XML 40 R29.htm IDEA: XBRL DOCUMENT
v3.20.2

Basis Of Presentation (Policies) | 9 Months Ended
--- | ---
Jun. 27, 2020
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 27, 2020 are not necessarily indicative of the results expected for the full year. The accompanying unaudited consolidated condensed financial statements should be read in conjunction with the financial statements and notes thereto included in our Form 10-K for the fiscal year ended September 28, 2019. All references to years in these financial statements are to fiscal years.
COVID-19 Response | COVID-19 Impacts On Our Business On March 11, 2020, the World Health Organization classified the COVID-19 outbreak as a pandemic. In response, we established two clear priorities; first, the health and safety of our employees and their families and, second, continuing to meet the needs of our customers and secure the financial well-being of the Company by implementing short-term actions to maintain liquidity. While substantially all of our operations and production activities have, to-date, remained operational as many are considered essential and exempt from closure directives. The pandemic did have a material impact on our financial statements for the three and nine months ended June 27, 2020. We recorded impairment charges on long-lived assets and recorded inventory reserves for businesses impacted by lower sales. We continue to monitor the impacts of COVID-19 on the fair value of assets. While we do not currently anticipate any additional material impairments on assets as a result of COVID-19, future changes in sales, earnings and cash flows related to long-lived assets to be held and used and goodwill could cause these assets to become impaired. COVID-19 is discussed in more detail throughout “Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, including acquired 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, or with another comparable method. In 2020, we recorded impairment charges on long-lived assets primarily in our Aircraft Controls segment. These charges relate to property, plant and equipment, right-of-use assets and intangible assets that experienced a significant decline in value due to economic impacts of the COVID-19 pandemic. These charges are included in long-lived asset impairment in the Consolidated Statement of Earnings (Loss). See Note 6 - Property, Plant and Equipment, Note 7 - Leases, Note 8 - Goodwill and Intangible Assets and Note 12 - Fair Value for additional disclosures relating to impairment charges recorded.
Reclassification | Reclassifications Certain prior year amounts have been reclassified to conform to current year's presentation. Management does not consider the amounts reclassified to be material.
Recent Accounting Pronouncements and Changes in Accounting Principles | Recent Accounting Pronouncements Adopted
Standard |  | Description |  | Financial Statement Effect or Other Significant Matters
ASU no. 2016-02 Leases (and all related ASUs) |  | The standard requires most lease arrangements to be recognized in the balance sheet as lease assets and lease liabilities. The standard also requires additional disclosures about the leasing arrangements. The provisions of the standard are effective for fiscal years beginning after December 15, 2018 and interim periods within those years. Early adoption is permitted. |  | We adopted this standard using the modified retrospective method, without adjusting prior comparative periods. We recorded a initial right-of-use (ROU) assets of $70,806 and lease liabilities of $74,456, which included reclassifying deferred rent as a component of the ROU asset on the Consolidated Condensed Balance Sheets. There were no material changes to our Consolidated Condensed Statements of Earnings (Loss) or Consolidated Condensed Statements of Cash Flows. We have completed the necessary changes to our financial statements and related disclosures, internal controls, financial policies and information systems. See Note 7 - Leases, for additional disclosure.
Date adopted: Q1 2020
Recent Accounting Pronouncements Not Yet Adopted
Standard |  | Description |  | Financial Statement Effect or Other Significant Matters
ASU no. 2018-15 Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract |  | The standard amends ASC 350 to include in its scope implementation costs of a Cloud Computing Arrangement (CCA) that is a service contract and clarifies that a customer should apply ASC 350-40 to determine which implementation costs should be capitalized in a CCA that is considered a service contract. The ASU is effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The amendments should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. |  | We are currently evaluating the effect on our financial statements and related disclosures.
Planned date of adoption: Q1 2021
ASU no. 2016-13 Measurement of Credit Losses on Financial Instruments |  | The standard replaces the incurred loss model with the current expected credit loss (CECL) model to estimate credit losses for financial assets measured at amortized cost and certain off-balance sheet credit exposures. The CECL model requires a Company to estimate credit losses expected over the life of the financial assets based on historical experience, current conditions and reasonable and supportable forecasts. The provisions of the standard are effective for fiscal years beginning after December 15, 2019 and interim periods within those fiscal years. Early adoption is permitted. The amendment requires a modified retrospective approach by recording a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. |  | We are currently evaluating the effect on our financial statements and related disclosures.
Planned date of adoption: Q1 2021
We consider the applicability and impact of all ASUs. ASUs not listed above were assessed and determined to be either not applicable, or had or are expected to have an immaterial impact on our financial statements and related disclosures. Impact of Change in Accounting Principle Beginning in the first quarter of 2020, we changed our method of accounting for the determination of the market-related value of assets for a class of assets within the qualified U.S. defined benefit plan (the plan). This class of assets is currently comprised solely of the fixed income funds asset class held in the portfolio for the plan and provides a natural hedge (liability-hedging assets) against the changes in the recorded amount of net periodic pension cost. Refer to Note 13 - Employee Benefit Plans, in our Form 10-K for the fiscal year ended September 28, 2019, for our fair value disclosure by asset classification. Our previous method of accounting was to calculate the market-related value of assets for all the plan’s assets recognizing investment gains and losses ratably over a five-year period. We have elected to use the fair value of our liability-hedging assets, which represent approximately 80% of the plan’s assets, to determine the market-related value of the assets beginning in the first quarter of 2020. This change in accounting principle is preferable as the recognition of the gains and losses on this class of assets will affect net periodic pension cost in the period in which they occur. No change is being made to the accounting principle for the other classes of pension assets, which represent the remaining 20% of the pension asset portfolio for the plan. The gains and losses for these other plan assets will continue to be amortized into earnings over a five-year period. The change in accounting principle requires retrospective application and prospective disclosure. The tables below represent the impact of this change on the Consolidated Condensed Statements of Earnings (Loss) and the Consolidated Condensed Statements of Comprehensive Income (Loss) for the three and nine months ended June 27, 2020, the Consolidated Condensed Balance Sheets for the period ended June 27, 2020, the Consolidated Condensed Statements of Earnings (Loss) and the Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended June 29, 2019 and the Consolidated Condensed Balance Sheets for the periods ended June 29, 2019, September 28, 2019 and September 29, 2018, respectively. The change in accounting principle had no impact on the Consolidated Condensed Statements of Cash Flows for these periods. The tables below represent the impact of the change in accounting principle on the Consolidated Condensed Statements of Earnings (Loss) and the Consolidated Statements of Comprehensive Income (Loss) for the three and nine months ended June 27, 2020.
|  | Three Months Ended |  | Nine Months Ended
|  | As Reported (With Change), June 27, 2020 |  | Impact of Change |  | Without Change, June 27, 2020 |  | As Reported (With Change), June 27, 2020 |  | Impact of Change |  | Without Change, June 27, 2020
Other |  | $ | 4,415 |  |  | $ | 2,876 |  |  | $ | 7,291 |  |  | $ | 14,294 |  |  | $ | 8,627 |  |  | $ | 22,921 |
Earnings (loss) before income taxes |  | (23,354 | ) |  | (2,876 | ) |  | (26,230 | ) |  | 105,081 |  |  | (8,627 | ) |  | 96,454 |
Income taxes (benefit) |  | (10,764 | ) |  | (679 | ) |  | (11,443 | ) |  | 17,899 |  |  | (2,036 | ) |  | 15,863 |
Net earnings (loss) |  | $ | (12,590 | ) |  | $ | (2,197 | ) |  | $ | (14,787 | ) |  | $ | 87,182 |  |  | $ | (6,591 | ) |  | $ | 80,591 |
Net earnings (loss) per share |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | (0.39 | ) |  | $ | (0.07 | ) |  | $ | (0.46 | ) |  | $ | 2.60 |  |  | $ | (0.20 | ) |  | $ | 2.40 |
Diluted |  | $ | (0.39 | ) |  | $ | (0.07 | ) |  | $ | (0.46 | ) |  | $ | 2.59 |  |  | $ | (0.20 | ) |  | $ | 2.39 |
Retirement liability adjustment |  | $ | 5,922 |  |  | $ | 2,197 |  |  | $ | 8,119 |  |  | $ | 16,401 |  |  | $ | 6,591 |  |  | $ | 22,992 |
Other comprehensive income (loss), net of tax |  | $ | 8,511 |  |  | $ | 2,197 |  |  | $ | 10,708 |  |  | $ | 17,344 |  |  | $ | 6,591 |  |  | $ | 23,935 |
Comprehensive income (loss) |  | $ | (4,079 | ) |  | $ | — |  |  | $ | (4,079 | ) |  | $ | 104,526 |  |  | $ | — |  |  | $ | 104,526 |
The table below represents the impact of the change in accounting principle on the Consolidated Condensed Balance Sheet as of June 27, 2020.
|  | As Reported (With Change), June 27, 2020 |  | Impact of Change |  | Without Change, June 27, 2020
Shareholders’ equity |  |  |  |  |  |
Retained earnings |  | $ | 2,198,872 |  |  | $ | (2,002 | ) |  | $ | 2,196,870 |
Accumulated other comprehensive income (loss) |  | (398,133 | ) |  | 2,002 |  |  | (396,131 | )
Total shareholders’ equity |  | $ | 1,245,761 |  |  | $ | — |  |  | $ | 1,245,761 |
The tables below represent the impact of the change in accounting principle on the Consolidated Condensed Statements of Earnings (Loss) and the Consolidated Condensed Statements of Comprehensive Income (Loss) for the three and nine months ended June 29, 2019.
|  | Three Months Ended |  | Nine Months Ended
|  | As Previously Reported, June 29, 2019 |  | Impact of Change |  | As Reported (With Change), June 29, 2019 |  | As Previously Reported, June 29, 2019 |  | Impact of Change |  | As Reported (With Change), June 29, 2019
Other |  | $ | 5,466 |  |  | $ | 1,702 |  |  | $ | 7,168 |  |  | $ | 9,540 |  |  | $ | 5,105 |  |  | $ | 14,645 |
Earnings (loss) before income taxes |  | 61,720 |  |  | (1,702 | ) |  | 60,018 |  |  | 175,522 |  |  | (5,105 | ) |  | 170,417 |
Income taxes (benefit) |  | 14,255 |  |  | (402 | ) |  | 13,853 |  |  | 41,629 |  |  | (1,205 | ) |  | 40,424 |
Net earnings (loss) |  | $ | 47,465 |  |  | $ | (1,300 | ) |  | $ | 46,165 |  |  | $ | 133,893 |  |  | $ | (3,900 | ) |  | $ | 129,993 |
Net earnings (loss) per share |  |  |  |  |  |  |  |  |  |  |  |
Basic |  | $ | 1.36 |  |  | $ | (0.04 | ) |  | $ | 1.32 |  |  | $ | 3.84 |  |  | $ | (0.11 | ) |  | $ | 3.73 |
Diluted |  | $ | 1.35 |  |  | $ | (0.04 | ) |  | $ | 1.31 |  |  | $ | 3.80 |  |  | $ | (0.11 | ) |  | $ | 3.69 |
Retirement liability adjustment |  | $ | 4,264 |  |  | $ | 1,300 |  |  | $ | 5,564 |  |  | $ | 13,760 |  |  | $ | 3,900 |  |  | $ | 17,660 |
Other comprehensive income (loss), net of tax |  | $ | 3,827 |  |  | $ | 1,300 |  |  | $ | 5,127 |  |  | $ | 5,627 |  |  | $ | 3,900 |  |  | $ | 9,527 |
Comprehensive income |  | $ | 51,292 |  |  | $ | — |  |  | $ | 51,292 |  |  | $ | 139,520 |  |  | $ | — |  |  | $ | 139,520 |
The table below represents the impact of the change in accounting principle on the Consolidated Condensed Balance Sheet as of June 29, 2019.
|  | As Previously Reported, June 29, 2019 |  | Impact of Change |  | As Reported (With Change), June 29, 2019
Shareholders’ equity |  |  |  |  |  |
Retained earnings (loss) |  | $ | 2,096,174 |  |  | $ | (3,289 | ) |  | $ | 2,092,885 |
Accumulated other comprehensive income (loss) |  | (366,554 | ) |  | 3,289 |  |  | (363,265 | )
Total shareholders’ equity |  | $ | 1,355,657 |  |  | $ | — |  |  | $ | 1,355,657 |
The table below represents the impact of the change in accounting principle on the Consolidated Condensed Balance Sheet as of September 28, 2019.
|  | As Previously Reported, September 28, 2019 |  | Impact of Change |  | As Reported (With Change), September 28, 2019
Shareholders’ equity |  |  |  |  |  |
Retained earnings (loss) |  | $ | 2,133,328 |  |  | $ | (4,589 | ) |  | $ | 2,128,739 |
Accumulated other comprehensive income (loss) |  | (420,066 | ) |  | 4,589 |  |  | (415,477 | )
Total shareholders’ equity |  | $ | 1,322,481 |  |  | $ | — |  |  | $ | 1,322,481 |
See Note 13 - Employee Benefit Plans and Note 16 - Accumulated Other Comprehensive Income (Loss) for adjusted reporting for prior periods.

X
- Definition COVID-19 Response [Policy Text Block] + References No definition available. + Details
Name: | mog_COVID19ResponsePolicyTextBlock
Namespace Prefix: | mog_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of accounting policy for basis of accounting, or basis of presentation, used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). + References No definition available. + Details
Name: | us-gaap_BasisOfAccountingPolicyPolicyTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of accounting policy for the impairment and disposal of long-lived assets including goodwill and other intangible assets. + References No definition available. + Details
Name: | us-gaap_ImpairmentOrDisposalOfLongLivedAssetsIncludingIntangibleAssetsPolicyPolicyTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for change in accounting principle. Includes, but is not limited to, nature, reason, and method of adopting amendment to accounting standards or other change in accounting principle. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 65 -Paragraph 1 -Subparagraph (g)(2) -URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 65 -Paragraph 1 -Subparagraph (i) -URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section S99 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=112272810&loc=SL108384541-122693 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 65 -Paragraph 1 -Subparagraph (i)(2) -URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 65 -Paragraph 2 -Subparagraph (g)(2)(iii) -URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(4) -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 65 -Paragraph 2 -Subparagraph (g)(2)(ii) -URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 65 -Paragraph 2 -Subparagraph (g)(2)(i) -URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 65 -Paragraph 15 -Subparagraph (g)(1) -URI http://asc.fasb.org/extlink&oid=121322162&loc=SL121327923-165333 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 606 -SubTopic 10 -Section 65 -Paragraph 1 -Subparagraph (j) -URI http://asc.fasb.org/extlink&oid=113356391&loc=SL49131195-203048 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 65 -Paragraph 2 -Subparagraph (g)(2)(iv) -URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 926 -SubTopic 20 -Section 65 -Paragraph 2 -Subparagraph (f)(1) -URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section S99 -Paragraph 5 -Subparagraph (SAB Topic 11.M.Q2) -URI http://asc.fasb.org/extlink&oid=112272810&loc=d3e31137-122693 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 926 -SubTopic 20 -Section 65 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 926 -SubTopic 20 -Section 65 -Paragraph 2 -Subparagraph (f)(3) -URI http://asc.fasb.org/extlink&oid=120154821&loc=SL120154904-197079 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 10 -Section 65 -Paragraph 4 -Subparagraph (e)(1) -URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 944 -SubTopic 40 -Section 65 -Paragraph 2 -Subparagraph (h)(2) -URI http://asc.fasb.org/extlink&oid=121370832&loc=SL117420844-207641 Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 326 -SubTopic 10 -Section 65 -Paragraph 4 -Subparagraph (e)(2) -URI http://asc.fasb.org/extlink&oid=121646688&loc=SL121648383-210437 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -Subparagraph (b)(1) -URI http://asc.fasb.org/extlink&oid=109234566&loc=d3e22499-107794 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 65 -Paragraph 8 -Subparagraph (e)(1) Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 65 -Paragraph 8 -Subparagraph (e)(2) Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 65 -Paragraph 8 -Subparagraph (e)(3) + Details
Name: | us-gaap_NewAccountingPronouncementsAndChangesInAccountingPrinciplesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_OrganizationConsolidationAndPresentationOfFinancialStatementsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Disclosure of accounting policy for reclassification affecting comparability of financial statement. Excludes amendment to accounting standards, other change in accounting principle, and correction of error. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6359566&loc=d3e326-107755 + Details
Name: | us-gaap_PriorPeriodReclassificationAdjustmentDescription
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration