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Segments | 12 Months Ended
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Sep. 30, 2023
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] |
Segments | Segments Aircraft Controls. We design, manufacture and integrate primary and secondary flight controls and avionics 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. 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. Our military production programs include the F-35 Joint Strike Fighter, 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 787 and 737-MAX, the Airbus A320, A330 and A350XWB programs, the Embraer E195-E2 and a variety of business jets. We are currently working on the development of the Textron Bell V-280 Valor, the MQ-25 aerial refueling drone and other classified funded development military programs. Aftermarket sales, which repr esented 30%, 30% a nd 27% of 2023, 2022 and 2021 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 solutions for a wide array of space and defense applications including space vehicles, launch vehicles, military vehicles, air defense platforms, naval vessels, as well as tactical, hypersonic, and strategic missiles. We design, manufacture, and integrate steering and propulsion controls for space launch vehicles, hypersonic missiles, and Missile Defense Agency (MDA) vehicles. Launch programs of note include NASA's new Space Launch System for the Artemis program, as well as legacy launch vehicles Atlas and Vulcan. We have also developed modular space vehicle products, which have their own avionics, power, propulsion, and communications systems and are configurable for short durations up through multiyear missions in a wide range of orbits and transfer capabilities. Our spacecraft avionics are used for a variety of purposes and missions, including a complete flight control computer, payload data processing, and processing of discrete elements onboard a spacecraft. Mission specific actuation mechanisms control solar array panels, antenna and thrusters. We also provide discrete isolation systems for the entire spacecraft during launch and for vibration sensitive systems during spacecraft operation. Our propulsion and fluid control solutions accelerate the spacecraft for orbit-insertion, station keeping, and attitude control. Our fluid control systems are also used in Environmental Control and Life Support System (ECLSS) for crewed missions, such as the Orion Multi-Purpose Crew Vehicle that is part of NASA’s Artemis program and the Habitation and Logistics Outpost (HALO), both of which will support humans working on the moon. We produce an innovative turreted weapon system, the Reconfigurable Integrated-weapons Platform (RIwP®), for several military vehicle programs. In addition, we design controls for gun aiming, stabilization and automatic ammunition loading. Our coordinated multi-axis control systems support military vehicles, radars and launchers. We also manufacture controls for steering tactical and strategic missiles including Lockheed Martin's HELLFIRE® and PAC-3 interceptor, the U.S. National Missile Defense Agency's (MDA) Layered Missile Defense initiatives, multiple hypersonic missiles, as well as Raytheon's TOW missiles. Further, we design, build, and integrate weapons Stores Management Systems (SMS) for light attack aerial reconnaissance, ground, and sea platforms. We also produce high-power, quiet controls designed and built for many naval vessels including surface ships, Unmanned Undersea Vehicles (UUVs) and submarines such as the Ohio and Columbia classes. Also, we design and manufacture various component products that serve both the space and defense segments by providing mission critical power, data and motion control capabilities. Slip rings allow unimpeded rotation while delivering power and data through a rotating interface. Our motion control products include high-performance motors, position feedback devices and actuators. The military electronics include a range of transceiver and Ethernet-based devices. These capabilities can be vertically integrated to support a broad range of applications which include military vehicles, aircraft, missiles, radar, and satellites. 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. Our components product categories include hydraulics, slip rings, rotary unions and fiber optic rotary joints, motors and infusion and enteral pumps and associated sets across similar markets. We have also developed control components and systems for construction vehicles to run as zero-emission, autonomous machines with improved performance and safety capabilities. In the simulation and test market, we supply electromechanical motion simulation bases for the flight simulation and training applications. 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. 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. We also manufacture medical devices including infusion therapy pumps and associated administration sets and enteral clinical nutrition pumps along with disposable sets. Medical device 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 |  | 2023 |  | 2022 |  | 2021
Net sales: |  |  |  |  |  |
Military |  | $ | 700,080 |  |  | $ | 745,376 |  |  | $ | 781,921 |
Commercial |  | 689,067 |  |  | 511,085 |  |  | 379,317 |
Aircraft Controls |  | 1,389,147 |  |  | 1,256,461 |  |  | 1,161,238 |
Space |  | 407,153 |  |  | 337,773 |  |  | 332,946 |
Defense |  | 540,098 |  |  | 534,570 |  |  | 466,289 |
Space and Defense Controls |  | 947,251 |  |  | 872,343 |  |  | 799,235 |
Energy |  | 123,864 |  |  | 125,574 |  |  | 120,173 |
Industrial Automation |  | 485,502 |  |  | 435,074 |  |  | 427,076 |
Simulation and Test |  | 124,980 |  |  | 99,815 |  |  | 89,459 |
Medical |  | 248,378 |  |  | 246,516 |  |  | 254,812 |
Industrial Systems |  | 982,724 |  |  | 906,979 |  |  | 891,520 |
Net sales |  | $ | 3,319,122 |  |  | $ | 3,035,783 |  |  | $ | 2,851,993 |
Customer Type |  | 2023 |  | 2022 |  | 2021
Net sales: |  |  |  |  |  |
Commercial |  | $ | 689,067 |  |  | $ | 511,085 |  |  | $ | 379,317 |
U.S. Government (including OEM) |  | 518,033 |  |  | 566,855 |  |  | 617,034 |
Other |  | 182,047 |  |  | 178,521 |  |  | 164,887 |
Aircraft Controls |  | 1,389,147 |  |  | 1,256,461 |  |  | 1,161,238 |
Commercial |  | 112,777 |  |  | 111,569 |  |  | 126,751 |
U.S. Government (including OEM) |  | 778,229 |  |  | 704,675 |  |  | 614,984 |
Other |  | 56,245 |  |  | 56,099 |  |  | 57,500 |
Space and Defense Controls |  | 947,251 |  |  | 872,343 |  |  | 799,235 |
Commercial |  | 965,867 |  |  | 891,238 |  |  | 865,269 |
U.S. Government (including OEM) |  | 5,204 |  |  | 7,565 |  |  | 18,510 |
Other |  | 11,653 |  |  | 8,176 |  |  | 7,741 |
Industrial Systems |  | 982,724 |  |  | 906,979 |  |  | 891,520 |
Commercial |  | 1,767,711 |  |  | 1,513,892 |  |  | 1,371,337 |
U.S. Government (including OEM) |  | 1,301,466 |  |  | 1,279,095 |  |  | 1,250,528 |
Other |  | 249,945 |  |  | 242,796 |  |  | 230,128 |
Net sales |  | $ | 3,319,122 |  |  | $ | 3,035,783 |  |  | $ | 2,851,993 |
Revenue Recognition Method |  | 2023 |  | 2022 |  | 2021
Net sales: |  |  |  |  |  |
Over-time |  | $ | 1,098,608 |  |  | $ | 1,003,432 |  |  | $ | 939,251 |
Point in time |  | 290,539 |  |  | 253,029 |  |  | 221,987 |
Aircraft Controls |  | 1,389,147 |  |  | 1,256,461 |  |  | 1,161,238 |
Over-time |  | 883,727 |  |  | 806,994 |  |  | 746,613 |
Point in time |  | 63,524 |  |  | 65,349 |  |  | 52,622 |
Space and Defense Controls |  | 947,251 |  |  | 872,343 |  |  | 799,235 |
Over-time |  | 137,338 |  |  | 121,405 |  |  | 122,066 |
Point in time |  | 845,386 |  |  | 785,574 |  |  | 769,454 |
Industrial Systems |  | 982,724 |  |  | 906,979 |  |  | 891,520 |
Over-time |  | 2,119,673 |  |  | 1,931,831 |  |  | 1,807,930 |
Point in time |  | 1,199,449 |  |  | 1,103,952 |  |  | 1,044,063 |
Net sales |  | $ | 3,319,122 |  |  | $ | 3,035,783 |  |  | $ | 2,851,993 |
Sales to Boeing were $349,961, $339,119 and $345,907, or 11%, 11% and 12% of sales, in 2023, 2022 and 2021, respectively, including sales to Boeing Commercial Airplanes of $166,748, $139,615 and $118,549 in 2023, 2022 and 2021, respectively. Sales to Lockheed Martin were $294,017, $260,902 and $330,778, or 9%, 9% and 12% in 2023, 2022 and 2021, respectively. Sales arising from U.S. Government prime or sub-contracts, including military sales to Boeing and Lockheed Martin are made primarily from our Aircraft Controls and Space and Defense Controls segments and are included in the Customer Type table above. 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:
|  | 2023 |  | 2022 |  | 2021
Operating profit: |  |  |  |  |  |
Aircraft Controls |  | $ | 144,803 |  |  | $ | 123,620 |  |  | $ | 96,678 |
Space and Defense Controls |  | 95,949 |  |  | 86,844 |  |  | 88,333 |
Industrial Systems |  | 102,165 |  |  | 72,384 |  |  | 85,948 |
Total operating profit |  | 342,917 |  |  | 282,848 |  |  | 270,959 |
Deductions from operating profit: |  |  |  |  |  |
Interest expense |  | 63,578 |  |  | 36,757 |  |  | 33,892 |
Equity-based compensation expense |  | 10,582 |  |  | 8,882 |  |  | 7,461 |
Pension settlement |  | 12,542 |  |  | — |  |  | — |
Non-service pension expense |  | 12,324 |  |  | 6,072 |  |  | (2,194) |
Corporate and other expenses, net |  | 27,839 |  |  | 28,158 |  |  | 28,026 |
Earnings before income taxes |  | $ | 216,052 |  |  | $ | 202,979 |  |  | $ | 203,774 |
Depreciation and amortization: |  |  |  |  |  |
Aircraft Controls |  | $ | 43,636 |  |  | $ | 42,337 |  |  | $ | 41,580 |
Space and Defense Controls |  | 20,227 |  |  | 19,399 |  |  | 18,655 |
Industrial Systems |  | 26,157 |  |  | 26,515 |  |  | 29,731 |
Corporate |  | 213 |  |  | 138 |  |  | 193 |
Total depreciation and amortization |  | $ | 90,233 |  |  | $ | 88,389 |  |  | $ | 90,159 |
Identifiable assets: |  |  |  |  |  |
Aircraft Controls |  | $ | 1,683,401 |  |  | $ | 1,469,968 |  |  | $ | 1,471,338 |
Space and Defense Controls |  | 1,012,616 |  |  | 873,341 |  |  | 839,783 |
Industrial Systems |  | 1,088,753 |  |  | 1,046,754 |  |  | 1,078,025 |
Corporate |  | 23,266 |  |  | 41,778 |  |  | 44,023 |
Total assets |  | $ | 3,808,036 |  |  | $ | 3,431,841 |  |  | $ | 3,433,169 |
Capital expenditures: |  |  |  |  |  |
Aircraft Controls |  | $ | 77,046 |  |  | $ | 70,526 |  |  | $ | 63,514 |
Space and Defense Controls |  | 65,130 |  |  | 44,255 |  |  | 39,863 |
Industrial Systems |  | 30,949 |  |  | 24,620 |  |  | 25,338 |
Corporate |  | 161 |  |  | 30 |  |  | 19 |
Total capital expenditures |  | $ | 173,286 |  |  | $ | 139,431 |  |  | $ | 128,734 |
Sales, based on the customer’s location, and property, plant and equipment by geographic area are as follows:
|  | 2023 |  | 2022 |  | 2021
Net sales: |  |  |  |  |  |
United States |  | $ | 2,152,967 |  |  | $ | 2,041,952 |  |  | $ | 1,935,626 |
Germany |  | 203,666 |  |  | 164,388 |  |  | 148,739 |
Other |  | 962,489 |  |  | 829,443 |  |  | 767,628 |
Net sales |  | $ | 3,319,122 |  |  | $ | 3,035,783 |  |  | $ | 2,851,993 |
Property, plant and equipment, net: |  |  |  |  |  |
United States |  | $ | 537,908 |  |  | $ | 466,427 |  |  | $ | 438,851 |
United Kingdom |  | 125,471 |  |  | 61,950 |  |  | 62,662 |
Philippines |  | 33,559 |  |  | 32,905 |  |  | 35,851 |
Other |  | 117,758 |  |  | 107,626 |  |  | 108,414 |
Property, plant and equipment, net |  | $ | 814,696 |  |  | $ | 668,908 |  |  | $ | 645,778 |

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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://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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