divestitures | (635) |
Foreign currency translation | 4,973 |
Ending balance | $ 370,783 |
Goodwill And Intangible Asset_3
Goodwill And Intangible Assets (Goodwill Narrative) (Details) $ in Thousands | Dec. 28, 2019USD ($) |
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 And Intangible Asset_4
Goodwill And Intangible Assets (Components Of Intangible Assets) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Sep. 28, 2019 | |
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 12 years | |
Gross Carrying Amount | $ 317,570 | $ 291,132 |
Accumulated Amortization | $ (213,787) | (211,486) |
Customer-Related | ||
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 11 years | |
Gross Carrying Amount | $ 132,778 | 132,697 |
Accumulated Amortization | $ (99,640) | (100,091) |
Technology-Related | ||
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 9 years | |
Gross Carrying Amount | $ 78,119 | 62,015 |
Accumulated Amortization | $ (51,428) | (35,680) |
Program-Related | ||
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 19 years | |
Gross Carrying Amount | $ 65,165 | 69,220 |
Accumulated Amortization | $ (38,621) | (52,192) |
Marketing-Related | ||
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 9 years | |
Gross Carrying Amount | $ 37,355 | 23,139 |
Accumulated Amortization | $ (20,334) | (19,899) |
Other Intangible Assets | ||
Finite-Lived Intangible Assets | ||
Weighted-Average Life (years) | 10 years | |
Gross Carrying Amount | $ 4,153 | 4,061 |
Accumulated Amortization | $ (3,764) | $ (3,624) |
Goodwill And Intangible Asset_5
Goodwill And Intangible Assets Amortization of Acquired Intangibles (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Acquired intangible asset amortization | $ 3,223 | $ 3,683 |
Goodwill And Intangible Asset_6
Goodwill And Intangible Assets Estimated Future Amortization of Acquired Intangibles (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Future amortization expenses, 2020 | $ 14,300 |
Future amortization expenses, 2021 | 11,800 |
Future amortization expenses, 2022 | 10,200 |
Future amortization expenses, 2023 | 9,300 |
Future amortization expenses, 2024 | $ 8,800 |
Indebtedness (Components of Lon
Indebtedness (Components of Long-term debt) (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Sep. 28, 2019 |
Line of Credit Facility | ||
Securitization program | $ 130,000 | $ 130,000 |
Obligations under capital leases | 0 | 679 |
Senior debt | 987,387 | 833,391 |
Less deferred debt issuance cost | (9,814) | (158) |
Less current installments | 0 | (249) |
Long-term debt | 977,573 | 832,984 |
Senior notes 4.25% | ||
Line of Credit Facility | ||
Senior notes | 500,000 | 0 |
Senior notes 5.25% | ||
Line of Credit Facility | ||
Senior notes | 300,000 | 300,000 |
U.S. revolving credit facility | ||
Line of Credit Facility | ||
Revolving credit facility | 50,387 | 395,712 |
SECT revolving credit facility | ||
Line of Credit Facility | ||
Revolving credit facility | $ 7,000 | $ 7,000 |
Indebtedness (Narrative) (Detai
Indebtedness (Narrative) (Details) - USD ($) $ in Thousands | Jan. 13, 2020 | Oct. 16, 2019 | Oct. 15, 2019 | Dec. 28, 2019 | Dec. 13, 2019 | Sep. 28, 2019 | Sep. 03, 2019 |
U.S. revolving credit facility | |||||||
Line of Credit Facility | |||||||
Outstanding borrowings | $ 50,387 | $ 395,712 | |||||
SECT revolving credit facility | |||||||
Line of Credit Facility | |||||||
Outstanding borrowings | 7,000 | $ 7,000 | |||||
Line of Credit | U.S. revolving credit facility | |||||||
Line of Credit Facility | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 1,100,000 | ||||||
Expansion option to increase credit facility | $ 400,000 | ||||||
Line of Credit | SECT revolving credit facility | |||||||
Line of Credit Facility | |||||||
Line of Credit Facility, Current Borrowing Capacity | $ 35,000 | ||||||
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 | ||||||
Senior notes 4.25% | Senior Notes | |||||||
Line of Credit Facility | |||||||
Debt Instrument, Face Amount | $ 500,000 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.25% | ||||||
Proceeds from Debt, Net of Issuance Costs | $ 492,750 | ||||||
Subsequent Event | Senior notes 5.25% | Senior Notes | |||||||
Line of Credit Facility | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | ||||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 101.313% | ||||||
Early Repayment of Senior Debt | $ 300,000 | ||||||
Gain (Loss) on Extinguishment of Debt | $ 3,939 |
Other Accrued Liabilities (Sche
Other Accrued Liabilities (Schedule of Other Accrued Liabilities) (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Sep. 28, 2019 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Contract reserves | $ 62,221 | $ 60,914 |
Employee Benefits | 42,540 | 37,040 |
Warranty Accrual | 29,369 | 28,061 |
Accrued income taxes | 29,912 | 26,532 |
Other | 47,248 | 36,178 |
Other accrued liabilities | $ 211,290 | $ 188,725 |
Other Accrued Liabilities (Narr
Other Accrued Liabilities (Narrative) (Details) | 3 Months Ended |
Dec. 28, 2019 | |
Minimum | |
Product Warranty Liability | |
Warranty period - months | twelve |
Maximum | |
Product Warranty Liability | |
Warranty period - months | sixty |
Other Accrued Liabilities (Summ
Other Accrued Liabilities (Summary of Activity in Warranty Accrual) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Warranty accrual at beginning of period | $ 28,061 | $ 25,537 |
Warranty additions from acquisitions | 542 | 0 |
Warranties issued during current period | 3,843 | 3,365 |
Adjustments to pre-existing warranties | (181) | (91) |
Standard Product Warranty Accrual, Decrease for Payments | (3,172) | (4,371) |
Standard Product Warranty Accrual, Foreign Currency Translation Gain (Loss) | 276 | (183) |
Warranty accrual at end of period | $ 29,369 | $ 24,257 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Narrative) (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Designated as Hedging Instrument | Interest Rate Swaps | |
Derivative | |
Derivative, Notional Amount | $ 45,000 |
Conversion Rate Of Interest Rate Swaps From Variable to Fixed | 3.18% |
Basis Spread on Variable Rate Derivative | 1.50% |
Designated as Hedging Instrument | Foreign Currency Contracts | |
Derivative | |
Derivative, Notional Amount | $ 44,475 |
Designated as Hedging Instrument | Net Investment Hedge | |
Derivative | |
Derivative, Notional Amount | 0 |
Not Designated as Hedging Instrument | Foreign Currency Contracts | |
Derivative | |
Derivative, Notional Amount | $ 85,957 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Gains And Losses On Foreign Currency Forwards Included In Other Income Or Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Other Income (Expense) | ||
Derivative | ||
Net gain (loss) | $ 1,571 | $ (1,650) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Fair Value And Classification Of Derivatives On The Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 28, 2019 | Sep. 28, 2019 |
Designated as Hedging Instrument | Other Current Assets | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Derivative assets as hedging instruments, fair value | $ 1,633 | $ 1,060 |
Designated as Hedging Instrument | Other Current Assets | Interest Rate Swaps | ||
Derivative Instruments, Fair Value | ||
Derivative assets as hedging instruments, fair value | 4 | 57 |
Designated as Hedging Instrument | Other Assets | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Derivative assets as hedging instruments, fair value | 246 | 261 |
Designated as Hedging Instrument | Total asset derivative | ||
Derivative Instruments, Fair Value | ||
Derivative assets as hedging instruments, fair value | 1,883 | 1,378 |
Designated as Hedging Instrument | Other Accrued Liabilities | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Derivative liabilities as hedging instruments, fair value | 62 | 736 |
Designated as Hedging Instrument | Other Long-Term Liabilities | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Derivative liabilities as hedging instruments, fair value | 0 | 152 |
Designated as Hedging Instrument | Total liability derivatives | ||
Derivative Instruments, Fair Value | ||
Derivative liabilities as hedging instruments, fair value | 62 | 888 |
Not Designated As Hedging Instruments | Other Current Assets | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Derivative assets as hedging instruments, fair value | 280 | 93 |
Not Designated As Hedging Instruments | Other Accrued Liabilities | Foreign Currency Contracts | ||
Derivative Instruments, Fair Value | ||
Derivative liabilities as hedging instruments, fair value | $ 256 | $ 359 |
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. 28, 2019 | Sep. 28, 2019 |
Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forwards, fair value assets | $ 1,913 | $ 1,153 |
Interest rate swap, fair value assets | 4 | 57 |
Other Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forwards, fair value assets | 246 | 261 |
Total Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total fair value assets | 2,163 | 1,471 |
Other Accrued Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forwards, fair value liabilities | 318 | 1,095 |
Other Long-Term Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Foreign currency forwards, fair value liabilities | 0 | 152 |
Total Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Total fair value liabilities | $ 318 | $ 1,247 |
Fair Value Fair Value (Narrativ
Fair Value Fair Value (Narrative) (Details) $ in Thousands | Dec. 28, 2019USD ($) |
Fair Value Disclosures [Abstract] | |
Fair value of long-term debt | $ 998,099 |
Carrying value of long-term debt | $ 987,387 |
Employee Benefit Plans (Net Per
Employee Benefit Plans (Net Periodic Benefit Costs) (Details) - Defined Benefit Pension Plans - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
U.S. Plans | ||
Defined Benefit Plan Disclosure | ||
Service cost | $ 5,759 | $ 5,251 |
Interest cost | 7,649 | 9,231 |
Expected return on plan assets | (11,021) | (11,264) |
Amortization of prior service cost (credit) | 33 | 46 |
Amortization of actuarial loss | 6,329 | 6,660 |
Pension expense for defined benefit plans | 8,749 | 9,924 |
Non-U.S. Plans | ||
Defined Benefit Plan Disclosure | ||
Service cost | 1,671 | 1,246 |
Interest cost | 697 | 1,101 |
Expected return on plan assets | (1,139) | (1,298) |
Amortization of prior service cost (credit) | 0 | (5) |
Amortization of actuarial loss | 1,216 | 640 |
Pension expense for defined benefit plans | $ 2,445 | $ 1,684 |
Employee Benefit Plans (Defined
Employee Benefit Plans (Defined Contribution Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Defined Contribution Pension Plans | ||
Defined Contribution Plan Disclosure | ||
Pension expense for defined contribution plans | $ 6,800 | $ 5,810 |
U.S. Plans | ||
Defined Contribution Plan Disclosure | ||
Pension expense for defined contribution plans | 5,398 | 4,614 |
Non-U.S. Plans | ||
Defined Contribution Plan Disclosure | ||
Pension expense for defined contribution plans | $ 1,402 | $ 1,196 |
Restructuring (Schedule of Rest
Restructuring (Schedule of Restructuring Reserve Activity) (Details) $ in Thousands | 3 Months Ended |
Dec. 28, 2019USD ($) | |
Restructuring Reserve | |
Restructuring accrual at beginning of period | $ 4,123 |
Adjustments to provision | (645) |
Foreign currency translation | 79 |
Restructuring accrual at end of period | 3,288 |
2018 Plan | |
Restructuring Reserve | |
Cash payments | (269) |
Restructuring accrual at end of period | 3,288 |
Space And Defense Controls | |
Restructuring Reserve | |
Restructuring accrual at beginning of period | 27 |
Adjustments to provision | (2) |
Foreign currency translation | 0 |
Restructuring accrual at end of period | 0 |
Space And Defense Controls | 2018 Plan | |
Restructuring Reserve | |
Cash payments | (26) |
Industrial Systems | |
Restructuring Reserve | |
Restructuring accrual at beginning of period | 4,096 |
Adjustments to provision | (643) |
Foreign currency translation | 79 |
Restructuring accrual at end of period | 3,288 |
Industrial Systems | 2018 Plan | |
Restructuring Reserve | |
Cash payments | $ (244) |
Restructuring Restructuring (Na
Restructuring Restructuring (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Sep. 28, 2019 | |
Restructuring Cost and Reserve | ||
Restructuring and Related Activities, Completion Date | Jun. 27, 2020 | |
Restructuring reserve | $ 3,288 | $ 4,123 |
2018 Plan | ||
Restructuring Cost and Reserve | ||
Restructuring reserve | $ 3,288 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate | 25.20% | 24.30% |
U.S. federal corporate tax rate | 21.00% | 21.00% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Changes in AOCI by Component) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning of period | $ 1,322,481 | $ 1,224,986 |
Other comprehensive income (loss) | 27,298 | (2,604) |
End of period | 1,336,691 | 1,273,264 |
Accumulated foreign currency translation | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning of period | (129,399) | |
Other comprehensive income (loss) before reclassifications | 22,026 | |
Amounts reclassified from AOCIL | (493) | |
Other comprehensive income (loss) | 21,533 | |
End of period | (107,866) | |
Accumulated retirement liability | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning of period | (285,734) | |
Other comprehensive income (loss) before reclassifications | (1,237) | |
Amounts reclassified from AOCIL | 5,600 | |
Other comprehensive income (loss) | 4,363 | |
End of period | (281,371) | |
Accumulated gain (loss) on derivatives | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning of period | (344) | |
Other comprehensive income (loss) before reclassifications | 1,401 | |
Amounts reclassified from AOCIL | 1 | |
Other comprehensive income (loss) | 1,402 | |
End of period | 1,058 | |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning of period | (415,477) | (372,792) |
Other comprehensive income (loss) before reclassifications | 22,190 | |
Amounts reclassified from AOCIL | 5,108 | |
Other comprehensive income (loss) | 27,298 | (2,604) |
End of period | $ (388,179) | $ (375,396) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) (Reclassification from AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Prior service cost (credit) | $ (32) | $ (76) |
Actuarial losses | 7,394 | 7,629 |
Reclassification from AOCIL into earnings - Retirement liability | 7,362 | 7,553 |
Tax effect - Retirement liability | (1,762) | (1,848) |
Net reclassification from AOCIL into earnings - Retirement liability | 5,600 | 5,705 |
Reclassification from AOCIL into earnings - Derivatives | 1 | 227 |
Tax effect - Derivatives | 0 | (57) |
Net reclassification from AOCIL into earnings - Derivatives | 1 | 170 |
Foreign Currency Contracts | Sales | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Derivatives | 2 | (33) |
Foreign Currency Contracts | Cost Of Sales | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Derivatives | 40 | 660 |
Interest Rate Swaps | Interest | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income | ||
Derivatives | $ (41) | $ (400) |
Accumulated Other Comprehensi_5
Accumulated Other Comprehensive Income (Loss) (Activity and Classification of Derivative Deferral in AOCI) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Derivative Instruments, Gain (Loss) | ||
Net deferral in AOCIL of derivatives (effective portion) | $ 1,790 | $ 664 |
Tax effect | (389) | (170) |
Net deferral in AOCIL of derivatives | 1,401 | 494 |
Foreign Currency Contracts | ||
Derivative Instruments, Gain (Loss) | ||
Net deferral in AOCIL of derivatives (effective portion) | 1,794 | 899 |
Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) | ||
Net deferral in AOCIL of derivatives (effective portion) | $ (4) | $ (235) |
Earnings Per Share and Divide_3
Earnings Per Share and Dividends (Basic And Diluted Weighted-Average Shares Outstanding) (Details) - shares | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Earnings Per Share [Abstract] | ||
Basic weighted-average shares outstanding | 34,510,851 | 34,815,255 |
Dilutive effect of equity-based awards | 276,553 | 310,574 |
Diluted weighted-average shares outstanding | 34,787,404 | 35,125,829 |
Earnings Per Share and Divide_4
Earnings Per Share and Dividends (Narrative) (Details) - $ / shares | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from calculation of diluted earnings per share | 34,635 | 44,465 |
Cash dividends paid per share | $ 0.25 | $ 0.25 |
Dividends declared per share | $ 0.25 | $ 0.25 |
Segment Information (Segment Sa
Segment Information (Segment Sales By Market Type) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Segment Reporting Information | ||
Net sales | $ 754,843 | $ 679,676 |
Aircraft Controls | ||
Segment Reporting Information | ||
Net sales | 339,954 | 304,045 |
Aircraft Controls | Military | ||
Segment Reporting Information | ||
Net sales | 173,694 | 146,801 |
Aircraft Controls | Commercial | ||
Segment Reporting Information | ||
Net sales | 166,260 | 157,244 |
Space And Defense Controls | ||
Segment Reporting Information | ||
Net sales | 186,240 | 156,068 |
Space And Defense Controls | Space | ||
Segment Reporting Information | ||
Net sales | 62,740 | 50,176 |
Space And Defense Controls | Defense | ||
Segment Reporting Information | ||
Net sales | 123,500 | 105,892 |
Industrial Systems | ||
Segment Reporting Information | ||
Net sales | 228,649 | 219,563 |
Industrial Systems | Energy | ||
Segment Reporting Information | ||
Net sales | 29,939 | 29,297 |
Industrial Systems | Industrial Automation | ||
Segment Reporting Information | ||
Net sales | 106,831 | 109,130 |
Industrial Systems | Simulation and Test | ||
Segment Reporting Information | ||
Net sales | 28,468 | 29,050 |
Industrial Systems | Medical | ||
Segment Reporting Information | ||
Net sales | $ 63,411 | $ 52,086 |
Segment Information (Segment _2
Segment Information (Segment Sales by Customer) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Segment Reporting Information | ||
Net sales | $ 754,843 | $ 679,676 |
Commercial Customer | ||
Segment Reporting Information | ||
Net sales | 420,931 | 397,865 |
U.S. Government Customer | ||
Segment Reporting Information | ||
Net sales | 273,317 | 238,088 |
Other Customer | ||
Segment Reporting Information | ||
Net sales | 60,595 | 43,723 |
Aircraft Controls | ||
Segment Reporting Information | ||
Net sales | 339,954 | 304,045 |
Aircraft Controls | Commercial Customer | ||
Segment Reporting Information | ||
Net sales | 166,260 | 157,244 |
Aircraft Controls | U.S. Government Customer | ||
Segment Reporting Information | ||
Net sales | 132,209 | 117,181 |
Aircraft Controls | Other Customer | ||
Segment Reporting Information | ||
Net sales | 41,485 | 29,620 |
Space And Defense Controls | ||
Segment Reporting Information | ||
Net sales | 186,240 | 156,068 |
Space And Defense Controls | Commercial Customer | ||
Segment Reporting Information | ||
Net sales | 34,152 | 30,053 |
Space And Defense Controls | U.S. Government Customer | ||
Segment Reporting Information | ||
Net sales | 134,687 | 114,465 |
Space And Defense Controls | Other Customer | ||
Segment Reporting Information | ||
Net sales | 17,401 | 11,550 |
Industrial Systems | ||
Segment Reporting Information | ||
Net sales | 228,649 | 219,563 |
Industrial Systems | Commercial Customer | ||
Segment Reporting Information | ||
Net sales | 220,519 | 210,568 |
Industrial Systems | U.S. Government Customer | ||
Segment Reporting Information | ||
Net sales | 6,421 | 6,442 |
Industrial Systems | Other Customer | ||
Segment Reporting Information | ||
Net sales | $ 1,709 | $ 2,553 |
Segment Information (Operating
Segment Information (Operating Profit By Segment And Reconciliation Of Segment Operating Profit To Earnings Before Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Segment Reporting Information | ||
Operating profit | $ 90,673 | $ 79,377 |
Deductions from operating profit: | ||
Interest expense | 10,232 | 9,682 |
Equity-based compensation expense | 2,381 | 2,008 |
Non-service pension expense | 3,601 | 4,894 |
Corporate and other expenses, net | 7,555 | 6,310 |
Earnings before income taxes | 66,904 | 56,483 |
Aircraft Controls | ||
Segment Reporting Information | ||
Operating profit | 38,592 | 33,199 |
Space And Defense Controls | ||
Segment Reporting Information | ||
Operating profit | 25,282 | 18,473 |
Industrial Systems | ||
Segment Reporting Information | ||
Operating profit | $ 26,799 | $ 27,705 |
Related Party Transactions (Nar
Related Party Transactions (Narrative) (Details) - Banking - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 28, 2019 | Dec. 29, 2018 | |
Related Party Transaction | ||
Related Party US Revolving Credit Facility Interest Percentage | 12.00% | |
Credit Card Intermediary | ||
Related Party Transaction | ||
Related Party Transaction, Amounts of Transaction | $ 4,574 | $ 5,289 |
Interest Rate Swaps | ||
Related Party Transaction | ||
Related Party Transaction, Amounts of Transaction | 15,000 | |
Lease Agreements | ||
Related Party Transaction | ||
Related Party Transaction, Amounts of Transaction | $ 25,526 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 28, 2019 | Sep. 29, 2018 | Dec. 28, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating Leases, Rent Expense, Net | $ 25,510 | $ 26,594 | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 20,993 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 19,118 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 15,636 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 11,344 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 7,151 | ||
Operating Leases, Future Minimum Payments, Due Thereafter | $ 41,670 | ||
Standby letters of credit | $ 35,728 |
Subsequent Events (Narrative) (
Subsequent Events (Narrative) (Details) | Jan. 23, 2020$ / shares |
Subsequent Event | |
Subsequent Event | |
Dividend payable declared | $ 0.25 |