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Segments | 12 Months Ended
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Sep. 28, 2019
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] |
Segments | Segments Aircraft Controls. We design, manufacture and integrate primary and secondary flight controls for military and commercial aircraft and provide aftermarket support. Our systems are used on both development and production programs in large commercial transports, supersonic fighters, multi-role military aircraft, business jets and rotorcraft. We also supply ground-based navigation aids. We are currently working on the KC-46 military air refueling tanker on the military side, and the COMAC C919 and the Embraer E-Jet E2 family on the commercial side. Typically development programs require concentrated periods of research and development by our engineering teams, while production programs are generally long-term manufacturing efforts that extend for as long as the aircraft builder receives new orders. In the past few years, a number of significant programs have transitioned from the development phase to initial low-rate production, including the Lockheed Martin F-35 Joint Strike Fighter on the military side and the Boeing 787 and Airbus A350XWB on the commercial side. In terms of mature production programs, our large military programs include the F/A-18E/F Super Hornet, the V-22 Osprey tiltrotor and the Black Hawk UH-60/Seahawk SH-60 helicopter, while our large commercial production programs include the full line of Boeing 7-series aircraft, Airbus A320, A330 and A380 and a variety of business jets. Aftermarket sales, which represented 27%, 29% and 27% of 2019, 2018 and 2017 sales, respectively, for this segment consist of the maintenance, repair, overhaul and parts supply for both military and commercial aircraft. Further, we sell spare parts and line replaceable units to both military and commercial customers that they store throughout the world in order to minimize down time. Space and Defense Controls. We provide controls for satellites, space vehicles, launch vehicles, armored combat vehicles, tactical and strategic missiles, security and surveillance and other defense applications. We design, manufacture and integrate commercial and military satellite positioning controls. Propulsion components and systems accelerate the spacecraft for orbit-insertion, station keeping and attitude control. Mission specific actuation mechanisms control solar array panels and antennas. We also design, manufacture and integrate steering and propulsion controls for space launch vehicles, such as the Atlas, Delta and Ariane platforms. Additionally, we design and manufacture spaceflight electronics and software. We are also developing new control products and systems for a variety of programs related to manned spaceflight including NASA's new Space Launch System and Multi-Purpose Crew Vehicle. In addition, we design controls for gun aiming, stabilization and automatic ammunition loading for armored combat vehicles for a variety of domestic and international customers. We are also developing a new reconfigurable turret system for several military vehicle programs. We also design controls for steering tactical and strategic missiles including: Lockheed Martin's Hellfire®, the U.S. National Missile Defense Agency's Ballistic Missile Defense initiatives and Raytheon's TOW and Trident missiles. We also design, build and integrate weapons stores management systems for light attack aerial reconnaissance, ground and sea platforms, as well as build high power, quiet controls for naval surface ships and submarines such as the U.S. Virginia Class. Our sensor and surveillance products are used in both military and commercial applications such as electrical grid and other critical infrastructure protection applications. Also, we design and manufacture a number of component products that serve both the space and defense segments, including slip rings, fiber optic rotary joints and motors. Slip rings and fiber optic rotary joints use sliding contacts and optical technology to allow unimpeded rotation while delivering power and data through a rotating interface. Slip rings, fiber optic rotary joints and motors are used in a broad range of solutions, including satellites, missiles, radar pedestals and gimbals. Industrial Systems. We provide customized machine performance components and systems utilizing electrohydraulic, electromechanical and control technologies in applications involving motion control, fluid control and power and data management across a variety of markets. In the industrial automation market, we design, manufacture and integrate components and systems for applications in injection and blow molding machinery, metal forming presses and heavy industry for steel and aluminum production. Our components and systems allow for precise controls of critical parameters in the industrial manufacturing processes, using both hydraulic and electric technologies. Other industrial automation applications we serve include material handling and paper mills. In the simulation and test market, we supply electromechanical motion simulation bases for the flight simulation and training applications, as well as medical training simulators. We also supply custom test systems and controls for automotive, structural and fatigue testing. In the energy market, we supply solutions for power generation applications which allow for precise control and greater safety of fuel metering and guide vane positioning on steam and gas turbines. We also design and manufacture high reliability systems and components for applications in oil and gas exploration and production, including downhole drilling, topside and subsea environments. We supply high-reliability components for wind turbine applications. In the medical market, we supply components and systems for diagnostic imaging CT scan medical equipment, sleep apnea equipment, oxygen concentrators, infusion therapy and enteral clinical nutrition. Our components product categories include hydraulics, slip rings and fiber optic rotary joints, motors and infusion and enteral pumps and associated sets across similar markets. Hydraulic components include high-performance servo valves with mechanical or electronic feedback, high-dynamic performance hydraulic servo pumps, energy-efficient electro hydrostatic actuators and complex hydraulic manifold systems. Slip rings and fiber optic rotary joints come in a range of sizes that allow them to be used in many applications, including diagnostic imaging CT scan medical equipment, remotely operated vehicles and floating platforms for offshore oil exploration, surveillance cameras and wind turbines. Electric motors are used in an equally broad range of solutions, many of which are the same as for slip rings. We design and manufacture a series of fractional horsepower brushless motors that provide extremely low acoustic noise and reliable long life operation, with the largest program being sleep apnea equipment. Industrial customers use our motors for material handling and electric pumps. We supply ultra high-torque servomotors for servo press applications and high-power, multi-megawatt generators for dynamometer testing and hydropower. Infusion therapy products include infusion pumps and associated administration sets. They offer IV, intra-arterial, subcutaneous or epidural flow of fluids and precise medicine delivery and can be applied to many applications, including hydration, nutrition, patient-controlled analgesia, local anesthesia, chemotherapy and antibiotics. Enteral clinical nutrition products include a complete line of portable and stationary pumps along with disposable sets. They are designed for ease of use and mobility. Medical customers use our enteral feeding products in the delivery of enteral nutrition for patients in their own homes, hospitals and long-term care facilities. Disaggregation of net sales by segment are as follows:
Market Type |  | 2019 |  | 2018 |  | 2017
Net sales: |  |  |  |  |  |
Military |  | $ | 622,126 |  |  | $ | 571,886 |  |  | $ | 522,110 |
Commercial |  | 680,846 |  |  | 621,619 |  |  | 602,775 |
Aircraft Controls |  | 1,302,972 |  |  | 1,193,505 |  |  | 1,124,885 |
Space |  | 218,970 |  |  | 214,741 |  |  | 187,217 |
Defense |  | 464,498 |  |  | 366,136 |  |  | 341,986 |
Space and Defense Controls |  | 683,468 |  |  | 580,877 |  |  | 529,203 |
Energy |  | 120,771 |  |  | 163,888 |  |  | 145,344 |
Industrial Automation |  | 447,515 |  |  | 430,754 |  |  | 377,211 |
Simulation and Test |  | 122,935 |  |  | 127,321 |  |  | 126,135 |
Medical |  | 227,002 |  |  | 213,123 |  |  | 194,745 |
Industrial Systems |  | 918,223 |  |  | 935,086 |  |  | 843,436 |
Net sales |  | $ | 2,904,663 |  |  | $ | 2,709,468 |  |  | $ | 2,497,524 |
Customer Type |  | 2019 |  | 2018 |  | 2017
Net sales: |  |  |  |  |  |
Commercial |  | $ | 680,846 |  |  | $ | 621,619 |  |  | $ | 602,775 |
U.S. Government (including OEM) |  | 484,203 |  |  | 447,148 |  |  | 388,697 |
Other |  | 137,923 |  |  | 124,738 |  |  | 133,413 |
Aircraft Controls |  | 1,302,972 |  |  | 1,193,505 |  |  | 1,124,885 |
Commercial |  | 124,445 |  |  | 116,984 |  |  | 170,212 |
U.S. Government (including OEM) |  | 513,250 |  |  | 424,848 |  |  | 354,817 |
Other |  | 45,773 |  |  | 39,045 |  |  | 4,174 |
Space and Defense Controls |  | 683,468 |  |  | 580,877 |  |  | 529,203 |
Commercial |  | 888,132 |  |  | 904,439 |  |  | 805,934 |
U.S. Government (including OEM) |  | 20,452 |  |  | 25,886 |  |  | 28,226 |
Other |  | 9,639 |  |  | 4,761 |  |  | 9,276 |
Industrial Systems |  | 918,223 |  |  | 935,086 |  |  | 843,436 |
Commercial |  | 1,693,423 |  |  | 1,643,042 |  |  | 1,578,921 |
U.S. Government (including OEM) |  | 1,017,905 |  |  | 897,882 |  |  | 771,740 |
Other |  | 193,335 |  |  | 168,544 |  |  | 146,863 |
Net sales |  | $ | 2,904,663 |  |  | $ | 2,709,468 |  |  | $ | 2,497,524 |
Operating profit is net sales less cost of sales and other operating expenses, excluding interest expense, equity-based compensation expense, non-service pension 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, manpower or profit. Operating profit by segment and reconciliations to consolidated amounts are as follows:
|  | 2019 |  | 2018 |  | 2017
Operating profit: |  |  |  |  |  |
Aircraft Controls |  | $ | 122,701 |  |  | $ | 129,772 |  |  | $ | 116,797 |
Space and Defense Controls |  | 88,990 |  |  | 67,615 |  |  | 49,989 |
Industrial Systems |  | 109,451 |  |  | 64,964 |  |  | 92,061 |
Total operating profit |  | 321,142 |  |  | 262,351 |  |  | 258,847 |
Deductions from operating profit: |  |  |  |  |  |
Interest expense |  | 39,269 |  |  | 36,238 |  |  | 34,551 |
Equity-based compensation expense |  | 6,464 |  |  | 5,804 |  |  | 4,582 |
Non-service pension expense |  | 12,746 |  |  | 6,778 |  |  | 12,594 |
Corporate and other expenses, net |  | 28,905 |  |  | 29,694 |  |  | 25,409 |
Earnings before income taxes |  | $ | 233,758 |  |  | $ | 183,837 |  |  | $ | 181,711 |
Depreciation and amortization: |  |  |  |  |  |
Aircraft Controls |  | $ | 41,144 |  |  | $ | 40,795 |  |  | $ | 41,977 |
Space and Defense Controls |  | 18,014 |  |  | 17,900 |  |  | 18,980 |
Industrial Systems |  | 25,454 |  |  | 28,825 |  |  | 28,099 |
Corporate |  | 648 |  |  | 1,052 |  |  | 1,111 |
Total depreciation and amortization |  | $ | 85,260 |  |  | $ | 88,572 |  |  | $ | 90,167 |
Identifiable assets: |  |  |  |  |  |
Aircraft Controls |  | $ | 1,300,781 |  |  | $ | 1,168,964 |  |  | $ | 1,120,099 |
Space and Defense Controls |  | 737,141 |  |  | 660,589 |  |  | 575,132 |
Industrial Systems |  | 1,040,659 |  |  | 1,077,022 |  |  | 1,124,950 |
Corporate |  | 35,656 |  |  | 57,473 |  |  | 270,411 |
Total assets |  | $ | 3,114,237 |  |  | $ | 2,964,048 |  |  | $ | 3,090,592 |
Capital expenditures: |  |  |  |  |  |
Aircraft Controls |  | $ | 68,595 |  |  | $ | 46,705 |  |  | $ | 36,216 |
Space and Defense Controls |  | 23,903 |  |  | 22,452 |  |  | 15,173 |
Industrial Systems |  | 25,808 |  |  | 25,156 |  |  | 23,953 |
Corporate |  | 116 |  |  | 204 |  |  | 456 |
Total capital expenditures |  | $ | 118,422 |  |  | $ | 94,517 |  |  | $ | 75,798 |
Sales, based on the customer’s location, and property, plant and equipment by geographic area are as follows:
|  | 2019 |  | 2018 |  | 2017
Net sales: |  |  |  |  |  |
United States |  | $ | 1,757,518 |  |  | $ | 1,592,513 |  |  | $ | 1,438,428 |
Germany |  | 213,128 |  |  | 202,676 |  |  | 195,328 |
Japan |  | 166,690 |  |  | 158,686 |  |  | 152,148 |
France |  | 143,019 |  |  | 138,054 |  |  | 145,627 |
Other |  | 624,308 |  |  | 617,539 |  |  | 565,993 |
Net sales |  | $ | 2,904,663 |  |  | $ | 2,709,468 |  |  | $ | 2,497,524 |
Property, plant and equipment, net: |  |  |  |  |  |
United States |  | $ | 365,136 |  |  | $ | 325,088 |  |  | $ | 303,925 |
Philippines |  | 61,910 |  |  | 63,870 |  |  | 64,260 |
United Kingdom |  | 56,253 |  |  | 61,438 |  |  | 64,065 |
Other |  | 103,468 |  |  | 102,469 |  |  | 90,741 |
Property, plant and equipment, net |  | $ | 586,767 |  |  | $ | 552,865 |  |  | $ | 522,991 |
Sales to Boeing were $370,306, $382,184 and $321,110, or 13%, 14% and 13% of sales, in 2019, 2018 and 2017, respectively, including sales to Boeing Commercial Airplanes of $264,805, $238,118 and $252,977 in 2019, 2018 and 2017, respectively. Sales arising from U.S. Government prime or sub-contracts, including military sales to Boeing, were $1,017,905, $897,882 and $775,271 in 2019, 2018 and 2017, respectively. Sales to Boeing and the U.S. Government and its prime- or sub-contractors are made primarily from our Aircraft Controls and Space and Defense Controls segments.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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