Financial Performance - The twelve-month backlog as of September 28, 2024, was $2.5 billion, reflecting a 3% increase compared to September 30, 2023[18]. - Net sales to the five largest customers represented approximately 29% of total sales in 2024[48]. - Sales under U.S. Government contracts constituted 38% of total sales in 2024, primarily within the Space and Defense and Military Aircraft segments[49]. - Aerospace and defense OEM customers accounted for 60% of total sales in 2024, while industrial market sales represented 27%[47]. Research and Development - Research and development expenses amounted to $113 million, representing approximately 3% of sales in 2024[22]. - The patent portfolio includes significant patents related to medical devices, which provide future revenue opportunities[21]. Employee and Workforce - The company hired over 1,700 new employees and rehired over 100 employees globally in 2024[27]. - The average voluntary attrition rate over the last five years was approximately 6%[37]. Environmental and Community Initiatives - The company aims to reduce its combined Scope 1 and 2 emissions by 40% from the 2022 baseline by 2030[44]. - The company expanded its Community giving platform and launched a pilot of paid Volunteer Time Off in 2024[44]. Financial Liabilities and Currency Exposure - As of September 28, 2024, the company had $377 million in borrowings subject to variable interest rates, with an average of $477 million during 2024, indicating a potential increase in interest expense of $5 million if rates rose by one percentage point[251]. - The company sold $125 million in receivables under the Receivables Purchase Agreement (RPA) subject to variable interest rates, with an average of $119 million during 2024, which could lead to an additional $1 million in interest expense if rates increased by one percentage point[252]. - The company has foreign currency contracts with notional amounts of $174 million outstanding as of September 28, 2024, with a net fair value of $1 million as a net asset[253]. - A hypothetical 10% increase in the value of the U.S. dollar against all currencies would decrease the fair value of foreign currency contracts by approximately $16 million, while a 10% decrease would increase it by about $19 million[253]. - If average annual foreign exchange rates weakened or strengthened against the U.S. dollar by 10%, the company's net earnings in 2024 would have decreased or increased by $9 million from foreign currency translation[254].

Financial Performance - Net sales for Q4 2024 reached $917 million, a 5% increase from $872 million in Q4 2023, contributing to a total of $3.609 billion for the fiscal year, up 9% from $3.319 billion in 2023[2][9] - Diluted net earnings per share for Q4 2024 increased by 8% to $1.33, compared to $1.23 in Q4 2023, with adjusted diluted net earnings per share rising 3% to $2.16[2][3] - Net earnings for the three months ended September 28, 2024, were $43,045,000, up from $39,582,000 in the prior year, representing a 3.7% increase[19] - The company reported a net earnings increase to $207,220 thousand for the twelve months ended September 28, 2024, compared to $170,998 thousand in the previous year, a growth of 21.1%[24] Operating Margins - Operating margin for Q4 2024 decreased to 9.1%, down 100 basis points from 10.1% in Q4 2023, while the adjusted operating margin remained unchanged at 12.5%[2][6][7] - Adjusted operating margin for FY 2025 is also projected at 13%, up from 12.4% in FY 2024, reflecting ongoing pricing and simplification initiatives[12] - The adjusted operating margin in Military Aircraft improved by 300 basis points to 12.0% for FY 2024, attributed to cost absorption on the FLRAA program[11] Sales Performance - Military Aircraft sales surged 17% to $216 million in Q4 2024, driven by the ramp-up of the FLRAA program, while Space and Defense sales rose 9% to $263 million[5][9] - Commercial Aircraft sales increased by 18% to $788 million for FY 2024, supported by production ramps across various aircraft programs[9] Cash Flow and Liquidity - Free cash flow for Q4 2024 was $109 million, a 5% increase from $105 million in Q4 2023, driven by strong customer collections[2][8] - Net cash provided by operating activities for the twelve months ended September 28, 2024, was $202,344 thousand, up from $135,935 thousand in the prior year, representing a 48.8% increase[24] - Free cash flow for the twelve months ended September 28, 2024, was $21,326 thousand, a significant improvement from a negative $37,351 thousand in the previous year[25] - The company emphasizes that free cash flow and free cash flow conversion are not GAAP measures but are useful for evaluating liquidity and financial condition[25] Assets and Liabilities - Total assets as of September 30, 2023, were $4,128,452 thousand, an increase from $3,808,036 thousand year-over-year[22] - Total liabilities as of September 30, 2023, were $2,267,819 thousand, compared to $2,171,949 thousand in the previous year, reflecting a rise of 4.4%[23] Research and Development - Research and development expenses decreased to $26,021,000 for the three months ended September 28, 2024, from $29,444,000 in the same period last year[17] Inventory and Write-downs - The company incurred an inventory write-down of $29,176 thousand for the twelve months ended September 28, 2024, compared to $18,973 thousand in the previous year, reflecting a significant increase in write-downs[24] Strategic Focus - The company continues to focus on improving its financial metrics and operational efficiency as part of its strategic initiatives[25]

Financial Performance - Net sales for the three months ended June 29, 2024, were $904.735 million, a 6.4% increase from $850.176 million for the same period last year[6]. - Gross profit for the nine months ended June 29, 2024, was $751.440 million, up 16.0% from $647.634 million in the prior year[6]. - Net earnings for the three months ended June 29, 2024, were $56.360 million, representing a 33.3% increase from $42.387 million in the same quarter of the previous year[6]. - The company reported a diluted earnings per share of $1.74 for the three months ended June 29, 2024, compared to $1.32 for the same period last year, marking a 31.6% increase[6]. - Net earnings for the nine months ended June 29, 2024, were $164,175,000, compared to $131,416,000 for the same period in 2023, representing a year-over-year increase of approximately 25%[15]. - The operating profit for the three months ended June 29, 2024, was $105.380 million, compared to $84.508 million for the same period in 2023, reflecting an increase of about 24.7%[105]. - The total net sales for the nine months ended June 29, 2024, were $2.691888 billion, compared to $2.447071 billion for the same period in 2023, reflecting an increase of about 10%[101]. Assets and Liabilities - Total current assets as of June 29, 2024, were $2.172 billion, an increase from $1.985 billion as of September 30, 2023[9]. - Total liabilities increased to $2.274 billion as of June 29, 2024, compared to $2.172 billion as of September 30, 2023[9]. - Shareholders' equity rose to $1.794 billion as of June 29, 2024, up from $1.636 billion as of September 30, 2023[9]. - The company’s cash and cash equivalents decreased to $50.572 million as of June 29, 2024, from $68.959 million as of September 30, 2023[9]. - Long-term debt increased to $958,127 as of June 29, 2024, from $863,092 as of September 30, 2023[70]. - Total assets increased to $4,067,748 thousand from $3,808,036 thousand, a growth of 6.8%[9]. Research and Development - Research and development expenses increased to $27.791 million for the three months ended June 29, 2024, compared to $26.502 million in the same period last year, reflecting a 4.8% rise[6]. - The total equity-based compensation expense for the nine months ended June 29, 2024, was $11,301,000, compared to $8,121,000 for the same period in 2023, reflecting a 39.5% increase[15]. Cash Flow and Investments - Cash flows from operating activities for the nine months ended June 29, 2024, were $46,555,000, a significant improvement from a cash outflow of $17,097,000 in the same period of 2023[15]. - The company incurred $109,616,000 in capital expenditures for the purchase of property, plant, and equipment during the nine months ended June 29, 2024[15]. - The company experienced a net cash outflow from investing activities of $114,546,000, slightly higher than the $113,895,000 outflow in the previous year[15]. Market Segments - The Space and Defense segment generated net sales of $258.409 million for the three months ended June 29, 2024, up from $242.402 million in the prior year, indicating a growth of approximately 6.9%[101]. - The Military Aircraft segment reported an operating profit of $23.965 million for the three months ended June 29, 2024, compared to $18.143 million in the same period last year, marking an increase of about 32.1%[105]. - The U.S. Government customer type generated net sales of $178.636 million for the three months ended June 29, 2024, compared to $192.897 million in the same period of 2023, a decline of about 7.4%[103]. Future Outlook - Net sales for 2024 are projected to be $3,575 million, an increase of $256 million or 8% compared to 2023[147]. - Operating profit is expected to reach $421 million in 2024, up $78 million or 23% from 2023[147]. - Adjusted diluted earnings per share are forecasted to be between $7.30 and $7.50, with a midpoint of $7.40[147]. - The adjusted operating margin is anticipated to improve to 12.4% in 2024 from 10.9% in 2023[147]. Miscellaneous - The company recorded a foreign currency translation adjustment loss of $6.650 million for the three months ended June 29, 2024[7]. - The company declared a quarterly dividend of $0.28 per share, payable on August 29, 2024[111]. - The company expects to recognize a pre-tax loss from the sale of its hydraulic systems business in Luxembourg, which is anticipated to close in Q4 2024[111].

Financial Performance - Net sales for Q3 2024 reached $905 million, a 6% increase compared to $850 million in Q3 2023[2] - Adjusted diluted earnings per share rose to $1.91, a 39% increase from $1.37 in Q3 2023[3] - Net earnings for the three months ended June 29, 2024, were $56,360,000, compared to $42,387,000 for the same period in 2023, marking a 33.1% increase[13] - Diluted net earnings per share increased to $1.74 for the three months ended June 29, 2024, from $1.32 in the same period last year, a rise of 31.8%[13] - Net earnings for the nine months ended June 29, 2024, increased to $164,175 thousand, up from $131,416 thousand for the same period last year, representing a growth of approximately 25%[18] Operating Margin and Profit - Operating margin improved to 11.6%, up 170 basis points from 9.9% in the prior year[3] - The operating profit for the same period was $105,380,000, up from $84,508,000 in the prior year, reflecting a 24.7% increase[14] - The Space and Defense segment achieved an operating profit of $32,635,000 for the three months ended June 29, 2024, compared to $18,585,000 in the prior year, a growth of 75.7%[15] - The Military Aircraft segment's operating profit rose to $23,965,000 from $18,143,000, reflecting a 32.3% increase[15] - The Commercial Aircraft segment reported an operating profit of $24,367,000, up from $19,745,000, indicating a 23.4% increase[15] - The Industrial segment's operating profit decreased to $24,413,000 from $28,035,000, a decline of 13.4%[15] Sales Growth and Backlog - Military Aircraft sales increased by 18% to $207 million, driven by the ramp-up of the FLRAA program[4] - Space and Defense sales grew by 7% to $258 million, supported by strong U.S. and European defense demand[4] - Twelve-month backlog increased by 7% to $2.5 billion, reflecting strong product demand in aerospace and defense[6] - Fiscal year 2024 guidance projects an 8% sales growth, with adjusted operating margin expanding by 150 basis points[7] Cash Flow and Financial Position - Free cash flow improved by $17 million year-over-year, resulting in a cash use of $2 million in Q3 2024[6] - Free cash flow for the nine months ended June 29, 2024, was reported at $(63,061) thousand, compared to $(142,171) thousand for the same period last year, showing an improvement of approximately 56%[19] - The company reported a net cash provided by operating activities of $46,555 thousand for the nine months ended June 29, 2024, compared to $(17,097) thousand for the same period last year[19] Assets and Liabilities - Total assets as of September 30, 2023, were reported at $4,067,748,000, an increase from $3,808,036,000 year-over-year[16] - Total current liabilities rose to $988,404 thousand, compared to $965,473 thousand in the previous year, reflecting an increase of about 2%[17] - Total liabilities increased to $2,273,956 thousand from $2,171,949 thousand, marking a rise of approximately 5%[17] - Shareholders' equity grew to $1,793,792 thousand, up from $1,636,087 thousand, indicating an increase of around 10%[17] Future Projections - Adjusted diluted earnings per share for FY 2024 is expected to increase by 20% to $7.40[7] - Operating margin for FY 2024 is projected at 11.8%, slightly down from the previous estimate of 11.9%[7]

Financial Performance - Net sales for the three months ended March 30, 2024, were $930.3 million, a 11.2% increase from $836.8 million for the same period in 2023[10]. - Gross profit for the six months ended March 30, 2024, was $500.0 million, up 17.5% from $425.0 million in the prior year[10]. - Net earnings for the three months ended March 30, 2024, were $60.0 million, representing a 39.6% increase compared to $43.0 million for the same period in 2023[10]. - Basic net earnings per share for the three months ended March 30, 2024, were $1.88, up from $1.35 in the same period last year, reflecting a 39.1% increase[10]. - Net earnings for the six months ended March 30, 2024, were $107,815,000, an increase from $89,029,000 in the same period of 2023, representing a growth of approximately 21%[23]. - Total operating profit for the three months ended March 30, 2024, was $112,012 million, an increase of 34% compared to $83,766 million for the same period in 2023[110]. - Net sales for the quarter ended March 30, 2024, were $930 million, representing an 11% increase from $837 million in the same quarter of 2023[133]. - Diluted earnings per share rose to $1.86 for the quarter ended March 30, 2024, up 39% from $1.34 in the same quarter of 2023[133]. Assets and Liabilities - Total assets as of March 30, 2024, were $4.04 billion, an increase from $3.81 billion as of September 30, 2023[15]. - Total liabilities increased to $2.29 billion as of March 30, 2024, compared to $2.17 billion as of September 30, 2023[15]. - The company’s retained earnings increased to $2.59 billion as of March 30, 2024, up from $2.50 billion as of September 30, 2023[15]. - Cash and cash equivalents decreased to $59.1 million as of March 30, 2024, down from $69.0 million as of September 30, 2023[15]. - The company reported a net cash outflow from investing activities of $83,956,000 for the six months ended March 30, 2024, compared to $74,200,000 in the prior year[23]. - Long-term debt as of March 30, 2024, was $948,615 million, an increase from $863,092 million as of September 30, 2023, reflecting a growth of 9.9%[80]. Cash Flow and Dividends - Operating cash flow for the six months ended March 30, 2024, was $16,389,000, compared to a cash outflow of $33,016,000 in the prior year[23]. - The company reported a cash dividend of $0.28 per share for the three months ended March 30, 2024, compared to $0.27 per share for the same period in 2023[19]. - Net cash provided by operating activities increased by $16 million in the first half of 2024 compared to the same period in 2023, primarily due to improved accounts receivable[168]. Research and Development - Research and development expenses for the six months ended March 30, 2024, were $59.0 million, an increase from $50.6 million in the prior year[10]. - Research and development expenses for the quarter were $28 million, a 6% increase from $27 million in the same quarter of 2023[133]. - Research and development expenses rose by $11 million in the first half of 2024, driven by new growth programs in Space and Defense[135]. Segment Performance - The Space and Defense segment reported net sales of $266.8 million for the three months ended March 30, 2024, compared to $245.9 million in the same period of 2023, marking an increase of approximately 8.5%[107]. - The Military Aircraft segment generated net sales of $202.5 million for the three months ended March 30, 2024, up from $182.8 million in the same period of 2023, indicating a growth of about 10.0%[107]. - The Commercial Aircraft segment saw net sales of $207.6 million for the three months ended March 30, 2024, compared to $164.3 million in the same period of 2023, representing a significant increase of approximately 26.3%[107]. - Space and Defense net sales increased by 9% in Q2 2024, driven by higher demand for defense applications, with operating profit at $28 million[140]. - Military Aircraft net sales increased by 11% in Q2 2024, with OEM sales up $15 million and aftermarket sales up $5 million[145]. - Commercial Aircraft net sales increased by 26% in Q2 2024, with OEM sales up $29 million and aftermarket sales up $14 million[151]. Backlog and Future Projections - Twelve-month backlog increased to $2,500 million, a 9% rise from $2,300 million in the previous year[133]. - Net sales for 2024 are projected to be $3,550 million, a 7% increase from $3,319 million in 2023, with significant growth in Commercial Aircraft sales expected to rise by 23%[162]. - Operating profit is expected to increase to $422 million in 2024, up 23% from $343 million in 2023, driven by improvements in Space and Defense segments[162]. Impairments and Charges - The company recorded an impairment charge of $1,152 million related to the cancellation of the Future Attack Reconnaissance Aircraft program during the three months ended March 30, 2024[51]. - The company recorded $175 million in write-downs due to the cancellation of the FARA program during the three months ended March 30, 2024[59]. - Restructuring charges for 2024 included $2,293 for severance and $2,390 for other costs, totaling $4,683[96]. Market Conditions and Trends - The space market consists of three customer markets: civil, U.S. Department of Defense, and commercial, with increasing investments expected in satellite technologies and small satellites[200]. - The industrial market is influenced by capital investment levels, product innovation pace, and economic conditions, with challenges arising from changing customer demands[202]. - The energy generation and exploration market is affected by fluctuating oil and natural gas prices, global urbanization, and investments in power generation infrastructure[204]. - The medical market is driven by economic conditions, regulatory environments, and advances in medical technology, leading to increased demand for medical devices and components[205].

Financial Performance - Net sales for Q2 2024 reached $930 million, an 11% increase compared to $837 million in Q2 2023[4] - Diluted earnings per share for Q2 2024 were $1.86, a 39% increase from $1.34 in Q2 2023[4] - Adjusted diluted earnings per share rose to $2.19, reflecting a 54% increase from $1.42 in the same quarter last year[4] - Operating profit for the same period rose to $112.0 million, compared to $83.8 million in the prior year, reflecting a margin increase from 10.0% to 12.0%[20] - Net earnings for the three months ended March 30, 2024, were reported at $60.0 million, a significant increase from $43.0 million in the previous year, marking a growth of 39.6%[17] - Diluted net earnings per share for the three months ended March 30, 2024, increased to $1.86, up from $1.34 in the same quarter last year, representing a growth of 38.8%[17] - Net earnings for the six months ended March 30, 2024, increased to $107,815 thousand, up from $89,029 thousand in the same period last year, representing a growth of approximately 21%[25] Sales and Backlog - The twelve-month backlog increased by 9% to a record level of $2.5 billion, driven by growth in aerospace and defense sectors[8] - Commercial Aircraft sales surged by 26% to $208 million, attributed to growth in widebody aircraft[5] - The Space and Defense segment reported net sales of $266.8 million, an increase of 8.5% from $245.9 million in the prior year[20] - The Industrial segment's net sales reached $253.4 million, up from $243.9 million, indicating a growth of 3.9%[20] Cash Flow and Expenses - Free cash flow improved by $17 million year-over-year, with a cash use of $84 million in Q2 2024 compared to $101 million in Q2 2023[4] - Net cash provided by operating activities for the six months ended March 30, 2024, was $16,389 thousand, a significant improvement compared to a net cash used of $33,016 thousand in the prior year[25] - Free cash flow for the six months ended March 30, 2024, was $(61,141) thousand, an improvement from $(122,759) thousand in the same period last year, indicating a reduction in cash outflow[26] - The company reported a net cash used by investing activities of $83,956 thousand for the six months ended March 30, 2024, compared to $74,200 thousand in the same period last year, indicating an increase in cash outflow for investments[25] Margins and Profitability - Operating margin for Q2 2024 was 12.0%, up 200 basis points from 10.0% in Q2 2023[4] - Adjusted operating margin increased to 13.6%, a rise of 320 basis points compared to the previous year[4] - Adjusted operating profit for the three months ended March 30, 2024, was $126.4 million, compared to $87.1 million in the same period last year, indicating a margin of 13.6%[21] Assets and Liabilities - Total assets as of March 30, 2024, were $4.04 billion, an increase from $3.81 billion as of September 30, 2023[23] - The company's total liabilities increased to $2.29 billion from $2.17 billion, reflecting a rise in long-term debt to $948.6 million[23] Capital Expenditures and Dividends - Capital expenditures for Q2 2024 were reported at $40 million[8] - The company paid dividends totaling $17,572 thousand during the six months ended March 30, 2024, compared to $16,859 thousand in the same period last year, reflecting a year-over-year increase of approximately 4%[25] Tax and Depreciation - The effective income tax rate for the six months ended March 30, 2024, was reported at 23.7%, consistent with the previous year[17] - The company reported a depreciation expense of $42,276 thousand for the six months ended March 30, 2024, compared to $36,810 thousand in the prior year, reflecting an increase of approximately 15%[25] Acquisitions and Debt - The company made acquisitions of businesses totaling $5,911 thousand during the six months ended March 30, 2024, compared to no acquisitions in the same period last year[25] - Total payments on long-term debt were $188 thousand in the prior year, with no payments reported for the current period[25] - Proceeds from revolving lines of credit were $509,500 thousand for the six months ended March 30, 2024, slightly up from $503,232 thousand in the prior year[25]

Financial Performance - Net sales for the three months ended December 30, 2023, were $856,850,000, representing a 12.7% increase from $760,103,000 for the same period in 2022[11] - Gross profit increased to $233,199,000, up from $203,686,000, reflecting a gross margin improvement[11] - Net earnings for the quarter were $47,812,000, slightly up from $46,016,000, resulting in a diluted earnings per share of $1.48[11] - Comprehensive income for the three months ended December 30, 2023, was $80,821,000, down from $99,869,000 in the prior year[15] - Operating profit for the same period was $94.54 million, up 9.9% from $86.76 million year-over-year[106] - The net sales for the Defense segment increased to $130.52 million in the three months ended December 30, 2023, from $121.90 million in the same period of 2022, reflecting a growth of approximately 7.0%[104] - Net sales for the first quarter of 2024 were $857 million, an increase of $97 million or 13% compared to $760 million in the same period of 2023[129] Expenses and Investments - Research and development expenses rose to $30,579,000, compared to $23,862,000, indicating a 28.2% increase year-over-year[11] - The company incurred $5,212,000 in acquisitions of businesses during the quarter, with no cash acquired, indicating ongoing investment in growth[26] - The total expense for defined contribution plans for the three months ended December 30, 2023, was $14.35 million, up from $12.25 million in the same period of 2022[97] - Equity-based compensation expense rose to $4,165,000 from $2,974,000, indicating a strategic focus on incentivizing employee performance[26] Assets and Liabilities - Total assets increased to $3,987,955,000 from $3,808,036,000, marking a 4.7% growth[18] - Total liabilities rose to $2,280,738,000, compared to $2,171,949,000, reflecting a 5.0% increase[18] - Shareholders' equity increased to $1,707,217,000 from $1,636,087,000, showing a growth of 4.3%[18] - Cash and cash equivalents significantly increased to $126,398,000 from $68,959,000, indicating a strong liquidity position[18] Cash Flow and Dividends - Cash dividends declared were $0.27 per share for the quarter, up from $0.26 per share in the same period last year[21] - Net cash provided by operating activities was $60,391,000, significantly higher than $8,083,000 in the prior year, indicating a substantial increase in operational efficiency[26] - Cash collections from sold receivables under the Receivables Purchase Agreement totaled $123,827 for the three months ended December 30, 2023[58] Market and Segment Performance - Space and Defense segment generated an operating profit of $25.30 million, a 24.8% increase from $20.29 million in the prior year[106] - Military Aircraft segment's operating profit rose to $19.59 million, a 29.5% increase compared to $15.20 million in the previous year[106] - Commercial Aircraft segment reported an operating profit of $20.63 million, up 42.3% from $14.52 million year-over-year[106] - Aerospace and defense businesses represented 70% of the company's 2023 sales, with increased funding levels positively impacting the defense market[175] Future Outlook - The company expects total net sales for 2024 to reach $3,500 million, a 5% increase from $3,319 million in 2023, with significant growth anticipated in Space and Defense[147] - Adjusted diluted earnings per share for 2024 are projected to range between $6.70 and $7.10, with a midpoint of $6.90, reflecting anticipated higher sales and operating margins[147] - The company aims to improve shareholder value through strategic revenue growth and operational efficiencies, focusing on both organic growth and acquisitions[121] Risks and Challenges - The company is facing risks related to supply chain constraints and inflated prices for raw materials, which could impact manufacturing and shipping capabilities[192] - The defense market's future spending levels are expected to increase due to current global tensions, subject to governmental approval[179]

Financial Performance - Net sales for the fiscal year ended September 30, 2023, were $3,319.1 million, an increase of 9.4% from $3,035.8 million in the previous year[218]. - Gross profit for the same period was $891.5 million, representing a gross margin of 26.8%, up from $820.8 million and a margin of 27.0% in the prior year[218]. - Net earnings increased to $171.0 million, a rise of 10.5% compared to $155.2 million in the previous year[218]. - Basic net earnings per share rose to $5.37, up from $4.85, reflecting a 10.7% increase[218]. - Total assets as of September 30, 2023, were $3,808.0 million, compared to $3,431.8 million at the end of the previous fiscal year, marking a 10.9% increase[224]. - The company reported comprehensive income of $227.4 million for the fiscal year, significantly higher than $91.7 million in the prior year[220]. - Total shareholders' equity increased to $1,636,087,000 as of September 30, 2023, up from $1,436,813,000 a year earlier, representing a growth of 13.9%[226]. - Cash dividends per share were $1.07 for the fiscal year ended September 30, 2023, compared to $1.03 for the previous year, marking a 3.9% increase[227]. - Net cash provided by operating activities was $135,935,000 for the fiscal year ended September 30, 2023, a decrease from $246,802,000 in the prior year[232]. Backlog and Sales Composition - The twelve-month backlog as of September 30, 2023, was $2.4 billion, reflecting a 4% increase compared to October 1, 2022[17]. - As of September 30, 2023, the total backlog was $5.1 billion, representing confirmed orders expected to be recognized as revenue[63]. - Aerospace and defense OEM customers accounted for 58% of total sales in 2023, while industrial market sales represented 30%[42]. - Sales under U.S. Government contracts constituted 39% of total sales in 2023, primarily within Aircraft Controls and Space and Defense Controls segments[44]. - In 2023, sales under U.S. Government contracts represented 39% of total sales, while sales to foreign governments accounted for 8%[61]. - Net sales to the five largest customers represented approximately 32% of total sales in 2023[43]. - Aftermarket sales accounted for 13% of total sales in 2023[42]. - Sales to The Boeing Company constituted 11% of total sales in 2023, with a significant portion tied to government defense spending[62]. Research and Development - Research and development expenses were at least $107 million in each of the last three years, representing approximately 3% of sales in 2023[21]. - The company has incurred substantial expenses associated with research and development and innovation activities to maintain a leadership position in the high-performance, precision controls market[56]. - Research and development expenses for the fiscal year were $106.6 million, slightly down from $109.5 million in the previous year[218]. - Research and development costs are expensed as incurred, including salaries, benefits, consulting, material costs, depreciation, and amortization[242]. Employee and Workforce Management - The company hired over 2,000 new regular employees globally in 2023[25]. - The average voluntary attrition rate over the last five years was approximately 6%[33]. - The restructuring charge for 2023 was $6,905 for severance and $1,092 for facility closure, with potential additional costs of up to $11,000 through 2027[334]. - The restructuring accrual as of September 30, 2023, included $6,057 for the 2023 plan, indicating ongoing workforce adjustments[336]. Financial Liabilities and Assets - As of September 30, 2023, the company reported goodwill of $821 million and other intangible assets of $72 million, representing a significant portion of total assets of $3.8 billion[75]. - The company has a total long-term debt of $863,092 million as of September 30, 2023, compared to $836,872 million on October 1, 2022, an increase of approximately 3.1%[317]. - The weighted-average interest rate on outstanding credit facility borrowings is 6.93% as of September 30, 2023[317]. - The fair value of long-term debt was $812,693, compared to a carrying value of $867,500 as of September 30, 2023[332]. - Total accrued liabilities as of September 30, 2023, amounted to $211,769, a decrease of 1.4% from $215,376 on October 1, 2022[322]. Risks and Challenges - The company experienced supply chain constraints and inflated prices for raw materials, impacting manufacturing and operating profit[64]. - Future levels of defense spending are uncertain and subject to congressional debate, which could adversely impact sales and operating profit[61]. - The company faces risks from competitors with greater resources, which may impact sales and operating margins[55]. - The company relies on subcontractors and suppliers for manufacturing, which poses risks to contract performance and future business opportunities[65]. - The company faces potential liabilities from product defects, which could lead to recalls and significant damages, impacting financial results and reputation[69]. - The invalidation of the facility security clearance by the DCSA could hinder the company's ability to bid on classified contracts, affecting future business opportunities[83]. - The company is exposed to risks from foreign operations, including currency fluctuations and changes in trade policies, which could negatively impact financial results[78]. Environmental and Governance - The company is assessing its environmental, social, and governance impact across 25 countries to establish sustainability goals[39]. - Compliance with environmental laws may require significant capital expenditures, impacting operational costs[81]. - The company may incur additional costs to meet increased cybersecurity standards, which could affect financial results[67]. Inventory and Contract Management - The company recorded impairment charges on long-lived assets and inventory write-downs in 2023 due to a decline in value related to specific contracts and equipment[253]. - The company recorded $4,345 in inventory write-downs in 2023 due to a decline in business in the Industrial Systems segment[297]. - Unbilled recoverable costs and accrued profits for over-time contracts to the U.S. Government increased to $79,388 as of September 30, 2023, from $38,020 on October 1, 2022, reflecting a growth of 108.5%[278]. - Total contract assets rose to $706,601 as of September 30, 2023, compared to $614,760 on October 1, 2022, marking an increase of 14.9%[279]. - Contract liabilities include payments received in advance of the satisfaction of performance obligations, recorded until obligations are fulfilled[276].

Financial Performance - Net sales for the three months ended July 1, 2023, were $850,176 thousand, a 10% increase from $772,911 thousand for the same period in 2022[11] - Gross profit for the nine months ended July 1, 2023, was $647,634 thousand, up from $617,635 thousand in the prior year, reflecting a 4.9% increase[11] - Net earnings for the three months ended July 1, 2023, were $42,387 thousand, a decrease of 16% compared to $50,409 thousand for the same period in 2022[11] - Net earnings for the nine months ended July 1, 2023, were $131,416,000, compared to $125,761,000 for the same period in 2022, representing an increase of 5.2%[24] - Operating profit for the three months ended July 1, 2023, was $84.5 million, compared to $79.3 million for the same period in 2022, reflecting an increase of 6.9%[104] - Total operating profit for the nine months ended July 1, 2023, was $255.0 million, compared to $216.9 million for the same period in 2022, an increase of 17.5%[104] - Diluted earnings per share for the quarter were $1.32, down from $1.57 in the same quarter of 2022, reflecting a 16% decline[128] Cash Flow and Investments - Cash flows from operating activities for the nine months ended July 1, 2023, were $(17,097,000), a significant decrease from $184,264,000 in the prior year[24] - The company reported a net cash used by investing activities of $(113,895,000) for the nine months ended July 1, 2023, compared to $(85,267,000) in the prior year[24] - Net cash used by operating activities was $(17) million in the first three quarters of 2023, a decrease of $201 million compared to $184 million provided in the same period of 2022[158] - Capital expenditures in the first three quarters of 2023 amounted to $125 million, including a $28 million building purchase[161] - Net cash provided by financing activities in the first three quarters of 2023 included $175 million of net borrowings on credit facilities, offset by $25 million in cash for dividend payments[164] Assets and Liabilities - Total assets increased to $3,882,243 thousand as of July 1, 2023, compared to $3,431,841 thousand as of October 1, 2022, representing a growth of 13.1%[17] - Total shareholders' equity increased to $1,621,184 thousand as of July 1, 2023, from $1,436,813 thousand a year earlier, reflecting a growth of 12.8%[17] - Long-term debt increased to $1,012,080 million as of July 1, 2023, from $836,872 million as of October 1, 2022[77] - Other accrued liabilities totaled $206,903 million as of July 1, 2023, a decrease from $215,376 million as of October 1, 2022[81] Research and Development - Research and development expenses for the nine months ended July 1, 2023, totaled $77,107 thousand, down from $84,318 thousand in the previous year, indicating a 8.5% reduction[11] - Research and development expenses were $27 million for the quarter, a slight increase of 2% from $26 million in the same quarter of 2022[128] Dividends and Shareholder Returns - Cash dividends declared were $0.27 per share for the three months ended July 1, 2023, compared to $0.26 per share for the same period in 2022[20] - The company maintains a share repurchase program allowing for the buyback of up to 3 million common shares, with approximately 2.2 million shares remaining[180] Market and Segment Performance - The Aircraft Controls segment reported net sales of $355.0 million for the three months ended July 1, 2023, compared to $318.0 million in the same period of 2022, marking a growth of 11.6%[103] - The Space and Defense Controls segment's net sales increased to $242.4 million for the three months ended July 1, 2023, from $223.6 million in the same period of 2022, a rise of 8.1%[103] - The Industrial Systems segment achieved net sales of $252.7 million for the three months ended July 1, 2023, compared to $231.3 million in the same period of 2022, indicating an increase of 9.3%[103] Risks and Challenges - The company operates in highly competitive markets, facing risks from competitors with greater resources[204] - Significant reliance on government contracts, which may not be fully funded or could be terminated, potentially reducing sales and increasing costs[204] - Supply chain issues, including reduced supply and inflated prices of raw materials, could materially affect manufacturing and shipping capabilities[204] - Risks related to health pandemics, such as COVID-19, have had material adverse consequences on operations and financial position[204] - The company may not realize the full amounts reflected in its backlog as revenue, affecting future revenue and growth prospects[204]

Financial Performance - Net sales for the three months ended April 1, 2023, were $836,792 thousand, a 8.5% increase from $770,787 thousand for the same period in 2022[11] - Gross profit for the six months ended April 1, 2023, was $425,001 thousand, compared to $405,892 thousand for the same period in 2022, reflecting a 4.7% increase[11] - Net earnings for the three months ended April 1, 2023, were $43,013 thousand, a 47.9% increase from $29,087 thousand for the same period in 2022[11] - Basic net earnings per share for the six months ended April 1, 2023, were $2.80, up from $2.35 for the same period in 2022, representing a 19.1% increase[11] - Net earnings for the six months ended April 1, 2023, were $89,029 thousand, an increase from $75,352 thousand in the same period of 2022, representing a growth of approximately 18%[23] - Operating profit for the three months ended April 1, 2023, was $83.8 million, compared to $57.2 million for the same period in 2022, reflecting a growth of approximately 46.5%[101] - The company reported a comprehensive income of $57,669 thousand for the three months ended April 1, 2023, compared to $15,047 thousand for the same period in 2022[13] Assets and Liabilities - Total assets as of April 1, 2023, were $3,699,609 thousand, an increase from $3,431,841 thousand as of October 1, 2022[16] - Total shareholders' equity increased to $1,579,777 thousand as of April 1, 2023, from $1,436,813 thousand as of October 1, 2022[16] - Total long-term debt as of April 1, 2023, was $958,414 million, up from $836,872 million on October 1, 2022, representing an increase of 14.5%[76] - Cash and cash equivalents increased to $107,012 thousand as of April 1, 2023, compared to $103,895 thousand as of October 1, 2022[16] Cash Flow and Investments - Cash flows from operating activities for the six months ended April 1, 2023, showed a net cash used of $33,016 thousand, compared to a net cash provided of $180,197 thousand in the same period of 2022[23] - The company reported a net cash used by investing activities of $74,200 thousand for the six months ended April 1, 2023, compared to $48,148 thousand in the same period of 2022[23] - The company purchased property, plant, and equipment for $89,743 thousand during the six months ended April 1, 2023, an increase from $74,087 thousand in the same period of 2022[23] - Net cash used by investing activities in the first half of 2023 included $90 million in capital expenditures, with an expectation of $165 million for the full year[159][160] Revenue Recognition and Contracts - The company recognized revenue using the five-step model prescribed in ASC 606, focusing on identifying contracts and performance obligations[32] - As of April 1, 2023, the company had contract reserves of $45,602, with provisions for anticipated losses charged against income when known[42] - The aggregate amount of transaction price allocated to unsatisfied performance obligations was $5,200,000, with an expected 44% to be recognized as sales over the next twelve months[46] Segment Performance - The Aircraft Controls segment reported an operating profit of $31.9 million for the three months ended April 1, 2023, significantly higher than $12.4 million in the same period of 2022, indicating a year-over-year increase of approximately 156.5%[101] - The Space and Defense Controls segment achieved net sales of $245.9 million for the three months ended April 1, 2023, compared to $223.3 million in the same period of 2022, marking an increase of approximately 10.1%[100] - The Industrial Systems segment's net sales reached $243.9 million for the three months ended April 1, 2023, up from $236.2 million in the same period of 2022, reflecting a growth of approximately 3.2%[100] Expenses - Research and development expenses for the three months ended April 1, 2023, were $26,743 thousand, down from $30,720 thousand for the same period in 2022[11] - Selling, general and administrative expenses increased to $116,695 thousand for the three months ended April 1, 2023, compared to $111,019 thousand in the same period of 2022, an increase of 5.2%[11] - Interest expenses increased to $14,963 thousand for the three months ended April 1, 2023, compared to $8,263 thousand in the same period of 2022, a rise of 81.5%[11] Shareholder Returns - The company declared cash dividends of $0.27 per share for the three months ended April 1, 2023, compared to $0.26 per share for the same period in 2022[19] - The company aims to improve shareholder value through strategic revenue growth and operational efficiencies[116] Risks and Challenges - The company reported a backlog that may not fully convert to revenue, which could adversely affect future revenue and growth prospects[200] - The company faces significant operational risks related to supply chain disruptions and health pandemics, which could materially impact financial performance[201] - The company is heavily reliant on government contracts, and any funding issues could reduce sales and increase costs[200]