New York State | 16-0757636 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
East Aurora, New York | 14052-0018 |
(Address of principal executive offices) | (Zip Code) |
(716) 652-2000 | |
(Telephone number including area code) |
PAGE | ||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
(dollars in thousands, except share and per share data) | June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | ||||||||||||
Net sales | $ | 692,018 | $ | 626,183 | $ | 2,008,602 | $ | 1,848,256 | ||||||||
Cost of sales | 492,234 | 443,769 | 1,424,731 | 1,308,256 | ||||||||||||
Inventory write-down - restructuring | 2,398 | — | 9,727 | — | ||||||||||||
Gross profit | 197,386 | 182,414 | 574,144 | 540,000 | ||||||||||||
Research and development | 31,040 | 36,314 | 97,545 | 107,828 | ||||||||||||
Selling, general and administrative | 103,053 | 89,144 | 299,002 | 261,271 | ||||||||||||
Interest | 8,850 | 8,654 | 26,585 | 25,789 | ||||||||||||
Restructuring | (1,549 | ) | — | 22,509 | — | |||||||||||
Other | 1,037 | 29 | 45 | 12,148 | ||||||||||||
Earnings before income taxes | 54,955 | 48,273 | 128,458 | 132,964 | ||||||||||||
Income taxes | 14,205 | 8,185 | 72,444 | 31,156 | ||||||||||||
Net earnings attributable to Moog and noncontrolling interest | 40,750 | 40,088 | 56,014 | 101,808 | ||||||||||||
Net earnings (loss) attributable to noncontrolling interest | 67 | — | 67 | (870 | ) | |||||||||||
Net earnings attributable to Moog | $ | 40,683 | $ | 40,088 | $ | 55,947 | $ | 102,678 | ||||||||
Net earnings per share attributable to Moog | ||||||||||||||||
Basic | $ | 1.14 | $ | 1.12 | $ | 1.56 | $ | 2.86 | ||||||||
Diluted | $ | 1.13 | $ | 1.11 | $ | 1.55 | $ | 2.83 | ||||||||
Dividends declared per share | $ | — | $ | — | $ | 0.25 | $ | — | ||||||||
Average common shares outstanding | ||||||||||||||||
Basic | 35,762,918 | 35,847,842 | 35,768,471 | 35,868,315 | ||||||||||||
Diluted | 36,143,367 | 36,212,779 | 36,174,759 | 36,240,794 | ||||||||||||
See accompanying Notes to Consolidated Condensed Financial Statements. |
Three Months Ended | Nine Months Ended | |||||||||||||||
(dollars in thousands) | June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | ||||||||||||
Net earnings attributable to Moog and noncontrolling interest | $ | 40,750 | $ | 40,088 | $ | 56,014 | $ | 101,808 | ||||||||
Other comprehensive income (loss), net of tax: | ||||||||||||||||
Foreign currency translation adjustment | (40,788 | ) | 32,805 | (10,127 | ) | 3,991 | ||||||||||
Retirement liability adjustment | 7,080 | 3,566 | 16,018 | 17,609 | ||||||||||||
Change in accumulated income (loss) on derivatives | (747 | ) | 1,013 | (92 | ) | 2,833 | ||||||||||
Other comprehensive income (loss), net of tax | (34,455 | ) | 37,384 | 5,799 | 24,433 | |||||||||||
Tax Cuts and Jobs Act, reclassification from AOCIL to retained earnings | — | — | (47,077 | ) | — | |||||||||||
Comprehensive income (loss) | 6,295 | 77,472 | 14,736 | 126,241 | ||||||||||||
Comprehensive income (loss) attributable to noncontrolling interest | 41 | — | 41 | (870 | ) | |||||||||||
Comprehensive income (loss) attributable to Moog | $ | 6,254 | $ | 77,472 | $ | 14,695 | $ | 127,111 | ||||||||
See accompanying Notes to Consolidated Condensed Financial Statements. |
(dollars in thousands) | June 30, 2018 | September 30, 2017 | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 157,269 | $ | 368,073 | ||||
Receivables | 757,455 | 727,740 | ||||||
Inventories | 514,578 | 489,127 | ||||||
Prepaid expenses and other current assets | 50,215 | 41,499 | ||||||
Total current assets | 1,479,517 | 1,626,439 | ||||||
Property, plant and equipment, net of accumulated depreciation of $818,644 and $771,160, respectively | 546,598 | 522,991 | ||||||
Goodwill | 790,826 | 774,268 | ||||||
Intangible assets, net | 112,838 | 108,818 | ||||||
Deferred income taxes | 13,214 | 26,558 | ||||||
Other assets | 35,860 | 31,518 | ||||||
Total assets | $ | 2,978,853 | $ | 3,090,592 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities | ||||||||
Short-term borrowings | $ | 1,416 | $ | 89 | ||||
Current installments of long-term debt | 393 | 295 | ||||||
Accounts payable | 190,092 | 170,878 | ||||||
Accrued compensation | 144,712 | 148,406 | ||||||
Customer advances | 163,318 | 159,274 | ||||||
Contract loss reserves | 41,143 | 43,214 | ||||||
Other accrued liabilities | 113,956 | 107,278 | ||||||
Total current liabilities | 655,030 | 629,434 | ||||||
Long-term debt, excluding current installments | 858,425 | 956,653 | ||||||
Long-term pension and retirement obligations | 118,862 | 271,272 | ||||||
Deferred income taxes | 47,722 | 13,320 | ||||||
Other long-term liabilities | 36,021 | 5,609 | ||||||
Total liabilities | 1,716,060 | 1,876,288 | ||||||
Commitments and contingencies (Note 18) | — | — | ||||||
Shareholders’ equity | ||||||||
Common stock - Class A | 43,780 | 43,704 | ||||||
Common stock - Class B | 7,500 | 7,576 | ||||||
Additional paid-in capital | 486,510 | 492,246 | ||||||
Retained earnings | 1,941,902 | 1,847,819 | ||||||
Treasury shares | (739,042 | ) | (739,157 | ) | ||||
Stock Employee Compensation Trust | (89,904 | ) | (89,919 | ) | ||||
Supplemental Retirement Plan Trust | (11,736 | ) | (12,474 | ) | ||||
Accumulated other comprehensive loss | (376,743 | ) | (335,491 | ) | ||||
Total Moog shareholders’ equity | 1,262,267 | 1,214,304 | ||||||
Noncontrolling interest | 526 | — | ||||||
Total shareholders’ equity | 1,262,793 | 1,214,304 | ||||||
Total liabilities and shareholders’ equity | $ | 2,978,853 | $ | 3,090,592 | ||||
See accompanying Notes to Consolidated Condensed Financial Statements. |
Number of Shares | ||||||||||
(dollars in thousands, except share data) | Amount | Class A Common Stock | Class B Common Stock | |||||||
COMMON STOCK | ||||||||||
Beginning of period | $ | 51,280 | 43,704,286 | 7,575,427 | ||||||
Conversion of Class B to Class A | — | 75,951 | (75,951 | ) | ||||||
End of period | 51,280 | 43,780,237 | 7,499,476 | |||||||
ADDITIONAL PAID-IN CAPITAL | ||||||||||
Beginning of period | 492,246 | |||||||||
Issuance of treasury shares | (2,874 | ) | ||||||||
Equity-based compensation expense | 4,394 | |||||||||
Adjustment to market - SECT, SERP and other | (7,256 | ) | ||||||||
End of period | 486,510 | |||||||||
RETAINED EARNINGS | ||||||||||
Beginning of period | 1,847,819 | |||||||||
Net earnings attributable to Moog | 55,947 | |||||||||
Dividends | (8,941 | ) | ||||||||
Tax Cuts and Jobs Act, reclassification from AOCIL to retained earnings | 47,077 | |||||||||
End of period | 1,941,902 | |||||||||
TREASURY SHARES AT COST | ||||||||||
Beginning of period | (739,157 | ) | (10,933,003 | ) | (3,333,927 | ) | ||||
Class A and B shares issued related to equity compensation | 5,325 | 83,193 | 28,460 | |||||||
Class A and B shares purchased | (5,210 | ) | (38,590 | ) | (22,469 | ) | ||||
End of period | (739,042 | ) | (10,888,400 | ) | (3,327,936 | ) | ||||
STOCK EMPLOYEE COMPENSATION TRUST (SECT) | ||||||||||
Beginning of period | (89,919 | ) | (425,148 | ) | (654,753 | ) | ||||
Issuance of shares | 1,941 | — | 21,871 | |||||||
Purchase of shares | (8,444 | ) | — | (97,855 | ) | |||||
Adjustment to market | 6,518 | — | — | |||||||
End of period | (89,904 | ) | (425,148 | ) | (730,737 | ) | ||||
SUPPLEMENTAL RETIREMENT PLAN (SERP) TRUST | ||||||||||
Beginning of period | (12,474 | ) | (150,000 | ) | ||||||
Adjustment to market | 738 | — | ||||||||
End of period | (11,736 | ) | (150,000 | ) | ||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||||||
Beginning of period | (335,491 | ) | ||||||||
Other comprehensive income (loss) | 5,825 | |||||||||
Tax Cuts and Jobs Act, reclassification from AOCIL to retained earnings | (47,077 | ) | ||||||||
End of period | (376,743 | ) | ||||||||
TOTAL MOOG SHAREHOLDERS’ EQUITY | 1,262,267 | 32,466,689 | 3,290,803 | |||||||
NONCONTROLLING INTEREST | ||||||||||
Beginning of period | — | |||||||||
Acquisition of noncontrolling interest | 485 | |||||||||
Net earnings attributable to noncontrolling interest | 67 | |||||||||
Foreign currency translation adjustment | (26 | ) | ||||||||
End of period | 526 | |||||||||
TOTAL SHAREHOLDERS’ EQUITY | $ | 1,262,793 |
Nine Months Ended | ||||||||
(dollars in thousands) | June 30, 2018 | July 1, 2017 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net earnings attributable to Moog and noncontrolling interest | $ | 56,014 | $ | 101,808 | ||||
Adjustments to reconcile net earnings to net cash provided (used) by operating activities: | ||||||||
Depreciation | 54,693 | 53,027 | ||||||
Amortization | 13,628 | 14,078 | ||||||
Deferred income taxes | 35,549 | 2,968 | ||||||
Equity-based compensation expense | 4,394 | 4,151 | ||||||
Impairment of long-lived assets and inventory write-down associated with restructuring | 24,246 | — | ||||||
Other | 4,743 | 15,493 | ||||||
Changes in assets and liabilities providing (using) cash: | ||||||||
Receivables | (27,597 | ) | 176 | |||||
Inventories | (27,840 | ) | 3,786 | |||||
Accounts payable | 12,778 | 11,312 | ||||||
Customer advances | (165 | ) | (3,097 | ) | ||||
Accrued expenses | 11,709 | (180 | ) | |||||
Accrued income taxes | (1,817 | ) | (2,767 | ) | ||||
Net pension and post retirement liabilities | (130,135 | ) | (25,982 | ) | ||||
Other assets and liabilities | 16,150 | (5,449 | ) | |||||
Net cash provided by operating activities | 46,350 | 169,324 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Acquisitions of businesses, net of cash acquired | (47,947 | ) | (40,545 | ) | ||||
Purchase of property, plant and equipment | (70,759 | ) | (45,349 | ) | ||||
Other investing transactions | (3,609 | ) | 3,031 | |||||
Net cash (used) by investing activities | (122,315 | ) | (82,863 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Net short-term borrowings (repayments) | 1,357 | (1,280 | ) | |||||
Proceeds from revolving lines of credit | 301,500 | 185,045 | ||||||
Payments on revolving lines of credit | (411,610 | ) | (235,045 | ) | ||||
Proceeds from long-term debt | 11,216 | — | ||||||
Payments on long-term debt | (21,849 | ) | (133 | ) | ||||
Payment of dividends | (8,941 | ) | — | |||||
Proceeds from sale of treasury stock | 2,451 | 2,135 | ||||||
Purchase of outstanding shares for treasury | (5,210 | ) | (5,714 | ) | ||||
Proceeds from sale of stock held by SECT | 1,941 | 867 | ||||||
Purchase of stock held by SECT | (8,444 | ) | (12,162 | ) | ||||
Other financing transactions | 484 | (1,656 | ) | |||||
Net cash (used) by financing activities | (137,105 | ) | (67,943 | ) | ||||
Effect of exchange rate changes on cash | 2,266 | 895 | ||||||
Increase (decrease) in cash and cash equivalents | (210,804 | ) | 19,413 | |||||
Cash and cash equivalents at beginning of period | 368,073 | 325,128 | ||||||
Cash and cash equivalents at end of period | $ | 157,269 | $ | 344,541 | ||||
See accompanying Notes to Consolidated Condensed Financial Statements. |
Standard | Description | Financial Statement Effect or Other Significant Matters | ||
ASU no. 2018-02 Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income | The standard amends existing guidance and allows a reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded deferred tax effects resulting from the Tax Cuts and Jobs Act. The standard requires certain disclosures about stranded deferred tax effects. The provisions of the standard are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. | We adopted this standard recording the related stranded deferred tax effects in the period of adoption, resulting in $47,077 being reclassified from accumulated other comprehensive income (loss) to retained earnings as of March 31, 2018. | ||
Date early adopted: Q2 2018 |
Standard | Description | Financial Statement Effect or Other Significant Matters | ||
ASU no. 2014-09 Revenue from Contracts with Customers (and All Related ASUs) | The standard requires revenue recognition to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard also requires additional disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. The provisions of the standard, as well as all subsequently issued clarifications to the standard, are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. The standard can be adopted using either a full retrospective or modified retrospective approach. | We plan to adopt the standard using the modified retrospective method, under which prior years' results are not restated, but supplemental information will be provided in our disclosures that will present fiscal 2019 results before adoption of the standard. In addition, a cumulative adjustment will be necessary to Shareholder's equity at the beginning of fiscal 2019. We have identified, and are in the process of implementing, changes to our financial statements and related disclosures, internal controls, financial policies and information technology systems. We anticipate recognizing more revenue over time primarily related to repair and overhaul arrangements and contracts with the United States government. We have not yet fully quantified the impact on our financial statements and related disclosures. | ||
Planned date of adoption: Q1 2019 | ||||
ASU no. 2016-01 Recognition and Measurement of Financial Assets and Financial Liabilities | The standard requires most equity investments to be measured at fair value, with subsequent changes in fair value recognized in net income. The amendment also impacts the measurement of financial liabilities under the fair value option as well as certain presentation and disclosure requirements for financial instruments. The provisions of the standard are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted for some, but not all, provisions. The amendment requires certain provisions to be applied prospectively and others to be applied by means of a cumulative-effect adjustment. | We are currently evaluating the effect on our financial statements and related disclosures. | ||
Planned date of adoption: Q1 2019 | ||||
ASU no. 2016-02 Leases (and All Related ASUs) | The standard requires most lease arrangements to be recognized in the balance sheet as lease assets and lease liabilities. The standard also requires additional disclosures about the leasing arrangements. The provisions of the standard are effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. | We are currently evaluating the effect on our financial statements and related disclosures. | ||
Planned date of adoption: Q1 2020 | ||||
ASU no. 2017-07 Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost | The standard amends existing guidance on the presentation of net periodic benefit cost in the income statement and what qualifies for capitalization on the balance sheet. The provisions of the standard are effective for fiscal years beginning after December 15, 2017 and interim periods within those fiscal years. Early adoption is permitted as of the beginning of an annual period. The amendment requires income statement presentation provisions to be applied retrospectively and capitalization in assets provisions to be applied prospectively. | We anticipate the adoption of this standard will decrease operating expenses (Cost of sales, Research and development and Selling, general and administrative) and increase other expense by approximately $6,800 for the year ended September 29, 2018 and approximately $12,600 for the year ended September 30, 2017. The adoption of this standard will not have a material impact on our Consolidated Balance Sheets, Consolidated Statements of Cash Flows and Notes to Consolidated Financial Statements. | ||
Planned date of adoption: Q1 2019 | ||||
Standard | Description | Financial Statement Effect or Other Significant Matters | ||
ASU no. 2017-12 Targeted Improvements to Accounting for Hedging Activities | The standard expands the hedging strategies eligible for hedge accounting, while simplifying presentation and disclosure by eliminating separate measurement and reporting of hedge ineffectiveness. The provisions of the standard are effective for fiscal years beginning after December 15, 2018 and interim periods within those fiscal years. Early adoption is permitted. | We are currently evaluating the effect on our financial statements and related disclosures. | ||
Planned date of adoption: Q1 2020 |
June 30, 2018 | September 30, 2017 | |||||||
Accounts receivable | $ | 293,967 | $ | 286,773 | ||||
Long-term contract receivables: | ||||||||
Amounts billed | 138,862 | 148,087 | ||||||
Unbilled recoverable costs and accrued profits | 297,527 | 282,154 | ||||||
Total long-term contract receivables | 436,389 | 430,241 | ||||||
Other | 31,987 | 15,077 | ||||||
Total receivables | 762,343 | 732,091 | ||||||
Less allowance for doubtful accounts | (4,888 | ) | (4,351 | ) | ||||
Receivables | $ | 757,455 | $ | 727,740 |
June 30, 2018 | September 30, 2017 | |||||||
Raw materials and purchased parts | $ | 187,483 | $ | 189,517 | ||||
Work in progress | 251,865 | 229,202 | ||||||
Finished goods | 75,230 | 70,408 | ||||||
Inventories | $ | 514,578 | $ | 489,127 |
Aircraft Controls | Space and Defense Controls | Industrial Systems | Total | |||||||||
Balance at September 30, 2017 | $ | 181,375 | $ | 259,951 | $ | 332,942 | $ | 774,268 | ||||
Acquisitions | — | 3,769 | 17,541 | 21,310 | ||||||||
Foreign currency translation | (780 | ) | (96 | ) | (3,876 | ) | (4,752 | ) | ||||
Balance at June 30, 2018 | $ | 180,595 | $ | 263,624 | $ | 346,607 | $ | 790,826 |
June 30, 2018 | September 30, 2017 | |||||||||||||||||
Weighted- Average Life (years) | Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||
Customer-related | 11 | $ | 148,558 | $ | (97,083 | ) | $ | 175,872 | $ | (128,019 | ) | |||||||
Technology-related | 10 | 72,722 | (50,766 | ) | 71,924 | (55,069 | ) | |||||||||||
Program-related | 19 | 65,676 | (33,168 | ) | 66,458 | (30,675 | ) | |||||||||||
Marketing-related | 8 | 24,945 | (18,842 | ) | 26,552 | (19,251 | ) | |||||||||||
Other | 10 | 4,333 | (3,537 | ) | 4,379 | (3,353 | ) | |||||||||||
Intangible assets | 12 | $ | 316,234 | $ | (203,396 | ) | $ | 345,185 | $ | (236,367 | ) |
June 30, 2018 | September 30, 2017 | |||||||
U.S. revolving credit facility | $ | 430,000 | $ | 540,110 | ||||
Senior notes | 300,000 | 300,000 | ||||||
Securitization program | 130,000 | 120,000 | ||||||
Obligations under capital leases | 962 | 306 | ||||||
Senior debt | 860,962 | 960,416 | ||||||
Less deferred debt issuance cost | (2,144 | ) | (3,468 | ) | ||||
Less current installments | (393 | ) | (295 | ) | ||||
Long-term debt | $ | 858,425 | $ | 956,653 |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||
Warranty accrual at beginning of period | $ | 28,255 | $ | 23,272 | $ | 25,848 | $ | 21,363 | ||||||||
Additions from acquisitions | — | 433 | — | 433 | ||||||||||||
Warranties issued during current period | 3,451 | 4,030 | 11,488 | 12,185 | ||||||||||||
Adjustments to pre-existing warranties | (80 | ) | (124 | ) | (325 | ) | (495 | ) | ||||||||
Reductions for settling warranties | (3,219 | ) | (4,046 | ) | (9,141 | ) | (9,509 | ) | ||||||||
Foreign currency translation | (701 | ) | 420 | (164 | ) | 8 | ||||||||||
Warranty accrual at end of period | $ | 27,706 | $ | 23,985 | $ | 27,706 | $ | 23,985 |
Three Months Ended | Nine Months Ended | ||||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | ||||||||||||||
Net gain (loss) | $ | (1,028 | ) | $ | (1,440 | ) | $ | (4,037 | ) | $ | (539 | ) |
June 30, 2018 | September 30, 2017 | ||||||||
Derivatives designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current assets | $ | 370 | $ | 551 | ||||
Foreign currency contracts | Other assets | 28 | 50 | ||||||
Interest rate swaps | Other current assets | 1,543 | 552 | ||||||
Interest rate swaps | Other assets | 439 | 314 | ||||||
Total asset derivatives | $ | 2,380 | $ | 1,467 | |||||
Foreign currency contracts | Other accrued liabilities | $ | 1,824 | $ | 1,434 | ||||
Foreign currency contracts | Other long-term liabilities | 508 | 244 | ||||||
Interest rate swaps | Other accrued liabilities | — | 10 | ||||||
Interest rate swaps | Other long-term liabilities | — | 15 | ||||||
Net investment hedge | Other accrued liabilities | 5 | — | ||||||
Total liability derivatives | $ | 2,337 | $ | 1,703 | |||||
Derivatives not designated as hedging instruments: | |||||||||
Foreign currency contracts | Other current assets | $ | 461 | $ | 95 | ||||
Foreign currency contracts | Other accrued liabilities | $ | 647 | $ | 383 |
Classification | June 30, 2018 | September 30, 2017 | ||||||||
Foreign currency contracts | Other current assets | $ | 831 | $ | 646 | |||||
Foreign currency contracts | Other assets | 28 | 50 | |||||||
Interest rate swaps | Other current assets | 1,543 | 552 | |||||||
Interest rate swaps | Other assets | 439 | 314 | |||||||
Total assets | $ | 2,841 | $ | 1,562 | ||||||
Foreign currency contracts | Other accrued liabilities | $ | 2,471 | $ | 1,817 | |||||
Foreign currency contracts | Other long-term liabilities | 508 | 244 | |||||||
Interest rate swaps | Other accrued liabilities | — | 10 | |||||||
Interest rate swaps | Other long-term liabilities | — | 15 | |||||||
Net investment hedge | Other accrued liabilities | 5 | — | |||||||
Total liabilities | $ | 2,984 | $ | 2,086 |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||
U.S. Plans | ||||||||||||||||
Service cost | $ | 5,634 | $ | 6,044 | $ | 16,901 | $ | 18,087 | ||||||||
Interest cost | 8,073 | 7,659 | 24,219 | 22,930 | ||||||||||||
Expected return on plan assets | (13,575 | ) | (13,627 | ) | (40,726 | ) | (40,882 | ) | ||||||||
Amortization of prior service cost (credit) | 46 | 46 | 140 | 140 | ||||||||||||
Amortization of actuarial loss | 6,903 | 8,465 | 20,707 | 25,303 | ||||||||||||
Pension expense for U.S. defined benefit plans | $ | 7,081 | $ | 8,587 | $ | 21,241 | $ | 25,578 | ||||||||
Non-U.S. Plans | ||||||||||||||||
Service cost | $ | 1,486 | $ | 1,499 | $ | 4,475 | $ | 4,545 | ||||||||
Interest cost | 1,066 | 794 | 3,213 | 2,291 | ||||||||||||
Expected return on plan assets | (1,260 | ) | (1,180 | ) | (3,793 | ) | (3,433 | ) | ||||||||
Amortization of prior service cost (credit) | (15 | ) | (26 | ) | (44 | ) | (80 | ) | ||||||||
Amortization of actuarial loss | 630 | 1,145 | 1,902 | 3,374 | ||||||||||||
Curtailment gain | — | (150 | ) | — | (150 | ) | ||||||||||
Pension expense for non-U.S. defined benefit plans | $ | 1,907 | $ | 2,082 | $ | 5,753 | $ | 6,547 |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||
U.S. defined contribution plans | $ | 4,374 | $ | 3,926 | $ | 12,482 | $ | 11,182 | ||||||||
Non-U.S. defined contribution plans | 1,460 | 1,534 | 4,719 | 4,366 | ||||||||||||
Total pension expense for defined contribution plans | $ | 5,834 | $ | 5,460 | $ | 17,201 | $ | 15,548 |
Aircraft Controls | Industrial Systems | Corporate | Total | |||||||||
Balance at September 30, 2017 | $ | 130 | $ | — | $ | 1,038 | $ | 1,168 | ||||
Charged to expense - 2018 plan | — | 32,236 | — | 32,236 | ||||||||
Non-cash charges - 2018 plan | — | (24,246 | ) | — | (24,246 | ) | ||||||
Cash payments - 2018 plan | — | (354 | ) | — | (354 | ) | ||||||
Cash payments - 2016 plan | (130 | ) | — | (446 | ) | (576 | ) | |||||
Foreign currency translation | — | (206 | ) | — | (206 | ) | ||||||
Balance at June 30, 2018 | $ | — | $ | 7,430 | $ | 592 | $ | 8,022 |
Accumulated foreign currency translation (1) | Accumulated retirement liability | Accumulated gain (loss) on derivatives | Total | |||||||||||||
AOCIL at September 30, 2017 | $ | (83,166 | ) | $ | (251,865 | ) | $ | (460 | ) | $ | (335,491 | ) | ||||
Other comprehensive income (loss) before reclassifications | (10,101 | ) | 330 | (640 | ) | (10,411 | ) | |||||||||
Amounts reclassified from AOCIL | — | 15,688 | 548 | 16,236 | ||||||||||||
Other comprehensive income (loss) | (10,101 | ) | 16,018 | (92 | ) | 5,825 | ||||||||||
Tax Cuts and Jobs Act, reclassification from AOCIL to retained earnings (2) | — | (47,209 | ) | 132 | (47,077 | ) | ||||||||||
AOCIL at June 30, 2018 | $ | (93,267 | ) | $ | (283,056 | ) | $ | (420 | ) | $ | (376,743 | ) |
Three Months Ended | Nine Months Ended | |||||||||||||||||
Statement of earnings classification | June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | ||||||||||||||
Retirement liability: | ||||||||||||||||||
Prior service cost (credit) | $ | (86 | ) | $ | 22 | $ | (257 | ) | $ | 61 | ||||||||
Actuarial losses | 7,405 | 9,488 | 22,224 | 28,311 | ||||||||||||||
Reclassification from AOCIL into earnings (1) | 7,319 | 9,360 | 21,967 | 28,222 | ||||||||||||||
Tax effect | (1,791 | ) | (3,450 | ) | (6,279 | ) | (10,301 | ) | ||||||||||
Net reclassification from AOCIL into earnings | $ | 5,528 | $ | 5,910 | $ | 15,688 | $ | 17,921 | ||||||||||
Derivatives: | ||||||||||||||||||
Foreign currency contracts | Sales | $ | (122 | ) | $ | 801 | $ | (378 | ) | $ | 3,255 | |||||||
Foreign currency contracts | Cost of sales | 428 | 582 | 1,626 | 1,713 | |||||||||||||
Interest rate swaps | Interest | (259 | ) | 20 | (375 | ) | 198 | |||||||||||
Reclassification from AOCIL into earnings | 47 | 1,403 | 873 | 5,166 | ||||||||||||||
Tax effect | (18 | ) | (384 | ) | (325 | ) | (1,357 | ) | ||||||||||
Net reclassification from AOCIL into earnings | $ | 29 | $ | 1,019 | $ | 548 | $ | 3,809 |
Net deferral in AOCIL - effective portion | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||
Foreign currency contracts | $ | (1,246 | ) | $ | 68 | $ | (2,073 | ) | $ | (2,041 | ) | |||||
Interest rate swaps | 223 | (151 | ) | 1,470 | 612 | |||||||||||
Net gain (loss) | (1,023 | ) | (83 | ) | (603 | ) | (1,429 | ) | ||||||||
Tax effect | 247 | 77 | (37 | ) | 453 | |||||||||||
Net deferral in AOCIL of derivatives | $ | (776 | ) | $ | (6 | ) | $ | (640 | ) | $ | (976 | ) |
Three Months Ended | Nine Months Ended | |||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||
Basic weighted-average shares outstanding | 35,762,918 | 35,847,842 | 35,768,471 | 35,868,315 | ||||||||
Dilutive effect of equity-based awards | 380,449 | 364,937 | 406,288 | 372,479 | ||||||||
Diluted weighted-average shares outstanding | 36,143,367 | 36,212,779 | 36,174,759 | 36,240,794 |
Three Months Ended | Nine Months Ended | |||||||||||||||
June 30, 2018 | July 1, 2017 | June 30, 2018 | July 1, 2017 | |||||||||||||
Net sales: | ||||||||||||||||
Aircraft Controls | $ | 299,605 | $ | 282,555 | $ | 889,578 | $ | 840,666 | ||||||||
Space and Defense Controls | 149,815 | 128,049 | 426,735 | 389,473 | ||||||||||||
Industrial Systems | 242,598 | 215,579 | 692,289 | 618,117 | ||||||||||||
Net sales | $ | 692,018 | $ | 626,183 | $ | 2,008,602 | $ | 1,848,256 | ||||||||
Operating profit: | ||||||||||||||||
Aircraft Controls | $ | 33,342 | $ | 29,080 | $ | 97,590 | $ | 83,372 | ||||||||
Space and Defense Controls | 16,513 | 12,789 | 49,643 | 33,258 | ||||||||||||
Industrial Systems | 24,283 | 21,726 | 37,479 | 64,154 | ||||||||||||
Total operating profit | 74,138 | 63,595 | 184,712 | 180,784 | ||||||||||||
Deductions from operating profit: | ||||||||||||||||
Interest expense | 8,850 | 8,654 | 26,585 | 25,789 | ||||||||||||
Equity-based compensation expense | 894 | 997 | 4,394 | 4,151 | ||||||||||||
Corporate and other expenses, net | 9,439 | 5,671 | 25,275 | 17,880 | ||||||||||||
Earnings before income taxes | $ | 54,955 | $ | 48,273 | $ | 128,458 | $ | 132,964 |
Three Months Ended | Nine Months Ended | |||||||
Net sales: | ||||||||
Space and Defense Controls | $ | 33,531 | $ | 96,177 | ||||
Industrial Systems | 93,089 | 267,797 | ||||||
Total | $ | 126,620 | $ | 363,974 |
Operating profit: | ||||||||
Space and Defense Controls | $ | 2,784 | $ | 5,669 | ||||
Industrial Systems | 9,255 | 28,664 | ||||||
Total | $ | 12,039 | $ | 34,333 |
• | Defense market - primary and secondary flight controls for military aircraft, stabilization and automatic ammunition loading controls for armored combat vehicles, tactical and strategic missile steering controls and gun aiming controls. |
• | Commercial aircraft market - primary and secondary flight controls for commercial aircraft. |
• | Commercial space market - satellite positioning controls and thrust vector controls for space launch vehicles. |
• | Industrial automation market - injection molding, metal forming, heavy industry, material and automotive testing and pilot training simulators. |
• | Energy market - power generation, oil and gas exploration and wind energy. |
• | Medical market - enteral clinical nutrition and infusion therapy pumps, ultrasonic sensors and surgical handpieces and CT scanners. |
• | a strong leadership team that has positioned the company for growth, |
• | utilizing our global capabilities and strong engineering heritage to innovate, |
• | maintaining our technological excellence by solving our customers’ most demanding technical problems in applications "When Performance Really Matters®," |
• | continuing to invest in talent development to strengthen employee performance, and |
• | maximizing customer value by implementing lean enterprise principles. |
CONSOLIDATED RESULTS OF OPERATIONS | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(dollars and shares in millions, except per share data) | June 30, 2018 | July 1, 2017 | $ Variance | % Variance | June 30, 2018 | July 1, 2017 | $ Variance | % Variance | |||||||||||||||
Net sales | $ | 692 | $ | 626 | $ | 66 | 11 | % | $ | 2,009 | $ | 1,848 | $ | 160 | 9 | % | |||||||
Gross margin | 28.5 | % | 29.1 | % | 28.6 | % | 29.2 | % | |||||||||||||||
Research and development expenses | $ | 31 | $ | 36 | $ | (5 | ) | (15 | %) | $ | 98 | $ | 108 | $ | (10 | ) | (10 | %) | |||||
Selling, general and administrative expenses as a percentage of sales | 14.9 | % | 14.2 | % | 14.9 | % | 14.1 | % | |||||||||||||||
Interest expense | $ | 9 | $ | 9 | $ | — | 2 | % | $ | 27 | $ | 26 | $ | 1 | 3 | % | |||||||
Restructuring expense | $ | (2 | ) | $ | — | $ | (2 | ) | n/a | $ | 23 | $ | — | $ | 23 | n/a | |||||||
Other | $ | 1 | $ | — | $ | 1 | n/a | $ | — | $ | 12 | $ | (12 | ) | (100 | %) | |||||||
Effective tax rate | 25.8 | % | 17.0 | % | 56.4 | % | 23.4 | % | |||||||||||||||
Net earnings attributable to Moog | $ | 41 | $ | 40 | $ | 1 | 1 | % | $ | 56 | $ | 103 | $ | (47 | ) | (46 | %) | ||||||
Diluted earnings per share attributable to Moog | $ | 1.13 | $ | 1.11 | $ | 0.02 | 2 | % | $ | 1.55 | $ | 2.83 | $ | (1.28 | ) | (45 | %) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(dollars in millions) | June 30, 2018 | July 1, 2017 | $ Variance | % Variance | June 30, 2018 | July 1, 2017 | $ Variance | % Variance | |||||||||||||||
Net sales - military aircraft | $ | 144 | $ | 130 | $ | 14 | 11 | % | $ | 424 | $ | 394 | $ | 30 | 8 | % | |||||||
Net sales - commercial aircraft | 156 | 153 | 3 | 2 | % | 466 | 447 | 19 | 4 | % | |||||||||||||
$ | 300 | $ | 283 | $ | 17 | 6 | % | $ | 890 | $ | 841 | $ | 49 | 6 | % | ||||||||
Operating profit | $ | 33 | $ | 29 | $ | 4 | 15 | % | $ | 98 | $ | 83 | $ | 14 | 17 | % | |||||||
Operating margin | 11.1 | % | 10.3 | % | 11.0 | % | 9.9 | % | |||||||||||||||
Backlog | $ | 726 | $ | 543 | $ | 183 | 34 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(dollars in millions) | June 30, 2018 | July 1, 2017 | $ Variance | % Variance | June 30, 2018 | July 1, 2017 | $ Variance | % Variance | |||||||||||||||
Net sales | $ | 150 | $ | 128 | $ | 22 | 17 | % | $ | 427 | $ | 389 | $ | 37 | 10 | % | |||||||
Operating profit | $ | 17 | $ | 13 | $ | 4 | 29 | % | $ | 50 | $ | 33 | $ | 16 | 49 | % | |||||||
Operating margin | 11.0 | % | 10.0 | % | 11.6 | % | 8.5 | % | |||||||||||||||
Backlog | $ | 453 | $ | 386 | $ | 67 | 17 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(dollars in millions) | June 30, 2018 | July 1, 2017 | $ Variance | % Variance | June 30, 2018 | July 1, 2017 | $ Variance | % Variance | |||||||||||||||
Net sales | $ | 243 | $ | 216 | $ | 27 | 13 | % | $ | 692 | $ | 618 | $ | 74 | 12 | % | |||||||
Operating profit (loss) | $ | 24 | $ | 22 | $ | 3 | 12 | % | $ | 37 | $ | 64 | $ | (27 | ) | (42 | %) | ||||||
Operating margin | 10.0 | % | 10.1 | % | 5.4 | % | 10.4 | % | |||||||||||||||
Backlog | $ | 296 | $ | 245 | $ | 51 | 21 | % |
CONSOLIDATED AND SEGMENT OUTLOOK | ||||||||||||||
2018 vs. 2017 | ||||||||||||||
(dollars in millions) | 2018 | 2017 | $ Variance | % Variance | ||||||||||
Net sales: | ||||||||||||||
Aircraft Controls | $ | 1,195 | $ | 1,125 | $ | 70 | 6 | % | ||||||
Space and Defense Controls | 577 | 529 | 48 | 9 | % | |||||||||
Industrial Systems | 934 | 843 | 91 | 11 | % | |||||||||
$ | 2,707 | $ | 2,498 | $ | 209 | 8 | % | |||||||
Operating profit: | ||||||||||||||
Aircraft Controls | $ | 130 | $ | 114 | $ | 16 | 14 | % | ||||||
Space and Defense Controls | 68 | 49 | 19 | 40 | % | |||||||||
Industrial Systems | 63 | 88 | (25 | ) | (28 | %) | ||||||||
$ | 260 | $ | 250 | $ | 10 | 4 | % | |||||||
Operating margin: | ||||||||||||||
Aircraft Controls | 10.8 | % | 10.1 | % | ||||||||||
Space and Defense Controls | 11.8 | % | 9.2 | % | ||||||||||
Industrial Systems | 6.7 | % | 10.4 | % | ||||||||||
9.6 | % | 10.0 | % |
Nine Months Ended | |||||||||||
(dollars in millions) | June 30, 2018 | July 1, 2017 | $ Variance | % Variance | |||||||
Net cash provided (used) by: | |||||||||||
Operating activities | $ | 46 | $ | 169 | $ | (123 | ) | (73 | %) | ||
Investing activities | (122 | ) | (83 | ) | (39 | ) | 48 | % | |||
Financing activities | (137 | ) | (68 | ) | (69 | ) | 102 | % |
• | the markets we serve are cyclical and sensitive to domestic and foreign economic conditions and events, which may cause our operating results to fluctuate; |
• | we operate in highly competitive markets with competitors who may have greater resources than we possess; |
• | we depend heavily on government contracts that may not be fully funded or may be terminated, and the failure to receive funding or the termination of one or more of these contracts could reduce our sales and increase our costs; |
• | we make estimates in accounting for long-term contracts, and changes in these estimates may have significant impacts on our earnings; |
• | we enter into fixed-price contracts, which could subject us to losses if we have cost overruns; |
• | we may not realize the full amounts reflected in our backlog as revenue, which could adversely affect our future revenue and growth prospects; |
• | if our subcontractors or suppliers fail to perform their contractual obligations, our prime contract performance and our ability to obtain future business could be materially and adversely impacted; |
• | contracting on government programs is subject to significant regulation, including rules related to bidding, billing and accounting kickbacks and false claims, and any non-compliance could subject us to fines and penalties or possible debarment; |
• | the loss of The Boeing Company as a customer or a significant reduction in sales to The Boeing Company could adversely impact our operating results; |
• | our new product research and development efforts may not be successful which could reduce our sales and earnings; |
• | our inability to adequately enforce and protect our intellectual property or defend against assertions of infringement could prevent or restrict our ability to compete; |
• | our business operations may be adversely affected by information systems interruptions, intrusions or new software implementations; |
• | our indebtedness and restrictive covenants under our credit facilities could limit our operational and financial flexibility; |
• | significant changes in discount rates, rates of return on pension assets, mortality tables and other factors could adversely affect our earnings and equity and increase our pension funding requirements; |
• | a write-off of all or part of our goodwill or other intangible assets could adversely affect our operating results and net worth; |
• | our sales and earnings may be affected if we cannot identify, acquire or integrate strategic acquisitions, or if we engage in divesting activities; |
• | our operations in foreign countries expose us to political and currency risks and adverse changes in local legal and regulatory environments; |
• | unforeseen exposure to additional income tax liabilities may affect our operating results; |
• | government regulations could limit our ability to sell our products outside the United States and otherwise adversely affect our business; |
• | governmental regulations and customer demands related to conflict minerals may adversely impact our operating results; |
• | the failure or misuse of our products may damage our reputation, necessitate a product recall or result in claims against us that exceed our insurance coverage, thereby requiring us to pay significant damages; |
• | future terror attacks, war, natural disasters or other catastrophic events beyond our control could negatively impact our business; |
• | our operations are subject to environmental laws, and complying with those laws may cause us to incur significant costs; and |
• | we are involved in various legal proceedings, the outcome of which may be unfavorable to us. |
(a) | Disclosure Controls and Procedures. We carried out an evaluation, under the supervision and with the participation of our management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as defined in Exchange Act Rules 13a-15(e) and 15d-15(e). Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that these disclosure controls and procedures are effective as of the end of the period covered by this report, to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. |
(b) | Changes in Internal Control over Financial Reporting. There have been no changes during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting. |
(c) | The following table summarizes our purchases of our common stock for the quarter ended June 30, 2018. |
Period | (a) Total Number of Shares Purchased (1)(2) | (b) Average Price Paid Per Share | (c) Total number of Shares Purchased as Part of Publicly Announced Plans or Programs (3) | (d) Maximum Number (or Approx. Dollar Value) of Shares that May Yet Be Purchased Under Plans or Programs (3) | |||||||||
April 1, 2018 - April 30, 2018 | — | $ | — | — | 3,349,719 | ||||||||
May 1, 2018 - May 31, 2018 | 1,110 | 82.93 | — | 3,349,719 | |||||||||
June 1, 2018 - June 30, 2018 | 6,774 | 78.24 | — | 3,349,719 | |||||||||
Total | 7,884 | $ | 78.90 | — | 3,349,719 |
(1) | Reflects purchases by the Moog Inc. Stock Employee Compensation Trust Agreement ("SECT") of shares of Class B common stock from the Moog Inc. Retirement Savings Plan ("RSP") at average prices as follows: 6,774 shares at $78.24 per share during June. |
(2) | In connection with the exercise of equity-based compensation awards, we accept delivery of shares to pay for the exercise price and withhold shares for tax withholding obligations. In May, we accepted delivery of 1,110 shares at $82.93 per share, in connection with the exercise of equity-based awards. |
(3) | The Board of Directors has authorized a share repurchase program. This program has been amended from time to time to authorize additional repurchases up to an aggregate 13 million common shares. The program permits the purchase of shares of Class A or Class B common stock in open market or privately negotiated transactions at the discretion of management. |
(a) | Exhibits | ||
Restated By-laws of Moog Inc., as amended, effective May 8, 2018. | |||
Amendment No. 1 to Moog Inc. Stock Employee Compensation Trust, effective May 8, 2018. | |||
First Amendment to the Moog Inc. Defined Contribution Supplemental Executive Retirement Plan, effective July 26, 2018. | |||
First Amendment to the Moog Inc. Management Short Term Incentive Plan, effective July 26, 2018. | |||
Certification of Chief Executive Officer pursuant to Exchange Act Rule 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
Certification of Chief Financial Officer pursuant to Exchange Act Rule 13a-14(a) as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||
Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |||
101 | Interactive Date files (submitted electronically herewith) |
(101.INS) | XBRL Instance Document |
(101.SCH) | XBRL Taxonomy Extension Schema Document |
(101.CAL) | XBRL Taxonomy Extension Calculation Linkbase Document |
(101.DEF) | XBRL Taxonomy Extension Definition Linkbase Document |
(101.LAB) | XBRL Taxonomy Extension Label Linkbase Document |
(101.PRE) | XBRL Taxonomy Extension Presentation Linkbase Document |
Moog Inc. | |||||
(Registrant) | |||||
Date: | July 27, 2018 | By | /s/ John R. Scannell | ||
John R. Scannell | |||||
Chairman Chief Executive Officer (Principal Executive Officer) | |||||
Date: | July 27, 2018 | By | /s/ Donald R. Fishback | ||
Donald R. Fishback | |||||
Vice President Chief Financial Officer (Principal Financial Officer) | |||||
Date: | July 27, 2018 | By | /s/ Jennifer Walter | ||
Jennifer Walter | |||||
Vice President - Finance Controller (Principal Accounting Officer) | |||||
(a) | the submission to shareholders of any action as to which shareholders’ authorization is required by law; |
(b) | the filling of vacancies in the Board of Directors or on any committee; |
(c) | the fixing of compensation of any director for serving on the Board or on any committee; |
(d) | the amendment or repeal of these By-Laws, or the adoption of new By-Laws; |
(e) | the amendment or repeal of any resolution of the Board which by its terms shall not be so amendable or repealable. |
2. | The Plan is amended to add a new Section 1.2(z), as follows: |
• | 2018 Supplemental Bonus. With respect to the Plan Year beginning October 1, 2017, each eligible employee will be eligible to receive a “2018 Supplemental Bonus” in addition to any Bonus the eligible employee is otherwise eligible to receive for the Plan Year. The decision to pay and the amount of any 2018 Supplemental Bonus, if any, will be in the sole discretion of the Committee. |
• | 2019 Bonus. For the Plan Year beginning September 30, 2018, the Bonus an eligible employee will be eligible to receive for such Plan Year will equal the difference between (i) the Bonus the eligible employee would otherwise be entitled to receive for the Plan Year without regard to this provision, less (ii) the amount of any 2018 Supplemental Bonus paid to such eligible employee. In no event will the Bonus for the Plan Year beginning on September 30, 2018 be less than zero. |
1. | I have reviewed this quarterly report on Form 10-Q of Moog Inc.; |
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 most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) 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 registrant’s board of directors (or persons performing equivalent functions): |
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. |
1. | I have reviewed this quarterly report on Form 10-Q of Moog Inc.; |
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 most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) 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 registrant’s board of directors (or persons performing equivalent functions): |
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. |
Document And Entity Information - USD ($) |
9 Months Ended | ||
---|---|---|---|
Jun. 30, 2018 |
Jul. 24, 2018 |
Apr. 01, 2018 |
|
Document Information | |||
Entity Registrant Name | MOOG INC. | ||
Entity Central Index Key | 0000067887 | ||
Current Fiscal Year End Date | --09-29 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-Q | ||
Document Period End Date | Jun. 30, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | Q3 | ||
Amendment Flag | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2,718,000,000 | ||
Class A Common Stock | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 32,466,689 | ||
Entity Listing, Par Value Per Share | $ 1.00 | ||
Class B Common Stock | |||
Document Information | |||
Entity Common Stock, Shares Outstanding | 3,322,519 | ||
Entity Listing, Par Value Per Share | $ 1.00 |
Consolidated Condensed Statements of Earnings - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Income Statement [Abstract] | ||||
Net sales | $ 692,018 | $ 626,183 | $ 2,008,602 | $ 1,848,256 |
Cost of sales | 492,234 | 443,769 | 1,424,731 | 1,308,256 |
Inventory write-down - restructuring | 2,398 | 0 | 9,727 | 0 |
Gross profit | 197,386 | 182,414 | 574,144 | 540,000 |
Research and development | 31,040 | 36,314 | 97,545 | 107,828 |
Selling, general and administrative | 103,053 | 89,144 | 299,002 | 261,271 |
Interest | 8,850 | 8,654 | 26,585 | 25,789 |
Restructuring | (1,549) | 0 | 22,509 | 0 |
Other | 1,037 | 29 | 45 | 12,148 |
Earnings before income taxes | 54,955 | 48,273 | 128,458 | 132,964 |
Income taxes | 14,205 | 8,185 | 72,444 | 31,156 |
Net earnings attributable to Moog and noncontrolling interest | 40,750 | 40,088 | 56,014 | 101,808 |
Net earnings (loss) attributable to noncontrolling interest | 67 | 0 | 67 | (870) |
Net earnings attributable to Moog | $ 40,683 | $ 40,088 | $ 55,947 | $ 102,678 |
Net earnings per share attributable to Moog | ||||
Basic | $ 1.14 | $ 1.12 | $ 1.56 | $ 2.86 |
Diluted | 1.13 | 1.11 | 1.55 | 2.83 |
Dividends declared per share | $ 0.00 | $ 0.00 | $ 0.25 | $ 0.00 |
Average common shares outstanding | ||||
Basic | 35,762,918 | 35,847,842 | 35,768,471 | 35,868,315 |
Diluted | 36,143,367 | 36,212,779 | 36,174,759 | 36,240,794 |
Consolidated Condensed Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net earnings attributable to Moog and noncontrolling interest | $ 40,750 | $ 40,088 | $ 56,014 | $ 101,808 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | (40,788) | 32,805 | (10,127) | 3,991 |
Retirement liability adjustment | 7,080 | 3,566 | 16,018 | 17,609 |
Change in accumulated income (loss) on derivatives | (747) | 1,013 | (92) | 2,833 |
Other Comprehensive Income (Loss), before Tax | (34,455) | 37,384 | 5,799 | 24,433 |
Tax Cuts and Jobs Act, reclassification from AOCIL to retained earnings | 0 | 0 | (47,077) | 0 |
Comprehensive income (loss) | 6,295 | 77,472 | 14,736 | 126,241 |
Comprehensive income (loss) attributable to noncontrolling interest | 41 | 0 | 41 | (870) |
Comprehensive income (loss) attributable to Moog | $ 6,254 | $ 77,472 | $ 14,695 | $ 127,111 |
Consolidated Condensed Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Property, plant and equipment, accumulated depreciation | $ 818,644 | $ 771,160 |
Basis Of Presentation |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated condensed financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting of normal recurring adjustments considered necessary for the fair presentation of results for the interim period have been included. The results of operations for the three and nine months ended June 30, 2018 are not necessarily indicative of the results expected for the full year. The accompanying unaudited consolidated condensed financial statements should be read in conjunction with the financial statements and notes thereto included in our Form 10-K for the fiscal year ended September 30, 2017. All references to years in these financial statements are to fiscal years. Certain prior year amounts have been reclassified to conform to current year's presentation. During 2018, we made a change to our segment reporting structure and merged our former Components segment into Space and Defense Controls and Industrial Systems. The Goodwill and Segment footnotes have been restated to reflect these changes. Recent Accounting Pronouncements Adopted
Recent Accounting Pronouncements Not Yet Adopted
We consider the applicability and impact of all ASUs. ASUs not listed above were assessed and determined to be either not applicable, or had or are expected to have minimal impact on our financial statements and related disclosures. |
Acquisitions, Divestitures and Equity Method Investments |
9 Months Ended |
---|---|
Jun. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions, Divestitures and Equity Method Investments | Acquisitions, Divestitures and Equity Method Investments On April 30, 2018, we acquired Electro-Optical Imaging, a designer and manufacturer of video trackers and imaging products, located in Florida, for a purchase price net of acquired cash of $5,001. This operation is included in our Space and Defense Controls segment. The purchase price allocation is subject to adjustments as we obtain additional information for our estimates during the measurement period. On March 29, 2018, we acquired a 100% ownership interest in VUES Brno s.r.o located in the Czech Republic, which includes a 74% ownership interest in a subsidiary located in Germany. The purchase price, net of acquired cash, was $64,337, consisting of $42,960 in cash and $21,377 of assumed debt. VUES designs and manufactures customized electric motors, generators and solutions. This operation is included in our Industrial Systems segment. The purchase price allocation is subject to adjustments as we obtain additional information for our estimates during the measurement period. On October 3, 2017, we, in collaboration with SIA Engineering Company, announced the joint venture company, Moog Aircraft Services Asia ("MASA"), in Singapore, of which we currently hold a 51% ownership. MASA is intended to provide maintenance, repair and overhaul services for our manufactured flight control systems. As we hold a majority ownership in MASA, but share voting control, we are accounting for this investment using the equity method. At June 30, 2018, we have made total contributions of $5,100. This operation is included in our Aircraft Controls segment. In 2017, we sold non-core businesses of our Space and Defense Controls segment for $7,210 in cash and recorded losses in other expense of $13,119 related to the sales. On April 2, 2017, we acquired Rotary Transfer Systems, a manufacturer of electromechanical systems, located in Germany and France for a purchase price, net of acquired cash, of $42,593, consisting of $40,545 in cash and $2,048 in assumed pension obligations. This operation is included in our Industrial Systems segment. |
Receivables |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables | Receivables Receivables consist of:
We securitize certain trade receivables in transactions that are accounted for as secured borrowings (Securitization Program). We maintain a subordinated interest in a portion of the pool of trade receivables that are securitized. The retained interest, which is included in Receivables in the consolidated condensed balance sheets, is recorded at fair value, which approximates the total amount of the designated pool of accounts receivable. Refer to Note 6, Indebtedness, for additional disclosures related to the Securitization Program. |
Inventories |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories | Inventories Inventories, net of reserves, consist of:
There are no material inventoried costs relating to long-term contracts where revenue is accounted for using the percentage of completion, cost-to-cost method of accounting as of June 30, 2018 or September 30, 2017. |
Goodwill And Intangible Assets |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill And Intangible Assets | Goodwill and Intangible Assets The changes in the carrying amount of goodwill are as follows:
In 2018, we changed our segment reporting structure as our former Components segment was separated and merged into Space and Defense Controls and Industrial Systems. As a result, the September 30, 2017 balances for those segments were restated to reflect this change. Goodwill for Space and Defense Controls and Industrial Systems increased by $86,995 and $224,194, respectively, than what was previously reported. Goodwill in our Space and Defense Controls segment is net of a $4,800 accumulated impairment loss at June 30, 2018. Goodwill in our Medical Devices reporting unit, included in our Industrial Systems segment, is net of a $38,200 accumulated impairment loss at June 30, 2018. The gross carrying amounts, accumulated amortization and amortization expense in the disclosures below reflect the full write off of intangible assets in relation to restructuring actions taken in our Industrial Systems segment. We recorded this charge during the second quarter of 2018 based on the expected cash flows over the remaining life of the assets. Refer to Note 11, Restructuring, for additional disclosures. The components of intangible assets are as follows:
Substantially all acquired intangible assets other than goodwill are being amortized. Customer-related intangible assets primarily consist of customer relationships. Technology-related intangible assets primarily consist of technology, patents, intellectual property and software. Program-related intangible assets consist of long-term programs represented by current contracts and probable follow on work. Marketing-related intangible assets primarily consist of trademarks, trade names and non-compete agreements. Amortization of acquired intangible assets was $4,127 and $13,398 for the three and nine months ended June 30, 2018 and $4,680 and $13,880 for the three and nine months ended July 1, 2017. Based on acquired intangible assets recorded at June 30, 2018, amortization is expected to be approximately $17,400 in 2018, $15,300 in 2019, $12,900 in 2020, $10,700 in 2021 and $9,100 in 2022. |
Indebtedness |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Indebtedness | Indebtedness We maintain short-term line of credit facilities with banks throughout the world that are principally demand lines subject to revision by the banks. Long-term debt consists of:
Our U.S. revolving credit facility matures on June 28, 2021. Our U.S. revolving credit facility has a capacity of $1,100,000 and provides an expansion option, which permits us to request an increase of up to $200,000 to the credit facility upon satisfaction of certain conditions. The credit facility is secured by substantially all of our U.S. assets. The loan agreement contains various covenants which, among others, specify interest coverage and maximum leverage. We are in compliance with all covenants. At June 30, 2018, we had $300,000 aggregate principal amount of 5.25% senior notes due December 1, 2022 with interest paid semiannually on June 1 and December 1 of each year. The senior notes are unsecured obligations, guaranteed on a senior unsecured basis by certain subsidiaries and contain normal incurrence-based covenants and limitations such as the ability to incur additional indebtedness, pay dividends, make other restricted payments and investments, create liens and certain corporate acts such as mergers and consolidations. The Securitization Program matures on October 23, 2019 and effectively increases our borrowing capacity by up to $130,000. Under the Securitization Program, we sell certain trade receivables and related rights to an affiliate, which in turn sells an undivided variable percentage ownership interest in the trade receivables to a financial institution, while maintaining a subordinated interest in a portion of the pool of trade receivables. Interest for the Securitization Program is based on 30-day LIBOR plus an applicable margin. A commitment fee is also charged based on a percentage of the unused amounts available and is not material. The agreement governing the Securitization Program contains restrictions and covenants which include limitations on the making of certain restricted payments, creation of certain liens, and certain corporate acts such as mergers, consolidations and sale of substantially all assets. The Securitization Program has a minimum borrowing requirement equal to the lesser of either 80% of our borrowing capacity or 100% of our borrowing base, which is a subset of the trade receivables sold under this agreement. As of June 30, 2018, our minimum borrowing requirement was $104,000. |
Product Warranties |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties | Product Warranties In the ordinary course of business, we warrant our products against defects in design, materials and workmanship typically over periods ranging from twelve to sixty months. We determine warranty reserves needed by product line based on historical experience and current facts and circumstances. Activity in the warranty accrual is summarized as follows:
|
Derivative Financial Instruments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedges, Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments We principally use derivative financial instruments to manage interest rate risk associated with long-term debt and foreign exchange risk related to foreign operations and foreign currency transactions. We enter into derivative financial instruments with a number of major financial institutions to minimize counterparty credit risk. Derivatives designated as hedging instruments Interest rate swaps are used to adjust the proportion of total debt that is subject to variable and fixed interest rates. The interest rate swaps are designated as hedges of the amount of future cash flows related to interest payments on variable-rate debt that, in combination with the interest payments on the debt, convert a portion of the variable-rate debt to fixed-rate debt. At June 30, 2018, we had interest rate swaps with notional amounts totaling $150,000. The interest rate swaps effectively convert this amount of variable-rate debt to fixed-rate debt at 2.87%, including the applicable margin of 1.63% as of June 30, 2018. The interest will revert back to variable rates based on LIBOR plus the applicable margin upon the maturity of the interest rate swaps. These interest rate swaps mature at various times through June 23, 2020. We use foreign currency contracts as cash flow hedges to effectively fix the exchange rates on future payments and revenue. To mitigate exposure in movements between various currencies, including the Philippine peso, we had outstanding foreign currency forwards with notional amounts of $40,088 at June 30, 2018. These contracts mature at various times through February 28, 2020. We use forward currency contracts to hedge our net investment in certain foreign subsidiaries. To mitigate the exposure in foreign currencies, we had an outstanding net investment hedge in Euro, with a notional amount of $27,227 at June 30, 2018, maturing in our fourth quarter of 2018. These interest rate swaps, foreign currency contracts and net investment hedges are recorded in the consolidated condensed balance sheets at fair value and the related gains or losses are deferred in shareholders’ equity as a component of Accumulated Other Comprehensive Income (Loss) (AOCIL). These deferred gains and losses are reclassified into the consolidated condensed statements of earnings, as necessary, during the periods in which the related payments or receipts affect earnings. However, to the extent the interest rate swaps and foreign currency contracts are not perfectly effective in offsetting the change in the value of the payments and revenue being hedged, the ineffective portion of these contracts is recognized in earnings immediately. Ineffectiveness was not material in the first nine months of 2018 or 2017. Derivatives not designated as hedging instruments We also have foreign currency exposure on balances, primarily intercompany, that are denominated in foreign currencies and are adjusted to current values using period-end exchange rates. The resulting gains or losses are recorded in the consolidated condensed statements of earnings. To minimize foreign currency exposure, we had foreign currency contracts with notional amounts of $122,408 at June 30, 2018. The foreign currency contracts are recorded in the consolidated condensed balance sheets at fair value and resulting gains or losses are recorded in the consolidated condensed statements of earnings. We recorded the following gains or losses on foreign currency contracts which are included in other income or expense and generally offset the gains or losses from the foreign currency adjustments on the intercompany balances that are also included in other income or expense:
Summary of derivatives The fair value and classification of derivatives is summarized as follows:
|
Fair Value |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Fair Value Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Depending on the nature of the asset or liability, various techniques and assumptions can be used to estimate fair value. The definition of the fair value hierarchy is as follows: Level 1 – Quoted prices in active markets for identical assets and liabilities. Level 2 – Observable inputs other than quoted prices in active markets for similar assets and liabilities. Level 3 – Inputs for which significant valuation assumptions are unobservable in a market and therefore value is based on the best available data, some of which is internally developed and considers risk premiums that a market participant would require. Our derivatives are valued using various pricing models or discounted cash flow analyses that incorporate observable market data, such as interest rate yield curves and currency rates, and are classified as Level 2 within the valuation hierarchy. The following table presents the fair values and classification of our financial assets and liabilities measured on a recurring basis, all of which are classified as Level 2.
Our only financial instrument for which the carrying value differs from its fair value is long-term debt. At June 30, 2018, the fair value of long-term debt was $865,650 compared to its carrying value of $860,962. The fair value of long-term debt is classified as Level 2 within the fair value hierarchy and was estimated based on quoted market prices. |
Employee Benefit Plans |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Employee Benefit Plans | Employee Benefit Plans Net periodic benefit costs for our defined benefit pension plans are as follows:
Pension expense for our defined contribution plans consists of:
Contributions for all of our U.S. defined benefit pension plans are expected to be approximately $149,000 in 2018. |
Restructuring |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring | Restructuring In 2018, we initiated restructuring actions in conjunction with exiting the wind pitch control business within our Industrial Systems segment. These actions will result in workforce reductions, principally in Germany and China. Charges taken consist of $9,727 of non-cash inventory reserves, $12,316 of non-cash charges for the impairment of intangible assets, $2,203 of non-cash charges, primarily for the impairment of long-lived assets, $6,039 for severance and $1,951 for other costs. Restructuring activity for severance and other costs is as follows:
As of June 30, 2018, the restructuring accrual consists of $592 for the 2016 plan and $7,430 for the 2018 plan. Restructuring for all plans is expected to be paid by September 28, 2019. |
Income Taxes |
9 Months Ended |
---|---|
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rates for the three and nine months ended June 30, 2018 were 25.8% and 56.4%, respectively. The effective tax rate for the nine months ended June 30, 2018 is higher than would be expected by applying the U.S. federal statutory tax rate to earnings before income taxes primarily due to the enactment of the Tax Cuts and Jobs Act (the "Act") of 2017 and limited tax benefits associated with the restructuring charges taken in foreign jurisdictions of our Industrial Systems segment. The Act was enacted on December 22, 2017. It 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. As of June 30, 2018, we have not completed the accounting for the tax effects of enactment of the Act; however, as described below, we have made a reasonable estimate of the effects on the one-time transition tax, withholding taxes on earnings deemed to be repatriated and existing deferred tax balances. These amounts are provisional and subject to change as the determination of the impact of the income tax effects will require additional analysis of historical records, annual data and further interpretation of the Act from yet to be issued U.S. Treasury regulations. During the nine months ended June 30, 2018, we recorded a $31,300 one-time transition tax on undistributed foreign earnings deemed to be repatriated and a tax charge of $16,085 as an additional provision for taxes on undistributed earnings not considered to be permanently reinvested. No additional income taxes have been provided for any remaining undistributed foreign earnings not subject to the transition tax, or any additional outside basis difference inherent in these entities, as these amounts continue to be indefinitely reinvested in foreign operations. Determining the amount of unrecognized deferred tax liability related to any remaining undistributed foreign earnings not subject to the transition tax and additional outside basis difference in these entities is not practicable. These charges are partially offset by a $9,487 benefit due to the remeasurement of deferred tax assets and liabilities arising from a lower U.S. corporate tax rate, which took into account our decision to accelerate pension contributions into our 2017 pension plan year. This allows the pension contribution tax deduction to be taken in our 2017 federal income tax return which is taxed at the 35% federal rate. The effective tax rate for the three and nine months ended July 1, 2017 were 17.0% and 23.4%, respectively. The effective tax rate for these periods are lower than would be expected by applying the U.S. federal statutory tax rate to earnings before income taxes primarily from the tax benefits associated with divesting non-core businesses in Space and Defense Controls and the recognition and timing of U.S. tax incentives. |
Accumulated Other Comprehensive Income (Loss) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The changes in AOCIL, net of tax, by component for the nine months ended June 30, 2018 are as follows:
(1) Net gains and losses on net investment hedges are recorded as cumulative translation adjustments in AOCIL to the extent that the instruments are effective in hedging the designated risk. (2) In the second quarter of 2018, we early adopted ASU 2018-02 and reclassified the stranded deferred tax effects resulting from the Tax Cuts and Jobs Act to retained earnings. The amounts reclassified from AOCIL into earnings are as follows:
(1) The reclassifications are included in the computation of net periodic pension cost and postretirement benefit cost. The amounts deferred in AOCIL are as follows:
|
Stock Employee Compensation Trust and Supplemental Retirement Plan Trust |
9 Months Ended |
---|---|
Jun. 30, 2018 | |
Share-based Compensation [Abstract] | |
Stock Employee Compensation Trust and Supplemental Retirement Plan Trust | Stock Employee Compensation Trust and Supplemental Retirement Plan Trust The Stock Employee Compensation Trust (SECT) assists in administering and provides funding for equity-based compensation plans and benefit programs, including the Moog Inc. Retirement Savings Plan (RSP). The Supplemental Retirement Plan (SERP) Trust provides funding for benefits under the SERP provisions of the Moog Inc. Plan to Equalize Retirement Income and Supplemental Retirement Income. Both the SECT and the SERP Trust hold shares as investments. The shares in the SECT and SERP Trust are not considered outstanding for purposes of calculating earnings per share. However, in accordance with the trust agreements governing the SECT and SERP Trust, the trustees vote all shares held by the SECT and SERP Trust on all matters submitted to shareholders. |
Earnings Per Share |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | Earnings per Share Basic and diluted weighted-average shares outstanding are as follows:
For the three and nine months ended June 30, 2018, there were 25,570 and 19,780 common shares from equity-based awards, respectively, excluded from the calculation of diluted earnings per share as they would be anti-dilutive. For the three and nine months ended July 1, 2017, there were 67,597 and 94,273 common shares from equity-based awards, respectively, excluded from the calculation of diluted earnings per share as they would be anti-dilutive. During the second quarter of 2018, the Board of Directors declared a $0.25 per share quarterly dividend payable on issued and outstanding shares of our Class A and Class B common stock on June 1, 2018 to shareholders of record at the close of business on May 15, 2018. |
Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information Effective October 1, 2017, we made changes to our segment reporting structure that resulted in three reporting segments. Our former Components segment has been separated and merged into Space and Defense Controls and Industrial Systems. All amounts have been restated to reflect this change. Below are sales and operating profit by segment for the three and nine months ended June 30, 2018 and July 1, 2017 and a reconciliation of segment operating profit to earnings before income taxes. Operating profit is net sales less cost of sales and other operating expenses, excluding interest expense, equity-based compensation expense and other corporate expenses. Cost of sales and other operating expenses are directly identifiable to the respective segment or allocated on the basis of sales, number of employees or profit. Refer to Note 11, Restructuring, for the impact of amounts charged to expense that are reflected in the operating profit of the Industrial Systems segment.
The amounts reclassified for net sales and operating profit as a result of the revised segment reporting structure for the three and nine months ended July 1, 2017 are as follows:
Segment assets for Space and Defense Controls and Industrial Systems are approximately $645,000 and $1,120,000, respectively, as of June 30, 2018, primarily as a result of the change to our segment reporting structure. Corporate assets not allocated to our reporting segments, have decreased from $270,411 as of September 30, 2017 to approximately $81,000 as of June 30, 2018, primarily as a result of the repayment of debt and defined benefit pension contributions. |
Related Party Transactions |
9 Months Ended |
---|---|
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related Party Transactions On November 20, 2017, John Scannell was elected to the Board of Directors of M&T Bank Corporation and M&T Bank. We currently engage with M&T Bank in the ordinary course of business for various financing activities, all of which were initiated prior to the election of Mr. Scannell to the Board. M&T Bank provides credit extension for routine purchases, which for the nine months ended June 30, 2018 totaled $16,790. At June 30, 2018, we held a $15,000 interest rate swap with M&T Bank and outstanding leases with a total original cost of $28,984. M&T Bank also maintains an interest of approximately 12% in our U.S. revolving credit facility. Further details of the U.S. revolving credit facility can be found in Note 6, Indebtedness. |
Commitments and Contingencies |
9 Months Ended |
---|---|
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies From time to time, we are involved in legal proceedings. We are not a party to any pending legal proceedings which management believes will result in a material adverse effect on our financial condition, results of operations or cash flows. We are engaged in administrative proceedings with governmental agencies and legal proceedings with governmental agencies and other third parties in the normal course of our business, including litigation under Superfund laws, regarding environmental matters. We believe that adequate reserves have been established for our share of the estimated cost for all currently pending environmental administrative or legal proceedings and do not expect that these environmental matters will have a material adverse effect on our financial condition, results of operations or cash flows. In the ordinary course of business we could be subject to ongoing claims or disputes from our customers, the ultimate settlement of which could have a material adverse impact on our consolidated results of operations. While the receivables and any loss provisions recorded to date reflect management's best estimate of the projected costs to complete a given project, there may still be significant effort required to complete the ultimate deliverable. Future variability in internal cost as well as future profitability is dependent upon a number of factors including deliveries, performance and government budgetary pressures. The inability to achieve a satisfactory contractual solution, further unplanned delays, additional developmental cost growth or variations in any of the estimates used in the existing contract analysis could lead to further loss provisions. Additional losses could have a material adverse impact on our financial condition, results of operations or cash flows in the period in which the loss may be recognized. We are contingently liable for $44,232 of standby letters of credit issued by a bank to third parties on our behalf at June 30, 2018. |
Subsequent Event |
9 Months Ended |
---|---|
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Event On July 26, 2018, the Board of Directors declared a $0.25 per share quarterly dividend payable on issued and outstanding shares of our Class A and Class B common stock on September 4, 2018 to shareholders of record at the close of business on August 15, 2018. |
Basis Of Presentation (Policies) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Accounting | The accompanying unaudited consolidated condensed financial statements have been prepared by management in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. In the opinion of management, all adjustments consisting of normal recurring adjustments considered necessary for the fair presentation of results for the interim period have been included. The results of operations for the three and nine months ended June 30, 2018 are not necessarily indicative of the results expected for the full year. The accompanying unaudited consolidated condensed financial statements should be read in conjunction with the financial statements and notes thereto included in our Form 10-K for the fiscal year ended September 30, 2017. All references to years in these financial statements are to fiscal years. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification | Certain prior year amounts have been reclassified to conform to current year's presentation. During 2018, we made a change to our segment reporting structure and merged our former Components segment into Space and Defense Controls and Industrial Systems. The Goodwill and Segment footnotes have been restated to reflect these changes. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recent Accounting Pronouncements | Recent Accounting Pronouncements Adopted
Recent Accounting Pronouncements Not Yet Adopted
We consider the applicability and impact of all ASUs. ASUs not listed above were assessed and determined to be either not applicable, or had or are expected to have minimal impact on our financial statements and related disclosures. |
Receivables (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable | Receivables consist of:
|
Inventories (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory, net of reserves | Inventories, net of reserves, consist of:
|
Goodwill and Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Carry Amount of Goodwill | The changes in the carrying amount of goodwill are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Intangible Assets | The components of intangible assets are as follows:
|
Indebtedness (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Long-term debt | Long-term debt consists of:
|
Product Warranties (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Activity in Warranty Accrual | Activity in the warranty accrual is summarized as follows:
|
Derivative Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedges, Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gains And Losses On Foreign Currency Forwards Included In Other Income Or Expense | We recorded the following gains or losses on foreign currency contracts which are included in other income or expense and generally offset the gains or losses from the foreign currency adjustments on the intercompany balances that are also included in other income or expense:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value And Classification Of Derivatives On The Consolidated Balance Sheets | The fair value and classification of derivatives is summarized as follows:
|
Fair Value (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values And Classification Of Financial Assets And Liabilities Measured On A Recurring Basis | The following table presents the fair values and classification of our financial assets and liabilities measured on a recurring basis, all of which are classified as Level 2.
|
Employee Benefit Plans (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Periodic Benefit Costs | Net periodic benefit costs for our defined benefit pension plans are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Contribution Plan Disclosures | Pension expense for our defined contribution plans consists of:
|
Restructuring (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve Activity | Restructuring activity for severance and other costs is as follows:
|
Accumulated Other Comprehensive Income (Loss) (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of AOCIL | The changes in AOCIL, net of tax, by component for the nine months ended June 30, 2018 are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification from AOCIL | The amounts reclassified from AOCIL into earnings are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity and Classification of Derivative Deferral in AOCIL | The amounts deferred in AOCIL are as follows:
|
Earnings Per Share (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic And Diluted Weighted-Average Shares Outstanding | Basic and diluted weighted-average shares outstanding are as follows:
|
Segment Information (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2018 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales And Operating Profit By Segment And Reconciliation Of Segment Operating Profit To Earnings Before Income Taxes |
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Revenue from Segments to Consolidated | The amounts reclassified for net sales and operating profit as a result of the revised segment reporting structure for the three and nine months ended July 1, 2017 are as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Operating Profit (Loss) from Segments to Consolidated |
|
Receivables (Schedule of Receivables) (Details) - USD ($) $ in Thousands |
9 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2018 |
Sep. 30, 2017 |
|
Receivables [Abstract] | ||
Accounts receivable | $ 293,967 | $ 286,773 |
Long-term contract receivable - Amounts billed | 138,862 | 148,087 |
Long-term contract receivable - Unbilled recoverable costs and accrued profits | 297,527 | 282,154 |
Total long-term contract receivables | 436,389 | 430,241 |
Other | 31,987 | 15,077 |
Total receivables | 762,343 | 732,091 |
Less allowance for doubtful accounts | (4,888) | (4,351) |
Receivables | $ 757,455 | $ 727,740 |
Inventories (Schedule of Inventory)(Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials and purchased parts | $ 187,483 | $ 189,517 |
Work in progress | 251,865 | 229,202 |
Finished goods | 75,230 | 70,408 |
Inventories | $ 514,578 | $ 489,127 |
Goodwill And Intangible Assets (Changes In Carrying Amount Of Goodwill) (Details) $ in Thousands |
9 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
| |
Goodwill | |
Beginning balance | $ 774,268 |
Acquisitions | 21,310 |
Foreign currency translation | (4,752) |
Ending balance | 790,826 |
Aircraft Controls | |
Goodwill | |
Beginning balance | 181,375 |
Acquisitions | 0 |
Foreign currency translation | (780) |
Ending balance | 180,595 |
Space And Defense Controls | |
Goodwill | |
Beginning balance | 259,951 |
Acquisitions | 3,769 |
Foreign currency translation | (96) |
Ending balance | 263,624 |
Industrial Systems | |
Goodwill | |
Beginning balance | 332,942 |
Acquisitions | 17,541 |
Foreign currency translation | (3,876) |
Ending balance | $ 346,607 |
Goodwill And Intangible Assets (Goodwill Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Jun. 30, 2018 |
|
Space And Defense Controls | ||
Goodwill [Line Items] | ||
Goodwill, accumulated impairment loss | $ 4,800 | |
Industrial Systems | ||
Goodwill [Line Items] | ||
Goodwill, accumulated impairment loss | $ 38,200 | |
Goodwill | Space And Defense Controls | ||
Goodwill [Line Items] | ||
Prior period reclassification adjustment | $ 86,995 | |
Goodwill | Industrial Systems | ||
Goodwill [Line Items] | ||
Prior period reclassification adjustment | $ 224,194 |
Goodwill And Intangible Assets (Intangibles Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of acquired intangible assets | $ 4,127 | $ 4,680 | $ 13,398 | $ 13,880 |
Future amortization expenses, 2018 | 17,400 | 17,400 | ||
Future amortization expenses, 2019 | 15,300 | 15,300 | ||
Future amortization expenses, 2020 | 12,900 | 12,900 | ||
Future amortization expenses, 2021 | 10,700 | 10,700 | ||
Future amortization expenses, 2022 | $ 9,100 | $ 9,100 |
Indebtedness (Components of Long-term debt) (Details) - USD ($) $ in Thousands |
Jun. 30, 2018 |
Sep. 30, 2017 |
---|---|---|
Debt Disclosure [Abstract] | ||
U.S. revolving credit facility | $ 430,000 | $ 540,110 |
Senior notes | 300,000 | 300,000 |
Securitization program | 130,000 | 120,000 |
Obligations under capital leases | 962 | 306 |
Senior debt | 860,962 | 960,416 |
Less deferred debt issuance cost | (2,144) | (3,468) |
Less current installments | (393) | (295) |
Long-term debt | $ 858,425 | $ 956,653 |
Indebtedness (Narrative) (Details) - USD ($) $ in Thousands |
Oct. 23, 2017 |
Jun. 28, 2016 |
Jun. 30, 2018 |
---|---|---|---|
Revolving Credit Facility | |||
Line of Credit Facility | |||
Line of Credit Facility, Current Borrowing Capacity | $ 1,100,000 | ||
Expansion option to increase credit facility | $ 200,000 | ||
Senior Notes | |||
Line of Credit Facility | |||
Debt Instrument, Face Amount | $ 300,000 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | ||
Securitization Program | |||
Line of Credit Facility | |||
Maximum credit facility amount that can borrow | $ 130,000 | ||
Percentage of borrowing capacity on the Securitization Program | 80.00% | ||
Percentage of borrowing base on the Securitization Program | 100.00% | ||
Minimum borrowing requirement for the Securitization Program | $ 104,000 |
Product Warranties (Narrative) (Details) |
9 Months Ended |
---|---|
Jun. 30, 2018 | |
Minimum | |
Product Warranty Liability | |
Warranty period - months | twelve |
Maximum | |
Product Warranty Liability | |
Warranty period - months | sixty |
Product Warranties (Summary Of Activity In Warranty Accrual) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||||
Warranty accrual at beginning of period | $ 28,255 | $ 23,272 | $ 25,848 | $ 21,363 |
Additions from acquisitions | 0 | 433 | 0 | 433 |
Warranties issued during current period | 3,451 | 4,030 | 11,488 | 12,185 |
Adjustments to pre-existing warranties | (80) | (124) | (325) | (495) |
Reductions for settling warranties | (3,219) | (4,046) | (9,141) | (9,509) |
Foreign currency translation | (701) | 420 | (164) | 8 |
Warranty accrual at end of period | $ 27,706 | $ 23,985 | $ 27,706 | $ 23,985 |
Derivative Financial Instruments (Narrative) (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Designated as Hedging Instrument | ||
Derivative | ||
Cash Flow Hedge Ineffectiveness is Immaterial | not material | not material |
Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivative | ||
Notional Amount, Derivative | $ 150,000 | |
Conversion Rate Of Interest Rate Swaps From Variable to Fixed | 2.87% | |
Basis Spread on Variable Rate Derivative | 1.63% | |
Designated as Hedging Instrument | Foreign Currency Contracts | ||
Derivative | ||
Notional Amount, Derivative | $ 40,088 | |
Designated as Hedging Instrument | Net Investment Hedge | ||
Derivative | ||
Notional Amount, Derivative | 27,227 | |
Not Designated as Hedging Instrument | Foreign Currency Contracts | ||
Derivative | ||
Notional Amount, Derivative | $ 122,408 |
Derivative Financial Instruments (Gains And Losses On Foreign Currency Forwards Included In Other Income Or Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Other Income (Expense) | ||||
Derivative | ||||
Net gain (loss) | $ (1,028) | $ (1,440) | $ (4,037) | $ (539) |
Fair Value Fair Value (Narrative) (Details) $ in Thousands |
Jun. 30, 2018
USD ($)
|
---|---|
Fair Value Disclosures [Abstract] | |
Fair value of long-term debt | $ 865,650 |
Carrying value of long-term debt | $ 860,962 |
Employee Benefit Plans (Net Periodic Benefit Costs) (Details) - Defined Benefit Pension Plans - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
U.S. Plans | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | $ 5,634 | $ 6,044 | $ 16,901 | $ 18,087 |
Interest cost | 8,073 | 7,659 | 24,219 | 22,930 |
Expected return on plan assets | (13,575) | (13,627) | (40,726) | (40,882) |
Amortization of prior service cost (credit) | 46 | 46 | 140 | 140 |
Amortization of actuarial loss | 6,903 | 8,465 | 20,707 | 25,303 |
Pension expense for defined benefit plans | 7,081 | 8,587 | 21,241 | 25,578 |
Non-U.S. Plans | ||||
Defined Benefit Plan Disclosure | ||||
Service cost | 1,486 | 1,499 | 4,475 | 4,545 |
Interest cost | 1,066 | 794 | 3,213 | 2,291 |
Expected return on plan assets | (1,260) | (1,180) | (3,793) | (3,433) |
Amortization of prior service cost (credit) | (15) | (26) | (44) | (80) |
Amortization of actuarial loss | 630 | 1,145 | 1,902 | 3,374 |
Curtailment gain | 0 | (150) | 0 | (150) |
Pension expense for defined benefit plans | $ 1,907 | $ 2,082 | $ 5,753 | $ 6,547 |
Employee Benefit Plans (Defined Contribution Expense) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Defined Contribution Pension Plans | ||||
Defined Contribution Plan Disclosure | ||||
Defined contribution plan expense | $ 5,834 | $ 5,460 | $ 17,201 | $ 15,548 |
U.S. Plans | ||||
Defined Contribution Plan Disclosure | ||||
Defined contribution plan expense | 4,374 | 3,926 | 12,482 | 11,182 |
Non-U.S. Plans | ||||
Defined Contribution Plan Disclosure | ||||
Defined contribution plan expense | $ 1,460 | $ 1,534 | $ 4,719 | $ 4,366 |
Employee Benefit Plans (Narrative) (Details) $ in Thousands |
Jun. 30, 2018
USD ($)
|
---|---|
U.S. Plans | |
Defined Benefit Plan Disclosure | |
Expected future employer contributions for the fiscal year | $ 149,000 |
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Dec. 22, 2017 |
Oct. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Income Tax Disclosure [Abstract] | ||||||
Effective income tax rate | 25.80% | 17.00% | 56.40% | 23.40% | ||
U.S. federal corporate tax rate | 21.00% | 35.00% | ||||
Transition Tax on Undistributed Foreign Earnings Deemed To Be Repatriated | $ 31,300 | |||||
Withholding Taxes on Undistributed Foreign Earnings Deemed To Be Repatriated | 16,085 | |||||
Additional Income Tax Provision For Remaining Undistributed Foreign Earnings | 0 | |||||
Income tax benefit due to remeasurement of deferred tax assets and liabilities | $ 9,487 |
Accumulated Other Comprehensive Income (Loss) (Activity and Classification of Derivative Deferral in AOCI) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Derivative Instruments, Gain (Loss) | ||||
Net gain (loss) | $ (1,023) | $ (83) | $ (603) | $ (1,429) |
Tax effect | 247 | 77 | (37) | 453 |
Net deferral in AOCIL of derivatives | (776) | (6) | (640) | (976) |
Foreign Currency Contracts | ||||
Derivative Instruments, Gain (Loss) | ||||
Net deferral in AOCIL of derivatives (effective portion) | (1,246) | 68 | (2,073) | (2,041) |
Interest Rate Swaps | ||||
Derivative Instruments, Gain (Loss) | ||||
Net deferral in AOCIL of derivatives (effective portion) | $ 223 | $ (151) | $ 1,470 | $ 612 |
Earnings Per Share (Basic And Diluted Weighted-Average Shares Outstanding) (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Earnings Per Share [Abstract] | ||||
Basic weighted-average shares outstanding | 35,762,918 | 35,847,842 | 35,768,471 | 35,868,315 |
Dilutive effect of equity-based awards | 380,449 | 364,937 | 406,288 | 372,479 |
Diluted weighted-average shares outstanding | 36,143,367 | 36,212,779 | 36,174,759 | 36,240,794 |
Earnings Per Share (Narrative) (Details) - $ / shares |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Mar. 31, 2018 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Earnings Per Share [Abstract] | |||||
Antidilutive securities excluded from calculation of diluted earnings per share | 25,570 | 67,597 | 19,780 | 94,273 | |
Dividends declared per share | $ 0.00 | $ 0.00 | $ 0.25 | $ 0.25 | $ 0.00 |
Segment Information (Narrative) (Details) $ in Thousands |
Oct. 01, 2017 |
Jun. 30, 2018
USD ($)
|
Sep. 30, 2017
USD ($)
|
---|---|---|---|
Segment Reporting Information | |||
Number of Reportable Segments | 3 | ||
Segment Assets | $ 2,978,853 | $ 3,090,592 | |
Space And Defense Controls | |||
Segment Reporting Information | |||
Segment Assets | 645,000 | ||
Industrial Systems | |||
Segment Reporting Information | |||
Segment Assets | 1,120,000 | ||
Corporate | |||
Segment Reporting Information | |||
Segment Assets | $ 81,000 | $ 270,411 |
Segment Information (Sales And Operating Profit By Segment And Reconciliation Of Segment Operating Profit To Earnings Before Income Taxes) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2018 |
Jul. 01, 2017 |
Jun. 30, 2018 |
Jul. 01, 2017 |
|
Net sales: | ||||
Net sales | $ 692,018 | $ 626,183 | $ 2,008,602 | $ 1,848,256 |
Operating profit: | ||||
Operating profit | 74,138 | 63,595 | 184,712 | 180,784 |
Deductions from operating profit: | ||||
Interest expense | 8,850 | 8,654 | 26,585 | 25,789 |
Equity-based compensation expense | 894 | 997 | 4,394 | 4,151 |
Corporate expenses and other, net | 9,439 | 5,671 | 25,275 | 17,880 |
Earnings before income taxes | 54,955 | 48,273 | 128,458 | 132,964 |
Aircraft Controls | ||||
Net sales: | ||||
Net sales | 299,605 | 282,555 | 889,578 | 840,666 |
Operating profit: | ||||
Operating profit | 33,342 | 29,080 | 97,590 | 83,372 |
Space And Defense Controls | ||||
Net sales: | ||||
Net sales | 149,815 | 128,049 | 426,735 | 389,473 |
Operating profit: | ||||
Operating profit | 16,513 | 12,789 | 49,643 | 33,258 |
Industrial Systems | ||||
Net sales: | ||||
Net sales | 242,598 | 215,579 | 692,289 | 618,117 |
Operating profit: | ||||
Operating profit | $ 24,283 | $ 21,726 | $ 37,479 | $ 64,154 |
Segment Information (Reconciliation of Revenue from Segments to Consolidated) (Details) - Net sales - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Jul. 01, 2017 |
Jul. 01, 2017 |
|
Segment Reporting, Revenue Reconciling Item | ||
Prior period reclassification adjustment | $ 126,620 | $ 363,974 |
Space And Defense Controls | ||
Segment Reporting, Revenue Reconciling Item | ||
Prior period reclassification adjustment | 33,531 | 96,177 |
Industrial Systems | ||
Segment Reporting, Revenue Reconciling Item | ||
Prior period reclassification adjustment | $ 93,089 | $ 267,797 |
Segment Information (Reconciliation of Operating Profit from Segments to Consolidated) (Details) - Operating Income (Loss) [Member] - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended |
---|---|---|
Jul. 01, 2017 |
Jul. 01, 2017 |
|
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | ||
Prior period reclassification adjustment | $ 12,039 | $ 34,333 |
Space And Defense Controls | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | ||
Prior period reclassification adjustment | 2,784 | 5,669 |
Industrial Systems | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | ||
Prior period reclassification adjustment | $ 9,255 | $ 28,664 |
Related Party Transactions (Narrative) (Details) $ in Thousands |
9 Months Ended |
---|---|
Jun. 30, 2018
USD ($)
| |
Related Party Transaction | |
Related Party US Revolving Credit Facility Interest Percentage | 12.00% |
M&T Bank | Credit Extension on Routine Purchases | |
Related Party Transaction | |
Related Party Transaction, Amounts of Transaction | $ 16,790 |
M&T Bank | Interest Rate Swaps | |
Related Party Transaction | |
Related Party Transaction, Amounts of Transaction | 15,000 |
M&T Bank | Lease Agreements | |
Related Party Transaction | |
Related Party Transaction, Amounts of Transaction | $ 28,984 |
Commitments and Contingencies (Narrative) (Details) $ in Thousands |
Jun. 30, 2018
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
Standby letters of credit | $ 44,232 |
Subsequent Events (Narrative) (Details) |
Jul. 26, 2018
$ / shares
|
---|---|
Subsequent Event | |
Subsequent Event | |
Dividends payable declared, per share | $ 0.25 |
&PO=V]R:W-H965T (_?',^\ZUUPD*H86 ??P'T?SL9;9&5IN 1EN5;(
M0%OBQ_WQE =\!/S@,-G-'H5*+EJ_!.-S4^)=2 @$U"XP,+] K<^'+D4,A#GYW?UQU@[UG(6#NZ->I:%KU.ZHZ2 4G3*/YG^
M&XSU7%,R%O\#+J 0'C+!&+E1+JXD[YPW>E3!5+1X&W;9Q+T?;OA^I"T3^$C@
M$V$7X[ A4,S\07B1)=;TQ Z];T5XXO6!8V_RX(RMB'>8O$/O)>/7MPF[!*$1
M +T$A0+(OL\G6"S2K!)A)L_B+XCX)BE:#X5\%^^Z;-A-E%C(J8
MO'B79=F;.F0QVO!ROS)SXXEW/._>"23\8^
MN0[ DV>M>E?0SOOAQ)BK.M#"W9D!>KQIC-7"HVE;Y@8+HHXDK1A/DO=,"]G3
M,H^^BRUS,WHE>[A8XD:MA?US!F6F@J;TQ?$HV\X'!ROS0;3P'?R/X6+18JM*
M+37T3IJ>6&@*>I^>SEG 1\!/"9/;G$FHY&K,4S"^U 5-0D*@H/)!0>!V@P=0
M*@AA&K\73;J,3M^47]4ZP=:[D*!P]&_9*U[PIZI*2&1HS*/YKI,RSUO*-D
M*?XKW$ A/&2",2JC7%Q)-3IO]**"J6CQ/.^RC_LTWV3'A;9/X N!KX1CC,/F
M0#'SC\*+,K=F(G;N_2#"$Z
4?A!=E;LU$[-S[080G3H\<>U,%9VQ%O$/Q#KW7DM\F.;L&HB7F
M-,?P34RZ1C!D7U/PO10G_A^<[\,/NPH/$7[89K^_WR?(=@FR2)#]4V+ZIL2]
MF+
D%L?L;Y'U!+ P04 " P
M7/M,H\[E:<,! W! &0 'AL+W=O
6\E_TS#K-OV>7WZ>2/7XQ 0AP XH8-#%G%R
MXKZZI0:C!Z\F!4%2 ,0)LDD703*"EBQ+64Y0'#[ R4"<#,#!#DZVB/,N"N/8
MH0%4."89#).#,#D XX39Y$"8W"'> J(H3V 4W1# (H4 F,2M4FCQQ\V2+(X2
MMU8M=7E"2((=I&!60DU/^TK%N>ZDM^=*5V-;,T^<*Z9]HB>=7J7;Z&W1L),R
MTU3/Q=A+QH7B_=0G@UNS+O\ 4$L#!!0 ( #!<^TPN,(#<3P( "L( 9
M >&PO=V]R:W-H965TCAGW;)C,ZFG:]LU]K/3?Z?'L]&M+PM)
M\3QXZ0*-FN6@H3L-YU/)VI:PFR+0"=RR()3%DJSN-#58V0HNC!S>#;)Y,\@D
M30X'B_?]^62P$AQ P "B#R F 5*CC$$3]YJRUWQ*.(LB[".AC[1]>&CX#!IY
M[\-"_8=](N@3 1]F^$263X@M8F@1 PMC7M?Q+Y620)\$^!BK?)G84Y-RBHS]
MLD[L=*:R23HI3"<%Z9@+/K5]2+(DDMB(A9@ (;"2YOX.+2_.'?/('*1AP"