ý | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
¨ | Transition Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
1301 East 9th Street, Suite 3000, Cleveland, Ohio | 44114 | |
(Address of principal executive offices) | (Zip Code) |
LARGE ACCELERATED FILER | ý | ACCELERATED FILER | ¨ | |
NON-ACCELERATED FILER | ¨ | SMALLER REPORTING COMPANY | ¨ | |
EMERGING GROWTH COMPANY | ¨ | |||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ¨ |
Page | |||
Part I | FINANCIAL INFORMATION | ||
Item 1 | Financial Statements | ||
Condensed Consolidated Balance Sheets – December 30, 2017 and September 30, 2017 | |||
Condensed Consolidated Statements of Income – Thirteen Week Periods Ended December 30, 2017 and December 31, 2016 | |||
Condensed Consolidated Statements of Comprehensive Income – Thirteen Week Periods Ended December 30, 2017 and December 31, 2016 | |||
Condensed Consolidated Statement of Changes in Stockholders’ Deficit – Thirteen Week Period Ended December 30, 2017 | |||
Condensed Consolidated Statements of Cash Flows – Thirteen Week Periods Ended December 30, 2017 and December 31, 2016 | |||
Notes to Condensed Consolidated Financial Statements | |||
Item 2 | Management’s Discussion and Analysis of Financial Condition and Results of Operations | ||
Item 3 | Quantitative and Qualitative Disclosure About Market Risk | ||
Item 4 | Controls and Procedures | ||
Part II | OTHER INFORMATION | ||
Item 1A | Risk Factors | ||
Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds | ||
Item 6 | Exhibits | ||
SIGNATURES |
December 30, 2017 | September 30, 2017 | ||||||
ASSETS | |||||||
CURRENT ASSETS: | |||||||
Cash and cash equivalents | $ | 857,862 | $ | 650,561 | |||
Trade accounts receivable - Net | 556,743 | 636,127 | |||||
Inventories - Net | 743,868 | 730,681 | |||||
Assets held-for-sale | 76,282 | 77,500 | |||||
Prepaid expenses and other | 36,578 | 38,683 | |||||
Total current assets | 2,271,333 | 2,133,552 | |||||
PROPERTY, PLANT AND EQUIPMENT - NET | 327,253 | 324,924 | |||||
GOODWILL | 5,751,093 | 5,745,338 | |||||
OTHER INTANGIBLE ASSETS - NET | 1,697,432 | 1,717,862 | |||||
OTHER | 65,016 | 53,985 | |||||
TOTAL ASSETS | $ | 10,112,127 | $ | 9,975,661 | |||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | |||||||
CURRENT LIABILITIES: | |||||||
Current portion of long-term debt | $ | 69,214 | $ | 69,454 | |||
Short-term borrowings - trade receivable securitization facility | 299,710 | 299,587 | |||||
Accounts payable | 145,045 | 148,761 | |||||
Accrued liabilities | 296,013 | 335,888 | |||||
Liabilities held-for-sale | 13,439 | 17,304 | |||||
Total current liabilities | 823,421 | 870,994 | |||||
LONG-TERM DEBT | 11,378,320 | 11,393,620 | |||||
DEFERRED INCOME TAXES | 339,439 | 500,949 | |||||
OTHER NON-CURRENT LIABILITIES | 170,660 | 161,302 | |||||
Total liabilities | 12,711,840 | 12,926,865 | |||||
STOCKHOLDERS’ DEFICIT: | |||||||
Common stock - $.01 par value; authorized 224,400,000 shares; issued 56,282,741 and 56,093,659 at December 30, 2017 and September 30, 2017, respectively | 563 | 561 | |||||
Additional paid-in capital | 1,113,142 | 1,095,319 | |||||
Accumulated deficit | (2,876,954 | ) | (3,187,220 | ) | |||
Accumulated other comprehensive loss | (61,743 | ) | (85,143 | ) | |||
Treasury stock, at cost; 4,159,207 shares at December 30, 2017 and September 30, 2017 | (774,721 | ) | (774,721 | ) | |||
Total stockholders’ deficit | (2,599,713 | ) | (2,951,204 | ) | |||
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT | $ | 10,112,127 | $ | 9,975,661 |
Thirteen Week Periods Ended | ||||||||
December 30, 2017 | December 31, 2016 | |||||||
NET SALES | $ | 847,960 | $ | 814,018 | ||||
COST OF SALES | 371,310 | 369,763 | ||||||
GROSS PROFIT | 476,650 | 444,255 | ||||||
SELLING AND ADMINISTRATIVE EXPENSES | 106,528 | 101,715 | ||||||
AMORTIZATION OF INTANGIBLE ASSETS | 17,112 | 25,531 | ||||||
INCOME FROM OPERATIONS | 353,010 | 317,009 | ||||||
INTEREST EXPENSE - NET | 160,933 | 146,004 | ||||||
REFINANCING COSTS | 1,113 | 32,084 | ||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 190,964 | 138,921 | ||||||
INCOME TAX PROVISION | (121,047 | ) | 20,050 | |||||
INCOME FROM CONTINUING OPERATIONS | $ | 312,011 | $ | 118,871 | ||||
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX | 2,764 | — | ||||||
NET INCOME | $ | 314,775 | $ | 118,871 | ||||
NET INCOME APPLICABLE TO COMMON STOCK | $ | 258,627 | $ | 22,900 | ||||
Net earnings per share: | ||||||||
Net earnings per share from continuing operations--basic and diluted | $ | 4.60 | $ | 0.41 | ||||
Net earnings per share from discontinued operations--basic and diluted | 0.05 | — | ||||||
Net earnings per share | $ | 4.65 | $ | 0.41 | ||||
Cash dividends paid per common share | $ | — | $ | 24.00 | ||||
Weighted-average shares outstanding: | ||||||||
Basic and diluted | 55,600 | 56,524 |
Thirteen Week Periods Ended | ||||||||
December 30, 2017 | December 31, 2016 | |||||||
Net income | $ | 314,775 | $ | 118,871 | ||||
Other comprehensive income, net of tax: | ||||||||
Foreign currency translation adjustments | 5,152 | (28,052 | ) | |||||
Interest rate swap and cap agreements | 18,248 | 38,775 | ||||||
Other comprehensive income, net of tax | 23,400 | 10,723 | ||||||
TOTAL COMPREHENSIVE INCOME | $ | 338,175 | $ | 129,594 |
Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Treasury Stock | ||||||||||||||||||||||||||
Number of Shares | Par Value | Accumulated Deficit | Number of Shares | Value | Total | ||||||||||||||||||||||||
BALANCE, OCTOBER 1, 2017 | 56,093,659 | $ | 561 | $ | 1,095,319 | $ | (3,187,220 | ) | $ | (85,143 | ) | (4,159,207 | ) | $ | (774,721 | ) | $ | (2,951,204 | ) | ||||||||||
Unvested dividend equivalents and other | — | — | — | (4,509 | ) | — | — | — | (4,509 | ) | |||||||||||||||||||
Compensation expense recognized for employee stock options and restricted stock | — | — | 10,533 | — | — | — | — | 10,533 | |||||||||||||||||||||
Exercise of employee stock options, restricted stock activity and other, net | 189,082 | 2 | 7,290 | — | — | — | — | 7,292 | |||||||||||||||||||||
Net income | — | — | — | 314,775 | — | — | — | 314,775 | |||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | 5,152 | — | — | 5,152 | |||||||||||||||||||||
Interest rate swaps and caps, net of tax | — | — | — | — | 18,248 | — | — | 18,248 | |||||||||||||||||||||
BALANCE, DECEMBER 30, 2017 | 56,282,741 | $ | 563 | $ | 1,113,142 | $ | (2,876,954 | ) | $ | (61,743 | ) | (4,159,207 | ) | $ | (774,721 | ) | $ | (2,599,713 | ) |
Thirteen Week Periods Ended | |||||||
December 30, 2017 | December 31, 2016 | ||||||
OPERATING ACTIVITIES: | |||||||
Net income | $ | 314,775 | $ | 118,871 | |||
Net income from discontinued operations | (2,764 | ) | — | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation | 13,385 | 12,284 | |||||
Amortization of intangible assets and product certification costs | 17,254 | 25,764 | |||||
Amortization of debt issuance costs, original issue discount and premium | 5,319 | 4,620 | |||||
Refinancing costs | 1,113 | 32,084 | |||||
Non-cash equity compensation | 11,113 | 10,020 | |||||
Deferred income taxes | (170,137 | ) | (493 | ) | |||
Changes in assets/liabilities, net of effects from acquisitions of businesses: | |||||||
Trade accounts receivable | 81,175 | 59,812 | |||||
Inventories | (12,508 | ) | 8,365 | ||||
Income taxes receivable/payable | 50,468 | 21,148 | |||||
Other assets | 1,531 | (4,826 | ) | ||||
Accounts payable | (4,428 | ) | (26,200 | ) | |||
Accrued interest | 1,672 | (2,550 | ) | ||||
Accrued and other liabilities | (15,157 | ) | (33,108 | ) | |||
Net cash provided by operating activities | 292,811 | 225,791 | |||||
INVESTING ACTIVITIES: | |||||||
Capital expenditures | (15,290 | ) | (21,807 | ) | |||
Payments made in connection with acquisitions | — | (30,002 | ) | ||||
Net cash used in investing activities | (15,290 | ) | (51,809 | ) | |||
FINANCING ACTIVITIES: | |||||||
Proceeds from exercise of stock options | 7,290 | 3,648 | |||||
Special dividend and dividend equivalent payments | (56,148 | ) | (1,375,998 | ) | |||
Proceeds from term loans, net | 793,864 | 1,132,774 | |||||
Repayment on term loans | (815,631 | ) | (16,151 | ) | |||
Cash tender and redemption of senior subordinated notes due 2021, including premium | — | (528,847 | ) | ||||
Other | (362 | ) | (143 | ) | |||
Net cash used in financing activities | (70,987 | ) | (784,717 | ) | |||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 767 | (3,899 | ) | ||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 207,301 | (614,634 | ) | ||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 650,561 | 1,586,994 | |||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 857,862 | $ | 972,360 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
Cash paid during the period for interest | $ | 153,929 | $ | 143,702 | |||
Cash refunded during the period for income taxes | $ | (267 | ) | $ | (956 | ) |
Thirteen Week Periods Ended | ||||||||
December 30, 2017 | December 31, 2016 | |||||||
Numerator for earnings per share: | ||||||||
Net income from continuing operations | $ | 312,011 | $ | 118,871 | ||||
Less dividends paid on participating securities | (56,148 | ) | (95,971 | ) | ||||
$ | 255,863 | $ | 22,900 | |||||
Net income from discontinued operations | 2,764 | — | ||||||
Net income applicable to common stock - basic and diluted | $ | 258,627 | $ | 22,900 | ||||
Denominator for basic and diluted earnings per share under the two-class method: | ||||||||
Weighted average common shares outstanding | 52,024 | 53,365 | ||||||
Vested options deemed participating securities | 3,576 | 3,159 | ||||||
Total shares for basic and diluted earnings per share | 55,600 | 56,524 | ||||||
Net earnings per share from continuing operations - basic and diluted | $ | 4.60 | $ | 0.41 | ||||
Net earnings per share from discontinued operations - basic and diluted | 0.05 | — | ||||||
Net earnings per share | $ | 4.65 | $ | 0.41 |
December 30, 2017 | September 30, 2017 | ||||||
Raw materials and purchased component parts | $ | 514,300 | $ | 496,899 | |||
Work-in-progress | 182,132 | 187,009 | |||||
Finished goods | 134,784 | 131,548 | |||||
Total | 831,216 | 815,456 | |||||
Reserves for excess and obsolete inventory | (87,348 | ) | (84,775 | ) | |||
Inventories - Net | $ | 743,868 | $ | 730,681 |
December 30, 2017 | September 30, 2017 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||
Trademarks and trade names | $ | 730,635 | $ | — | $ | 730,635 | $ | 729,931 | $ | — | $ | 729,931 | |||||||||||
Technology | 1,289,693 | 367,535 | 922,158 | 1,292,719 | 351,638 | 941,081 | |||||||||||||||||
Order backlog | 2,700 | 1,577 | 1,123 | 29,000 | 26,668 | 2,332 | |||||||||||||||||
Other | 63,403 | 19,887 | 43,516 | 63,599 | 19,081 | 44,518 | |||||||||||||||||
Total | $ | 2,086,431 | $ | 388,999 | $ | 1,697,432 | $ | 2,115,249 | $ | 397,387 | $ | 1,717,862 |
Power & Control | Airframe | Non- aviation | Total | ||||||||||||
Balance - September 30, 2017 | $ | 3,269,981 | $ | 2,382,082 | $ | 93,275 | $ | 5,745,338 | |||||||
Purchase price allocation adjustments | 4,370 | — | — | 4,370 | |||||||||||
Currency translation adjustment | — | 1,385 | — | 1,385 | |||||||||||
Balance - December 30, 2017 | $ | 3,274,351 | $ | 2,383,467 | $ | 93,275 | $ | 5,751,093 |
December 30, 2017 | |||||||||||||||
Gross Amount | Debt Issuance Costs | Original Issue Discount or Premium | Net Amount | ||||||||||||
Short-term borrowings—trade receivable securitization facility | $ | 300,000 | $ | (290 | ) | $ | — | $ | 299,710 | ||||||
Term loans | $ | 6,955,567 | $ | (63,216 | ) | $ | (19,099 | ) | $ | 6,873,252 | |||||
5 1/2% senior subordinated notes due 2020 (2020 Notes) | 550,000 | (2,979 | ) | — | 547,021 | ||||||||||
6% senior subordinated notes due 2022 (2022 Notes) | 1,150,000 | (6,581 | ) | — | 1,143,419 | ||||||||||
6 1/2% senior subordinated notes due 2024 (2024 Notes) | 1,200,000 | (7,748 | ) | — | 1,192,252 | ||||||||||
6 1/2% senior subordinated notes due 2025 (2025 Notes) | 750,000 | (3,901 | ) | 4,045 | 750,144 | ||||||||||
6 3/8% senior subordinated notes due 2026 (2026 Notes) | 950,000 | (8,554 | ) | — | 941,446 | ||||||||||
11,555,567 | (92,979 | ) | (15,054 | ) | 11,447,534 | ||||||||||
Less current portion | 69,776 | (562 | ) | — | 69,214 | ||||||||||
Long-term debt | $ | 11,485,791 | $ | (92,417 | ) | $ | (15,054 | ) | $ | 11,378,320 |
September 30, 2017 | |||||||||||||||
Gross Amount | Debt Issuance Costs | Original Issue Discount or Premium | Net Amount | ||||||||||||
Short-term borrowings—trade receivable securitization facility | $ | 300,000 | $ | (413 | ) | $ | — | $ | 299,587 | ||||||
Term loans | $ | 6,973,009 | $ | (64,104 | ) | $ | (18,948 | ) | $ | 6,889,957 | |||||
2020 Notes | 550,000 | (3,243 | ) | — | 546,757 | ||||||||||
2022 Notes | 1,150,000 | (6,941 | ) | — | 1,143,059 | ||||||||||
2024 Notes | 1,200,000 | (8,042 | ) | — | 1,191,958 | ||||||||||
2025 Notes | 750,000 | (4,033 | ) | 4,182 | 750,149 | ||||||||||
2026 Notes | 950,000 | (8,806 | ) | — | 941,194 | ||||||||||
11,573,009 | (95,169 | ) | (14,766 | ) | 11,463,074 | ||||||||||
Less current portion | 70,031 | (577 | ) | — | 69,454 | ||||||||||
Long-term debt | $ | 11,502,978 | $ | (94,592 | ) | $ | (14,766 | ) | $ | 11,393,620 |
December 30, 2017 | September 30, 2017 | |||||||||||||||||
Level | Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||
Assets: | ||||||||||||||||||
Cash and cash equivalents | 1 | $ | 857,862 | $ | 857,862 | $ | 650,561 | $ | 650,561 | |||||||||
Interest rate cap agreements (1) | 2 | 14,131 | 14,131 | 12,904 | 12,904 | |||||||||||||
Interest rate swap agreements (1) | 2 | 11,892 | 11,892 | 2,905 | 2,905 | |||||||||||||
Liabilities: | ||||||||||||||||||
Interest rate swap agreements (2) | 2 | 12,488 | 12,488 | 20,740 | 20,740 | |||||||||||||
Interest rate swap agreements (3) | 2 | 1,173 | 1,173 | 9,731 | 9,731 | |||||||||||||
Short-term borrowings - trade receivable securitization facility (4) | 1 | 299,710 | 299,710 | 299,587 | 299,587 | |||||||||||||
Long-term debt, including current portion: | ||||||||||||||||||
Term loans (4) | 2 | 6,873,252 | 6,953,393 | 6,889,957 | 6,965,628 | |||||||||||||
2020 Notes (4) | 1 | 547,021 | 556,875 | 546,757 | 558,250 | |||||||||||||
2022 Notes (4) | 1 | 1,143,419 | 1,170,125 | 1,143,059 | 1,178,750 | |||||||||||||
2024 Notes (4) | 1 | 1,192,252 | 1,224,000 | 1,191,958 | 1,236,000 | |||||||||||||
2025 Notes (4) | 1 | 750,144 | 767,241 | 750,149 | 776,807 | |||||||||||||
2026 Notes (4) | 1 | 941,446 | 959,500 | 941,194 | 971,375 |
(1) | Included in other non-current assets on the condensed consolidated balance sheet. |
(2) | Included in accrued liabilities on the condensed consolidated balance sheet. |
(3) | Included in other non-current liabilities on the condensed consolidated balance sheet. |
(4) | The carrying amount of the debt instrument is presented net of the debt issuance costs. Refer to Note 8, "Debt," for gross carrying amounts. |
Aggregate Notional Amount (in millions) | Start Date | End Date | Related Term Loans | Conversion of Related Variable Rate Debt to Fixed Rate of: |
$1,000 | 9/30/2014 | 6/30/2019 | Tranche G | 5.40% (2.40% plus the 3.00% margin percentage) |
$400 | 9/30/2017 | 9/30/2022 | Tranche G | 4.90% (1.90% plus the 3.00% margin percentage) |
$750 | 6/30/2020 | 6/30/2022 | Tranche F | 5.25% (2.50% plus the 2.75% margin percentage) |
$500 | 12/30/2016 | 12/31/2021 | Tranche F | 4.65% (1.90% plus the 2.75% margin percentage) |
$1,000 | 6/28/2019 | 6/30/2021 | Tranche F | 4.55% (1.80% plus the 2.75% margin percentage) |
$750 | 3/31/2016 | 6/30/2020 | Tranche F | 5.55% (2.80% plus the 2.75% margin percentage) |
Aggregate Notional Amount (in millions) | Start Date | End Date | Related Term Loans | Offsets Variable Rate Debt Attributable to Fluctuations Above: |
$750 | 6/30/2020 | 6/30/2022 | Tranche F | Three month LIBO rate of 2.50% |
$400 | 12/30/2016 | 12/31/2021 | Tranche F | Three month LIBO rate of 2.50% |
$400 | 6/30/2016 | 6/30/2021 | Tranche F | Three month LIBO rate of 2.00% |
$750 | 9/30/2015 | 6/30/2020 | Tranche E | Three month LIBO rate of 2.50% |
December 30, 2017 | September 30, 2017 | |||||||||||||||
Asset | Liability | Asset | Liability | |||||||||||||
Interest rate cap agreements | $ | 14,131 | $ | — | $ | 12,904 | $ | — | ||||||||
Interest rate swap agreements | 20,532 | (22,301 | ) | 9,235 | (36,801 | ) | ||||||||||
Total | 34,663 | (22,301 | ) | 22,139 | (36,801 | ) | ||||||||||
Effect of counterparty netting | (8,642 | ) | 8,642 | (6,330 | ) | 6,330 | ||||||||||
Net derivatives as classified in the balance sheet (1) | $ | 26,021 | $ | (13,659 | ) | $ | 15,809 | $ | (30,471 | ) |
(1) | Refer to Note 10, "Fair Value Measurements," for the condensed consolidated balance sheet classification of our interest rate swap and cap agreements. |
Thirteen Week Periods Ended | |||||||
December 30, 2017 | December 31, 2016 | ||||||
Net sales to external customers | |||||||
Power & Control | $ | 482,718 | $ | 435,832 | |||
Airframe | 333,392 | 348,664 | |||||
Non-aviation | 31,850 | 29,522 | |||||
$ | 847,960 | $ | 814,018 |
Thirteen Week Periods Ended | |||||||
December 30, 2017 | December 31, 2016 | ||||||
EBITDA As Defined | |||||||
Power & Control | $ | 244,775 | $ | 212,918 | |||
Airframe | 158,419 | 168,529 | |||||
Non-aviation | 8,996 | 9,277 | |||||
Total segment EBITDA As Defined | 412,190 | 390,724 | |||||
Unallocated corporate expenses | 10,657 | 9,529 | |||||
Total Company EBITDA As Defined | 401,533 | 381,195 | |||||
Depreciation and amortization expense | 30,639 | 38,048 | |||||
Interest expense - net | 160,933 | 146,004 | |||||
Acquisition-related costs | 2,074 | 18,568 | |||||
Stock compensation expense | 11,113 | 10,020 | |||||
Refinancing costs | 1,113 | 32,084 | |||||
Other, net | 4,697 | (2,450 | ) | ||||
Income from continuing operations before income taxes | $ | 190,964 | $ | 138,921 |
December 30, 2017 | September 30, 2017 | ||||||
Total assets | |||||||
Power & Control | $ | 5,112,315 | $ | 5,135,459 | |||
Airframe | 3,888,862 | 3,923,172 | |||||
Non-aviation | 224,934 | 224,936 | |||||
Corporate | 809,768 | 614,594 | |||||
Assets of discontinued operations | 76,248 | 77,500 | |||||
$ | 10,112,127 | $ | 9,975,661 |
Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges (1) | Defined benefit pension plan activity | Currency translation adjustment | Total | ||||||||||||
Balance at September 30, 2017 | $ | (26,669 | ) | $ | (16,365 | ) | $ | (42,109 | ) | $ | (85,143 | ) | |||
Current-period other comprehensive gain | 17,545 | — | 5,152 | 22,697 | |||||||||||
Amounts reclassified from AOCI related to interest rate cap agreements | 703 | — | — | 703 | |||||||||||
Balance at December 30, 2017 | $ | (8,421 | ) | $ | (16,365 | ) | $ | (36,957 | ) | $ | (61,743 | ) |
(1) | Unrealized loss represents interest rate swap and cap agreements, net of taxes of $(10,435) and $(23,117) for the thirteen week periods ended December 30, 2017 and December 31, 2016, respectively. |
Amount reclassified | ||||||||
Thirteen Week Periods Ended | ||||||||
Description of reclassifications out of accumulated other comprehensive loss | December 30, 2017 | December 31, 2016 | ||||||
Amortization from redesignated interest rate cap agreements (1) | $ | 970 | $ | 956 | ||||
Deferred tax benefit from redesignated interest rate cap agreements | (267 | ) | (357 | ) | ||||
Losses reclassified into earnings, net of tax | $ | 703 | $ | 599 |
(1) | This component of accumulated other comprehensive loss is included in interest expense (see Note 11, “Derivatives and Hedging Activities,” for additional information). |
Thirteen Week Period Ended December 30, 2017 | |||
Net sales | $ | 9,129 | |
Income from discontinued operations before income taxes | 810 | ||
Income tax provision | (1,954 | ) | |
Income from discontinued operations | $ | 2,764 |
Assets and Liabilities of Discontinued Operations Held-for-Sale | December 30, 2017 | September 30, 2017 | ||||||
Trade accounts receivable—Net | $ | 4,414 | $ | 5,975 | ||||
Inventories—Net | 8,971 | 9,060 | ||||||
Prepaid expenses and other | 560 | 809 | ||||||
Property, plant, and equipment—Net | 4,544 | 4,367 | ||||||
Goodwill | 27,251 | 26,783 | ||||||
Other intangible assets—Net | 29,868 | 29,841 | ||||||
Other | 674 | 665 | ||||||
Total assets of discontinued operations | $ | 76,282 | $ | 77,500 | ||||
Accounts payable | $ | 517 | $ | 1,247 | ||||
Accrued liabilities | 9,597 | 12,801 | ||||||
Deferred income taxes | 3,325 | 3,256 | ||||||
Total liabilities of discontinued operations | $ | 13,439 | $ | 17,304 |
TransDigm Group | TransDigm Inc. | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Total Consolidated | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
CURRENT ASSETS: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 3,492 | $ | 758,928 | $ | 314 | $ | 95,128 | $ | — | $ | 857,862 | |||||||||||
Trade accounts receivable - Net | — | — | 23,880 | 573,712 | (40,849 | ) | 556,743 | ||||||||||||||||
Inventories - Net | — | 47,848 | 583,118 | 116,359 | (3,457 | ) | 743,868 | ||||||||||||||||
Assets held-for-sale | — | — | 5,440 | 70,842 | — | 76,282 | |||||||||||||||||
Prepaid expenses and other | — | 4,606 | 22,971 | 9,001 | — | 36,578 | |||||||||||||||||
Total current assets | 3,492 | 811,382 | 635,723 | 865,042 | (44,306 | ) | 2,271,333 | ||||||||||||||||
INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES | (2,603,205 | ) | 10,090,643 | 8,019,533 | 1,056,590 | (16,563,561 | ) | — | |||||||||||||||
PROPERTY, PLANT AND EQUIPMENT - NET | — | 15,675 | 263,532 | 48,046 | — | 327,253 | |||||||||||||||||
GOODWILL | — | 82,454 | 5,003,855 | 664,784 | — | 5,751,093 | |||||||||||||||||
OTHER INTANGIBLE ASSETS - NET | — | 27,264 | 1,419,518 | 250,650 | — | 1,697,432 | |||||||||||||||||
OTHER | — | 32,553 | 26,216 | 6,247 | — | 65,016 | |||||||||||||||||
TOTAL ASSETS | $ | (2,599,713 | ) | $ | 11,059,971 | $ | 15,368,377 | $ | 2,891,359 | $ | (16,607,867 | ) | $ | 10,112,127 | |||||||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | |||||||||||||||||||||||
CURRENT LIABILITIES: | |||||||||||||||||||||||
Current portion of long-term debt | $ | — | $ | 69,214 | $ | — | $ | — | $ | — | $ | 69,214 | |||||||||||
Short-term borrowings - trade receivable securitization facility | — | — | — | 299,710 | — | 299,710 | |||||||||||||||||
Accounts payable | — | 14,724 | 134,139 | 36,408 | (40,226 | ) | 145,045 | ||||||||||||||||
Accrued liabilities | — | 141,893 | 102,232 | 51,888 | — | 296,013 | |||||||||||||||||
Liabilities held-for-sale | — | — | — | 13,439 | — | 13,439 | |||||||||||||||||
Total current liabilities | — | 225,831 | 236,371 | 401,445 | (40,226 | ) | 823,421 | ||||||||||||||||
LONG-TERM DEBT | — | 11,378,320 | — | — | — | 11,378,320 | |||||||||||||||||
DEFERRED INCOME TAXES | — | 280,563 | 127 | 58,749 | — | 339,439 | |||||||||||||||||
OTHER NON-CURRENT LIABILITIES | — | 71,630 | 71,927 | 27,103 | — | 170,660 | |||||||||||||||||
Total liabilities | — | 11,956,344 | 308,425 | 487,297 | (40,226 | ) | 12,711,840 | ||||||||||||||||
STOCKHOLDERS’ (DEFICIT) EQUITY | (2,599,713 | ) | (896,373 | ) | 15,059,952 | 2,404,062 | (16,567,641 | ) | (2,599,713 | ) | |||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | $ | (2,599,713 | ) | $ | 11,059,971 | $ | 15,368,377 | $ | 2,891,359 | $ | (16,607,867 | ) | $ | 10,112,127 |
TransDigm Group | TransDigm Inc. | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Total Consolidated | ||||||||||||||||||
ASSETS | |||||||||||||||||||||||
CURRENT ASSETS: | |||||||||||||||||||||||
Cash and cash equivalents | $ | 2,416 | $ | 439,473 | $ | (203 | ) | $ | 208,875 | $ | — | $ | 650,561 | ||||||||||
Trade accounts receivable - Net | — | — | 25,069 | 652,807 | (41,749 | ) | 636,127 | ||||||||||||||||
Inventories - Net | — | 47,051 | 571,712 | 114,018 | (2,100 | ) | 730,681 | ||||||||||||||||
Assets held-for-sale | — | — | 6,428 | 71,072 | — | 77,500 | |||||||||||||||||
Prepaid expenses and other | — | 4,746 | 24,141 | 9,796 | — | 38,683 | |||||||||||||||||
Total current assets | 2,416 | 491,270 | 627,147 | 1,056,568 | (43,849 | ) | 2,133,552 | ||||||||||||||||
INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES | (2,953,620 | ) | 10,263,999 | 7,599,210 | 966,675 | (15,876,264 | ) | — | |||||||||||||||
PROPERTY, PLANT AND EQUIPMENT - NET | — | 16,032 | 261,434 | 47,458 | — | 324,924 | |||||||||||||||||
GOODWILL | — | 85,905 | 4,996,034 | 663,399 | — | 5,745,338 | |||||||||||||||||
OTHER INTANGIBLE ASSETS - NET | — | 27,620 | 1,438,006 | 252,236 | — | 1,717,862 | |||||||||||||||||
OTHER | — | 20,316 | 27,567 | 6,102 | — | 53,985 | |||||||||||||||||
TOTAL ASSETS | $ | (2,951,204 | ) | $ | 10,905,142 | $ | 14,949,398 | $ | 2,992,438 | $ | (15,920,113 | ) | $ | 9,975,661 | |||||||||
LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | |||||||||||||||||||||||
CURRENT LIABILITIES: | |||||||||||||||||||||||
Current portion of long-term debt | $ | — | $ | 69,454 | $ | — | $ | — | $ | — | $ | 69,454 | |||||||||||
Short-term borrowings - trade receivable securitization facility | — | — | — | 299,587 | — | 299,587 | |||||||||||||||||
Accounts payable | — | 14,712 | 137,948 | 37,667 | (41,566 | ) | 148,761 | ||||||||||||||||
Accrued liabilities | — | 180,916 | 103,902 | 51,070 | — | 335,888 | |||||||||||||||||
Liabilities held-for-sale | — | — | — | 17,304 | — | 17,304 | |||||||||||||||||
Total current liabilities | — | 265,082 | 241,850 | 405,628 | (41,566 | ) | 870,994 | ||||||||||||||||
LONG-TERM DEBT | — | 11,393,620 | — | — | — | 11,393,620 | |||||||||||||||||
DEFERRED INCOME TAXES | — | 442,415 | (99 | ) | 58,633 | — | 500,949 | ||||||||||||||||
OTHER NON-CURRENT LIABILITIES | — | 61,347 | 73,245 | 26,710 | — | 161,302 | |||||||||||||||||
Total liabilities | — | 12,162,464 | 314,996 | 490,971 | (41,566 | ) | 12,926,865 | ||||||||||||||||
STOCKHOLDERS’ (DEFICIT) EQUITY | (2,951,204 | ) | (1,257,322 | ) | 14,634,402 | 2,501,467 | (15,878,547 | ) | (2,951,204 | ) | |||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | $ | (2,951,204 | ) | $ | 10,905,142 | $ | 14,949,398 | $ | 2,992,438 | $ | (15,920,113 | ) | $ | 9,975,661 |
TransDigm Group | TransDigm Inc. | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Total Consolidated | ||||||||||||||||||
NET SALES | $ | — | $ | 36,128 | $ | 685,362 | $ | 145,530 | $ | (19,060 | ) | $ | 847,960 | ||||||||||
COST OF SALES | — | 19,964 | 277,662 | 91,387 | (17,703 | ) | 371,310 | ||||||||||||||||
GROSS PROFIT | — | 16,164 | 407,700 | 54,143 | (1,357 | ) | 476,650 | ||||||||||||||||
SELLING AND ADMINISTRATIVE EXPENSES | — | 24,519 | (85,640 | ) | 165,430 | 2,219 | 106,528 | ||||||||||||||||
AMORTIZATION OF INTANGIBLE ASSETS | — | 357 | 14,693 | 2,062 | — | 17,112 | |||||||||||||||||
(LOSS) INCOME FROM OPERATIONS | — | (8,712 | ) | 478,647 | (113,349 | ) | (3,576 | ) | 353,010 | ||||||||||||||
INTEREST EXPENSE (INCOME) - NET | — | 165,860 | 281 | (5,208 | ) | — | 160,933 | ||||||||||||||||
REFINANCING COSTS | — | 1,113 | — | — | — | 1,113 | |||||||||||||||||
EQUITY IN INCOME OF SUBSIDIARIES | (314,775 | ) | (309,919 | ) | — | — | 624,694 | — | |||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 314,775 | 134,234 | 478,366 | (108,141 | ) | (628,270 | ) | 190,964 | |||||||||||||||
INCOME TAX PROVISION | — | (180,541 | ) | 54,938 | 4,556 | — | (121,047 | ) | |||||||||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | 314,775 | 314,775 | 423,428 | (112,697 | ) | (628,270 | ) | 312,011 | |||||||||||||||
INCOME FROM DISCONTINUED OPERATIONS, NET OF TAX | — | — | 1,686 | 1,078 | — | 2,764 | |||||||||||||||||
NET INCOME | $ | 314,775 | $ | 314,775 | $ | 425,114 | $ | (111,619 | ) | $ | (628,270 | ) | $ | 314,775 | |||||||||
OTHER COMPREHENSIVE INCOME, NET OF TAX | 23,400 | 18,932 | 8,975 | 13,419 | (41,326 | ) | 23,400 | ||||||||||||||||
TOTAL COMPREHENSIVE INCOME (LOSS) | $ | 338,175 | $ | 333,707 | $ | 434,089 | $ | (98,200 | ) | $ | (669,596 | ) | $ | 338,175 |
TransDigm Group | TransDigm Inc. | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Total Consolidated | ||||||||||||||||||
NET SALES | $ | — | $ | 30,617 | $ | 682,919 | $ | 115,766 | $ | (15,284 | ) | $ | 814,018 | ||||||||||
COST OF SALES | — | 17,253 | 299,661 | 68,133 | (15,284 | ) | 369,763 | ||||||||||||||||
GROSS PROFIT | — | 13,364 | 383,258 | 47,633 | — | 444,255 | |||||||||||||||||
SELLING AND ADMINISTRATIVE EXPENSES | — | 24,320 | 62,699 | 14,696 | — | 101,715 | |||||||||||||||||
AMORTIZATION OF INTANGIBLE ASSETS | — | 189 | 23,308 | 2,034 | — | 25,531 | |||||||||||||||||
(LOSS) INCOME FROM OPERATIONS | — | (11,145 | ) | 297,251 | 30,903 | — | 317,009 | ||||||||||||||||
INTEREST EXPENSE (INCOME) - NET | — | 148,188 | 137 | (2,321 | ) | — | 146,004 | ||||||||||||||||
REFINANCING COSTS | — | 32,084 | — | — | — | 32,084 | |||||||||||||||||
EQUITY IN INCOME OF SUBSIDIARIES | (118,871 | ) | (294,988 | ) | — | — | 413,859 | — | |||||||||||||||
INCOME BEFORE INCOME TAXES | 118,871 | 103,571 | 297,114 | 33,224 | (413,859 | ) | 138,921 | ||||||||||||||||
INCOME TAX PROVISION | — | (15,300 | ) | 34,606 | 744 | — | 20,050 | ||||||||||||||||
NET INCOME | $ | 118,871 | $ | 118,871 | $ | 262,508 | $ | 32,480 | $ | (413,859 | ) | $ | 118,871 | ||||||||||
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | 10,723 | 38,772 | 14,619 | (69,304 | ) | 15,913 | 10,723 | ||||||||||||||||
TOTAL COMPREHENSIVE INCOME (LOSS) | $ | 129,594 | $ | 157,643 | $ | 277,127 | $ | (36,824 | ) | $ | (397,946 | ) | $ | 129,594 |
TransDigm Group | TransDigm Inc. | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Total Consolidated | ||||||||||||||||||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | $ | — | $ | (157,604 | ) | $ | 482,518 | $ | (30,324 | ) | $ | (1,779 | ) | $ | 292,811 | ||||||||
INVESTING ACTIVITIES: | |||||||||||||||||||||||
Capital expenditures | — | (268 | ) | (13,836 | ) | (1,186 | ) | — | (15,290 | ) | |||||||||||||
Net cash used in investing activities | — | (268 | ) | (13,836 | ) | (1,186 | ) | — | (15,290 | ) | |||||||||||||
FINANCING ACTIVITIES: | |||||||||||||||||||||||
Intercompany activities | 50,213 | 499,177 | (468,165 | ) | (83,004 | ) | 1,779 | — | |||||||||||||||
Proceeds from exercise of stock options | 7,290 | — | — | — | — | 7,290 | |||||||||||||||||
Special dividend and dividend equivalent payments | (56,148 | ) | — | — | — | — | (56,148 | ) | |||||||||||||||
Proceeds from term loans, net | — | 793,864 | — | — | — | 793,864 | |||||||||||||||||
Repayment on term loans | — | (815,631 | ) | — | — | — | (815,631 | ) | |||||||||||||||
Other | (279 | ) | (83 | ) | — | — | — | (362 | ) | ||||||||||||||
Net cash provided by (used in) financing activities | 1,076 | 477,327 | (468,165 | ) | (83,004 | ) | 1,779 | (70,987 | ) | ||||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | — | 767 | — | 767 | |||||||||||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,076 | 319,455 | 517 | (113,747 | ) | — | 207,301 | ||||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,416 | 439,473 | (203 | ) | 208,875 | — | 650,561 | ||||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 3,492 | $ | 758,928 | $ | 314 | $ | 95,128 | $ | — | $ | 857,862 |
TransDigm Group | TransDigm Inc. | Subsidiary Guarantors | Non- Guarantor Subsidiaries | Eliminations | Total Consolidated | ||||||||||||||||||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | $ | — | $ | (208,567 | ) | $ | 364,105 | $ | 70,301 | $ | (48 | ) | $ | 225,791 | |||||||||
INVESTING ACTIVITIES: | |||||||||||||||||||||||
Capital expenditures | — | (354 | ) | (19,835 | ) | (1,618 | ) | — | (21,807 | ) | |||||||||||||
Payments made in connection with acquisitions | — | (30,002 | ) | — | — | — | (30,002 | ) | |||||||||||||||
Net cash used in investing activities | — | (30,356 | ) | (19,835 | ) | (1,618 | ) | — | (51,809 | ) | |||||||||||||
FINANCING ACTIVITIES: | |||||||||||||||||||||||
Intercompany activities | 1,364,680 | (958,757 | ) | (347,567 | ) | (58,404 | ) | 48 | — | ||||||||||||||
Proceeds from exercise of stock options | 3,648 | — | — | — | — | 3,648 | |||||||||||||||||
Special dividend and dividend equivalent payments | (1,375,998 | ) | — | — | — | — | (1,375,998 | ) | |||||||||||||||
Proceeds from term loans, net | — | 1,132,774 | — | — | — | 1,132,774 | |||||||||||||||||
Repayment on term loans | — | (16,151 | ) | — | — | — | (16,151 | ) | |||||||||||||||
Cash tender and redemption of the 2021 Notes, including premium | — | (528,847 | ) | — | — | — | (528,847 | ) | |||||||||||||||
Other | — | (143 | ) | — | — | — | (143 | ) | |||||||||||||||
Net cash (used in) provided by financing activities | (7,670 | ) | (371,124 | ) | (347,567 | ) | (58,404 | ) | 48 | (784,717 | ) | ||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | — | — | — | (3,899 | ) | — | (3,899 | ) | |||||||||||||||
(DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS | (7,670 | ) | (610,047 | ) | (3,297 | ) | 6,380 | — | (614,634 | ) | |||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 13,560 | 1,421,251 | 8,808 | 143,375 | — | 1,586,994 | |||||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 5,890 | $ | 811,204 | $ | 5,511 | $ | 149,755 | $ | — | $ | 972,360 |
Thirteen Week Periods Ended | |||||||||||||
December 30, 2017 | % of Sales | December 31, 2016 | % of Sales | ||||||||||
Net sales | $ | 847,960 | 100.0 | % | $ | 814,018 | 100.0 | % | |||||
Cost of sales | 371,310 | 43.8 | % | 369,763 | 45.4 | % | |||||||
Selling and administrative expenses | 106,528 | 12.6 | % | 101,715 | 12.5 | % | |||||||
Amortization of intangible assets | 17,112 | 2.0 | % | 25,531 | 3.1 | % | |||||||
Income from operations | 353,010 | 41.6 | % | 317,009 | 38.9 | % | |||||||
Interest expense, net | 160,933 | 19.0 | % | 146,004 | 17.9 | % | |||||||
Refinancing costs | 1,113 | 0.1 | % | 32,084 | 3.9 | % | |||||||
Income tax provision | (121,047 | ) | (14.3 | )% | 20,050 | 2.5 | % | ||||||
Income from continuing operations | $ | 312,011 | 36.8 | % | $ | 118,871 | 14.6 | % | |||||
Income from discontinued operations, net of tax | 2,764 | 0.3 | % | — | — | % | |||||||
Net Income | $ | 314,775 | 37.1 | % | $ | 118,871 | 14.6 | % |
• | Net Sales. Net organic sales and acquisition sales and the related dollar and percentage changes for the thirteen week periods ended December 30, 2017 and December 31, 2016 were as follows (amounts in millions): |
Thirteen Week Periods Ended | % Change Total Sales | |||||||||||||
December 30, 2017 | December 31, 2016 | Change | ||||||||||||
Organic sales | $ | 838.1 | $ | 814.0 | $ | 24.1 | 3.0 | % | ||||||
Acquisition sales | 9.9 | — | 9.9 | 1.2 | % | |||||||||
$ | 848.0 | $ | 814.0 | $ | 34.0 | 4.2 | % |
• | Cost of Sales and Gross Profit. Cost of sales increased by $1.5 million, or 0.4%, to $371.3 million for the thirteen week period ended December 30, 2017 compared to $369.8 million for the thirteen week period ended December 31, 2016. Cost of sales and the related percentage of total sales for the thirteen week periods ended December 30, 2017 and December 31, 2016 were as follows (amounts in millions): |
Thirteen Week Periods Ended | ||||||||||||||
December 30, 2017 | December 31, 2016 | Change | % Change | |||||||||||
Cost of sales - excluding costs below | $ | 369.3 | $ | 351.7 | $ | 17.6 | 5.0 | % | ||||||
% of total sales | 43.5 | % | 43.2 | % | ||||||||||
Inventory purchase accounting adjustments | — | 16.6 | (16.6 | ) | (100.0 | )% | ||||||||
% of total sales | — | % | 2.0 | % | ||||||||||
Acquisition integration costs | 0.9 | 0.5 | 0.4 | 80.0 | % | |||||||||
% of total sales | 0.1 | % | 0.1 | % | ||||||||||
Stock compensation expense | 1.1 | 1.0 | 0.1 | 10.0 | % | |||||||||
% of total sales | 0.1 | % | 0.1 | % | ||||||||||
Total cost of sales | $ | 371.3 | $ | 369.8 | $ | 1.5 | 0.4 | % | ||||||
% of total sales | 43.8 | % | 45.4 | % | ||||||||||
Gross profit | $ | 476.7 | $ | 444.3 | $ | 32.4 | 7.3 | % | ||||||
Gross profit percentage | 56.2 | % | 54.6 | % | 1.6 |
• | Gross profit on the sales from the acquisitions indicated above (excluding acquisition-related costs) was approximately $6.2 million for the quarter ended December 30, 2017, which represented gross profit of approximately 62.3% of the acquisition sales. |
• | Organic sales growth as described above, application of our three core value-driven operating strategies (obtaining profitable new business, continually improving our cost structure, and providing highly engineered value-added products to customers) and positive leverage on our fixed overhead costs spread over a higher production volume resulted in a net increase in gross profit of approximately $10.1 million for the quarter ended December 30, 2017. |
• | Further increases in gross profit were due to lower inventory purchase accounting adjustments of $16.6 million slightly offset by slight increases in acquisition integration costs of $0.4 million and stock compensation expense of $0.1 million for the quarter ended December 30, 2017. |
• | Selling and Administrative Expenses. Selling and administrative expenses increased by $4.8 million to $106.5 million, or 12.6% of sales, for the thirteen week period ended December 30, 2017 from $101.7 million, or 12.5% of sales, for the thirteen week period ended December 31, 2016. Selling and administrative expenses and the related percentage of total sales for the thirteen week periods ended December 30, 2017 and December 31, 2016 were as follows (amounts in millions): |
Thirteen Week Periods Ended | ||||||||||||||
December 30, 2017 | December 31, 2016 | Change | % Change | |||||||||||
Selling and administrative expenses - excluding costs below | $ | 95.4 | $ | 91.2 | $ | 4.2 | 4.6 | % | ||||||
% of total sales | 11.3 | % | 11.2 | % | ||||||||||
Stock compensation expense | 10.0 | 9.0 | 1.0 | 11.1 | % | |||||||||
% of total sales | 1.2 | % | 1.1 | % | ||||||||||
Acquisition-related expenses | 1.1 | 1.5 | (0.4 | ) | (26.7 | )% | ||||||||
% of total sales | 0.1 | % | 0.2 | % | ||||||||||
Total selling and administrative expenses | $ | 106.5 | $ | 101.7 | $ | 4.8 | 4.7 | % | ||||||
% of total sales | 12.6 | % | 12.5 | % |
• | Amortization of Intangible Assets. Amortization of intangible assets was $17.1 million for the quarter ended December 30, 2017 compared to $25.5 million in the quarter ended December 31, 2016. The decrease in amortization expense of $8.4 million was due to the order backlog recorded in connection with the 2016 acquisitions becoming fully amortized. This was slightly offset by amortization expense on the definite-lived intangible assets (i.e., technology and order backlog) recorded in connection with the Third Quarter 2017 acquisitions. |
• | Refinancing Costs. Refinancing costs of $1.1 million were recorded for the quarter ended December 30, 2017, $0.6 million of refinancing costs related to Amendment No. 4 to the Credit Agreement and a write-off of $0.5 million in unamortized debt issuance costs also related to Amendment No. 4 to the Credit Agreement as disclosed in Note 8, "Debt," to the condensed consolidated financial statements. Refinancing costs of $32.1 million were recorded for the quarter ended December 31, 2016 representing debt issuance costs expensed in connection with the debt financing activity during the first quarter of the previous year, which primarily consisted of $28.8 million in premium paid on the redemption of the 2021 Notes and the write-off of $3.1 million in unamortized debt issuance costs. |
• | Interest Expense-net. Interest expense-net includes interest on borrowings outstanding, amortization of debt issuance costs, original issue discount and premium and revolving credit facility fees slightly offset by interest income. Interest expense-net increased $14.9 million, or 10.2%, to $160.9 million for the quarter ended December 30, 2017 from $146.0 million for the comparable quarter last year. The net increase in interest expense-net was primarily due to an increase in the weighted average level of outstanding borrowings, which was approximately $11,873 million for the quarter ended December 30, 2017 and approximately $11,014 million for the quarter ended December 31, 2016. The increase in weighted average level of borrowings was due to the additional 2025 Notes offering of $300 million in the second fiscal quarter of 2017, the additional $100 million drawn on the trade receivable securitization facility in the fourth quarter of fiscal 2017 and the additional net debt financing of $575 million in the fourth quarter of fiscal 2017. The weighted average interest rate for cash interest payments on total borrowings outstanding at December 30, 2017 was 5.2%. |
• | Income Taxes. Income tax expense as a percentage of income before income taxes was approximately (63.4)% for the quarter ended December 30, 2017 compared to 14.4% for the quarter ended December 31, 2016. The Tax Cuts and Jobs Act was enacted on December 22, 2017. The Act reduces the US federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign sourced earnings. The rate change is administratively effective at the beginning of our fiscal year, using a blended rate for the annual period. As a result, the blended statutory tax rate for the year is 24.5%. At December 30, 2017, we have not completed our accounting for the tax effects of enactment of the Act; however, in certain cases, we have made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax. We recognized a provisional amount of $(170.2) million related to the remeasurement of our deferred tax balance. However, we are still analyzing certain aspects of the Act and refining our calculations which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. In addition, we recognized a provisional amount $23.1 million for our one-time transition tax liability. The one-time transition tax is based on our total post-1986 E&P that we previously deferred from US income taxes and is based in part on the amount of those earnings held in cash and other specified assets. However, we continue to refine the calculation of the total post-1986 E&P for our foreign subsidiaries. This amount may change when we finalize the calculation of post-1986 foreign E&P previously deferred from US federal taxation and finalize the amounts held in cash or other specified assets. As a result of the Act, we recognized a provisional amount of $(147.1) million as a discrete tax benefit, which is included as a component of income tax expense from continuing operations. The Company's lower effective tax rate for the thirteen week period ended December 30, 2017 was primarily due to the discrete adjustment related to the enactment of the Act described above. The Company’s effective tax rate for the thirteen week period ended December 30, 2017 was less than the Federal statutory tax rate primarily due to the discrete adjustment related to the enactment of the Act described above. The Company’s effective tax rate for the thirteen week period ended December 31, 2016 was less than the Federal statutory tax rate primarily due to excess tax benefits from share based payments, the domestic manufacturing deduction and foreign earnings taxed at rates lower than the U.S. statutory rate. |
• | Income from Discontinued Operations. Income from discontinued operations was a result of positive operating income and a favorable impact from a remeasurement of the tax liability for Schroth. In the fourth quarter of 2017, a loss was recorded in connection with an impairment charge to mark Schroth's assets down to fair value. There was no additional impairment charge recorded for the quarter ended December 30, 2017. Refer to Note 14, “Discontinued Operations,” for further details. |
• | Net Income. Net income increased $195.9 million, or 164.8%, to $314.8 million for the quarter ended December 30, 2017 compared to net income of $118.9 million for the quarter ended December 31, 2016, primarily as a result of the factors referred to above. |
• | Earnings per Share. Basic and diluted earnings per share was $4.65 for the quarter ended December 30, 2017 and $0.41 per share for the quarter ended December 31, 2016. For the quarter ended December 30, 2017, basic and diluted earnings per share from continuing operations and discontinued operations were $4.60 and $0.05, respectively. Net income for the quarter ended December 30, 2017 of $314.8 million was decreased by dividend equivalent payments of $56.1 million resulting in net income available to common shareholders of $258.6 million. Net income for the thirteen week period ended December 31, 2016 of $118.9 million was decreased by an allocation of dividends on participating securities of $96.0 million, or $1.70 per share, resulting in net income available to common shareholders of $22.9 million. |
• | Segment Net Sales. Net sales by segment for the thirteen week periods ended December 30, 2017 and December 31, 2016 were as follows (amounts in millions): |
Thirteen Week Periods Ended | ||||||||||||||||||||
December 30, 2017 | % of Sales | December 31, 2016 | % of Sales | Change | % Change | |||||||||||||||
Power & Control | $ | 482.7 | 56.9 | % | $ | 435.8 | 53.5 | % | $ | 46.9 | 10.8 | % | ||||||||
Airframe | 333.4 | 39.3 | % | 348.6 | 42.8 | % | (15.2 | ) | (4.4 | )% | ||||||||||
Non-aviation | 31.9 | 3.8 | % | 29.6 | 3.7 | % | 2.3 | 7.8 | % | |||||||||||
$ | 848.0 | 100.0 | % | $ | 814.0 | 100.0 | % | $ | 34.0 | 4.2 | % |
• | EBITDA As Defined. EBITDA As Defined by segment for the thirteen week periods ended December 30, 2017 and December 31, 2016 were as follows (amounts in millions): |
Thirteen Week Periods Ended | ||||||||||||||||||||
December 30, 2017 | % of Segment Sales | December 31, 2016 | % of Segment Sales | Change | % Change | |||||||||||||||
Power & Control | $ | 244.8 | 50.7 | % | $ | 212.9 | 48.9 | % | $ | 31.9 | 15.0 | % | ||||||||
Airframe | 158.4 | 47.5 | % | 168.5 | 48.3 | % | (10.1 | ) | (6.0 | )% | ||||||||||
Non-aviation | 9.0 | 28.2 | % | 9.3 | 31.4 | % | (0.3 | ) | (3.2 | )% | ||||||||||
$ | 412.2 | 48.6 | % | $ | 390.7 | 48.0 | % | $ | 21.5 | 5.5 | % |
Term Loans Facility | Aggregate Principal | Maturity Date | Interest Rate | |||
Tranche E | $1,499.6 million | May 14, 2022 | LIBO rate + 2.75% | |||
Tranche F | $3,646.1 million | June 9, 2023 | LIBO rate + 2.75% | |||
Tranche G | $1,809.9 million | August 22, 2024 | LIBO rate (1) + 3.00% |
(1) | LIBO rate is subject to a floor of 0.75%. |
Senior Subordinated Notes | Aggregate Principal | Maturity Date | Interest Rate | |||
2020 Notes | $550 million | October 15, 2020 | 5.50% | |||
2022 Notes | $1,150 million | July 15, 2022 | 6.00% | |||
2024 Notes | $1,200 million | July 15, 2024 | 6.50% | |||
2025 Notes | $750 million | May 15, 2025 | 6.50% | |||
2026 Notes | $950 million | June 15, 2026 | 6.375% |
• | neither EBITDA nor EBITDA As Defined reflects the significant interest expense, or the cash requirements, necessary to service interest payments on our indebtedness; |
• | although depreciation and amortization are non-cash charges, the assets being depreciated and amortized will often have to be replaced in the future, and neither EBITDA nor EBITDA As Defined reflects any cash requirements for such replacements; |
• | the omission of the substantial amortization expense associated with our intangible assets further limits the usefulness of EBITDA and EBITDA As Defined; |
• | neither EBITDA nor EBITDA As Defined includes the payment of taxes, which is a necessary element of our operations; and |
• | EBITDA As Defined excludes the cash expense we have incurred to integrate acquired businesses into our operations, which is a necessary element of certain of our acquisitions. |
Thirteen Week Periods Ended | |||||||
December 30, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Net income | $ | 314,775 | $ | 118,871 | |||
Less: Income from discontinued operations, net of tax(1) | 2,764 | — | |||||
Income from continuing operations | 312,011 | 118,871 | |||||
Adjustments: | |||||||
Depreciation and amortization expense | 30,639 | 38,048 | |||||
Interest expense, net | 160,933 | 146,004 | |||||
Income tax provision | (121,047 | ) | 20,050 | ||||
EBITDA | 382,536 | 322,973 | |||||
Adjustments: | |||||||
Inventory purchase accounting adjustments(2) | — | 16,578 | |||||
Acquisition integration costs(3) | 1,349 | 1,110 | |||||
Acquisition transaction-related expenses(4) | 725 | 880 | |||||
Non-cash stock compensation expense(5) | 11,113 | 10,020 | |||||
Refinancing costs(6) | 1,113 | 32,084 | |||||
Other, net(7) | 4,697 | (2,450 | ) | ||||
EBITDA As Defined | $ | 401,533 | $ | 381,195 |
(1) | During the fourth quarter of 2017, the Company committed to disposing of Schroth in connection with the settlement of a Department of Justice investigation into the competitive effects of the acquisition. Therefore, Schroth was classified as held-for-sale beginning September 30, 2017. On January 26, 2018, the Company completed the sale of Schroth in a management buyout to a private equity fund and certain members of Schroth management for approximately $61.4 million, subject to a working capital adjustment. Refer to Note 14, "Discontinued Operations," for further information. Income this quarter was a result of income from operations and a benefit from the deferred tax remeasurement in connection with the Tax Cuts and Jobs Act. |
(2) | Represents accounting adjustments to inventory associated with acquisitions of businesses and product lines that were charged to cost of sales when the inventory was sold. |
(3) | Represents costs incurred to integrate acquired businesses and product lines into TD Group’s operations, facility relocation costs and other acquisition-related costs. |
(4) | Represents transaction-related costs comprising deal fees; legal, financial and tax due diligence expenses, and valuation costs that are required to be expensed as incurred. |
(5) | Represents the compensation expense recognized by TD Group under our stock incentive plans. |
(6) | Represents costs expensed related to debt financing activities, including new issuances, extinguishments, refinancings and amendments to existing agreements. |
(7) | Primarily represents foreign currency transaction gain or loss and payroll withholding taxes related to dividend equivalent payments. |
Thirteen Week Periods Ended | |||||||
December 30, 2017 | December 31, 2016 | ||||||
(in thousands) | |||||||
Net cash provided by operating activities | $ | 292,811 | $ | 225,791 | |||
Adjustments: | |||||||
Changes in assets and liabilities, net of effects from acquisitions of businesses | (101,926 | ) | (22,641 | ) | |||
Interest expense, net (1) | 155,614 | 141,384 | |||||
Income tax provision - current | 49,090 | 20,543 | |||||
Non-cash stock compensation expense (2) | (11,113 | ) | (10,020 | ) | |||
Refinancing costs (6) | (1,113 | ) | (32,084 | ) | |||
EBITDA from discontinued operations (8) | (827 | ) | — | ||||
EBITDA | 382,536 | 322,973 | |||||
Adjustments: | |||||||
Inventory purchase accounting adjustments (3) | — | 16,578 | |||||
Acquisition integration costs (4) | 1,349 | 1,110 | |||||
Acquisition transaction-related expenses (5) | 725 | 880 | |||||
Non-cash stock compensation expense (2) | 11,113 | 10,020 | |||||
Refinancing costs (6) | 1,113 | 32,084 | |||||
Other, net (7) | 4,697 | (2,450 | ) | ||||
EBITDA As Defined | $ | 401,533 | $ | 381,195 |
(1) | Represents interest expense excluding the amortization of debt issuance costs and premium and discount on debt. |
(2) | Represents the compensation expense recognized by TD Group under our stock incentive plans. |
(3) | Represents accounting adjustments to inventory associated with acquisitions of businesses and product lines that were charged to cost of sales when the inventory was sold. |
(4) | Represents costs incurred to integrate acquired businesses and product lines into TD Group’s operations, facility relocation costs and other acquisition-related costs. |
(5) | Represents transaction-related costs comprising deal fees; legal, financial and tax due diligence expenses, and valuation costs that are required to be expensed as incurred. |
(6) | Represents costs expensed related to debt financing activities, including new issuances, extinguishments, refinancings and amendments to existing agreements. |
(7) | Primarily represents foreign currency transaction gain or loss and payroll withholding taxes related to dividend equivalent payments. |
(8) | During the fourth quarter of 2017, the Company committed to disposing of Schroth in connection with the settlement of a Department of Justice investigation into the competitive effects of the acquisition. Therefore, Schroth was classified as held-for-sale beginning September 30, 2017. On January 26, 2018, the Company completed the sale of Schroth in a management buyout to a private equity fund and certain members of Schroth management for approximately $61.4 million, subject to a working capital adjustment. Refer to Note 14, "Discontinued Operations," for further information. |
101 | Financial Statements and Notes to the Condensed Consolidated Financial Statements formatted in XBRL |
SIGNATURE | TITLE | DATE | ||
/s/ W. Nicholas Howley | Chairman of the Board of Directors and Chief Executive Officer (Principal Executive Officer) | February 7, 2018 | ||
W. Nicholas Howley | ||||
/s/ James Skulina | Executive Vice President and Interim Chief Financial Officer (Principal Financial and Accounting Officer) | February 7, 2018 | ||
James Skulina |
EXHIBIT NO. | DESCRIPTION | |
101 | Financial Statements and Notes to the Condensed Consolidated Financial Statements formatted in XBRL |
1. | I have reviewed this quarterly report on Form 10-Q of TransDigm Group Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s first fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors: |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ W. Nicholas Howley |
Name: W. Nicholas Howley |
Title: Chairman of the Board of Directors and Chief |
Executive Officer (Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of TransDigm Group Incorporated; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s first fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s Board of Directors: |
(a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ James Skulina |
Name: James Skulina |
Title: Executive Vice President and Interim Chief |
Financial Officer (Principal Financial and Accounting Officer) |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents in all material respects, the financial condition of the Company as of the dates indicated and results of operations of the Company for the periods indicated. |
/s/ W. Nicholas Howley |
Name: W. Nicholas Howley |
Title: Chairman of the Board of Directors and Chief |
Executive Officer (Principal Executive Officer) |
1. | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents in all material respects, the financial condition of the Company as of the dates indicated and results of operations of the Company for the periods indicated. |
/s/ James Skulina |
Name: James Skulina |
Title: Executive Vice President and Interim Chief |
Financial Officer (Principal Financial and Accounting Officer) |
Document and Entity Information Document - shares |
3 Months Ended | |
---|---|---|
Dec. 30, 2017 |
Jan. 29, 2018 |
|
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 30, 2017 | |
Document Fiscal Year Focus | 2018 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | TDG | |
Entity Registrant Name | TRANSDIGM GROUP INC | |
Entity Central Index Key | 0001260221 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 52,196,309 |
Condensed Consolidated Balance Sheets Parenthetical - $ / shares |
Dec. 30, 2017 |
Sep. 30, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 224,400,000 | 224,400,000 |
Common Stock, Shares, Issued | 56,282,741 | 56,093,659 |
Treasury Stock, Shares | 4,159,207 | 4,159,207 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Net income | $ 314,775 | $ 118,871 |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustments | 5,152 | (28,052) |
Interest rate swap and cap agreements | 18,248 | 38,775 |
Other comprehensive income, net of tax | 23,400 | 10,723 |
TOTAL COMPREHENSIVE INCOME | $ 338,175 | $ 129,594 |
DESCRIPTION OF THE BUSINESS |
3 Months Ended |
---|---|
Dec. 30, 2017 | |
Accounting Policies [Abstract] | |
DESCRIPTION OF THE BUSINESS | DESCRIPTION OF THE BUSINESS Description of the Business – TransDigm Group Incorporated (“TD Group”), through its wholly-owned subsidiary, TransDigm Inc., is a leading global designer, producer and supplier of highly engineered aircraft components for use on nearly every commercial and military aircraft in service today. TransDigm Inc., along with TransDigm Inc.’s direct and indirect wholly-owned operating subsidiaries (collectively, with TD Group, the “Company” or “TransDigm”), offers a broad range of proprietary aerospace components. TD Group has no significant assets or operations other than its 100% ownership of TransDigm Inc. TD Group’s common stock is listed on the New York Stock Exchange, or the NYSE, under the trading symbol “TDG.” Major product offerings, substantially all of which are ultimately provided to end-users in the aerospace industry, include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, NiCad batteries and chargers, engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, databus and power controls, cockpit security components and systems, specialized cockpit displays, aircraft audio systems, specialized lavatory components, seat belts and safety restraints, engineered interior surfaces and related components, lighting and control technology, military personnel parachutes, high performance hoists, winches and lifting devices, and cargo loading, handling and delivery systems. |
UNAUDITED INTERIM FINANCIAL INFORMATION |
3 Months Ended |
---|---|
Dec. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
UNAUDITED INTERIM FINANCIAL INFOMRATION | UNAUDITED INTERIM FINANCIAL INFORMATION The financial information included herein is unaudited; however, the information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the Company’s financial position and results of operations and cash flows for the interim periods presented. These financial statements and notes should be read in conjunction with the financial statements and related notes for the year ended September 30, 2017 included in TD Group’s Form 10-K filed on November 13, 2017. As disclosed therein, the Company’s annual consolidated financial statements were prepared in conformity with generally accepted accounting principles in the United States (“GAAP”). The September 30, 2017 condensed consolidated balance sheet was derived from TD Group’s audited financial statements. The results of operations for the thirteen week period ended December 30, 2017 are not necessarily indicative of the results to be expected for the full year. Certain reclassifications have been made to the prior year financial statements to conform to current year presentation related to an organizational realignment effective October 1, 2017 of certain businesses comprising the Power & Control and the Non-Aviation segments. |
ACQUISITIONS |
3 Months Ended |
---|---|
Dec. 30, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS AND DIVESTITURES During the fiscal year ended September 30, 2017, the Company completed the acquisitions of three separate aerospace product lines (collectively, "Third Quarter 2017 Acquisitions"). The Company accounted for the acquisitions using the acquisition method and included the results of operations of the acquisitions in its condensed consolidated financial statements from the effective date of each acquisition. As of December 30, 2017, the one-year measurement period is open for the Third Quarter 2017 Acquisitions; therefore, the assets acquired and liabilities assumed related to these acquisitions are subject to adjustment until the end of the respective one-year measurement period. Pro forma net sales and results of operations for the acquisitions had they occurred at the beginning of the applicable thirteen week period ended December 30, 2017 or December 31, 2016 are not material and, accordingly, are not provided. The acquisitions strengthen and expand the Company’s position to design, produce and supply highly engineered proprietary aerospace components in niche markets with significant aftermarket content and provide opportunities to create value through the application of our three core value-driven operating strategies (obtaining profitable new business, improving our cost structure, and providing highly engineered value-added products to customers). The purchase price paid for each acquisition reflects the current earnings before interest, taxes, depreciation and amortization (EBITDA) and cash flows, as well as the future EBITDA and cash flows expected to be generated by the business, which are driven in most cases by the recurring aftermarket consumption over the life of a particular aircraft, estimated to be approximately 25 to 30 years. Third Quarter 2017 Acquisitions – The Third Quarter 2017 Acquisitions were acquired for a total purchase price of approximately $106.3 million in cash, which includes working capital settlements totaling $1.0 million paid in the third and fourth quarters of 2017. All three product lines consist primarily of proprietary, sole source products with significant aftermarket content. The products include highly engineered aerospace controls, quick disconnect couplings, and communication electronics. Each product line acquired was consolidated into an existing TransDigm reporting unit within TransDigm's Power & Control segment. The Company expects that approximately $66 million of goodwill recognized for the acquisitions will be deductible for tax purposes over 15 years and approximately $9 million of goodwill recognized for the acquisitions will not be deductible for tax purposes. Schroth – On February 22, 2017, the Company acquired all of the outstanding stock of Schroth Safety Products GmbH and certain aviation and defense assets and liabilities from subsidiaries of Takata Corporation (collectively, "Schroth"), for a total purchase price of approximately $89.7 million, of which $79.7 million was paid in cash (including a working capital settlement of $0.8 million paid in the third quarter of fiscal 2017) and the remaining approximately $10.0 million is accrued primarily related to an indemnity holdback to be settled within one year of the acquisition date. In connection with the settlement of a Department of Justice investigation into the competitive effects of the acquisition, during the fourth quarter of 2017, the Company committed to dispose of the Schroth business. Therefore, Schroth was classified as held-for-sale beginning in the fourth quarter of 2017. The results of operations of Schroth are reflected as discontinued operations in the accompanying condensed consolidated financial statements. Schroth designs and manufactures proprietary, highly engineered, advanced safety systems for aviation, racing and military ground vehicles throughout the world. On January 26, 2018, the Company completed the sale of Schroth in a management buyout to a private equity fund and certain members of Schroth management for approximately $61.4 million, subject to a working capital adjustment. Further disclosure related to Schroth’s discontinued operations is included in Note 14. |
RECENT ACCOUNTING PRONOUNCEMENTS |
3 Months Ended |
---|---|
Dec. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, which creates a new topic in the Accounting Standards Codification (“ASC”) 606, “Revenue From Contracts With Customers.” In addition to superseding and replacing nearly all existing U.S. GAAP revenue recognition guidance, including industry-specific guidance, ASC 606 establishes a new control-based revenue recognition model; changes the basis for deciding when revenue is recognized over time or at a point in time; provides new and more detailed guidance on specific topics; and expands and improves disclosures about revenue. The new revenue standards may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The guidance is effective for the Company for annual reporting periods, including interim periods therein, beginning October 1, 2018, which is the Company’s planned date of adoption. The Company expects to use the modified retrospective method. The Company is continuing to evaluate the impact of the standard. For each reporting unit, we have evaluated a representative sample of contracts and other agreements with our customers and evaluated the provisions contained within these contracts and agreements in consideration of the five step model specified within ASC 606. We are in the process of documenting the impact of the standard on our current accounting policies and practices in order to identify material differences, if any, that would result from applying the new requirements to our revenue contracts. We continue to make progress on our assessment of ASC 606 and are also in the process of evaluating the impact, if any, on changes to our business processes, systems, and controls to support recognition and disclosure requirements under ASC 606. In February 2016, the FASB issued ASU 2016-02, “Leases (ASC 842),” which will require that a lessee recognize assets and liabilities on the balance sheet for all leases with a lease term of more than twelve months, with the result being the recognition of a right of use asset and a lease liability. The guidance is effective for the Company for annual reporting periods, including interim periods therein, beginning October 1, 2019, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements and disclosures. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016-13)," which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019 and early adoption is permitted for annual and interim periods beginning after December 15, 2018. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements and disclosures. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows—Classification of Certain Cash Receipts and Cash Payments," which clarifies existing guidance related to accounting for cash receipts and cash payments and classification on the statement of cash flows. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. The Company elected to early adopt this standard in the fourth quarter of fiscal 2017. The adoption of this standard did not have a material impact on its consolidated statement of cash flows. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” to eliminate Step 2 from the goodwill impairment test in order to simplify the subsequent measurement of goodwill. The guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this standard is not expected to have a material impact on its consolidated financial statements and disclosures. In May 2017, the FASB issued ASU 2017-09, "Compensation—Stock Compensation (ASC 718): Scope of Modification Accounting," which provides clarity on which changes to the terms or conditions of share-based payment awards require an entity to apply the modification accounting provisions required in ASC 718. The standard is effective for all entities for annual periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. The adoption of this standard is not expected to have a material impact on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (ASC 815): Targeted Improvements to Accounting for Hedging Activities,” which amends the FASB’s hedge accounting model to enable entities to better portray their risk management activities in financial statements. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. ASU 2017-12 is effective for the Company for annual reporting periods, including interim periods therein, beginning October 1, 2018, with early adoption permitted. As early adoption is permissible, the Company adopted the pronouncement beginning October 1, 2017. Changes were applied prospectively in accordance with the standard and prior periods were not adjusted. The adoption of this standard did not have a material impact on our consolidated financial statements and disclosures. |
EARNINGS PER SHARE (TWO-CLASS METHOD) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE (TWO-CLASS METHOD) | EARNINGS PER SHARE (TWO-CLASS METHOD) The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):
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INVENTORIES |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories are stated at the lower of cost or market. Cost of inventories is generally determined by the average cost and the first-in, first-out (FIFO) methods and includes material, labor and overhead related to the manufacturing process. Inventories consist of the following (in thousands):
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INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS | INTANGIBLE ASSETS Other intangible assets - net in the condensed consolidated balance sheets consist of the following (in thousands):
The aggregate amortization expense on identifiable intangible assets for the thirteen week periods ended December 30, 2017 and December 31, 2016 was approximately $17.1 million and $25.5 million, respectively. The estimated amortization expense is $68.9 million for fiscal year 2018 and $67.1 million for each of the five succeeding fiscal years 2019 through 2023. The following is a summary of changes in the carrying value of goodwill by segment from September 30, 2017 through December 30, 2017 (in thousands):
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DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DEBT | DEBT The Company’s debt consists of the following (in thousands):
Amendment No.4 to the Second Amended and Restated Credit Agreement - On November 30, 2017, the Company entered into Amendment No. 4 to the Second Amended and Restated Credit Agreement. Pursuant to Amendment No. 4, TransDigm, among other things, converted approximately $798 million of existing tranche D term loans into additional tranche F term loans and decreased the margin applicable to the existing tranche E term loans and tranche F term loans to LIBO rate plus 2.75% per annum. The terms and conditions (other than maturity date) that apply to the tranche F term loans, including pricing, are substantially the same as the terms and conditions that apply to the tranche D term loans immediately prior to Amendment No. 4. The Company capitalized $2.9 million and expensed $0.6 million of refinancing costs representing debt issuance costs associated with Amendment No. 4 during the thirteen week period ended December 30, 2017. Additionally, the Company wrote off $0.5 million in unamortized debt issuance costs related to the tranche D term loans that were converted to tranche F term loans. |
INCOME TAXES |
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Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Tax Cuts and Jobs Act (the "Act") was enacted on December 22, 2017. The Act reduces the U.S. federal corporate tax rate from 35% to 21%, requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign-sourced earnings. The rate change is administratively effective at the beginning of our fiscal year (October 1, 2017), using a blended rate for the annual period. As a result, the blended statutory tax rate for the year is 24.5%. At December 30, 2017, we have not completed our accounting for the tax effects of enactment of the Act; however, in certain cases, we have made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax. We recognized a provisional amount of $(170.2) million related to the remeasurement of our deferred tax balance. However, we are still analyzing certain aspects of the Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new deferred tax amounts. In addition, we recognized a provisional amount of $23.1 million for our one-time transition tax liability. The one-time transition tax is based on our total post-1986 earnings and profits ("E&P") that we previously deferred from U.S. income taxes and is based in part on the amount of those earnings held in cash and other specified assets. However, we continue to refine the calculation of the total post-1986 E&P for our foreign subsidiaries. This amount may change when we finalize the calculation of post-1986 foreign E&P previously deferred from US federal taxation and finalize the amounts held in cash or other specified assets. As a result of the Act, we recognized a provisional amount of $(147.1) million as a discrete tax benefit, which is included as a component of income tax expense from continuing operations. At the end of each reporting period, TD Group makes an estimate of its annual effective income tax rate. The estimate used in the year-to-date period may change in subsequent periods. During the thirteen week periods ended December 30, 2017 and December 31, 2016, the effective income tax rate was (63.4)% and 14.4%, respectively. The Company's lower effective tax rate for the thirteen week period ended December 30, 2017 was primarily due to the discrete adjustment related to the enactment of the Act described above. The Company’s effective tax rate for the thirteen week period ended December 30, 2017 was less than the Federal statutory tax rate primarily due to the discrete adjustment related to the enactment of the Act described above. The Company’s effective tax rate for the thirteen week period ended December 31, 2016 was less than the Federal statutory tax rate primarily due to excess tax benefits from share based payments, the domestic manufacturing deduction and foreign earnings taxed at rates lower than the U.S. statutory rate. The Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction, various state and local jurisdictions as well as foreign jurisdictions located in Belgium, Canada, China, France, Germany, Hong Kong, Hungary, Japan, Malaysia, Mexico, Norway, Singapore, Sri Lanka, Sweden and the United Kingdom. The Company is no longer subject to U.S. federal examinations for years before fiscal 2014. The Company is currently under U.S. federal examination for fiscal 2014. In addition, the Company is subject to state income tax examinations for fiscal years 2009 and later. At December 30, 2017 and September 30, 2017, TD Group had $8.7 million in unrecognized tax benefits for both periods, the recognition of which would have an effect of approximately $8.7 million on the effective tax rate at December 30, 2017 and September 30, 2017. The Company believes the tax positions that comprise the unrecognized tax benefits will be reduced by approximately $0.6 million over the next 12 months. The Company recognizes accrued interest and penalties related to unrecognized tax benefits in income tax expense. |
FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The following table presents our assets and liabilities that are measured at fair value on a recurring basis and are categorized using the fair value hierarchy. The fair value hierarchy has three levels based on the reliability of the inputs used to determine fair value. Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and inputs (other than quoted prices) that are observable for the asset or liability, either directly or indirectly. Level 3 inputs are unobservable inputs for the asset or liability. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement. The following summarizes the carrying amounts and fair values of financial instruments (in thousands):
The Company values its financial instruments using an industry standard market approach, in which prices and other relevant information are generated by market transactions involving identical or comparable assets or liabilities. No financial instruments were recognized using unobservable inputs. Interest rate swaps were measured at fair value using quoted market prices for the swap interest rate indexes over the term of the swap discounted to present value versus the fixed rate of the contract. The interest rate caps were measured at fair value using implied volatility rates of each individual caplet and the yield curve for the related periods. The estimated fair value of the Company’s term loans was based on information provided by the agent under the Company’s senior secured credit facility. The estimated fair values of the Company’s notes were based upon quoted market prices. There has not been any impact to the fair value of derivative liabilities due to the Company's own credit risk. Similarly, there has not been any impact to the fair value of derivative assets based on the Company's evaluation of counterparties' credit risks. The fair value of cash and cash equivalents, trade accounts receivable-net and accounts payable approximated book value due to the short-term nature of these instruments at December 30, 2017 and September 30, 2017. |
DERIVATIVES AND HEDGING ACTIVITIES |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES AND HEDGING ACTIVITIES | DERIVATIVES AND HEDGING ACTIVITIES The Company is exposed to, among other things, the impact of changes in interest rates in the normal course of business. The Company’s risk management program is designed to manage the exposure and volatility arising from these risks, and utilizes derivative financial instruments to offset a portion of these risks. The Company uses derivative financial instruments only to the extent necessary to hedge identified business risks and does not enter into such transactions for trading purposes. The Company generally does not require collateral or other security with counterparties to these financial instruments and is therefore subject to credit risk in the event of nonperformance; however, the Company monitors credit risk and currently does not anticipate nonperformance by other parties. The Company has agreements with each of its swap and cap counterparties that contain a provision whereby if the Company defaults on the credit facility the Company could also be declared in default on its swaps and caps, resulting in an acceleration of payment under the swaps and caps. Interest rate swap and cap agreements are used to manage interest rate risk associated with floating-rate borrowings under our credit facility. The interest rate swap and cap agreements utilized by the Company effectively modify the Company’s exposure to interest rate risk by converting a portion of the Company’s floating-rate debt to a fixed rate basis through the expiration date of the interest rate swap and cap agreements, thereby reducing the impact of interest rate changes on future interest expense. These agreements involve the receipt of floating rate amounts in exchange for fixed rate interest payments over the term of the agreements without an exchange of the underlying principal amount. These derivative instruments qualify as effective cash flow hedges under GAAP. For these cash flow hedges, the effective portion of the gain or loss from the financial instruments was initially reported as a component of accumulated other comprehensive loss in stockholders’ deficit and subsequently reclassified into earnings in the same line as the hedged item in the same period or periods during which the hedged item affected earnings. As the interest rate swap and cap agreements are used to manage interest rate risk, any gains or losses from the derivative instruments that are reclassified into earnings are recognized in interest expense - net in condensed consolidated statements of income. The following table summarizes the Company's interest rate swap agreements:
The following table summarizes the Company's interest rate cap agreements:
All interest rate swap and cap agreements are recognized in our condensed consolidated balance sheets at fair value. Certain derivative asset and liability balances are offset where master netting agreements provide for the legal right of setoff. For classification purposes, we record the net fair value of each type of derivative position that is expected to settle in less than one year with each counterparty as a net current asset or liability and each type of long-term position as a net long-term asset or liability. The amounts shown in the table below represent the gross amounts of recognized assets and liabilities, the amounts offset in the condensed consolidated balance sheet and the net amounts of assets and liabilities presented therein.
Based on the fair value amounts of the interest rate swap and cap agreements determined as of December 30, 2017, the estimated net amount of existing gains and losses and caplet amortization expected to be reclassified into interest expense within the next twelve months is approximately $16.9 million. Effective September 30, 2016, the Company redesignated the interest rate cap agreements related to the $400 million and the $750 million aggregate notional amount with cap rates of 2.0% and 2.5%, respectively, based on the expected probable cash flows associated with the 2016 term loans and 2015 term loans in consideration of the Company’s ability to select one-month, two-month, three-month, or six-month LIBO rate set forth in the Credit Agreement. Accordingly, amounts previously recorded as a component of accumulated other comprehensive loss in stockholder’s deficit amortized into interest expense was $1.0 million for the both the thirteen week period ended December 30, 2017 and the thirteen week period ended December 31, 2016. The accumulated other comprehensive loss to be reclassified into interest expense over the remaining term of the cap agreements is $9.8 million with a related tax benefit of $2.7 million as of December 30, 2017. Effective December 30, 2017, the Company redesignated the existing interest rate swap agreements related to the $750 million, the $500 million, the $1,000 million and the $750 million aggregate notional amount with swap rates of 5.25%, 4.65%, 4.55% and 5.55%, respectively, based on the expected probable cash flows associated with the tranche F term loans in consideration of the Company’s removal of the LIBO rate floor on the tranche F term loans as set forth in Amendment No. 4 to the Credit Agreement. Accordingly, the amount recorded as a component of accumulated other comprehensive loss in stockholders’ deficit related to these redesignated interest rate swap hedges will be amortized into earnings based on the original maturity date of the related interest rate swap agreements. |
SEGMENTS |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENTS | SEGMENTS The Company’s businesses are organized and managed in three reporting segments: Power & Control, Airframe and Non-aviation. The Power & Control segment includes operations that primarily develop, produce and market systems and components that predominately provide power to or control power of the aircraft utilizing electronic, fluid, power and mechanical motion control technologies. Major product offerings include mechanical/electro-mechanical actuators and controls, ignition systems and engine technology, specialized pumps and valves, power conditioning devices, specialized AC/DC electric motors and generators, databus and power controls, high performance hoists, winches and lifting devices and cargo loading and handling systems. Primary customers of this segment are engine and power system and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies and repair depots. Products are sold in the original equipment and aftermarket market channels. The Airframe segment includes operations that primarily develop, produce and market systems and components that are used in non-power airframe applications utilizing airframe and cabin structure technologies. Major product offerings include engineered latching and locking devices, rods and locking devices, engineered connectors and elastomers, cockpit security components and systems, aircraft audio systems, specialized lavatory components, seat belts and safety restraints, engineered interior surfaces and related components, lighting and control technology, military personnel parachutes and cargo delivery systems. Primary customers of this segment are airframe manufacturers and cabin system suppliers and subsystem suppliers, airlines, third party maintenance suppliers, military buying agencies and repair depots. Products are sold in the original equipment and aftermarket market channels. The Non-aviation segment includes operations that primarily develop, produce and market products for non-aviation markets. Major product offerings include seat belts and safety restraints for ground transportation applications, mechanical/electro-mechanical actuators and controls for space applications, refueling systems for heavy equipment used in mining, construction and other industries and turbine controls for the energy and oil and gas markets. Primary customers of this segment are off-road vehicle suppliers and subsystem suppliers, child restraint system suppliers, satellite and space system suppliers, manufacturers of heavy equipment used in mining, construction and other industries and turbine original equipment manufacturers, gas pipeline builders and electric utilities. The primary measurement used by management to review and assess the operating performance of each segment is EBITDA As Defined. The Company defines EBITDA As Defined as earnings before interest, taxes, depreciation and amortization plus certain non-operating items recorded as corporate expenses including refinancing costs, acquisition-related costs, transaction-related costs and non-cash compensation charges incurred in connection with the Company’s stock option plans. Acquisition-related costs represent accounting adjustments to inventory associated with acquisitions of businesses and product lines that were charged to cost of sales when the inventory was sold; costs incurred to integrate acquired businesses and product lines into the Company’s operations, facility relocation costs and other acquisition-related costs; transaction related costs comprising deal fees; legal, financial and tax diligence expenses and valuation costs that are required to be expensed as incurred and other acquisition accounting adjustments. EBITDA As Defined is not a measurement of financial performance under GAAP. Although the Company uses EBITDA As Defined to assess the performance of its business and for various other purposes, the use of this non-GAAP financial measure as an analytical tool has limitations, and it should not be considered in isolation or as a substitute for analysis of the Company’s results of operations as reported in accordance with GAAP. The Company’s segments are reported on the same basis used internally for evaluating performance and for allocating resources. The accounting policies for each segment are the same as those described in the summary of significant accounting policies in the Company’s consolidated financial statements. Intersegment sales and transfers are recorded at values based on market prices, which creates intercompany profit on intersegment sales or transfers that is eliminated in consolidation. Intersegment sales were insignificant for the periods presented below. Certain corporate-level expenses are allocated to the operating segments. Effective October 1, 2017, the Company made an organizational realignment of certain businesses comprising the Power & Control and the Non-Aviation segments. Operating results for the thirteen week period ended December 31, 2016 and total assets as of September 30, 2017 were reclassified to conform to the presentation for the thirteen week period ended December 30, 2017. The following table presents net sales by reportable segment (in thousands):
The following table reconciles EBITDA As Defined by segment to consolidated income from continuing operations before income taxes (in thousands):
The following table presents total assets by segment (in thousands):
The Company’s sales principally originate from the United States, and the Company’s long-lived assets are principally located in the United States. |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table presents the components of accumulated other comprehensive loss, net of taxes, for the thirteen week period ended December 30, 2017 (in thousands):
A summary of reclassifications out of accumulated other comprehensive loss for the thirteen week period ended December 30, 2017 is provided below (in thousands):
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DISCONTINUED OPERATIONS |
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Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | DISCONTINUED OPERATIONS In connection with the settlement of a Department of Justice investigation into the competitive effects of the acquisition, during the fourth quarter of 2017, the Company committed to dispose of the Schroth business. Therefore, Schroth was classified as held-for-sale in the fourth quarter of 2017. The results of operations of Schroth are reflected as discontinued operations in the accompanying consolidated financial statements for all periods presented. The Company previously acquired Schroth in February 2017 (refer to Note 3, “Acquisitions and Divestitures”) and on January 26, 2018, the Company completed the sale of Schroth in a management buyout to a private equity fund and certain members of Schroth management for approximately $61.4 million, subject to a working capital adjustment. The income from discontinued operations was $2.8 million in the condensed consolidated statements of income for the thirteen week period ended December 30, 2017. Previously, in the fourth quarter of 2017, we recorded a $32.0 million impairment charge to write down the Schroth assets to fair value. The impairment charge was based on an internal assessment of the recovery of Schroth’s assets. No additional impairment charge was recorded during the first quarter of fiscal 2018. Schroth’s assets have been recorded at fair value in the condensed consolidated balance sheet as of December 30, 2017. The following is the summarized operating results for Schroth for the thirteen week period ended December 30, 2017 (in thousands):
At December 30, 2017, Schroth’s assets-held-for sale and liabilities held-for sale are $76.3 million and $13.4 million, respectively. The following is the summarized balance sheet of Schroth’s assets and liabilities held-for-sale as of December 30, 2017 and September 30, 2017 (in thousands):
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SUPPLEMENTAL GUARANTOR INFORMATION |
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Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUPPLEMENTAL GUARANTOR INFORMATION | SUPPLEMENTAL GUARANTOR INFORMATION TransDigm’s 2020 Notes, 2022 Notes, 2024 Notes, 2025 Notes and 2026 Notes are jointly and severally guaranteed, on a senior subordinated basis, by TD Group and TransDigm Inc.’s 100% Domestic Restricted Subsidiaries, as defined in the Indentures. The following supplemental condensed consolidating financial information presents, in separate columns, the balance sheets of the Company as of December 30, 2017 and September 30, 2017 and its statements of income and comprehensive income and cash flows for the thirteen week periods ended December 30, 2017 and December 31, 2016 for (i) TransDigm Group on a parent only basis with its investment in subsidiaries recorded under the equity method, (ii) TransDigm Inc. including its directly owned operations and non-operating entities, (iii) the Subsidiary Guarantors on a combined basis, (iv) Non-Guarantor Subsidiaries and (v) the Company on a consolidated basis. Separate financial statements of TransDigm Inc. are not presented because TransDigm Inc.’s 2020 Notes, 2022 Notes, 2024 Notes, 2025 Notes and 2026 Notes are fully and unconditionally guaranteed on a senior subordinated basis by TD Group and all existing 100% owned domestic subsidiaries of TransDigm Inc. and because TD Group has no significant operations or assets separate from its investment in TransDigm Inc. TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 30, 2017 (Amounts in thousands)
TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING BALANCE SHEET AS OF SEPTEMBER 30, 2017 (Amounts in thousands)
TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 30, 2017 (Amounts in thousands)
TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 31, 2016 (Amounts in thousands)
TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 30, 2017 (Amounts in thousands)
TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 31, 2016 (Amounts in thousands)
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RECENT ACCOUNTING PRONOUNCEMENTS (Policies) |
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Dec. 30, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, which creates a new topic in the Accounting Standards Codification (“ASC”) 606, “Revenue From Contracts With Customers.” In addition to superseding and replacing nearly all existing U.S. GAAP revenue recognition guidance, including industry-specific guidance, ASC 606 establishes a new control-based revenue recognition model; changes the basis for deciding when revenue is recognized over time or at a point in time; provides new and more detailed guidance on specific topics; and expands and improves disclosures about revenue. The new revenue standards may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption. The guidance is effective for the Company for annual reporting periods, including interim periods therein, beginning October 1, 2018, which is the Company’s planned date of adoption. The Company expects to use the modified retrospective method. The Company is continuing to evaluate the impact of the standard. For each reporting unit, we have evaluated a representative sample of contracts and other agreements with our customers and evaluated the provisions contained within these contracts and agreements in consideration of the five step model specified within ASC 606. We are in the process of documenting the impact of the standard on our current accounting policies and practices in order to identify material differences, if any, that would result from applying the new requirements to our revenue contracts. We continue to make progress on our assessment of ASC 606 and are also in the process of evaluating the impact, if any, on changes to our business processes, systems, and controls to support recognition and disclosure requirements under ASC 606. In February 2016, the FASB issued ASU 2016-02, “Leases (ASC 842),” which will require that a lessee recognize assets and liabilities on the balance sheet for all leases with a lease term of more than twelve months, with the result being the recognition of a right of use asset and a lease liability. The guidance is effective for the Company for annual reporting periods, including interim periods therein, beginning October 1, 2019, with early adoption permitted. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements and disclosures. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses: Measurement of Credit Losses on Financial Instruments (ASU 2016-13)," which changes the impairment model for most financial assets. The new model uses a forward-looking expected loss method, which will generally result in earlier recognition of allowances for losses. ASU 2016-13 is effective for annual and interim periods beginning after December 15, 2019 and early adoption is permitted for annual and interim periods beginning after December 15, 2018. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements and disclosures. In August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows—Classification of Certain Cash Receipts and Cash Payments," which clarifies existing guidance related to accounting for cash receipts and cash payments and classification on the statement of cash flows. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, with early adoption permitted. The Company elected to early adopt this standard in the fourth quarter of fiscal 2017. The adoption of this standard did not have a material impact on its consolidated statement of cash flows. In January 2017, the FASB issued ASU 2017-04, “Simplifying the Test for Goodwill Impairment,” to eliminate Step 2 from the goodwill impairment test in order to simplify the subsequent measurement of goodwill. The guidance is effective for fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this standard is not expected to have a material impact on its consolidated financial statements and disclosures. In May 2017, the FASB issued ASU 2017-09, "Compensation—Stock Compensation (ASC 718): Scope of Modification Accounting," which provides clarity on which changes to the terms or conditions of share-based payment awards require an entity to apply the modification accounting provisions required in ASC 718. The standard is effective for all entities for annual periods beginning after December 15, 2017, with early adoption permitted, including adoption in any interim period for which financial statements have not yet been issued. The adoption of this standard is not expected to have a material impact on its consolidated financial statements. In August 2017, the FASB issued ASU 2017-12, “Derivatives and Hedging (ASC 815): Targeted Improvements to Accounting for Hedging Activities,” which amends the FASB’s hedge accounting model to enable entities to better portray their risk management activities in financial statements. The guidance eliminates the requirement to separately measure and report hedge ineffectiveness and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The guidance also eases certain documentation and assessment requirements and modifies the accounting for components excluded from the assessment of hedge effectiveness. ASU 2017-12 is effective for the Company for annual reporting periods, including interim periods therein, beginning October 1, 2018, with early adoption permitted. As early adoption is permissible, the Company adopted the pronouncement beginning October 1, 2017. Changes were applied prospectively in accordance with the standard and prior periods were not adjusted. The adoption of this standard did not have a material impact on our consolidated financial statements and disclosures. |
EARNINGS PER SHARE (TWO-CLASS METHOD) (Tables) |
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Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):
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INVENTORIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories consist of the following (in thousands):
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INTANGIBLE ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets Subject to Amortization | Other intangible assets - net in the condensed consolidated balance sheets consist of the following (in thousands):
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Summary of Changes in Carrying Value of Goodwill | The following is a summary of changes in the carrying value of goodwill by segment from September 30, 2017 through December 30, 2017 (in thousands):
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DEBT (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | The Company’s debt consists of the following (in thousands):
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FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amounts and Fair Values of Financial Instruments | The following summarizes the carrying amounts and fair values of financial instruments (in thousands):
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DERIVATIVES AND HEDGING ACTIVITIES (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions [Table Text Block] | The following table summarizes the Company's interest rate swap agreements:
The following table summarizes the Company's interest rate cap agreements:
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Schedule of Interest Rate Derivatives |
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SEGMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Sales by Reportable Segments | The following table presents net sales by reportable segment (in thousands):
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EBITDA Defined by Segment to Consolidated Income Before Taxes | The following table reconciles EBITDA As Defined by segment to consolidated income from continuing operations before income taxes (in thousands):
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Total Assets by Segment | The following table presents total assets by segment (in thousands):
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Loss | The following table presents the components of accumulated other comprehensive loss, net of taxes, for the thirteen week period ended December 30, 2017 (in thousands):
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Schedule of Amounts Recognized in Other Comprehensive Income (Loss) [Table Text Block] | A summary of reclassifications out of accumulated other comprehensive loss for the thirteen week period ended December 30, 2017 is provided below (in thousands):
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DISCONTINUED OPERATIONS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following is the summarized operating results for Schroth for the thirteen week period ended December 30, 2017 (in thousands):
At December 30, 2017, Schroth’s assets-held-for sale and liabilities held-for sale are $76.3 million and $13.4 million, respectively. The following is the summarized balance sheet of Schroth’s assets and liabilities held-for-sale as of December 30, 2017 and September 30, 2017 (in thousands):
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SUPPLEMENTAL GUARANTOR INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Condensed Consolidating Balance Sheet | TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING BALANCE SHEET AS OF DECEMBER 30, 2017 (Amounts in thousands)
TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING BALANCE SHEET AS OF SEPTEMBER 30, 2017 (Amounts in thousands)
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Supplemental Condensed Consolidating Income Statement | TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 30, 2017 (Amounts in thousands)
TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF INCOME AND COMPREHENSIVE INCOME FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 31, 2016 (Amounts in thousands)
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Supplemental Condensed Consolidating Cash Flow Statement | TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 30, 2017 (Amounts in thousands)
TRANSDIGM GROUP INCORPORATED CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS FOR THE THIRTEEN WEEK PERIOD ENDED DECEMBER 31, 2016 (Amounts in thousands)
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DESCRIPTION OF THE BUSINESS - Narratives (Details) |
Dec. 30, 2017 |
---|---|
Accounting Policies [Abstract] | |
Percentage of ownership in subsidiary | 100.00% |
INVENTORIES - Schedule of Inventory (Details) - USD ($) $ in Thousands |
Dec. 30, 2017 |
Sep. 30, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials and purchased component parts | $ 514,300 | $ 496,899 |
Work-in-progress | 182,132 | 187,009 |
Finished goods | 134,784 | 131,548 |
Total | 831,216 | 815,456 |
Reserves for excess and obsolete inventory | (87,348) | (84,775) |
Inventories - Net | $ 743,868 | $ 730,681 |
INTANGIBLE ASSETS - Summary of changes in carrying value of Goodwill (Details) $ in Thousands |
3 Months Ended |
---|---|
Dec. 30, 2017
USD ($)
| |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 5,745,338 |
Purchase price allocation adjustments | 4,370 |
Currency translation adjustment | (1,385) |
Balance at end of period | 5,751,093 |
Power & Control | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 3,269,981 |
Purchase price allocation adjustments | 4,370 |
Currency translation adjustment | 0 |
Balance at end of period | 3,274,351 |
Airframe | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 2,382,082 |
Purchase price allocation adjustments | 0 |
Currency translation adjustment | (1,385) |
Balance at end of period | 2,383,467 |
Non- aviation | |
Goodwill [Roll Forward] | |
Balance at beginning of period | 93,275 |
Purchase price allocation adjustments | 0 |
Currency translation adjustment | 0 |
Balance at end of period | $ 93,275 |
INTANGIBLE ASSETS - Narratives (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Finite-Lived Intangible Assets [Line Items] | ||
Amortization of intangible assets | $ 17,112 | $ 25,531 |
Estimated Amortization Expense, 2017 | 68,900 | |
Estimated Amortization Expense, 2018 | 67,100 | |
Estimated Amortization Expense, 2019 | 67,100 | |
Estimated Amortization Expense, 2020 | 67,100 | |
Estimated Amortization Expense, 2021 | 67,100 | |
Estimated Amortization Expense, 2022 | $ 67,100 |
DEBT - Narratives (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Debt Instrument [Line Items] | ||
Refinancing Costs | $ 1,113 | $ 32,084 |
Fourth Amendment to Second Amended And Restated Credit Agreement [Member] | Fourth Amendment to Second Amended And Restated Credit Agreement [Member] | ||
Debt Instrument [Line Items] | ||
Refinancing Costs | 600 | |
Debt Issuance Costs, Gross | 2,900 | |
Senior Subordinated Notes | 7 1/2% senior subordinated notes due 2021 (2021 Notes) | ||
Debt Instrument [Line Items] | ||
Write off of Deferred Debt Issuance Cost | 500 | |
Term loans | Existing Tranche D amount Converted to Tranche F [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Face Amount | $ 798,000 | |
Term loans | Tranche E and Tranche F [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.75% |
INCOME TAXES - Narratives (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|
Jan. 01, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Sep. 30, 2018 |
Sep. 30, 2017 |
|
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | ||||
Effective income tax rate | (63.40%) | 14.40% | |||
Unrecognized tax benefits | $ 8.7 | $ 8.7 | |||
Tax rate effect | 8.7 | $ 8.7 | |||
Reduction in tax position in next 12 months | 0.6 | ||||
U.S. Tax Cuts and Jobs Act Effective 2018 [Member] | |||||
Deferred Federal Income Tax Expense (Benefit) | (170.2) | ||||
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | 23.1 | ||||
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount | $ (147.1) | ||||
U.S. Tax Cuts and Jobs Act Effective 2018 [Member] | Scenario, Forecast [Member] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 24.50% | ||||
Subsequent Event [Member] | U.S. Tax Cuts and Jobs Act Effective 2018 [Member] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
FAIR VALUE MEASUREMENTS - Carrying Amounts and Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands |
Dec. 30, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
|||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Cash and cash equivalents | $ 857,862 | $ 650,561 | $ 972,360 | $ 1,586,994 | |||||||||
Short-term borrowings - trade receivable securitization facility | 299,710 | 299,587 | |||||||||||
Long-term Debt | 11,447,534 | 11,463,074 | |||||||||||
Other Noncurrent Assets | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Interest Rate Cash Flow Hedge Asset at Carrying Value | [1] | 14,131 | 12,904 | ||||||||||
Interest rate cap agreements | [1] | 11,892 | 2,905 | ||||||||||
Accrued Liabilities | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Interest rate swap agreements | [2] | 12,488 | 20,740 | ||||||||||
Other Noncurrent Liabilities | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Interest rate swap agreements | [3] | 1,173 | 9,731 | ||||||||||
Term loans | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Long-term Debt | [4] | 6,873,252 | 6,889,957 | ||||||||||
Level 1 | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Cash and cash equivalents, Fair Value | 857,862 | 650,561 | |||||||||||
Level 2 | Other Noncurrent Assets | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Interest rate cap agreements, Fair Value | [1] | 14,131 | 12,904 | ||||||||||
Interest Rate Swap Asset at Fair Value | [1] | 11,892 | 2,905 | ||||||||||
Level 2 | Accrued Liabilities | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Interest rate swap agreements, Fair Value | [2] | 12,488 | 20,740 | ||||||||||
Level 2 | Other Noncurrent Liabilities | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Interest rate swap agreements, Fair Value | [3] | 1,173 | 9,731 | ||||||||||
Level 2 | Term loans | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Long-term debt, including current portion, Fair Value | 6,953,393 | 6,965,628 | |||||||||||
5 1/2% senior subordinated notes due 2020 (2020 Notes) | Senior Subordinated Notes | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Long-term Debt | [4] | 547,021 | 546,757 | ||||||||||
5 1/2% senior subordinated notes due 2020 (2020 Notes) | Level 1 | Senior Subordinated Notes | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Long-term debt, including current portion, Fair Value | 556,875 | 558,250 | |||||||||||
6% senior subordinated notes due 2022 (2022 Notes) | Senior Subordinated Notes | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Long-term Debt | [4] | 1,143,419 | 1,143,059 | ||||||||||
6% senior subordinated notes due 2022 (2022 Notes) | Level 1 | Senior Subordinated Notes | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Long-term debt, including current portion, Fair Value | 1,170,125 | 1,178,750 | |||||||||||
6 1/2% senior subordinated notes due 2024 (2024 Notes) | Senior Subordinated Notes | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Long-term Debt | [4] | 1,192,252 | 1,191,958 | ||||||||||
6 1/2% senior subordinated notes due 2024 (2024 Notes) | Level 1 | Senior Subordinated Notes | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Long-term debt, including current portion, Fair Value | 1,224,000 | 1,236,000 | |||||||||||
6 1/2% senior subordinated notes due 2025 (2025 Notes) | Senior Subordinated Notes | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Long-term Debt | [4] | 750,144 | 750,149 | ||||||||||
6 1/2% senior subordinated notes due 2025 (2025 Notes) | Level 1 | Senior Subordinated Notes | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Long-term debt, including current portion, Fair Value | 767,241 | 776,807 | |||||||||||
6 3/8% senior subordinated notes due 2026 (2026 Notes) | Senior Subordinated Notes | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Long-term Debt | [4] | 941,446 | 941,194 | ||||||||||
6 3/8% senior subordinated notes due 2026 (2026 Notes) | Level 1 | Senior Subordinated Notes | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Long-term debt, including current portion, Fair Value | 959,500 | 971,375 | |||||||||||
Asset-backed Securities | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Short-term borrowings - trade receivable securitization facility | [4] | 299,710 | 299,587 | ||||||||||
Asset-backed Securities | Level 1 | |||||||||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||||||||||||
Short-term borrowings - trade receivable securitization facility, Fair Value | $ 299,710 | $ 299,587 | |||||||||||
|
DERIVATIVES AND HEDGING ACTIVITIES - Schedule of Notional Amounts of Outstanding Derivatives (Details) - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
|||
Tranche F | Interest rate cap beginning June 30, 2020 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 750,000,000 | |||
Tranche F | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 500,000,000 | |||
Derivative, Fixed Interest Rate | 4.65% | |||
Derivative, Variable Interest Rate | 1.90% | |||
Derivative, Basis Spread on Variable Rate | 2.75% | |||
Tranche F | Interest rate swap June 28, 2016 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 1,000,000,000 | |||
Derivative, Fixed Interest Rate | 4.55% | |||
Derivative, Variable Interest Rate | 1.80% | |||
Derivative, Basis Spread on Variable Rate | 2.75% | |||
Tranche F | Interest rate swap beginning March 31, 2016 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 750,000,000 | |||
Derivative, Fixed Interest Rate | 5.55% | |||
Derivative, Variable Interest Rate | 2.80% | |||
Derivative, Basis Spread on Variable Rate | 2.75% | |||
Tranche F | Interest Rate Cap | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 400,000,000 | |||
Derivative, Cap Interest Rate | 2.50% | |||
Tranche F | Interest rate swap beginning June 30, 2020 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 750,000,000 | |||
Derivative, Fixed Interest Rate | 5.25% | |||
Derivative, Variable Interest Rate | 2.50% | |||
Derivative, Basis Spread on Variable Rate | 2.75% | |||
Tranche C | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 1,000,000,000 | |||
Derivative, Fixed Interest Rate | 5.40% | |||
Derivative, Variable Interest Rate | 2.40% | |||
Derivative, Basis Spread on Variable Rate | 3.00% | |||
Tranche C | Interest rate swap beginning September 30, 2017 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 400,000,000 | |||
Derivative, Fixed Interest Rate | 4.90% | |||
Derivative, Variable Interest Rate | 1.90% | |||
Derivative, Basis Spread on Variable Rate | 3.00% | |||
Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges (1) | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Derivative [Line Items] | ||||
Interest Expense | [1] | $ 970,000 | $ 956,000 | |
|
DERIVATIVES AND HEDGING ACTIVITIES - Schedule of Interest Rate Derivatives (Details) - USD ($) $ in Thousands |
Dec. 30, 2017 |
Sep. 30, 2017 |
|||
---|---|---|---|---|---|
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | $ 34,663 | $ 22,139 | |||
Derivative Asset, Fair Value, Gross Liability | (22,301) | (36,801) | |||
Derivative Asset, Collateral, Obligation to Return Cash, Offset | (8,642) | (6,330) | |||
Derivative Liability, Collateral, Right to Reclaim Cash, Offset | 8,642 | 6,330 | |||
Derivative Asset | [1] | 26,021 | 15,809 | ||
Derivative Liability | [1] | (13,659) | (30,471) | ||
Interest Rate Cap | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 14,131 | 12,904 | |||
Derivative Asset, Fair Value, Gross Liability | 0 | 0 | |||
Interest Rate Swap | |||||
Derivative [Line Items] | |||||
Derivative Asset, Fair Value, Gross Asset | 20,532 | 9,235 | |||
Derivative Asset, Fair Value, Gross Liability | $ (22,301) | $ (36,801) | |||
|
DERIVATIVES AND HEDGING ACTIVITIES - Narratives (Details) - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
|||
Interest Rate Swap and Cap | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimate of Time to Transfer | 12 months | |||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | $ 16,900,000 | |||
Interest Rate Cap | ||||
Derivative [Line Items] | ||||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Gross Amount to be Transferred | 9,800,000 | |||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Tax to be Transferred | 2,700,000 | |||
Tranche F | Interest Rate Cap | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 400,000,000 | |||
Derivative, Cap Interest Rate | 2.50% | |||
Tranche F | Interest rate swap beginning June 30, 2020 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 750,000,000 | |||
Derivative, Fixed Interest Rate | 5.25% | |||
Derivative, Variable Interest Rate | 2.50% | |||
Derivative, Basis Spread on Variable Rate | 2.75% | |||
Tranche F | Interest rate cap agreements beginning June 30, 2016 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 400,000,000 | |||
Derivative, Cap Interest Rate | 2.00% | |||
Tranche F | Interest Rate Swap | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 500,000,000 | |||
Derivative, Fixed Interest Rate | 4.65% | |||
Derivative, Variable Interest Rate | 1.90% | |||
Derivative, Basis Spread on Variable Rate | 2.75% | |||
Tranche F | Interest rate swap June 28, 2016 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 1,000,000,000 | |||
Derivative, Fixed Interest Rate | 4.55% | |||
Derivative, Variable Interest Rate | 1.80% | |||
Derivative, Basis Spread on Variable Rate | 2.75% | |||
Tranche F | Interest rate swap beginning March 31, 2016 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 750,000,000 | |||
Derivative, Fixed Interest Rate | 5.55% | |||
Derivative, Variable Interest Rate | 2.80% | |||
Derivative, Basis Spread on Variable Rate | 2.75% | |||
Tranche E | Interest rate cap beginning September 30, 2015 [Member] | ||||
Derivative [Line Items] | ||||
Derivative, Notional Amount | $ 750,000,000 | |||
Derivative, Cap Interest Rate | 2.50% | |||
Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges (1) | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Derivative [Line Items] | ||||
Interest Expense | [1] | $ 970,000 | $ 956,000 | |
|
SEGMENTS - Narratives (Details) |
3 Months Ended |
---|---|
Dec. 30, 2017
Segment
| |
Segment Reporting [Abstract] | |
Number of reporting segments | 3 |
SEGMENTS - Net Sales by Reportable Segments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Segment Reporting Information [Line Items] | ||
Net Sales | $ 847,960 | $ 814,018 |
Operating Segments | Power & Control | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 482,718 | 435,832 |
Operating Segments | Airframe | ||
Segment Reporting Information [Line Items] | ||
Net Sales | 333,392 | 348,664 |
Operating Segments | Non- aviation | ||
Segment Reporting Information [Line Items] | ||
Net Sales | $ 31,850 | $ 29,522 |
SEGMENTS - EBITDA Defined by Segment to Consolidated Income Before Taxes (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | $ 401,533 | $ 381,195 |
Interest expense - net | 160,933 | 146,004 |
Stock compensation expense | 11,113 | 10,020 |
Refinancing Costs | 1,113 | 32,084 |
Income from continuing operations before income taxes | 190,964 | 138,921 |
Operating Segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | 412,190 | 390,724 |
Operating Segments | Power & Control | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | 244,775 | 212,918 |
Operating Segments | Airframe | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | 158,419 | 168,529 |
Operating Segments | Non- aviation | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | 8,996 | 9,277 |
Corporate, Non-Segment | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
EBITDA As Defined | 10,657 | 9,529 |
Segment Reconciling Items | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Depreciation and amortization expense | 30,639 | 38,048 |
Interest expense - net | 160,933 | 146,004 |
Acquisition-related costs | 2,074 | 18,568 |
Stock compensation expense | 11,113 | 10,020 |
Refinancing Costs | 1,113 | 32,084 |
Other, net | $ 4,697 | $ (2,450) |
SEGMENTS - Total Assets by Segment (Details) - USD ($) $ in Thousands |
Dec. 30, 2017 |
Sep. 30, 2017 |
---|---|---|
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 10,112,127 | $ 9,975,661 |
Operating Segments | Power & Control | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 5,112,315 | 5,135,459 |
Operating Segments | Airframe | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 3,888,862 | 3,923,172 |
Operating Segments | Non- aviation | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 224,934 | 224,936 |
Corporate, Non-Segment | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | 809,768 | 614,594 |
Discontinued Operations, Held-for-sale [Member] | ||
Segment Reporting, Asset Reconciling Item [Line Items] | ||
Total assets | $ 76,248 | $ 77,500 |
ACCUMULATED OTHER COMPREHENSIVE LOSS - Narratives (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Equity [Abstract] | ||
Other Comprehensive Loss, Derivatives Qualifying as Hedges, Tax | $ (10,435) | $ (23,117) |
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Accumulated Other Comprehensive Loss (Details) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Dec. 30, 2017
USD ($)
| ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | $ (85,143) | |||
Current-period other comprehensive gain | 22,697 | |||
Amounts reclassified from AOCI related to interest rate cap agreements | 703 | |||
Balance at end of period | (61,743) | |||
Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges (1) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (26,669) | [1] | ||
Current-period other comprehensive gain | 17,545 | [1] | ||
Amounts reclassified from AOCI related to interest rate cap agreements | (703) | [1] | ||
Balance at end of period | (8,421) | [1] | ||
Defined benefit pension plan activity | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (16,365) | |||
Current-period other comprehensive gain | 0 | |||
Amounts reclassified from AOCI related to interest rate cap agreements | 0 | |||
Balance at end of period | (16,365) | |||
Currency translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Balance at beginning of period | (42,109) | |||
Current-period other comprehensive gain | 5,152 | |||
Amounts reclassified from AOCI related to interest rate cap agreements | 0 | |||
Balance at end of period | $ (36,957) | |||
|
ACCUMULATED OTHER COMPREHENSIVE LOSS - Schedule of Amounts Recognized in Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
|||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Deferred tax benefit from redesignated interest rate cap agreements | $ (121,047) | $ 20,050 | ||
Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges (1) | Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Amortization from redesignated interest rate cap agreements (1) | [1] | 970 | 956 | |
Deferred tax benefit from redesignated interest rate cap agreements | (267) | (357) | ||
Losses reclassified into earnings, net of tax | $ 703 | $ 599 | ||
|
DISCONTINUED OPERATIONS Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Jan. 26, 2018 |
Dec. 30, 2017 |
Dec. 31, 2016 |
Sep. 30, 2017 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Income from discontinued operations | $ 2,764 | $ 0 | ||
Total assets of discontinued operations | 76,282 | $ 77,500 | ||
Total liabilities of discontinued operations | $ 13,439 | 17,304 | ||
Subsequent Event [Member] | Schroth [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Divestiture, Sale Price | $ 61,400 | |||
Schroth [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Goodwill, Impairment Loss | $ 32,000 |
DISCONTINUED OPERATIONS Schedule of Discontinued Operations (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Sep. 30, 2017 |
|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
NET SALES | $ 847,960 | $ 814,018 | |
Income from discontinued operations | 2,764 | $ 0 | |
Trade accounts receivable - Net | 556,743 | $ 636,127 | |
Inventories - Net | 743,868 | 730,681 | |
Prepaid expenses and other | 36,578 | 38,683 | |
PROPERTY, PLANT AND EQUIPMENT - NET | 327,253 | 324,924 | |
GOODWILL | 5,751,093 | 5,745,338 | |
OTHER INTANGIBLE ASSETS - NET | 1,697,432 | 1,717,862 | |
OTHER | 65,016 | 53,985 | |
Total assets of discontinued operations | 76,282 | 77,500 | |
Accounts payable | 145,045 | 148,761 | |
Accrued liabilities | 296,013 | 335,888 | |
DEFERRED INCOME TAXES | 339,439 | 500,949 | |
Total liabilities of discontinued operations | 13,439 | 17,304 | |
Discontinued Operations, Held-for-sale [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
NET SALES | 9,129 | ||
Income from discontinued operations before income taxes | 810 | ||
Income tax provision | (1,954) | ||
Income from discontinued operations | 2,764 | ||
Trade accounts receivable - Net | 4,414 | 5,975 | |
Inventories - Net | 8,971 | 9,060 | |
Prepaid expenses and other | 560 | 809 | |
PROPERTY, PLANT AND EQUIPMENT - NET | 4,544 | 4,367 | |
GOODWILL | 27,251 | 26,783 | |
OTHER INTANGIBLE ASSETS - NET | 29,868 | 29,841 | |
OTHER | 674 | 665 | |
Total assets of discontinued operations | 76,282 | 77,500 | |
Accounts payable | 517 | 1,247 | |
Accrued liabilities | 9,597 | 12,801 | |
DEFERRED INCOME TAXES | 3,325 | 3,256 | |
Total liabilities of discontinued operations | $ 13,439 | $ 17,304 |
SUPPLEMENTAL GUARANTOR INFORMATION - Supplemental Condensed Consolidating Balance Sheet (Details) - USD ($) $ in Thousands |
Dec. 30, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
---|---|---|---|---|
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 857,862 | $ 650,561 | $ 972,360 | $ 1,586,994 |
Trade accounts receivable - Net | 556,743 | 636,127 | ||
Inventories - Net | 743,868 | 730,681 | ||
Total assets of discontinued operations | 76,282 | 77,500 | ||
Prepaid expenses and other | 36,578 | 38,683 | ||
Total current assets | 2,271,333 | 2,133,552 | ||
INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES | 0 | 0 | ||
PROPERTY, PLANT AND EQUIPMENT - NET | 327,253 | 324,924 | ||
GOODWILL | 5,751,093 | 5,745,338 | ||
OTHER INTANGIBLE ASSETS - NET | 1,697,432 | 1,717,862 | ||
OTHER | 65,016 | 53,985 | ||
TOTAL ASSETS | 10,112,127 | 9,975,661 | ||
Current portion of long-term debt | 69,214 | 69,454 | ||
Short-term borrowings - trade receivable securitization facility | 299,710 | 299,587 | ||
Accounts payable | 145,045 | 148,761 | ||
Accrued liabilities | 296,013 | 335,888 | ||
Total liabilities of discontinued operations | 13,439 | 17,304 | ||
Total current liabilities | 823,421 | 870,994 | ||
LONG-TERM DEBT | 11,378,320 | 11,393,620 | ||
DEFERRED INCOME TAXES | 339,439 | 500,949 | ||
OTHER NON-CURRENT LIABILITIES | 170,660 | 161,302 | ||
Total liabilities | 12,711,840 | 12,926,865 | ||
STOCKHOLDERS’ (DEFICIT) EQUITY | (2,599,713) | (2,951,204) | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | 10,112,127 | 9,975,661 | ||
Eliminations | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Trade accounts receivable - Net | (40,849) | (41,749) | ||
Inventories - Net | (3,457) | (2,100) | ||
Total assets of discontinued operations | 0 | 0 | ||
Prepaid expenses and other | 0 | 0 | ||
Total current assets | (44,306) | (43,849) | ||
INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES | (16,563,561) | (15,876,264) | ||
PROPERTY, PLANT AND EQUIPMENT - NET | 0 | 0 | ||
GOODWILL | 0 | 0 | ||
OTHER INTANGIBLE ASSETS - NET | 0 | 0 | ||
OTHER | 0 | 0 | ||
TOTAL ASSETS | (16,607,867) | (15,920,113) | ||
Current portion of long-term debt | 0 | 0 | ||
Short-term borrowings - trade receivable securitization facility | 0 | 0 | ||
Accounts payable | (40,226) | (41,566) | ||
Accrued liabilities | 0 | 0 | ||
Total liabilities of discontinued operations | 0 | 0 | ||
Total current liabilities | (40,226) | (41,566) | ||
LONG-TERM DEBT | 0 | 0 | ||
DEFERRED INCOME TAXES | 0 | 0 | ||
OTHER NON-CURRENT LIABILITIES | 0 | 0 | ||
Total liabilities | (40,226) | (41,566) | ||
STOCKHOLDERS’ (DEFICIT) EQUITY | (16,567,641) | (15,878,547) | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | (16,607,867) | (15,920,113) | ||
TransDigm Group | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 3,492 | 2,416 | 5,890 | 13,560 |
Trade accounts receivable - Net | 0 | 0 | ||
Inventories - Net | 0 | 0 | ||
Total assets of discontinued operations | 0 | 0 | ||
Prepaid expenses and other | 0 | 0 | ||
Total current assets | 3,492 | 2,416 | ||
INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES | (2,603,205) | (2,953,620) | ||
PROPERTY, PLANT AND EQUIPMENT - NET | 0 | 0 | ||
GOODWILL | 0 | 0 | ||
OTHER INTANGIBLE ASSETS - NET | 0 | 0 | ||
OTHER | 0 | 0 | ||
TOTAL ASSETS | (2,599,713) | (2,951,204) | ||
Current portion of long-term debt | 0 | 0 | ||
Short-term borrowings - trade receivable securitization facility | 0 | 0 | ||
Accounts payable | 0 | 0 | ||
Accrued liabilities | 0 | 0 | ||
Total liabilities of discontinued operations | 0 | 0 | ||
Total current liabilities | 0 | 0 | ||
LONG-TERM DEBT | 0 | 0 | ||
DEFERRED INCOME TAXES | 0 | 0 | ||
OTHER NON-CURRENT LIABILITIES | 0 | 0 | ||
Total liabilities | 0 | 0 | ||
STOCKHOLDERS’ (DEFICIT) EQUITY | (2,599,713) | (2,951,204) | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | (2,599,713) | (2,951,204) | ||
TransDigm Inc. | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 758,928 | 439,473 | 811,204 | 1,421,251 |
Trade accounts receivable - Net | 0 | 0 | ||
Inventories - Net | 47,848 | 47,051 | ||
Total assets of discontinued operations | 0 | 0 | ||
Prepaid expenses and other | 4,606 | 4,746 | ||
Total current assets | 811,382 | 491,270 | ||
INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES | 10,090,643 | 10,263,999 | ||
PROPERTY, PLANT AND EQUIPMENT - NET | 15,675 | 16,032 | ||
GOODWILL | 82,454 | 85,905 | ||
OTHER INTANGIBLE ASSETS - NET | 27,264 | 27,620 | ||
OTHER | 32,553 | 20,316 | ||
TOTAL ASSETS | 11,059,971 | 10,905,142 | ||
Current portion of long-term debt | 69,214 | 69,454 | ||
Short-term borrowings - trade receivable securitization facility | 0 | 0 | ||
Accounts payable | 14,724 | 14,712 | ||
Accrued liabilities | 141,893 | 180,916 | ||
Total liabilities of discontinued operations | 0 | 0 | ||
Total current liabilities | 225,831 | 265,082 | ||
LONG-TERM DEBT | 11,378,320 | 11,393,620 | ||
DEFERRED INCOME TAXES | 280,563 | 442,415 | ||
OTHER NON-CURRENT LIABILITIES | 71,630 | 61,347 | ||
Total liabilities | 11,956,344 | 12,162,464 | ||
STOCKHOLDERS’ (DEFICIT) EQUITY | (896,373) | (1,257,322) | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | 11,059,971 | 10,905,142 | ||
Subsidiary Guarantors | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 314 | (203) | 5,511 | 8,808 |
Trade accounts receivable - Net | 23,880 | 25,069 | ||
Inventories - Net | 583,118 | 571,712 | ||
Total assets of discontinued operations | 5,440 | 6,428 | ||
Prepaid expenses and other | 22,971 | 24,141 | ||
Total current assets | 635,723 | 627,147 | ||
INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES | 8,019,533 | 7,599,210 | ||
PROPERTY, PLANT AND EQUIPMENT - NET | 263,532 | 261,434 | ||
GOODWILL | 5,003,855 | 4,996,034 | ||
OTHER INTANGIBLE ASSETS - NET | 1,419,518 | 1,438,006 | ||
OTHER | 26,216 | 27,567 | ||
TOTAL ASSETS | 15,368,377 | 14,949,398 | ||
Current portion of long-term debt | 0 | 0 | ||
Short-term borrowings - trade receivable securitization facility | 0 | 0 | ||
Accounts payable | 134,139 | 137,948 | ||
Accrued liabilities | 102,232 | 103,902 | ||
Total liabilities of discontinued operations | 0 | 0 | ||
Total current liabilities | 236,371 | 241,850 | ||
LONG-TERM DEBT | 0 | 0 | ||
DEFERRED INCOME TAXES | 127 | (99) | ||
OTHER NON-CURRENT LIABILITIES | 71,927 | 73,245 | ||
Total liabilities | 308,425 | 314,996 | ||
STOCKHOLDERS’ (DEFICIT) EQUITY | 15,059,952 | 14,634,402 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | 15,368,377 | 14,949,398 | ||
Non- Guarantor Subsidiaries | ||||
Condensed Balance Sheet Statements, Captions [Line Items] | ||||
Cash and cash equivalents | 95,128 | 208,875 | $ 149,755 | $ 143,375 |
Trade accounts receivable - Net | 573,712 | 652,807 | ||
Inventories - Net | 116,359 | 114,018 | ||
Total assets of discontinued operations | 70,842 | 71,072 | ||
Prepaid expenses and other | 9,001 | 9,796 | ||
Total current assets | 865,042 | 1,056,568 | ||
INVESTMENT IN SUBSIDIARIES AND INTERCOMPANY BALANCES | 1,056,590 | 966,675 | ||
PROPERTY, PLANT AND EQUIPMENT - NET | 48,046 | 47,458 | ||
GOODWILL | 664,784 | 663,399 | ||
OTHER INTANGIBLE ASSETS - NET | 250,650 | 252,236 | ||
OTHER | 6,247 | 6,102 | ||
TOTAL ASSETS | 2,891,359 | 2,992,438 | ||
Current portion of long-term debt | 0 | 0 | ||
Short-term borrowings - trade receivable securitization facility | 299,710 | 299,587 | ||
Accounts payable | 36,408 | 37,667 | ||
Accrued liabilities | 51,888 | 51,070 | ||
Total liabilities of discontinued operations | 13,439 | 17,304 | ||
Total current liabilities | 401,445 | 405,628 | ||
LONG-TERM DEBT | 0 | 0 | ||
DEFERRED INCOME TAXES | 58,749 | 58,633 | ||
OTHER NON-CURRENT LIABILITIES | 27,103 | 26,710 | ||
Total liabilities | 487,297 | 490,971 | ||
STOCKHOLDERS’ (DEFICIT) EQUITY | 2,404,062 | 2,501,467 | ||
TOTAL LIABILITIES AND STOCKHOLDERS’ (DEFICIT) EQUITY | $ 2,891,359 | $ 2,992,438 |
SUPPLEMENTAL GUARANTOR INFORMATION - Supplemental Condensed Consolidating Income Statement (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
|
Condensed Income Statements, Captions [Line Items] | ||
NET SALES | $ 847,960 | $ 814,018 |
COST OF SALES | 371,310 | 369,763 |
GROSS PROFIT | 476,650 | 444,255 |
SELLING AND ADMINISTRATIVE EXPENSES | 106,528 | 101,715 |
AMORTIZATION OF INTANGIBLE ASSETS | 17,112 | 25,531 |
(LOSS) INCOME FROM OPERATIONS | 353,010 | 317,009 |
INTEREST EXPENSE - NET | 160,933 | 146,004 |
REFINANCING COSTS | 1,113 | 32,084 |
EQUITY IN INCOME OF SUBSIDIARIES | 0 | 0 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 190,964 | 138,921 |
INCOME TAX PROVISION | (121,047) | 20,050 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 312,011 | 118,871 |
Income from discontinued operations | 2,764 | 0 |
NET INCOME | 314,775 | 118,871 |
OTHER COMPREHENSIVE INCOME, NET OF TAX | 23,400 | 10,723 |
TOTAL COMPREHENSIVE INCOME (LOSS) | 338,175 | 129,594 |
Eliminations | ||
Condensed Income Statements, Captions [Line Items] | ||
NET SALES | (19,060) | (15,284) |
COST OF SALES | (17,703) | (15,284) |
GROSS PROFIT | (1,357) | 0 |
SELLING AND ADMINISTRATIVE EXPENSES | 2,219 | 0 |
AMORTIZATION OF INTANGIBLE ASSETS | 0 | 0 |
(LOSS) INCOME FROM OPERATIONS | (3,576) | 0 |
INTEREST EXPENSE - NET | 0 | 0 |
REFINANCING COSTS | 0 | 0 |
EQUITY IN INCOME OF SUBSIDIARIES | 624,694 | 413,859 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (628,270) | (413,859) |
INCOME TAX PROVISION | 0 | 0 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (628,270) | |
Income from discontinued operations | 0 | |
NET INCOME | (628,270) | (413,859) |
OTHER COMPREHENSIVE INCOME, NET OF TAX | (41,326) | 15,913 |
TOTAL COMPREHENSIVE INCOME (LOSS) | (669,596) | (397,946) |
TransDigm Group | ||
Condensed Income Statements, Captions [Line Items] | ||
NET SALES | 0 | 0 |
COST OF SALES | 0 | 0 |
GROSS PROFIT | 0 | 0 |
SELLING AND ADMINISTRATIVE EXPENSES | 0 | 0 |
AMORTIZATION OF INTANGIBLE ASSETS | 0 | 0 |
(LOSS) INCOME FROM OPERATIONS | 0 | 0 |
INTEREST EXPENSE - NET | 0 | 0 |
REFINANCING COSTS | 0 | 0 |
EQUITY IN INCOME OF SUBSIDIARIES | (314,775) | (118,871) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 314,775 | 118,871 |
INCOME TAX PROVISION | 0 | 0 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 314,775 | |
Income from discontinued operations | 0 | |
NET INCOME | 314,775 | 118,871 |
OTHER COMPREHENSIVE INCOME, NET OF TAX | 23,400 | 10,723 |
TOTAL COMPREHENSIVE INCOME (LOSS) | 338,175 | 129,594 |
TransDigm Inc. | ||
Condensed Income Statements, Captions [Line Items] | ||
NET SALES | 36,128 | 30,617 |
COST OF SALES | 19,964 | 17,253 |
GROSS PROFIT | 16,164 | 13,364 |
SELLING AND ADMINISTRATIVE EXPENSES | 24,519 | 24,320 |
AMORTIZATION OF INTANGIBLE ASSETS | 357 | 189 |
(LOSS) INCOME FROM OPERATIONS | (8,712) | (11,145) |
INTEREST EXPENSE - NET | 165,860 | 148,188 |
REFINANCING COSTS | 1,113 | 32,084 |
EQUITY IN INCOME OF SUBSIDIARIES | (309,919) | (294,988) |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 134,234 | 103,571 |
INCOME TAX PROVISION | (180,541) | (15,300) |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 314,775 | |
Income from discontinued operations | 0 | |
NET INCOME | 314,775 | 118,871 |
OTHER COMPREHENSIVE INCOME, NET OF TAX | 18,932 | 38,772 |
TOTAL COMPREHENSIVE INCOME (LOSS) | 333,707 | 157,643 |
Subsidiary Guarantors | ||
Condensed Income Statements, Captions [Line Items] | ||
NET SALES | 685,362 | 682,919 |
COST OF SALES | 277,662 | 299,661 |
GROSS PROFIT | 407,700 | 383,258 |
SELLING AND ADMINISTRATIVE EXPENSES | (85,640) | 62,699 |
AMORTIZATION OF INTANGIBLE ASSETS | 14,693 | 23,308 |
(LOSS) INCOME FROM OPERATIONS | 478,647 | 297,251 |
INTEREST EXPENSE - NET | 281 | 137 |
REFINANCING COSTS | 0 | 0 |
EQUITY IN INCOME OF SUBSIDIARIES | 0 | 0 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 478,366 | 297,114 |
INCOME TAX PROVISION | 54,938 | 34,606 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 423,428 | |
Income from discontinued operations | 1,686 | |
NET INCOME | 425,114 | 262,508 |
OTHER COMPREHENSIVE INCOME, NET OF TAX | 8,975 | 14,619 |
TOTAL COMPREHENSIVE INCOME (LOSS) | 434,089 | 277,127 |
Non- Guarantor Subsidiaries | ||
Condensed Income Statements, Captions [Line Items] | ||
NET SALES | 145,530 | 115,766 |
COST OF SALES | 91,387 | 68,133 |
GROSS PROFIT | 54,143 | 47,633 |
SELLING AND ADMINISTRATIVE EXPENSES | 165,430 | 14,696 |
AMORTIZATION OF INTANGIBLE ASSETS | 2,062 | 2,034 |
(LOSS) INCOME FROM OPERATIONS | (113,349) | 30,903 |
INTEREST EXPENSE - NET | (5,208) | (2,321) |
REFINANCING COSTS | 0 | 0 |
EQUITY IN INCOME OF SUBSIDIARIES | 0 | 0 |
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | (108,141) | 33,224 |
INCOME TAX PROVISION | 4,556 | 744 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | (112,697) | |
Income from discontinued operations | 1,078 | |
NET INCOME | (111,619) | 32,480 |
OTHER COMPREHENSIVE INCOME, NET OF TAX | 13,419 | (69,304) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ (98,200) | $ (36,824) |
SUPPLEMENTAL GUARANTOR INFORMATION - Supplemental Condensed Consolidating Cash Flow Statement (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 30, 2017 |
Dec. 31, 2016 |
Sep. 30, 2017 |
|
Condensed Cash Flow Statements, Captions [Line Items] | |||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | $ 292,811 | $ 225,791 | |
Capital expenditures | (15,290) | (21,807) | |
Payments made in connection with acquisitions | 0 | (30,002) | |
Net cash used in investing activities | (15,290) | (51,809) | |
Intercompany activities | 0 | 0 | |
Proceeds from exercise of stock options | 7,290 | 3,648 | |
Special dividend and dividend equivalent payments | (56,148) | (1,375,998) | |
Proceeds from term loans, net | 793,864 | 1,132,774 | |
Repayment on term loans | (815,631) | (16,151) | |
Cash tender and redemption of senior subordinated notes due 2021, including premium | 0 | (528,847) | |
Other | (362) | (143) | |
Net cash provided by (used in) financing activities | (70,987) | (784,717) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 767 | (3,899) | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 207,301 | (614,634) | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 650,561 | 1,586,994 | $ 1,586,994 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 857,862 | 972,360 | 650,561 |
Eliminations | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (1,779) | (48) | |
Capital expenditures | 0 | 0 | |
Payments made in connection with acquisitions | 0 | ||
Net cash used in investing activities | 0 | 0 | |
Intercompany activities | 1,779 | 48 | |
Proceeds from exercise of stock options | 0 | 0 | |
Special dividend and dividend equivalent payments | 0 | 0 | |
Proceeds from term loans, net | 0 | 0 | |
Repayment on term loans | 0 | 0 | |
Cash tender and redemption of senior subordinated notes due 2021, including premium | 0 | ||
Other | 0 | 0 | |
Net cash provided by (used in) financing activities | 1,779 | 48 | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 0 | 0 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 0 | 0 | 0 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 0 | 0 | 0 |
TransDigm Group | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | 0 | 0 | |
Capital expenditures | 0 | 0 | |
Payments made in connection with acquisitions | 0 | ||
Net cash used in investing activities | 0 | 0 | |
Intercompany activities | 50,213 | 1,364,680 | |
Proceeds from exercise of stock options | 7,290 | 3,648 | |
Special dividend and dividend equivalent payments | (56,148) | (1,375,998) | |
Proceeds from term loans, net | 0 | 0 | |
Repayment on term loans | 0 | 0 | |
Cash tender and redemption of senior subordinated notes due 2021, including premium | 0 | ||
Other | (279) | 0 | |
Net cash provided by (used in) financing activities | 1,076 | (7,670) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 1,076 | (7,670) | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 2,416 | 13,560 | 13,560 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 3,492 | 5,890 | 2,416 |
TransDigm Inc. | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (157,604) | (208,567) | |
Capital expenditures | (268) | (354) | |
Payments made in connection with acquisitions | (30,002) | ||
Net cash used in investing activities | (268) | (30,356) | |
Intercompany activities | 499,177 | (958,757) | |
Proceeds from exercise of stock options | 0 | 0 | |
Special dividend and dividend equivalent payments | 0 | 0 | |
Proceeds from term loans, net | 793,864 | 1,132,774 | |
Repayment on term loans | (815,631) | (16,151) | |
Cash tender and redemption of senior subordinated notes due 2021, including premium | (528,847) | ||
Other | (83) | (143) | |
Net cash provided by (used in) financing activities | 477,327 | (371,124) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 319,455 | (610,047) | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 439,473 | 1,421,251 | 1,421,251 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 758,928 | 811,204 | 439,473 |
Subsidiary Guarantors | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | 482,518 | 364,105 | |
Capital expenditures | (13,836) | (19,835) | |
Payments made in connection with acquisitions | 0 | ||
Net cash used in investing activities | (13,836) | (19,835) | |
Intercompany activities | (468,165) | (347,567) | |
Proceeds from exercise of stock options | 0 | 0 | |
Special dividend and dividend equivalent payments | 0 | 0 | |
Proceeds from term loans, net | 0 | 0 | |
Repayment on term loans | 0 | 0 | |
Cash tender and redemption of senior subordinated notes due 2021, including premium | 0 | ||
Other | 0 | 0 | |
Net cash provided by (used in) financing activities | (468,165) | (347,567) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 517 | (3,297) | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | (203) | 8,808 | 8,808 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | 314 | 5,511 | (203) |
Non- Guarantor Subsidiaries | |||
Condensed Cash Flow Statements, Captions [Line Items] | |||
NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES | (30,324) | 70,301 | |
Capital expenditures | (1,186) | (1,618) | |
Payments made in connection with acquisitions | 0 | ||
Net cash used in investing activities | (1,186) | (1,618) | |
Intercompany activities | (83,004) | (58,404) | |
Proceeds from exercise of stock options | 0 | 0 | |
Special dividend and dividend equivalent payments | 0 | 0 | |
Proceeds from term loans, net | 0 | 0 | |
Repayment on term loans | 0 | 0 | |
Cash tender and redemption of senior subordinated notes due 2021, including premium | 0 | ||
Other | 0 | 0 | |
Net cash provided by (used in) financing activities | (83,004) | (58,404) | |
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 767 | (3,899) | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (113,747) | 6,380 | |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 208,875 | 143,375 | 143,375 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 95,128 | $ 149,755 | $ 208,875 |
SUPPLEMENTAL GUARANTOR INFORMATION Narrative (Details) |
Dec. 30, 2017 |
---|---|
Condensed Financial Statements, Captions [Line Items] | |
Percentage of ownership in subsidiary | 100.00% |