v2.4.0.8
Document And Entity Information (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Sep. 27, 2014
Mar. 28, 2014
Nov. 05, 2014
Class A Common Stock [Member]
Nov. 05, 2014
Class B Common Stock [Member]
Document Type 10-K      
Amendment Flag false      
Document Period End Date Sep. 27, 2014      
Document Fiscal Year Focus 2014      
Document Fiscal Period Focus FY      
Entity Registrant Name MOOG INC.      
Entity Central Index Key 0000067887      
Current Fiscal Year End Date --09-27      
Entity Well-known Seasoned Issuer Yes      
Entity Current Reporting Status Yes      
Entity Voluntary Filers No      
Entity Filer Category Large Accelerated Filer      
Entity Common Stock, Shares Outstanding     37,074,391 3,577,679
Entity Public Float   $ 2,561,000    
v2.4.0.8
Consolidated Statements Of Earnings (USD $)
In Thousands, except Share data, unless otherwise specified
12 Months Ended
Sep. 27, 2014
Sep. 28, 2013
Sep. 29, 2012
NET SALES $ 2,648,385 $ 2,610,311 $ 2,469,536
COST OF SALES 1,850,809 1,826,561 1,724,232
GROSS PROFIT 797,576 783,750 745,304
Research and development 139,462 134,652 116,403
Selling, general and administrative 403,487 396,636 385,051
Interest 12,513 26,962 34,312
Restructuring 12,913 14,075 0
Goodwill impairment 0 38,200 0
Other 10,278 8,219 697
EARNINGS BEFORE INCOME TAXES 218,923 165,006 208,841
INCOME TAXES 60,725 44,509 56,379
NET EARNINGS $ 158,198 $ 120,497 $ 152,462
NET EARNINGS PER SHARE      
Basic $ 3.57 $ 2.66 $ 3.37
Diluted $ 3.52 $ 2.63 $ 3.33
AVERAGE COMMON SHARES OUTSTANDING      
Basic 44,362,412 45,335,336 45,246,960
Diluted 44,952,437 45,823,720 45,718,324
v2.4.0.8
Consolidated Statement of Comprehensive Income (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 27, 2014
Sep. 28, 2013
Sep. 29, 2012
NET EARNINGS $ 158,198 $ 120,497 $ 152,462
Other Comprehensive Income (Loss), Net of Tax      
Foreign currency translation adjustment (31,318) 7,079 144
Retirement liability adjustment (41,289) 106,729 (46,296)
Change in accumulated (loss) income on derivatives (73) (1,255) 385
Other Comprehensive Income (Loss), Net of Tax (72,680) 112,553 (45,767)
Comprehensive Income $ 85,518 $ 233,050 $ 106,695
v2.4.0.8
Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Sep. 27, 2014
Sep. 28, 2013
CURRENT ASSETS    
Cash and cash equivalents $ 231,292 $ 157,090
Receivables 780,874 811,376
Inventories 517,056 551,674
Deferred income taxes 92,390 91,052
Prepaid expenses and other current assets 42,452 36,183
TOTAL CURRENT ASSETS 1,664,064 1,647,375
PROPERTY, PLANT AND EQUIPMENT, net 555,348 562,363
GOODWILL 757,852 766,924
INTANGIBLE ASSETS, net of accumulated amortization of $190,954 in 2014 and $180,586 in 2013 178,070 208,756
OTHER ASSETS 53,118 51,677
TOTAL ASSETS 3,208,452 3,237,095
CURRENT LIABILITIES    
Short-term borrowings 103,660 105,088
Current installments of long-term debt 5,262 3,382
Accounts payable 162,667 181,893
Accrued salaries, wages and commissions 141,096 130,467
Customer advances 145,500 145,854
Contract loss reserves 35,984 44,228
Other accrued liabilities 128,635 112,318
TOTAL CURRENT LIABILITIES 722,804 723,230
LONG-TERM DEBT, excluding current installments    
Senior debt 765,114 409,125
Senior subordinated notes 0 191,562
LONG-TERM PENSION AND RETIREMENT OBLIGATIONS 288,216 269,751
DEFERRED INCOME TAXES 83,931 104,377
OTHER LONG-TERM LIABILITIES 972 3,285
TOTAL LIABILITIES 1,861,037 1,701,330
COMMITMENTS AND CONTINGENCIES (Note 18) 0 0
SHAREHOLDERS' EQUITY    
Additional paid-in capital 463,965 447,478
Retained earnings 1,447,911 1,289,713
Treasury shares (360,445) (83,003)
Stock Employee Compensation Trust (48,458) (35,545)
Accumulated other comprehensive loss (206,838) (134,158)
TOTAL SHAREHOLDERS' EQUITY 1,347,415 1,535,765
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 3,208,452 3,237,095
Class A Common Stock [Member]
   
SHAREHOLDERS' EQUITY    
Common stock 43,628 43,613
Class B Common Stock [Member]
   
SHAREHOLDERS' EQUITY    
Common stock $ 7,652 $ 7,667
v2.4.0.8
Consolidated Balance Sheets (Parenthetical) (USD $)
In Thousands, except Share data, unless otherwise specified
Sep. 27, 2014
Sep. 28, 2013
Intangible Assets, Accumulated Amortization $ 190,954 $ 180,586
Common Stock, Par Value $ 1.00 $ 1.00
Class A Common Stock [Member]
   
Common Stock, Shares, Issued 43,627,531 43,613,060
Common Stock, Shares, Outstanding 37,820,830 41,608,799
Common Stock, Shares, Authorized 100,000,000 100,000,000
Class B Common Stock [Member]
   
Common Stock, Shares, Issued 7,652,182 7,666,653
Common Stock, Shares, Outstanding 3,622,303 3,750,459
Common Stock, Shares, Authorized 20,000,000 20,000,000
v2.4.0.8
Consolidated Statements Of Shareholders' Equity (USD $)
In Thousands, except Share data
Total
USD ($)
Common Stock [Member]
USD ($)
Additional Paid-In Capital [Member]
USD ($)
Retained Earnings [Member]
USD ($)
Treasury Shares At Cost [Member]
USD ($)
Stock Employee Compensation Trust (SECT) [Member]
USD ($)
Accumulated Other Comprehensive (Loss) Income [Member]
USD ($)
Class A Common Stock [Member]
Treasury Shares At Cost [Member]
Class B Common Stock [Member]
Treasury Shares At Cost [Member]
Class B Common Stock [Member]
Stock Employee Compensation Trust (SECT) [Member]
Beginning of year at Oct. 01, 2011     $ 412,370 $ 1,016,754 $ (74,479) $ (13,090) $ (200,944)      
Beginning of year at Oct. 01, 2011               (2,393,039) (3,305,971) (395,470)
Issuance of treasury shares at more than cost     1,282              
Equity-based compensation expense     6,226              
Adjustment to market - SECT, and other     2,091              
Net earnings 152,462     152,462            
Class A shares issued as consideration for acquisitions         (46)          
Class A shares issued related to options         945          
Class A and B shares purchased         (1,400)          
Sale of SECT stock to RSP           1,766        
Purchase of SECT stock (2,929)         (2,929)        
Adjustment to market - SECT           (1,731)        
Other comprehensive (loss) income             (45,767)      
TOTAL SHAREHOLDERS' EQUITY 1,304,790 51,280 421,969 1,169,216 (74,980) (15,984) (246,711)      
Class A shares issued as consideration for acquisitions               (1,208)    
Shares issued related to options               175,823    
Shares purchased               (34,894) 0  
Sale of SECT stock to RSP                   48,579
Purchase of SECT stock                   (71,426)
End of year at Sep. 29, 2012 1,304,790 51,280 421,969 1,169,216 (74,980) (15,984) (246,711)      
End of year at Sep. 29, 2012               (2,253,318) (3,305,971) (418,317)
Issuance of treasury shares at more than cost     7,134              
Equity-based compensation expense     6,620              
Adjustment to market - SECT, and other     11,755              
Net earnings 120,497     120,497            
Class A shares issued as consideration for acquisitions         0          
Class A shares issued related to options         3,591          
Class A and B shares purchased         (11,614)          
Sale of SECT stock to RSP           781        
Purchase of SECT stock (9,676)         (9,676)        
Adjustment to market - SECT           (10,666)        
Other comprehensive (loss) income 112,553           112,553      
TOTAL SHAREHOLDERS' EQUITY 1,535,765 51,280 447,478 1,289,713 (83,003) (35,545) (134,158)      
Class A shares issued as consideration for acquisitions               0    
Shares issued related to options               495,297    
Shares purchased               (246,241) 0  
Sale of SECT stock to RSP                   21,237
Purchase of SECT stock                   (213,143)
End of year at Sep. 28, 2013 1,535,765 51,280 447,478 1,289,713 (83,003) (35,545) (134,158)      
End of year at Sep. 28, 2013               (2,004,262) (3,305,971) (610,223)
Beginning of year at Jun. 29, 2013                    
Net earnings 15,625                  
TOTAL SHAREHOLDERS' EQUITY 1,535,765 51,280                
End of year at Sep. 28, 2013 1,535,765 51,280 447,478 1,289,713 (83,003) (35,545) (134,158)      
Beginning of year at Sep. 28, 2013               (2,004,262) (3,305,971) (610,223)
Issuance of treasury shares at more than cost     256              
Equity-based compensation expense     7,189              
Adjustment to market - SECT, and other     9,042              
Net earnings 158,198     158,198            
Class A shares issued as consideration for acquisitions         0          
Class A shares issued related to options         1,991          
Class A and B shares purchased         (279,433)          
Sale of SECT stock to RSP           1,144        
Purchase of SECT stock (7,924)         (7,924)        
Adjustment to market - SECT           (6,133)        
Other comprehensive (loss) income (72,680)           (72,680)      
TOTAL SHAREHOLDERS' EQUITY 1,347,415 51,280 463,965 1,447,911 (360,445) (48,458) (206,838)      
Class A shares issued as consideration for acquisitions               0    
Shares issued related to options               283,921    
Shares purchased               (4,086,361) (13,067)  
Sale of SECT stock to RSP                   18,444
Purchase of SECT stock                   (119,062)
End of year at Sep. 27, 2014 1,347,415 51,280 463,965 1,447,911 (360,445) (48,458) (206,838)      
End of year at Sep. 27, 2014               (5,806,702) (3,319,038) (710,841)
Beginning of year at Jun. 28, 2014                    
Net earnings 40,254                  
TOTAL SHAREHOLDERS' EQUITY 1,347,415 51,280                
End of year at Sep. 27, 2014 $ 1,347,415 $ 51,280                
v2.4.0.8
Consolidated Statements Of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Sep. 27, 2014
Sep. 28, 2013
Sep. 29, 2012
CASH FLOWS FROM OPERATING ACTIVITIES      
Net earnings $ 158,198 $ 120,497 $ 152,462
Adjustments to reconcile net earnings to net cash provided by operating activities:      
Depreciation 78,078 75,000 67,084
Amortization 31,181 33,073 33,732
Deferred income taxes 5,021 (8,216) (4,113)
Equity-based compensation expense 7,189 6,620 6,226
Redemption of senior subordinated notes 8,002 0 0
Goodwill impairment 0 38,200 0
Other 7,260 7,620 3,077
Changes in assets and liabilities providing (using) cash, excluding the effects of acquisitions:      
Receivables 23,707 (58,368) (53,424)
Inventories 23,666 (6,871) (21,289)
Accounts payable (17,783) 10,543 (7,602)
Customer advances (304) 32,437 11,508
Accrued expenses 7,685 (2,625) 10,357
Accrued income taxes 6,273 3,678 (9,371)
Net pension and post retirement liabilities (43,612) 8,174 27,122
Other operating assets and liabilities (7,459) (8,485) (1,429)
NET CASH PROVIDED BY OPERATING ACTIVITIES 287,102 251,277 214,340
CASH FLOWS FROM INVESTING ACTIVITIES      
Acquisitions of businesses, net of cash acquired 0 (69,157) (104,089)
Purchase of property, plant and equipment (78,771) (93,174) (107,030)
Other investing transactions (8,124) (11,067) (4,454)
NET CASH USED BY INVESTING ACTIVITIES (86,895) (173,398) (215,573)
CASH FLOWS FROM FINANCING ACTIVITIES      
Net short-term (repayments) borrowings (977) 16,124 81,849
Proceeds from revolving lines of credit 680,875 897,162 805,859
Payments on revolving lines of credit (319,740) (782,617) (848,505)
Payments on long-term debt (3,256) (3,113) (1,335)
Payments of senior subordinated notes (191,575) (187,000) 0
Payment of premium on redemption of senior subordinated notes (6,945) 0 0
Proceeds from sale of treasury stock 2,247 10,725 2,227
Purchase of outstanding shares for treasury (272,876) (11,614) (1,400)
Proceeds from sale of stock held by Stock Employee Compensation Trust 1,144 781 1,766
Purchase of stock held by Stock Employee Compensation Trust (7,924) (9,676) (2,929)
Excess tax benefits from equity-based payment arrangements 2,910 1,089 360
Other financing transactions (2,288) (3,949) (470)
NET CASH PROVIDED (USED) BY FINANCING ACTIVITIES (118,405) (72,088) 37,422
Effect of exchange rate changes on cash (7,600) 2,458 (1,027)
INCREASE IN CASH AND CASH EQUIVALENTS 74,202 8,249 35,162
Cash and cash equivalents at beginning of year 157,090 148,841 113,679
Cash and cash equivalents at end of year 231,292 157,090 148,841
Cash paid for:      
Interest 17,300 29,320 32,636
Income taxes, net of refunds 41,999 54,461 69,480
Non-cash investing and financing activities:      
Unsecured notes issued as partial consideration for acquisitions $ 0 $ 8,450 $ 0
v2.4.0.8
Summary Of Significant Accounting Policies
12 Months Ended
Sep. 27, 2014
Accounting Policies [Abstract]  
Summary Of Significant Accounting Policies
Summary of Significant Accounting Policies
Consolidation: The consolidated financial statements include the accounts of Moog Inc. and all of our U.S. and foreign subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Fiscal Year: Our fiscal year ends on the Saturday that is closest to September 30. The consolidated financial statements include 52 weeks for the years ended September 27, 2014, September 28, 2013 and September 29, 2012.
Operating Cycle: Consistent with industry practice, aerospace and defense related inventories, unbilled recoverable costs and profits on long-term contract receivables, customer advances and contract loss reserves include amounts relating to contracts having long production and procurement cycles, portions of which are not expected to be realized or settled within one year.
Foreign Currency Translation: Assets and liabilities of subsidiaries that prepare financial statements in currencies other than the U.S. dollar are translated using rates of exchange as of the balance sheet date and the statements of earnings are translated at the average rates of exchange for each reporting period.
Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions.
Revenue Recognition: We recognize revenue using either the percentage of completion method for contracts or as units are delivered or services are performed.
Percentage of completion method for contracts: Revenue representing 34%, 33% and 32% of 2014, 2013 and 2012 sales, respectively, was accounted for using the percentage of completion, cost-to-cost method of accounting. This method of revenue recognition is predominantly used within the Aircraft Controls and Space and Defense Controls segments due to the contractual nature of the business activities, with the exception of their respective aftermarket activities. The contractual arrangements are either firm fixed-price or cost-plus contracts and are primarily with the U.S. Government or its prime subcontractors, foreign governments or commercial aircraft manufacturers, including Boeing and Airbus. The nature of the contractual arrangements includes customers’ requirements for delivery of hardware as well as funded nonrecurring development work in anticipation of follow-on production orders.
Revenue on contracts using the percentage of completion, cost-to-cost method of accounting is recognized as work progresses toward completion as determined by the ratio of cumulative costs incurred to date to estimated total contract costs at completion, multiplied by the total estimated contract revenue, less cumulative revenue recognized in prior periods. Changes in estimates affecting sales, costs and profits are recognized in the period in which the change becomes known using the cumulative catch-up method of accounting, resulting in the cumulative effect of changes reflected in the period. Estimates are reviewed and updated quarterly for substantially all contracts. A significant change in an estimate on one or more contracts could have a material effect on our results of operations.
Occasionally, it is appropriate to combine or segment contracts. Contracts are combined in those limited circumstances when they are negotiated as a package in the same economic environment with an overall profit margin objective and constitute, in essence, an agreement to do a single project. In such cases, revenue and costs are recognized over the performance period of the combined contracts as if they were one. Contracts are segmented in limited circumstances if the customer had the right to accept separate elements of the contract and the total amount of the proposals on the separate components approximated the amount of the proposal on the entire project. For segmented contracts, revenue and costs are recognized as if they were separate contracts over the performance periods of the individual elements or phases.
 
Contract costs include only allocable, allowable and reasonable costs, as determined in accordance with the Federal Acquisition Regulations and the related Cost Accounting Standards for applicable U.S. Government contracts, and are included in cost of sales when incurred. The nature of these costs includes development engineering costs and product manufacturing costs including direct material, direct labor, other direct costs and indirect overhead costs. Contract profit is recorded as a result of the revenue recognized less costs incurred in any reporting period. Amounts representing performance incentives, penalties, contract claims or change orders are considered in estimating revenues, costs and profits when they can be reliably estimated and realization is considered probable. Revenue recognized on contracts for unresolved claims or unapproved contract change orders was not material for 2014, 2013 or 2012.
For contracts with anticipated losses at completion, a provision for the entire amount of the estimated remaining loss is charged against income in the period in which the loss becomes known. Contract losses are determined considering all direct and indirect contract costs, exclusive of any selling, general or administrative cost allocations that are treated as period expenses. Loss reserves are more common on firm fixed-price contracts that involve, to varying degrees, the design and development of new and unique controls or control systems to meet the customers’ specifications.
As units are delivered or services are performed: In 2014, 66% of our sales were recognized as units were delivered or as service obligations were satisfied. Revenue is recognized when the risks and rewards of ownership and title to the product are transferred to the customer. When engineering or similar services are performed, revenue is recognized upon completion of the obligation including any delivery of engineering drawings or technical data. This method of revenue recognition is predominantly used within the Industrial Systems, Components and Medical Devices segments, as well as with aftermarket activity. Profits are recorded as costs are relieved from inventory and charged to cost of sales and as revenue is recognized. Inventory costs include all product manufacturing costs such as direct material, direct labor, other direct costs and indirect overhead cost allocations.
Shipping and Handling Costs: Shipping and handling costs are included in cost of sales.
Research and Development: Research and development costs are expensed as incurred and include salaries, benefits, consulting, material costs and depreciation.
Bid and Proposal Costs: Bid and proposal costs are expensed as incurred and classified as selling, general and administrative expenses.
Equity-Based Compensation: Equity-based compensation expense is included in selling, general and administrative expenses.
Earnings Per Share: Basic and diluted weighted-average shares outstanding are as follows:
 
 
 
2014
 
2013
 
2012
Basic weighted-average shares outstanding
 
44,362,412

 
45,335,336

 
45,246,960

Dilutive effect of equity-based awards
 
590,025

 
488,384

 
471,364

Diluted weighted-average shares outstanding
 
44,952,437

 
45,823,720

 
45,718,324


Cash and Cash Equivalents: All highly liquid investments with an original maturity of three months or less are considered cash equivalents.
Allowance for Doubtful Accounts: The allowance for doubtful accounts is based on our assessment of the collectibility of customer accounts. The allowance is determined by considering factors such as historical experience, credit quality, age of the accounts receivable balances and current economic conditions that may affect a customer’s ability to pay.
Inventories: Inventories are stated at the lower-of-cost-or-market with cost determined on the first-in, first-out (FIFO) method of valuation.
 
Property, Plant and Equipment: Property, plant and equipment are stated at cost. Plant and equipment are depreciated principally using the straight-line method over the estimated useful lives of the assets, generally 40 years for buildings, 15 years for building improvements, 12 years for furniture and fixtures, 10 years for machinery and equipment, 8 years for tooling and test equipment and 3 to 5 years for computer hardware and software. Leasehold improvements are amortized on a straight-line basis over the term of the lease or the estimated useful life of the asset, whichever is shorter.

Goodwill: We test goodwill for impairment at the reporting unit level on an annual basis or more frequently if an event occurs or circumstances change that indicate that the fair value of a reporting unit is likely to be below its carrying amount.
We may elect to perform a qualitative assessment that considers economic, industry and company-specific factors for all or selected reporting units. If, after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we proceed to a quantitative test. We may also elect to perform a quantitative test instead of a qualitative test for any or all of our reporting units.
Quantitative testing requires a comparison of the fair value of each reporting unit to its carrying value. We use the discounted cash flow method to estimate the fair value of our reporting units. The discounted cash flow method incorporates various assumptions, the most significant being projected revenue growth rates, operating margins and cash flows, the terminal growth rate and the weighted-average cost of capital. If the carrying value of the reporting unit exceeds its fair value, goodwill is considered impaired and any loss must be measured. To determine the amount of the impairment loss, the implied fair value of goodwill is determined by assigning a fair value to all of the reporting unit's assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination at fair value. If the carrying amount of the reporting unit goodwill exceeds the implied fair value of that goodwill, an impairment loss would be recognized in an amount equal to that excess.
We recorded a $38,200 goodwill impairment charge in 2013 in our Medical Devices reporting unit. There were no impairment charges recorded in 2014 or 2012.
Acquired Intangible Assets: Acquired identifiable intangible assets are recorded at cost and are amortized over their estimated useful lives.
Impairment of Long-Lived Assets: Long-lived assets, including acquired identifiable intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of those assets may not be recoverable. We use undiscounted cash flows to determine whether impairment exists and measure any impairment loss using discounted cash flows. In 2014, we recorded a $739 impairment charge in our Industrial Systems segment related to intangible assets from a product line we decided to exit. We also recorded a $1,296 impairment charge in our Medical Devices segment related to equipment from a product line we are no longer pursuing. Both of these charges are included as restructuring in the consolidated statements of earnings. There were no impairment charges recorded in 2013 or 2012.
Product Warranties: In the ordinary course of business, we warrant our products against defect 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:
 
 
 
2014
 
2013
 
2012
Warranty accrual at beginning of year
 
$
17,429

 
$
18,859

 
$
19,247

Additions from acquisitions
 

 

 
233

Warranties issued during current year
 
12,611

 
9,019

 
9,842

Adjustments to pre-existing warranties
 
(2,037
)
 
(1,911
)
 
(460
)
Reductions for settling warranties
 
(7,759
)
 
(8,507
)
 
(10,016
)
Foreign currency translation
 
(291
)
 
(31
)
 
13

Warranty accrual at end of year
 
$
19,953

 
$
17,429

 
$
18,859


Financial Instruments: Our financial instruments consist primarily of cash and cash equivalents, receivables, notes payable, accounts payable, long-term debt, interest rate swaps and foreign currency forwards. The carrying values for our financial instruments approximate fair value with the exception at times of long-term debt. We do not hold or issue financial instruments for trading purposes.
We carry derivative instruments on the consolidated balance sheets at fair value, determined by reference to quoted market prices. The accounting for changes in the fair value of a derivative instrument depends on whether it has been designated and qualifies as part of a hedging relationship and, if so, the reason for holding it. Our use of derivative instruments is generally limited to cash flow hedges of certain interest rate risks and minimizing foreign currency exposure on foreign currency transactions, which are typically designated in hedging relationships, and intercompany balances, which are not designated as hedging instruments. Cash flows resulting from forward contracts are accounted for as hedges of identifiable transactions or events and classified in the same category as the cash flows from the items being hedged.
Reclassifications: Certain prior year amounts have been reclassified to conform to the current year's presentation. The Consolidated Statements of Cash Flows has been restated to segregate income taxes from accrued expenses.
v2.4.0.8
Acquisitions & Divestitures
12 Months Ended
Sep. 27, 2014
Acquisitions [Abstract]  
Acquisitions
Acquisitions and Divestitures
All of our acquisitions are accounted for under the purchase method and, accordingly, the operating results for the acquired companies are included in the consolidated statements of earnings from the respective dates of acquisition. Under purchase accounting, we record assets and liabilities at fair value and such amounts are reflected in the respective captions on the consolidated balance sheets.

There were no acquisitions completed in 2014.

In 2013, we completed two business combinations. One of these business combinations was in our Space and Defense Controls segment. We acquired Broad Reach Engineering for $34,550 of cash consideration, issuance of $8,450 of notes payable and contingent consideration with an initial fair value of $3,447. Based in Colorado, Broad Reach Engineering is a leading designer and manufacturer of spaceflight electronics and software for aerospace, scientific, commercial and military missions. The company also provides ground testing, launch and on-orbit operations. We also completed one business combination in our Components segment. We acquired Aspen Motion Technologies, located in Radford, Virginia for $33,911 in cash. Aspen is a designer and manufacturer of high-performance permanent magnet brushless DC motors, integrated digital controls and motorized impellers. Aspen also specializes in custom motor designs for end product integration and significant product enhancement in a variety of high-performance industrial applications.

In 2013, we completed one divestiture in our Medical Devices segment. We sold our Buffalo, New York operations of Ethox Medical for $5,000 in cash, plus a $200 note receivable.

The purchase price allocations for the 2013 acquisitions are complete.
v2.4.0.8
Receivables
12 Months Ended
Sep. 27, 2014
Receivables [Abstract]  
Receivables
Receivables
Receivables consist of:

 
September 27,
2014
 
September 28, 2013
Accounts receivable
 
$
332,450

 
$
328,038

Long-term contract receivables:
 
 
 
 
Amounts billed
 
125,497

 
133,149

Unbilled recoverable costs and accrued profits
 
313,530

 
337,520

Total long-term contract receivables
 
439,027

 
470,669

Other
 
13,738

 
17,168

Total receivables
 
785,215

 
815,875

Less allowance for doubtful accounts
 
(4,341
)
 
(4,499
)
Receivables
 
$
780,874

 
$
811,376


 
Under our trade receivables securitization facility (the "Securitization Program"), we securitize certain trade receivables in transactions that are accounted for as secured borrowings. 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 balance sheets, is recorded at fair value, which approximates the total amount of the designated pool of accounts receivable. See Note 7, Indebtedness, for additional disclosures related to the Securitization Program.

Long-term contract receivables are primarily associated with prime contractors and subcontractors in connection with U.S. Government contracts, commercial aircraft and satellite manufacturers. Amounts billed under long-term contracts to the U.S. Government were $16,929 at September 27, 2014 and $11,532 at September 28, 2013. Unbilled recoverable costs and accrued profits under long-term contracts to be billed to the U.S. Government were $15,816 at September 27, 2014 and $11,963 at September 28, 2013. Unbilled recoverable costs and accrued profits principally represent revenues recognized on contracts that were not billable on the balance sheet date. These amounts will be billed in accordance with contract terms, generally as certain milestones are reached or upon shipment. Approximately 75% of unbilled amounts are expected to be collected within one year. In situations where billings exceed revenues recognized, the excess is included in customer advances.
There are no material amounts of claims or unapproved change orders included in the consolidated balance sheets. There are no material balances billed but not paid by customers under retainage provisions.

Concentrations of credit risk on receivables are limited to those from significant customers who are believed to be financially sound. Receivables from Boeing were $147,421 at September 27, 2014 and $182,050 at
September 28, 2013. We perform periodic credit evaluations of our customers’ financial condition and generally do not require collateral.
v2.4.0.8
Inventories
12 Months Ended
Sep. 27, 2014
Inventory Disclosure [Abstract]  
Inventories
Inventories
Inventories, net of reserves, consist of:
 
 
September 27,
2014
 
September 28, 2013
Raw materials and purchased parts
 
$
198,166

 
$
194,249

Work in progress
 
251,701

 
289,124

Finished goods
 
67,189

 
68,301

Inventories
 
$
517,056

 
$
551,674



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 September 27, 2014 and September 28, 2013.
v2.4.0.8
Property, Plant And Equipment
12 Months Ended
Sep. 27, 2014
Property, Plant and Equipment [Abstract]  
Property, Plant And Equipment
Property, Plant and Equipment
Property, plant and equipment consists of:
 
 
September 27,
2014
 
September 28,
2013
Land
 
$
28,299

 
$
28,983

Buildings and improvements
 
398,783

 
390,525

Machinery and equipment
 
767,342

 
756,503

Property, plant and equipment, at cost
 
1,194,424

 
1,176,011

Less accumulated depreciation and amortization
 
(639,076
)
 
(613,648
)
Property, plant and equipment
 
$
555,348

 
$
562,363

v2.4.0.8
Goodwill And Intangible Assets
12 Months Ended
Sep. 27, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill And Intangible Assets
Goodwill and Intangible Assets
The changes in the carrying amount of goodwill are as follows:
 
Aircraft
Controls
Space
and
Defense
Controls
Industrial
Systems
Components
Medical
Devices
Total
Balance at October 2, 2011
$
194,052

$
121,416

$
120,834

$
172,531

$
126,188

$
735,021

Acquisitions

9,696


19,987


29,683

Adjustments to prior year acquisitions
(3,865
)


(147
)

(4,012
)
Foreign currency translation
2,199

(397
)
(1,259
)
2,093

(474
)
2,162

Balance at September 29, 2012
192,386

130,715

119,575

194,464

125,714

762,854

Acquisitions

29,361


11,218


40,579

Adjustments to prior year acquisitions

2,418


472


2,890

Impairment




(38,200
)
(38,200
)
Divestiture




(2,900
)
(2,900
)
Foreign currency translation
27

642

1,745

(1,301
)
588

1,701

Balance at September 28, 2013
192,413

163,136

121,320

204,853

85,202

766,924

Adjustments to prior year acquisitions

(2,734
)



(2,734
)
Foreign currency translation
439

(795
)
(3,311
)
(1,943
)
(728
)
(6,338
)
Balance at September 27, 2014
$
192,852

$
159,607

$
118,009

$
202,910

$
84,474

$
757,852


We recorded a $38,200 goodwill impairment in 2013 in our Medical Devices reporting unit. We test goodwill for impairment at least annually, during our fourth quarter. We estimated the fair value of this reporting unit using a discounted cash flow analysis, and our result was supported by information obtained as part of our strategic review of this business. In the fourth quarter of 2013, we began a strategic assessment of our Medical Devices segment. We determined that the medical pumps business is not core to our overall strategy, but we are currently operating the business as part of ongoing operations.
The components of acquired intangible assets are as follows:

September 27, 2014
September 28, 2013
  
Weighted-
Average
Life (Years)
Gross
Carrying
Amount
Accumulated
Amortization
Gross
Carrying
Amount
Accumulated
Amortization
Customer-related
11
$
180,670

$
(102,251
)
$
193,744

$
(97,347
)
Program-related
18
80,054

(24,065
)
79,607

(18,988
)
Technology-related
9
76,057

(46,296
)
76,558

(42,000
)
Marketing-related
10
26,707

(14,779
)
33,259

(18,476
)
Acquired intangible assets
12
$
363,488

$
(187,391
)
$
383,168

$
(176,811
)


All acquired intangible assets other than goodwill are being amortized. Customer-related intangible assets primarily consist of customer relationships. Program-related intangible assets consist of long-term programs represented by current contracts and probable follow on work. Technology-related intangible assets primarily consist of technology, patents, intellectual property and software. Marketing-related intangible assets primarily consist of trademarks, trade names and non-compete agreements.
Amortization of acquired intangible assets was $29,907 in 2014, $31,137 in 2013 and $31,235 in 2012. Based on acquired intangible assets recorded at September 27, 2014, amortization is estimated to be approximately $25,300 in 2015, $23,800 in 2016, $20,500 in 2017, $18,800 in 2018 and $16,800 in 2019.
v2.4.0.8
Indebtedness
12 Months Ended
Sep. 27, 2014
Debt Disclosure [Abstract]  
Indebtedness
Indebtedness

Short-term borrowings consist of:
 
 
September 27, 2014
 
September 28,
2013
Securitization program
 
$
100,000

 
$
100,000

Lines of credit
 
3,660

 
5,088

Short-term borrowings
 
$
103,660

 
$
105,088



The Securitization Program matures on February 13, 2015 and effectively increases our borrowing capacity by up to $100,000. 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. The Securitization Program can be extended by agreement of the parties thereto for successive 364-day terms. Interest for the Securitization Program is 0.8% at September 27, 2014 and is based on prevailing market rates for short-term commercial paper 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 September 27, 2014, our minimum borrowing requirement is $80,000.

In addition to the Securitization Program, we maintain short-term credit facilities with banks throughout the world that are principally demand lines subject to revision by the banks. Interest on outstanding lines of credit is 1.4% at September 27, 2014.

Long-term debt consists of:
 
 
September 27,
2014
 
September 28,
2013
U.S. revolving credit facility
 
$
765,000

 
$
403,865

Other long-term debt
 
5,225

 
8,577

Obligations under capital leases
 
151

 
65

Senior debt
 
770,376

 
412,507

7¼% senior subordinated notes
 

 
191,562

Total long-term debt
 
770,376

 
604,069

Less current installments
 
(5,262
)
 
(3,382
)
Long-term debt
 
$
765,114

 
$
600,687



On May 22, 2014, we amended our U.S. revolving credit facility. The amendment increased the capacity on our revolving credit facility from $900,000 to $1,100,000 and extended the maturity of the credit facility to May 22, 2019. The amendment also provides an expansion option, which permits us to request an increase to the credit facility of up to $200,000 upon satisfaction of certain conditions. The credit facility is secured by substantially all of our U.S. assets. The loan agreement contains various covenants which, among others, specify interest coverage and maximum leverage and capital expenditures. We are in compliance with all covenants. Interest on all of the outstanding credit facility borrowings is 1.5% and is based on LIBOR plus the applicable margin, which was
138 basis points at September 27, 2014.
Other long-term debt at September 27, 2014 consists of debt instruments being repaid in 2015 that carry an interest rate of 3.3%.

On December 19, 2013, we repurchased our 7¼% senior subordinated notes due on January 15, 2018 at 103.625%, pursuant to an early redemption right. We redeemed the aggregate principal amount of $200,000 using proceeds drawn from our U.S. revolving credit facility. The associated loss on the redemption includes $6,945 of call premium paid to external bondholders and a $1,057 write off of deferred debt issuance costs.
Maturities of long-term debt are $5,262 in 2015, $38 in 2016, $37 in 2017, $27 in 2018 and $765,012 in 2019.
At September 27, 2014, we had pledged assets with a net book value of $1,573,599 as security for long-term debt.
At September 27, 2014, we had $333,806 of unused short and long-term borrowing capacity, including $320,665 from the U.S. revolving credit facility. Commitment fees are charged on some of these arrangements and on the U.S. revolving credit facility based on a percentage of the unused amounts available and are not material.
v2.4.0.8
Derivative Financial Instruments
12 Months Ended
Sep. 27, 2014
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 September 27, 2014, we had interest rate swaps with notional amounts totaling $320,000. The interest rate swaps effectively convert this amount of variable-rate debt to fixed-rate debt at 2.0%, including the applicable margin of 138 basis points as of September 27, 2014. 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 between January 15, 2015 and June 5, 2017.
We use foreign currency forward contracts as cash flow hedges to effectively fix the exchange rates on future payments and revenue. To mitigate exposure in movements between various currencies, primarily the Philippine peso, we had outstanding foreign currency forwards with notional amounts of $43,548 at September 27, 2014. These contracts mature at various times through May 27, 2016.
These interest rate swaps and foreign currency forwards are recorded on the consolidated balance sheet at fair value and the related gains or losses are deferred in shareholders’ equity as a component of Accumulated Other Comprehensive Income (Loss) (AOCI). These deferred gains and losses are reclassified into expense during the periods in which the related payments or receipts affect earnings. However, to the extent the interest rate swaps and foreign currency forwards are not perfectly effective in offsetting the change in the value of the payments being hedged, the ineffective portion of these contracts is recognized in earnings immediately. Ineffectiveness was not material in 2014, 2013 or 2012.
Derivatives not designated as hedging instruments
We also have foreign currency exposure on balances, primarily intercompany, that are denominated in a foreign currency and are adjusted to current values using period-end exchange rates. The resulting gains or losses are recorded in the consolidated statements of earnings. To minimize foreign currency exposure, we have foreign currency forwards with notional amounts of $206,396 at September 27, 2014. The foreign currency forwards are recorded in the consolidated balance sheets at fair value and resulting gains or losses are recorded in the consolidated statements of earnings. We recorded net gains of $4,105 in 2014 and $2,249 in 2013 on the foreign currency forwards. These gains are included in other expense and generally offset the 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:
 
 
 
 
September 27,
2014
 
September 28, 2013
Derivatives designated as hedging instruments:
 
 
 
 
 
Interest rate swaps
Other current assets
 
$
70

 
$

Interest rate swaps
Other assets
 
107

 

Foreign currency forwards
Other current assets
 

 
217

Foreign currency forwards
Other assets
 

 
100

 
Total assets
 
$
177

 
$
317

Interest rate swaps
Other accrued liabilities
 
$
110

 
$
85

Interest rate swaps
Other long-term liabilities
 
28

 
42

Foreign currency forwards
Other accrued liabilities
 
1,521

 
1,342

Foreign currency forwards
Other long-term liabilities
 
494

 
636

 
Total liabilities
 
$
2,153

 
$
2,105

Derivatives not designated as hedging instruments:
 
 
 
 
 
Foreign currency forwards
Other current assets
 
$
821

 
$
68

 
Total assets
 
$
821

 
$
68

Foreign currency forwards
Other accrued liabilities
 
$
2,991

 
$
956

 
Total liabilities
 
$
2,991

 
$
956

v2.4.0.8
Fair Value
12 Months Ended
Sep. 27, 2014
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. Our Level 3 fair value liabilities represent contingent consideration recorded for acquisitions to be paid if various financial targets are met. The amounts recorded were calculated for each payment scenario in each period using an estimate of the probability of the future cash outflows. The varying contingent payments were then discounted to the present value at the weighted average cost of capital. Fair value is assessed on a quarterly basis, or whenever events or circumstances change that indicate an adjustment is required. The assessment includes an evaluation of the performance of the acquired business compared to previous expectations, changes to future projections and the probability of achieving the earn out targets.
The following table presents the fair values and classification of our financial assets and liabilities measured on a recurring basis as of September 27, 2014:
 
Classification
Level 1
 
Level 2
 
Level 3
 
Total
Interest rate swaps
Other current assets
$

 
$
70

 

 
$
70

Interest rate swaps
Other assets

 
107

 

 
107

Foreign currency forwards
Other current assets

 
821

 

 
821

 
Total assets
$

 
$
998

 
$

 
$
998

Interest rate swaps
Other accrued liabilities
$

 
$
110

 
$

 
$
110

Interest rate swaps
Other long-term liabilities

 
28

 

 
28

Foreign currency forwards
Other accrued liabilities

 
4,512

 

 
4,512

Foreign currency forwards
Other long-term liabilities

 
494

 

 
494

 
Total liabilities
$

 
$
5,144

 
$

 
$
5,144


The changes in financial liabilities classified as Level 3 within the fair value hierarchy are as follows:
 
 
2014
 
2013
Balance at beginning of year
 
$
4,007

 
$
6,422

Additions from acquisitions
 

 
3,447

Increase (decrease) in discounted future cash flows recorded as interest expense
 
(121
)
 
317

Decrease in earn out provisions recorded as other income
 
(1,585
)
 
(3,368
)
Settlements paid in cash
 
(2,301
)
 
(2,811
)
Balance at end of year
 
$

 
$
4,007

v2.4.0.8
Restructuring
12 Months Ended
Sep. 27, 2014
Restructuring Charges [Abstract]  
Restructuring
Restructuring
In 2013, we initiated restructuring plans to better align our cost structure with projected sales levels. The restructuring actions taken have resulted in workforce reductions, primarily in the U.S., Europe and Asia.
In 2014, we initiated restructuring plans in response to the business outlook, which includes a change in the mix of sales and delays and cancellations of orders for certain product lines. The restructuring actions taken will result in workforce reductions, primarily in the U.S. and Europe.
Restructuring expense in 2014 principally relates to severance, but also includes $1,296 for the impairment of long-lived assets in our Medical Devices segment and $739 for the impairment of intangibles assets in our Industrial Systems segment. Restructuring activity for severance by segment is as follows:
 
Aircraft Controls
Space and Defense Controls
Industrial Systems
Total
Balance at September 29, 2012
$

$

$

$

Charged to expense
1,692

4,968

7,415

14,075

Cash payments - 2013 plan
(1,672
)
(600
)
(4,711
)
(6,983
)
Foreign currency translation
16

8

13

37

Balance at September 28, 2013
36

4,376

2,717

7,129

Charged to expense
5,440

5,438


10,878

Cash payments - 2013 plan
(35
)
(4,014
)
(2,452
)
(6,501
)
Foreign currency translation
(2
)
(36
)
(79
)
(117
)
Balance at September 27, 2014
$
5,439

$
5,764

$
186

$
11,389


Payments related to these severance benefits are expected to be paid in full by October 3, 2015 for both the 2013 plan and the 2014 plan. As of September 27, 2014, restructuring consists of $10,899 for the 2014 plan and $490 for the 2013 plan.
v2.4.0.8
Employee Benefit Plans
12 Months Ended
Sep. 27, 2014
Pension and Other Postretirement Benefit Expense [Abstract]  
Employee Benefit Plans
Employee Benefit Plans
We maintain multiple employee benefit plans, covering employees at certain locations.
Our qualified U.S. defined benefit pension plan is not open to new entrants. New employees are not eligible to participate in the pension plan. Instead, we make contributions for those employees to an employee-directed investment fund in the Moog Inc. Retirement Savings Plan ("RSP"). The Company’s contributions are based on a percentage of the employee’s eligible compensation and age. These contributions are in addition to the employer match on voluntary employee contributions.
The RSP includes an Employee Stock Ownership Plan. As one of the investment alternatives, participants in the RSP can acquire our stock at market value. We match 25% of the first 2% of eligible compensation contributed to any investment selection. Shares are allocated and compensation expense is recognized as the employer share match is earned. At September 27, 2014, the participants in the RSP owned 552,011 Class A shares and 1,684,812 Class B shares.
 
The changes in projected benefit obligations and plan assets and the funded status of the U.S. and non-U.S. defined benefit plans are as follows:
  
U.S. Plans
 
Non-U.S. Plans
  
2014
 
2013
 
2014
 
2013
Change in projected benefit obligation:
 
 
 
 
 
 
 
Projected benefit obligation at prior year measurement date
$
678,063

 
$
779,977

 
$
169,980

 
$
153,089

Service cost
21,571

 
26,856

 
5,533

 
4,874

Interest cost
33,354

 
28,818

 
5,984

 
5,749

Contributions by plan participants

 

 
1,014

 
970

Actuarial losses (gains)
74,369

 
(138,603
)
 
22,702

 
8,781

Foreign currency exchange impact

 

 
(10,237
)
 
1,400

Benefits paid from plan assets
(20,032
)
 
(17,586
)
 
(2,697
)
 
(1,903
)
Benefits paid by Moog
(1,883
)
 
(1,556
)
 
(2,985
)
 
(3,162
)
Other
(1,239
)
 
157

 
(352
)
 
182

Projected benefit obligation at measurement date
$
784,203

 
$
678,063

 
$
188,942

 
$
169,980

Change in plan assets:
 
 
 
 
 
 
 
Fair value of assets at prior year measurement date
$
498,918

 
$
441,426

 
$
98,625

 
$
84,044

Actual return on plan assets
50,630

 
42,853

 
11,631

 
12,147

Employer contributions
59,283

 
34,584

 
20,655

 
8,077

Contributions by plan participants

 

 
1,014

 
970

Benefits paid
(21,915
)
 
(19,142
)
 
(5,682
)
 
(5,065
)
Foreign currency exchange impact

 

 
(5,425
)
 
(1,485
)
Other
(1,239
)
 
(803
)
 
(64
)
 
(63
)
Fair value of assets at measurement date
$
585,677

 
$
498,918

 
$
120,754

 
$
98,625

Funded status and amount recognized in assets and liabilities
$
(198,526
)
 
$
(179,145
)
 
$
(68,188
)
 
$
(71,355
)
Amount recognized in assets and liabilities:
 
 
 
 
 
 
 
Other assets - non-current
$

 
$

 
$
4,191

 
$
2,043

Accrued and long-term pension liabilities
(198,526
)
 
(179,145
)
 
(72,379
)
 
(73,398
)
Amount recognized in assets and liabilities
$
(198,526
)
 
$
(179,145