Company Quick10K Filing
Quick10K
Moog
10-K 2019-09-28 Annual: 2019-09-28
10-Q 2019-06-29 Quarter: 2019-06-29
10-Q 2019-03-30 Quarter: 2019-03-30
10-Q 2018-12-29 Quarter: 2018-12-29
10-K 2018-09-29 Annual: 2018-09-29
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-Q 2017-12-30 Quarter: 2017-12-30
10-K 2017-09-30 Annual: 2017-09-30
10-Q 2017-07-01 Quarter: 2017-07-01
10-Q 2017-04-01 Quarter: 2017-04-01
10-Q 2016-12-31 Quarter: 2016-12-31
10-K 2016-10-01 Annual: 2016-10-01
10-Q 2016-07-02 Quarter: 2016-07-02
10-Q 2016-04-02 Quarter: 2016-04-02
10-Q 2016-01-02 Quarter: 2016-01-02
10-K 2015-10-03 Annual: 2015-10-03
10-Q 2015-07-04 Quarter: 2015-07-04
10-Q 2015-04-04 Quarter: 2015-04-04
10-Q 2015-01-03 Quarter: 2015-01-03
10-K 2014-09-27 Annual: 2014-09-27
10-Q 2014-06-28 Quarter: 2014-06-28
10-Q 2014-03-29 Quarter: 2014-03-29
10-Q 2013-12-28 Quarter: 2013-12-28
8-K 2019-11-13 Officers, Exhibits
8-K 2019-11-11 Officers, Exhibits
8-K 2019-11-11 Officers
8-K 2019-11-01 Earnings, Other Events, Exhibits
8-K 2019-07-26 Earnings, Other Events, Exhibits
8-K 2019-05-03 Officers
8-K 2019-04-26 Earnings, Other Events, Exhibits
8-K 2019-03-04 Officers
8-K 2019-02-12 Shareholder Vote
8-K 2019-01-25 Earnings, Other Events, Exhibits
8-K 2019-01-25 Earnings, Other Events, Exhibits
8-K 2018-11-02 Earnings, Other Events, Exhibits
8-K 2018-07-27 Earnings, Other Events, Exhibits
8-K 2018-05-08 Amend Bylaw, Exhibits
8-K 2018-03-15 Other Events, Exhibits
8-K 2018-02-14 Amend Bylaw, Shareholder Vote, Exhibits
REN Resolute Energy 801
GOV Government Properties Income Trust 790
FVTI Fortune Valley Treasures 308
MBCQ Madison Bank 33
VYST VyStar 31
DTH Delta Tucker Holdings 0
SGLDF Shoal Games 0
INTV Intervoice 0
MSOF Multi Soft II 0
SGSI Spectrum Global Solutions 0
MOG 2019-09-28
Part I
Item 1. Business.
Item 1A. Risk Factors.
Item 1B. Unresolved Staff Comments.
Item 2. Properties.
Item 3. Legal Proceedings.
Item 4. Mine Safety Disclosures.
Part II
Item 5. Market for The Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Item 6. Selected Financial Data.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk.
Item 8. Financial Statements and Supplementary Data.
Note 1 - Summary of Significant Accounting Policies
Note 2 - Revenue From Contracts with Customers
Note 3 - Acquisitions, Divestitures and Equity Method Investments
Note 4 - Receivables
Note 5 - Inventories
Note 6 - Property, Plant and Equipment
Note 7 - Goodwill and Intangible Assets
Note 8 - Indebtedness
Note 9 - Other Accrued Liabilities
Note 10 - Derivative Financial Instruments
Note 11 - Fair Value
Note 12 - Restructuring
Note 13 - Employee Benefit Plans
Note 14 - Income Taxes
Note 15 - Earnings per Share and Dividends
Note 16 - Shareholders' Equity
Note 17 - Equity-Based Compensation
Note 18 - Stock Employee Compensation Trust and Supplemental Retirement Plan Trust
Note 19 - Accumulated Other Comprehensive Income (Loss)
Note 20 - Segments
Note 21 - Related Party Transactions
Note 22 - Commitments and Contingencies
Note 23 - Quarterly Data - Unaudited
Note 24 - Subsequent Event
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
Item 9A. Controls and Procedures.
Item 9B. Other Information.
Part III
Item 10. Directors, Executive Officers and Corporate Governance.
Item 11. Executive Compensation.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
Item 13. Certain Relationships and Related Transactions, and Director Independence.
Item 14. Principal Accountant Fees and Services.
Part IV
Item 15. Exhibits and Financial Statement Schedules.
EX-4.1 exhibit41.htm
EX-23 exhibit23nov1219wconfo.htm
EX-31.1 exhibit311nov1219wconf.htm
EX-31.2 exhibit312nov1219wconf.htm
EX-32.1 exhibit321nov1219wconf.htm

Moog Earnings 2019-09-28

MOG 10K Annual Report

Balance SheetIncome StatementCash Flow

Document
false--09-28FY201900000678870.02P3Y1.001.0010000000020000000100000000200000003248676623112863226827524268190.40.450.40.250.30.200.850.2500.750.15P2YP2YP60DP45DP10DP1YP1YP1Y00598880.190.290.260.260.270.250.260.0180.0210.0300.0170.0210.03010 yearsP6YP5YP6YP5YP6YP5Y425148sixtytwelve51280000 0000067887 2018-09-30 2019-09-28 0000067887 2019-03-31 0000067887 us-gaap:CommonClassAMember 2019-11-05 0000067887 us-gaap:CommonClassBMember 2019-11-05 0000067887 us-gaap:CommonClassBMember 2018-09-30 2019-09-28 0000067887 us-gaap:CommonClassAMember 2018-09-30 2019-09-28 0000067887 2017-10-01 2018-09-29 0000067887 2016-10-02 2017-09-30 0000067887 2019-09-28 0000067887 2018-09-29 0000067887 mog:SupplementalRetirementPlanTrustMember 2019-09-28 0000067887 us-gaap:TrustForBenefitOfEmployeesMember 2018-09-29 0000067887 mog:SupplementalRetirementPlanTrustMember 2018-09-29 0000067887 us-gaap:CommonClassBMember 2018-09-29 0000067887 us-gaap:CommonClassAMember 2018-09-29 0000067887 us-gaap:CommonClassBMember 2019-09-28 0000067887 us-gaap:CommonClassAMember 2019-09-28 0000067887 us-gaap:TrustForBenefitOfEmployeesMember 2019-09-28 0000067887 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 2019-09-28 0000067887 us-gaap:NoncontrollingInterestMember 2017-10-01 2018-09-29 0000067887 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-09-30 0000067887 mog:SupplementalRetirementPlanTrustMember 2016-10-01 0000067887 mog:SupplementalRetirementPlanTrustMember 2017-09-30 0000067887 us-gaap:RetainedEarningsMember 2017-10-01 2018-09-29 0000067887 us-gaap:RetainedEarningsMember 2017-09-30 0000067887 us-gaap:TreasuryStockMember 2017-09-30 0000067887 us-gaap:TreasuryStockMember 2018-09-29 0000067887 us-gaap:CommonStockMember 2017-09-30 0000067887 mog:SupplementalRetirementPlanTrustMember 2017-10-01 2018-09-29 0000067887 us-gaap:CommonStockMember 2019-09-28 0000067887 us-gaap:NoncontrollingInterestMember 2018-09-30 2019-09-28 0000067887 us-gaap:TrustForBenefitOfEmployeesMember 2016-10-02 2017-09-30 0000067887 us-gaap:RetainedEarningsMember 2018-09-30 2019-09-28 0000067887 2017-09-30 0000067887 us-gaap:TreasuryStockMember 2018-09-30 2019-09-28 0000067887 us-gaap:TreasuryStockMember 2016-10-02 2017-09-30 0000067887 us-gaap:TrustForBenefitOfEmployeesMember 2018-09-30 2019-09-28 0000067887 2016-10-01 0000067887 us-gaap:RetainedEarningsMember 2018-09-29 0000067887 mog:SupplementalRetirementPlanTrustMember 2018-09-30 2019-09-28 0000067887 us-gaap:NoncontrollingInterestMember 2016-10-02 2017-09-30 0000067887 mog:SupplementalRetirementPlanTrustMember 2016-10-02 2017-09-30 0000067887 us-gaap:AdditionalPaidInCapitalMember 2017-10-01 2018-09-29 0000067887 us-gaap:TrustForBenefitOfEmployeesMember 2017-10-01 2018-09-29 0000067887 us-gaap:AdditionalPaidInCapitalMember 2017-09-30 0000067887 us-gaap:AdditionalPaidInCapitalMember 2018-09-29 0000067887 us-gaap:AdditionalPaidInCapitalMember 2016-10-02 2017-09-30 0000067887 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-29 0000067887 us-gaap:TreasuryStockMember 2019-09-28 0000067887 us-gaap:TreasuryStockMember 2017-10-01 2018-09-29 0000067887 us-gaap:CommonStockMember 2018-09-29 0000067887 us-gaap:RetainedEarningsMember 2019-09-28 0000067887 us-gaap:TrustForBenefitOfEmployeesMember 2016-10-01 0000067887 us-gaap:RetainedEarningsMember 2016-10-01 0000067887 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 2019-09-28 0000067887 us-gaap:AccountingStandardsUpdate201409Member us-gaap:RetainedEarningsMember 2016-10-02 2017-09-30 0000067887 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-10-01 0000067887 us-gaap:AccountingStandardsUpdate201409Member us-gaap:RetainedEarningsMember 2017-10-01 2018-09-29 0000067887 us-gaap:NoncontrollingInterestMember 2017-09-30 0000067887 us-gaap:AdditionalPaidInCapitalMember 2019-09-28 0000067887 us-gaap:NoncontrollingInterestMember 2018-09-29 0000067887 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2019-09-28 0000067887 us-gaap:AdditionalPaidInCapitalMember 2016-10-01 0000067887 us-gaap:RetainedEarningsMember 2016-10-02 2017-09-30 0000067887 us-gaap:AccountingStandardsUpdate201409Member us-gaap:RetainedEarningsMember 2018-09-30 2019-09-28 0000067887 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-10-02 2017-09-30 0000067887 us-gaap:NoncontrollingInterestMember 2019-09-28 0000067887 us-gaap:TrustForBenefitOfEmployeesMember 2017-09-30 0000067887 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-10-01 2018-09-29 0000067887 us-gaap:NoncontrollingInterestMember 2016-10-01 0000067887 us-gaap:TreasuryStockMember 2016-10-01 0000067887 us-gaap:CommonClassAMember 2017-09-30 0000067887 us-gaap:CommonClassBMember 2016-10-01 0000067887 us-gaap:CommonClassBMember us-gaap:TreasuryStockMember 2017-10-01 2018-09-29 0000067887 us-gaap:CommonClassBMember mog:SupplementalRetirementPlanTrustMember 2018-09-30 2019-09-28 0000067887 us-gaap:CommonClassAMember 2016-10-02 2017-09-30 0000067887 us-gaap:CommonClassAMember us-gaap:TreasuryStockMember 2018-09-30 2019-09-28 0000067887 us-gaap:CommonClassBMember mog:SupplementalRetirementPlanTrustMember 2017-09-30 0000067887 us-gaap:CommonClassBMember mog:SupplementalRetirementPlanTrustMember 2016-10-02 2017-09-30 0000067887 us-gaap:CommonClassAMember us-gaap:TreasuryStockMember 2016-10-02 2017-09-30 0000067887 us-gaap:CommonClassBMember us-gaap:TrustForBenefitOfEmployeesMember 2018-09-30 2019-09-28 0000067887 us-gaap:CommonClassBMember us-gaap:TrustForBenefitOfEmployeesMember 2017-09-30 0000067887 us-gaap:CommonClassBMember us-gaap:TreasuryStockMember 2017-09-30 0000067887 us-gaap:CommonClassAMember us-gaap:TreasuryStockMember 2017-10-01 2018-09-29 0000067887 us-gaap:CommonClassAMember us-gaap:TreasuryStockMember 2017-09-30 0000067887 us-gaap:CommonClassAMember us-gaap:TreasuryStockMember 2018-09-29 0000067887 us-gaap:CommonClassBMember us-gaap:TreasuryStockMember 2016-10-02 2017-09-30 0000067887 us-gaap:CommonClassBMember mog:SupplementalRetirementPlanTrustMember 2018-09-29 0000067887 us-gaap:CommonClassAMember 2017-10-01 2018-09-29 0000067887 us-gaap:CommonClassBMember mog:SupplementalRetirementPlanTrustMember 2017-10-01 2018-09-29 0000067887 us-gaap:CommonClassBMember us-gaap:TrustForBenefitOfEmployeesMember 2017-10-01 2018-09-29 0000067887 us-gaap:CommonClassBMember us-gaap:TrustForBenefitOfEmployeesMember 2016-10-02 2017-09-30 0000067887 us-gaap:CommonClassBMember 2017-10-01 2018-09-29 0000067887 us-gaap:CommonClassBMember us-gaap:TreasuryStockMember 2018-09-30 2019-09-28 0000067887 us-gaap:CommonClassBMember 2017-09-30 0000067887 us-gaap:CommonClassBMember us-gaap:TrustForBenefitOfEmployeesMember 2019-09-28 0000067887 us-gaap:CommonClassBMember us-gaap:TrustForBenefitOfEmployeesMember 2016-10-01 0000067887 us-gaap:CommonClassBMember us-gaap:TreasuryStockMember 2019-09-28 0000067887 us-gaap:CommonClassBMember us-gaap:TreasuryStockMember 2018-09-29 0000067887 us-gaap:CommonClassBMember us-gaap:TrustForBenefitOfEmployeesMember 2018-09-29 0000067887 us-gaap:CommonClassAMember 2016-10-01 0000067887 us-gaap:CommonClassBMember mog:SupplementalRetirementPlanTrustMember 2016-10-01 0000067887 us-gaap:CommonClassAMember us-gaap:TreasuryStockMember 2019-09-28 0000067887 us-gaap:CommonClassAMember us-gaap:TreasuryStockMember 2016-10-01 0000067887 us-gaap:CommonClassAMember us-gaap:TrustForBenefitOfEmployeesMember 2019-09-28 0000067887 us-gaap:CommonClassAMember us-gaap:TrustForBenefitOfEmployeesMember 2017-09-30 0000067887 us-gaap:CommonClassAMember us-gaap:TrustForBenefitOfEmployeesMember 2018-09-29 0000067887 us-gaap:CommonClassBMember mog:SupplementalRetirementPlanTrustMember 2019-09-28 0000067887 us-gaap:CommonClassBMember 2016-10-02 2017-09-30 0000067887 us-gaap:CommonClassBMember us-gaap:TreasuryStockMember 2016-10-01 0000067887 us-gaap:CommonClassAMember us-gaap:TrustForBenefitOfEmployeesMember 2016-10-01 0000067887 us-gaap:CommonStockMember 2016-10-01 0000067887 us-gaap:AccountingStandardsUpdate201409Member 2018-09-30 0000067887 2018-09-30 0000067887 srt:ScenarioPreviouslyReportedMember mog:IndustrialSystemsMember 2016-10-02 2017-09-30 0000067887 srt:ScenarioPreviouslyReportedMember mog:AircraftControlsMember 2016-10-02 2017-09-30 0000067887 srt:ScenarioPreviouslyReportedMember 2016-10-02 2017-09-30 0000067887 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member mog:IndustrialSystemsMember 2016-10-02 2017-09-30 0000067887 mog:AircraftControlsMember 2016-10-02 2017-09-30 0000067887 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member mog:SpaceAndDefenseControlsMember 2016-10-02 2017-09-30 0000067887 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member mog:AircraftControlsMember 2016-10-02 2017-09-30 0000067887 srt:ScenarioPreviouslyReportedMember mog:SpaceAndDefenseControlsMember 2016-10-02 2017-09-30 0000067887 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member 2016-10-02 2017-09-30 0000067887 mog:SpaceAndDefenseControlsMember 2016-10-02 2017-09-30 0000067887 mog:IndustrialSystemsMember 2016-10-02 2017-09-30 0000067887 srt:ScenarioPreviouslyReportedMember 2017-10-01 2018-09-29 0000067887 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member 2017-10-01 2018-09-29 0000067887 mog:SpaceAndDefenseControlsMember 2017-10-01 2018-09-29 0000067887 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member mog:SpaceAndDefenseControlsMember 2017-10-01 2018-09-29 0000067887 srt:ScenarioPreviouslyReportedMember mog:AircraftControlsMember 2017-10-01 2018-09-29 0000067887 srt:ScenarioPreviouslyReportedMember mog:IndustrialSystemsMember 2017-10-01 2018-09-29 0000067887 mog:AircraftControlsMember 2017-10-01 2018-09-29 0000067887 mog:IndustrialSystemsMember 2017-10-01 2018-09-29 0000067887 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member mog:AircraftControlsMember 2017-10-01 2018-09-29 0000067887 srt:RestatementAdjustmentMember us-gaap:AccountingStandardsUpdate201707Member mog:IndustrialSystemsMember 2017-10-01 2018-09-29 0000067887 srt:ScenarioPreviouslyReportedMember mog:SpaceAndDefenseControlsMember 2017-10-01 2018-09-29 0000067887 us-gaap:PreviousAccountingGuidanceMember 2019-09-28 0000067887 us-gaap:NewAccountingPronouncementMember 2019-09-28 0000067887 us-gaap:AccountingStandardsUpdate201409Member 2019-09-28 0000067887 us-gaap:AccountingStandardsUpdate201409Member 2018-09-30 2019-09-28 0000067887 us-gaap:NewAccountingPronouncementMember 2018-09-30 2019-09-28 0000067887 us-gaap:PreviousAccountingGuidanceMember 2018-09-30 2019-09-28 0000067887 srt:MinimumMember us-gaap:MachineryAndEquipmentMember 2018-09-30 2019-09-28 0000067887 srt:MinimumMember us-gaap:BuildingAndBuildingImprovementsMember 2018-09-30 2019-09-28 0000067887 srt:MaximumMember us-gaap:MachineryAndEquipmentMember 2018-09-30 2019-09-28 0000067887 us-gaap:StockAppreciationRightsSARSMember 2018-09-30 2019-09-28 0000067887 us-gaap:PerformanceSharesMember 2018-09-30 2019-09-28 0000067887 srt:MaximumMember mog:ComputerEquipmentandSoftwareMember 2018-09-30 2019-09-28 0000067887 srt:MaximumMember us-gaap:BuildingAndBuildingImprovementsMember 2018-09-30 2019-09-28 0000067887 srt:MinimumMember mog:ComputerEquipmentandSoftwareMember 2018-09-30 2019-09-28 0000067887 srt:MinimumMember 2018-09-30 2019-09-28 0000067887 srt:MaximumMember 2018-09-30 2019-09-28 0000067887 srt:ProFormaMember us-gaap:AccountingStandardsUpdate201602Member 2019-09-28 0000067887 us-gaap:TransferredOverTimeMember 2018-09-30 2019-09-28 0000067887 us-gaap:TransferredAtPointInTimeMember 2018-09-30 2019-09-28 0000067887 us-gaap:OtherExpenseMember mog:SpaceAndDefenseControlsMember 2018-07-01 2018-09-29 0000067887 mog:VSMGmbHMember mog:VUESBrnos.r.oMember mog:IndustrialSystemsMember 2018-09-06 0000067887 mog:SpaceAndDefenseControlsMember 2018-07-01 2018-09-29 0000067887 mog:MoogAircraftServicesAsiaMember mog:AircraftControlsMember 2019-09-28 0000067887 mog:ElectroOpticalImagingMember mog:SpaceAndDefenseControlsMember 2018-04-30 2018-04-30 0000067887 mog:VSMGmbHMember mog:VUESBrnos.r.oMember mog:IndustrialSystemsMember 2018-09-06 2018-09-06 0000067887 mog:Brnos.r.oMember mog:VUESBrnos.r.oMember mog:IndustrialSystemsMember 2018-03-29 0000067887 mog:IndustrialSystemsMember 2018-09-30 2018-12-29 0000067887 mog:VSMGmbHMember mog:VUESBrnos.r.oMember mog:IndustrialSystemsMember 2018-03-29 0000067887 us-gaap:DisposalGroupDisposedOfBySaleNotDiscontinuedOperationsMember mog:SpaceAndDefenseControlsMember 2018-09-29 0000067887 mog:VUESBrnos.r.oMember mog:IndustrialSystemsMember 2018-03-29 2018-03-29 0000067887 us-gaap:OtherExpenseMember mog:IndustrialSystemsMember 2018-09-30 2018-12-29 0000067887 mog:VUESBrnos.r.oMember mog:IndustrialSystemsMember 2018-03-29 0000067887 mog:BoeingMember 2018-09-29 0000067887 country:US us-gaap:GovernmentSectorMember 2019-09-28 0000067887 country:US us-gaap:GovernmentSectorMember 2018-09-29 0000067887 mog:BoeingMember 2019-09-28 0000067887 mog:SpaceAndDefenseControlsMember 2019-09-28 0000067887 mog:IndustrialSystemsMember 2019-09-28 0000067887 us-gaap:CustomerContractsMember 2019-09-28 0000067887 us-gaap:OtherIntangibleAssetsMember 2019-09-28 0000067887 us-gaap:CustomerContractsMember 2018-09-29 0000067887 us-gaap:CustomerRelatedIntangibleAssetsMember 2018-09-29 0000067887 us-gaap:MarketingRelatedIntangibleAssetsMember 2019-09-28 0000067887 us-gaap:MarketingRelatedIntangibleAssetsMember 2018-09-29 0000067887 us-gaap:CustomerContractsMember 2018-09-30 2019-09-28 0000067887 us-gaap:TechnologyBasedIntangibleAssetsMember 2019-09-28 0000067887 us-gaap:CustomerRelatedIntangibleAssetsMember 2019-09-28 0000067887 us-gaap:MarketingRelatedIntangibleAssetsMember 2018-09-30 2019-09-28 0000067887 us-gaap:OtherIntangibleAssetsMember 2018-09-29 0000067887 us-gaap:CustomerRelatedIntangibleAssetsMember 2018-09-30 2019-09-28 0000067887 us-gaap:TechnologyBasedIntangibleAssetsMember 2018-09-29 0000067887 us-gaap:TechnologyBasedIntangibleAssetsMember 2018-09-30 2019-09-28 0000067887 us-gaap:OtherIntangibleAssetsMember 2018-09-30 2019-09-28 0000067887 mog:SpaceAndDefenseControlsMember 2018-09-30 2019-09-28 0000067887 mog:AircraftControlsMember 2016-10-01 0000067887 mog:IndustrialSystemsMember 2018-09-29 0000067887 mog:AircraftControlsMember 2017-09-30 0000067887 mog:AircraftControlsMember 2018-09-30 2019-09-28 0000067887 mog:SpaceAndDefenseControlsMember 2016-10-01 0000067887 mog:IndustrialSystemsMember 2016-10-01 0000067887 mog:SpaceAndDefenseControlsMember 2018-09-29 0000067887 mog:IndustrialSystemsMember 2018-09-30 2019-09-28 0000067887 mog:IndustrialSystemsMember 2017-09-30 0000067887 mog:AircraftControlsMember 2019-09-28 0000067887 mog:AircraftControlsMember 2018-09-29 0000067887 mog:SpaceAndDefenseControlsMember 2017-09-30 0000067887 us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember 2019-09-28 0000067887 us-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember us-gaap:SubsequentEventMember 2019-10-16 2019-10-16 0000067887 us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember us-gaap:SubsequentEventMember 2019-10-15 0000067887 us-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember us-gaap:SubsequentEventMember 2019-10-16 0000067887 us-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember 2018-09-30 2019-09-28 0000067887 mog:SECTRevolvingCreditFacilityMember us-gaap:LineOfCreditMember 2019-09-03 2019-09-03 0000067887 us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember us-gaap:SubsequentEventMember 2019-10-15 2019-10-15 0000067887 us-gaap:RevolvingCreditFacilityMember us-gaap:LineOfCreditMember 2018-09-30 2019-09-28 0000067887 us-gaap:SeniorNotesMember 2014-11-21 0000067887 us-gaap:AssetBackedSecuritiesSecuritizedLoansAndReceivablesMember 2019-09-28 0000067887 us-gaap:SeniorNotesMember 2019-09-28 0000067887 mog:SECTRevolvingCreditFacilityMember us-gaap:LineOfCreditMember 2019-09-03 0000067887 us-gaap:SeniorDebtObligationsMember 2019-09-28 0000067887 us-gaap:RevolvingCreditFacilityMember 2018-09-29 0000067887 mog:SECTRevolvingCreditFacilityMember 2018-09-29 0000067887 us-gaap:RevolvingCreditFacilityMember 2019-09-28 0000067887 mog:SECTRevolvingCreditFacilityMember 2019-09-28 0000067887 us-gaap:LiabilitiesTotalMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-28 0000067887 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-09-29 0000067887 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2018-09-29 0000067887 us-gaap:OtherAssetsMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-28 0000067887 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-28 0000067887 us-gaap:AssetsTotalMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-28 0000067887 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-09-29 0000067887 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-09-28 0000067887 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-09-29 0000067887 us-gaap:OtherAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-28 0000067887 us-gaap:AssetsTotalMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-09-29 0000067887 us-gaap:LiabilitiesTotalMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-09-29 0000067887 us-gaap:OtherAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-09-29 0000067887 us-gaap:OtherCurrentAssetsMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-28 0000067887 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-09-28 0000067887 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2018-09-29 0000067887 us-gaap:OtherCurrentAssetsMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-28 0000067887 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-28 0000067887 us-gaap:OtherCurrentAssetsMember us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-09-29 0000067887 us-gaap:OtherCurrentLiabilitiesMember us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-09-29 0000067887 us-gaap:OtherOperatingIncomeExpenseMember 2017-10-01 2018-09-29 0000067887 us-gaap:OtherOperatingIncomeExpenseMember 2018-09-30 2019-09-28 0000067887 us-gaap:NetInvestmentHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-28 0000067887 us-gaap:ForeignExchangeContractMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-28 0000067887 us-gaap:InterestRateSwapMember us-gaap:DesignatedAsHedgingInstrumentMember 2019-09-28 0000067887 us-gaap:ForeignExchangeContractMember us-gaap:NondesignatedMember 2019-09-28 0000067887 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:FairValueInputsLevel2Member 2019-09-28 0000067887 us-gaap:OtherNoncurrentLiabilitiesMember us-gaap:FairValueInputsLevel2Member 2018-09-29 0000067887 us-gaap:LiabilitiesTotalMember us-gaap:FairValueInputsLevel2Member 2019-09-28 0000067887 us-gaap:OtherCurrentAssetsMember us-gaap:FairValueInputsLevel2Member 2018-09-29 0000067887 us-gaap:AssetsTotalMember us-gaap:FairValueInputsLevel2Member 2019-09-28 0000067887 us-gaap:OtherCurrentLiabilitiesMember us-gaap:FairValueInputsLevel2Member 2018-09-29 0000067887 us-gaap:AssetsTotalMember us-gaap:FairValueInputsLevel2Member 2018-09-29 0000067887 us-gaap:LiabilitiesTotalMember us-gaap:FairValueInputsLevel2Member 2018-09-29 0000067887 us-gaap:OtherAssetsMember us-gaap:FairValueInputsLevel2Member 2018-09-29 0000067887 us-gaap:OtherAssetsMember us-gaap:FairValueInputsLevel2Member 2019-09-28 0000067887 us-gaap:OtherCurrentLiabilitiesMember us-gaap:FairValueInputsLevel2Member 2019-09-28 0000067887 us-gaap:OtherCurrentAssetsMember us-gaap:FairValueInputsLevel2Member 2019-09-28 0000067887 us-gaap:EmployeeSeveranceMember mog:A2018PlanMember us-gaap:CorporateNonSegmentMember 2017-10-01 2018-09-29 0000067887 mog:A2014PlanMember 2016-10-02 2017-09-30 0000067887 mog:A2016PlanMember mog:AircraftControlsMember 2017-10-01 2018-09-29 0000067887 mog:A2015PlanMember mog:AircraftControlsMember 2016-10-02 2017-09-30 0000067887 mog:A2018PlanMember 2018-09-30 2019-09-28 0000067887 us-gaap:CorporateNonSegmentMember 2016-10-02 2017-09-30 0000067887 mog:A2016PlanMember mog:IndustrialSystemsMember 2018-09-30 2019-09-28 0000067887 mog:A2016PlanMember mog:IndustrialSystemsMember 2016-10-02 2017-09-30 0000067887 us-gaap:CorporateNonSegmentMember 2018-09-30 2019-09-28 0000067887 us-gaap:CorporateNonSegmentMember 2017-10-01 2018-09-29 0000067887 mog:A2016PlanMember mog:AircraftControlsMember 2018-09-30 2019-09-28 0000067887 mog:A2016PlanMember mog:AircraftControlsMember 2016-10-02 2017-09-30 0000067887 mog:A2018PlanMember mog:IndustrialSystemsMember 2017-10-01 2018-09-29 0000067887 mog:A2015PlanMember mog:SpaceAndDefenseControlsMember 2016-10-02 2017-09-30 0000067887 mog:A2018PlanMember mog:IndustrialSystemsMember 2018-09-30 2019-09-28 0000067887 mog:A2016PlanMember us-gaap:CorporateNonSegmentMember 2017-10-01 2018-09-29 0000067887 mog:A2015PlanMember us-gaap:CorporateNonSegmentMember 2016-10-02 2017-09-30 0000067887 mog:A2014PlanMember mog:SpaceAndDefenseControlsMember 2016-10-02 2017-09-30 0000067887 mog:A2016PlanMember mog:SpaceAndDefenseControlsMember 2018-09-30 2019-09-28 0000067887 mog:EmployeeseverenceandotherrestructuringMember mog:A2018PlanMember mog:AircraftControlsMember 2017-10-01 2018-09-29 0000067887 mog:A2016PlanMember mog:SpaceAndDefenseControlsMember 2017-10-01 2018-09-29 0000067887 mog:A2018PlanMember mog:SpaceAndDefenseControlsMember 2017-10-01 2018-09-29 0000067887 us-gaap:EmployeeSeveranceMember mog:A2018PlanMember mog:IndustrialSystemsMember 2017-10-01 2018-09-29 0000067887 mog:A2018PlanMember 2017-10-01 2018-09-29 0000067887 mog:A2018PlanMember mog:AircraftControlsMember 2017-10-01 2018-09-29 0000067887 mog:A2016PlanMember mog:SpaceAndDefenseControlsMember 2016-10-02 2017-09-30 0000067887 mog:A2016PlanMember 2018-09-30 2019-09-28 0000067887 mog:A2015PlanMember 2016-10-02 2017-09-30 0000067887 mog:A2018PlanMember us-gaap:CorporateNonSegmentMember 2018-09-30 2019-09-28 0000067887 us-gaap:CorporateNonSegmentMember 2017-09-30 0000067887 us-gaap:CorporateNonSegmentMember 2016-10-01 0000067887 mog:A2018PlanMember us-gaap:CorporateNonSegmentMember 2017-10-01 2018-09-29 0000067887 mog:EmployeeseverenceandotherrestructuringMember mog:A2018PlanMember 2017-10-01 2018-09-29 0000067887 mog:A2016PlanMember us-gaap:CorporateNonSegmentMember 2016-10-02 2017-09-30 0000067887 us-gaap:CorporateNonSegmentMember 2018-09-29 0000067887 mog:A2018PlanMember mog:AircraftControlsMember 2018-09-30 2019-09-28 0000067887 mog:A2014PlanMember mog:IndustrialSystemsMember 2016-10-02 2017-09-30 0000067887 mog:A2015PlanMember mog:IndustrialSystemsMember 2016-10-02 2017-09-30 0000067887 mog:A2014PlanMember mog:AircraftControlsMember 2016-10-02 2017-09-30 0000067887 mog:A2016PlanMember 2017-10-01 2018-09-29 0000067887 mog:A2014PlanMember us-gaap:CorporateNonSegmentMember 2016-10-02 2017-09-30 0000067887 us-gaap:CorporateNonSegmentMember 2019-09-28 0000067887 mog:A2016PlanMember 2016-10-02 2017-09-30 0000067887 mog:A2016PlanMember us-gaap:CorporateNonSegmentMember 2018-09-30 2019-09-28 0000067887 mog:A2018PlanMember mog:SpaceAndDefenseControlsMember 2018-09-30 2019-09-28 0000067887 mog:A2016PlanMember mog:IndustrialSystemsMember 2017-10-01 2018-09-29 0000067887 us-gaap:OtherRestructuringMember mog:A2018PlanMember 2017-10-01 2018-09-29 0000067887 us-gaap:EmployeeSeveranceMember mog:A2018PlanMember 2017-10-01 2018-09-29 0000067887 us-gaap:PropertyPlantAndEquipmentMember us-gaap:OtherRestructuringMember mog:A2018PlanMember 2017-10-01 2018-09-29 0000067887 mog:A2018PlanMember 2019-09-28 0000067887 us-gaap:InventoriesMember us-gaap:OtherRestructuringMember mog:A2018PlanMember 2017-10-01 2018-09-29 0000067887 us-gaap:FiniteLivedIntangibleAssetsMember us-gaap:OtherRestructuringMember mog:A2018PlanMember 2017-10-01 2018-09-29 0000067887 us-gaap:FacilityClosingMember mog:A2018PlanMember 2017-10-01 2018-09-29 0000067887 us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2017-10-01 2018-09-29 0000067887 us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 us-gaap:FairValueInputsLevel3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 us-gaap:FairValueInputsLevel3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 us-gaap:FairValueInputsLevel3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2017-10-01 2018-09-29 0000067887 us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-10-01 2018-09-29 0000067887 us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2017-09-30 0000067887 us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FairValueInputsLevel3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-09-30 0000067887 us-gaap:FairValueInputsLevel3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2017-09-30 0000067887 us-gaap:FairValueInputsLevel3Member us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel1Member country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel12And3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FairValueInputsLevel2Member country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel12And3Member us-gaap:FixedIncomeFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel12And3Member us-gaap:EquityFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FairValueInputsLevel12And3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel1Member us-gaap:FixedIncomeFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel2Member us-gaap:EquityFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel2Member country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FairValueInputsLevel1Member country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel3Member us-gaap:EquityFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel1Member us-gaap:EquityFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel2Member us-gaap:FixedIncomeFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel3Member us-gaap:FixedIncomeFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel12And3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 country:US us-gaap:PensionPlansDefinedBenefitMember 2017-10-01 2018-09-29 0000067887 country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-10-01 2018-09-29 0000067887 country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-09-30 0000067887 country:US us-gaap:PensionPlansDefinedBenefitMember 2017-09-30 0000067887 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2017-10-01 2018-09-29 0000067887 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2017-09-30 0000067887 us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2016-10-02 2017-09-30 0000067887 country:US us-gaap:PensionPlansDefinedBenefitMember 2016-10-02 2017-09-30 0000067887 us-gaap:FixedIncomeSecuritiesMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember 2016-10-02 2017-09-30 0000067887 us-gaap:EquitySecuritiesMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:PensionPlansDefinedBenefitMember 2016-10-02 2017-09-30 0000067887 us-gaap:FixedIncomeSecuritiesMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:SupplementalEmployeeRetirementPlanDefinedBenefitMember 2019-09-28 0000067887 us-gaap:EquitySecuritiesMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:UnitinvestmenttrustsMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel12And3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel12And3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel3Member us-gaap:EquityFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:UnitlinkedlifeinsurancefundsMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel3Member us-gaap:FixedIncomeFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel2Member us-gaap:EquityFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueInputsLevel12And3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel12And3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:UnitinvestmenttrustsMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel2Member us-gaap:FixedIncomeFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:UnitlinkedlifeinsurancefundsMember us-gaap:FairValueInputsLevel12And3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:UnitlinkedlifeinsurancefundsMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel1Member us-gaap:EquityFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:UnitinvestmenttrustsMember us-gaap:FairValueInputsLevel12And3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel1Member us-gaap:FixedIncomeFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel12And3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel12And3Member us-gaap:EquityFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:UnitlinkedlifeinsurancefundsMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel12And3Member us-gaap:FixedIncomeFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:UnitinvestmenttrustsMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:ForeignPlanMember 2016-10-02 2017-09-30 0000067887 us-gaap:PensionPlansDefinedBenefitMember 2017-10-01 2018-09-29 0000067887 us-gaap:ForeignPlanMember 2017-10-01 2018-09-29 0000067887 us-gaap:ForeignPlanMember 2018-09-30 2019-09-28 0000067887 country:US 2018-09-30 2019-09-28 0000067887 country:US 2017-10-01 2018-09-29 0000067887 us-gaap:PensionPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 country:US 2016-10-02 2017-09-30 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel1Member us-gaap:EquityFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel12And3Member us-gaap:EquityFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel2Member us-gaap:FixedIncomeFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:UnitlinkedlifeinsurancefundsMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:UnitinvestmenttrustsMember us-gaap:FairValueInputsLevel12And3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel3Member us-gaap:FixedIncomeFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:UnitlinkedlifeinsurancefundsMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel12And3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel12And3Member us-gaap:FixedIncomeFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel1Member us-gaap:FixedIncomeFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:UnitlinkedlifeinsurancefundsMember us-gaap:FairValueInputsLevel12And3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueInputsLevel12And3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:UnitinvestmenttrustsMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FixedIncomeSecuritiesMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel12And3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:UnitinvestmenttrustsMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel12And3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel3Member us-gaap:EquityFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel2Member us-gaap:EquityFundsMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:EquitySecuritiesMember us-gaap:FairValueInputsLevel12And3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:UnitlinkedlifeinsurancefundsMember us-gaap:FairValueInputsLevel2Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:UnitinvestmenttrustsMember us-gaap:FairValueInputsLevel3Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:CashAndCashEquivalentsMember us-gaap:FairValueInputsLevel1Member us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:HedgeFundsMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:LimitedPartnerMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:HedgeFundsMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:HedgeFundsMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:LimitedPartnerMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember us-gaap:LimitedPartnerMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:FairValueInputsLevel1Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel1Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel3Member us-gaap:EquityFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel2Member us-gaap:FixedIncomeFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:FairValueInputsLevel2Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel2Member us-gaap:EquityFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel1Member us-gaap:EquityFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:FairValueMeasuredAtNetAssetValuePerShareMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel12And3Member us-gaap:EquityFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel2Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel1Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel2Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:InsuranceContractsAndOtherMember us-gaap:FairValueInputsLevel12And3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel3Member us-gaap:FixedIncomeFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:FairValueInputsLevel12And3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel1Member us-gaap:FixedIncomeFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MoneyMarketFundsMember us-gaap:FairValueInputsLevel12And3Member country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:MutualFundMember us-gaap:FairValueInputsLevel12And3Member us-gaap:FixedIncomeFundsMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:EquitySecuritiesMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:DebtSecuritiesMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:DebtSecuritiesMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:DebtSecuritiesMember country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 us-gaap:EquitySecuritiesMember country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:OtherMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:OtherMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 us-gaap:DebtSecuritiesMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 mog:OtherMember country:US us-gaap:PensionPlansDefinedBenefitMember 2019-09-28 0000067887 mog:OtherMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-29 0000067887 srt:MaximumMember mog:OtherMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 srt:MaximumMember us-gaap:DebtSecuritiesMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 srt:MinimumMember us-gaap:DebtSecuritiesMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-10-01 2018-09-29 0000067887 srt:MinimumMember us-gaap:EquitySecuritiesMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-10-01 2018-09-29 0000067887 srt:MaximumMember us-gaap:EquitySecuritiesMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-10-01 2018-09-29 0000067887 srt:MaximumMember us-gaap:EquitySecuritiesMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 srt:MinimumMember mog:OtherMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-10-01 2018-09-29 0000067887 srt:MaximumMember mog:OtherMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-10-01 2018-09-29 0000067887 srt:MinimumMember us-gaap:DebtSecuritiesMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 srt:MaximumMember us-gaap:DebtSecuritiesMember us-gaap:ForeignPlanMember us-gaap:PensionPlansDefinedBenefitMember 2017-10-01 2018-09-29 0000067887 srt:MinimumMember mog:OtherMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 srt:MinimumMember us-gaap:EquitySecuritiesMember country:US us-gaap:PensionPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 srt:MinimumMember us-gaap:LimitedPartnerMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 srt:MaximumMember us-gaap:LimitedPartnerMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 srt:MaximumMember us-gaap:HedgeFundsMember us-gaap:PensionPlansDefinedBenefitMember 2018-09-30 2019-09-28 0000067887 us-gaap:ForeignCountryMember 2019-09-28 0000067887 us-gaap:DomesticCountryMember 2019-09-28 0000067887 2017-12-22 2017-12-22 0000067887 2017-10-01 2017-10-01 0000067887 us-gaap:StateAndLocalJurisdictionMember 2019-09-28 0000067887 mog:A2014LongTermIncentivePlanMember 2019-09-28 0000067887 mog:ShareRepurchaseProgramMember mog:ClassAandClassBCommonStockMember 2016-10-02 2017-09-30 0000067887 us-gaap:PreferredStockMember 2019-09-28 0000067887 mog:ShareRepurchaseProgramMember mog:ClassAandClassBCommonStockMember 2018-09-30 2019-09-28 0000067887 mog:ShareRepurchaseProgramMember 2019-09-28 0000067887 mog:ShareRepurchaseProgramMember mog:ClassAandClassBCommonStockMember 2017-10-01 2018-09-29 0000067887 mog:EmployeeStockPurchasePlanMember 2019-09-28 0000067887 mog:ConversionOfClassBToClassASharesMember 2019-09-28 0000067887 mog:A2008StockAppreciationRightsPlanMember 2019-09-28 0000067887 us-gaap:StockAppreciationRightsSARSMember 2017-10-01 2018-09-29 0000067887 us-gaap:StockAppreciationRightsSARSMember 2016-10-02 2017-09-30 0000067887 us-gaap:EmployeeStockOptionMember 2018-09-30 2019-09-28 0000067887 us-gaap:EmployeeStockOptionMember 2017-10-01 2018-09-29 0000067887 us-gaap:EmployeeStockOptionMember 2016-10-02 2017-09-30 0000067887 us-gaap:PerformanceSharesMember mog:ClassAandClassBCommonStockMember 2018-09-30 2019-09-28 0000067887 mog:EmployeeStockPurchasePlanMember 2018-09-30 2019-09-28 0000067887 us-gaap:RestrictedStockMember 2018-09-30 2019-09-28 0000067887 srt:MaximumMember us-gaap:PerformanceSharesMember 2018-09-30 2019-09-28 0000067887 srt:MinimumMember us-gaap:PerformanceSharesMember 2018-09-30 2019-09-28 0000067887 us-gaap:PerformanceSharesMember 2019-09-28 0000067887 mog:ShortTermIncentivePlanMember 2018-09-30 2019-09-28 0000067887 us-gaap:StockAppreciationRightsSARSMember 2019-09-28 0000067887 mog:A2014LongTermIncentivePlanMember 2015-01-07 0000067887 us-gaap:PerformanceSharesMember 2018-09-29 0000067887 us-gaap:PerformanceSharesMember 2016-10-02 2017-09-30 0000067887 mog:EmployeeStockPurchasePlanMember 2016-10-02 2017-09-30 0000067887 mog:EmployeeStockPurchasePlanMember 2017-10-01 2018-09-29 0000067887 us-gaap:RestrictedStockMember 2017-10-01 2018-09-29 0000067887 us-gaap:PerformanceSharesMember 2017-10-01 2018-09-29 0000067887 us-gaap:RestrictedStockMember 2016-10-02 2017-09-30 0000067887 us-gaap:StockAppreciationRightsSARSMember 2018-09-29 0000067887 srt:MinimumMember 2016-10-02 2017-09-30 0000067887 srt:MinimumMember 2017-10-01 2018-09-29 0000067887 srt:MaximumMember 2017-10-01 2018-09-29 0000067887 srt:MaximumMember 2016-10-02 2017-09-30 0000067887 us-gaap:InterestRateSwapMember us-gaap:InterestExpenseMember 2017-10-01 2018-09-29 0000067887 us-gaap:ForeignExchangeContractMember us-gaap:CostOfSalesMember 2018-09-30 2019-09-28 0000067887 us-gaap:InterestRateSwapMember us-gaap:InterestExpenseMember 2018-09-30 2019-09-28 0000067887 us-gaap:ForeignExchangeContractMember us-gaap:CostOfSalesMember 2017-10-01 2018-09-29 0000067887 us-gaap:ForeignExchangeContractMember us-gaap:SalesMember 2018-09-30 2019-09-28 0000067887 us-gaap:ForeignExchangeContractMember us-gaap:SalesMember 2017-10-01 2018-09-29 0000067887 us-gaap:InterestRateSwapMember 2017-10-01 2018-09-29 0000067887 us-gaap:ForeignExchangeContractMember 2018-09-30 2019-09-28 0000067887 us-gaap:InterestRateSwapMember 2018-09-30 2019-09-28 0000067887 us-gaap:ForeignExchangeContractMember 2017-10-01 2018-09-29 0000067887 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-09-29 0000067887 us-gaap:AccumulatedTranslationAdjustmentMember 2018-09-30 2019-09-28 0000067887 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-09-30 2019-09-28 0000067887 us-gaap:AccumulatedTranslationAdjustmentMember 2017-09-30 0000067887 us-gaap:AccumulatedTranslationAdjustmentMember 2019-09-28 0000067887 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2017-10-01 2018-09-29 0000067887 us-gaap:AccumulatedTranslationAdjustmentMember 2017-10-01 2018-09-29 0000067887 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-09-30 0000067887 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2018-09-29 0000067887 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2017-10-01 2018-09-29 0000067887 us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember 2019-09-28 0000067887 us-gaap:AccumulatedTranslationAdjustmentMember 2018-09-29 0000067887 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2019-09-28 0000067887 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2017-09-30 0000067887 us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember 2018-09-30 2019-09-28 0000067887 us-gaap:IntersegmentEliminationMember 2018-09-30 2019-09-28 0000067887 us-gaap:IntersegmentEliminationMember 2017-10-01 2018-09-29 0000067887 us-gaap:IntersegmentEliminationMember 2016-10-02 2017-09-30 0000067887 us-gaap:IntersegmentEliminationMember 2017-09-30 0000067887 us-gaap:IntersegmentEliminationMember 2019-09-28 0000067887 us-gaap:IntersegmentEliminationMember 2018-09-29 0000067887 mog:U.S.GovernmentCustomerMember 2018-09-30 2019-09-28 0000067887 mog:CommercialCustomerMember 2016-10-02 2017-09-30 0000067887 us-gaap:OtherCustomerMember mog:IndustrialSystemsMember 2018-09-30 2019-09-28 0000067887 mog:U.S.GovernmentCustomerMember mog:SpaceAndDefenseControlsMember 2016-10-02 2017-09-30 0000067887 mog:U.S.GovernmentCustomerMember mog:SpaceAndDefenseControlsMember 2018-09-30 2019-09-28 0000067887 mog:U.S.GovernmentCustomerMember mog:IndustrialSystemsMember 2018-09-30 2019-09-28 0000067887 mog:U.S.GovernmentCustomerMember 2017-10-01 2018-09-29 0000067887 us-gaap:OtherCustomerMember mog:AircraftControlsMember 2018-09-30 2019-09-28 0000067887 mog:CommercialCustomerMember mog:AircraftControlsMember 2017-10-01 2018-09-29 0000067887 us-gaap:OtherCustomerMember mog:AircraftControlsMember 2016-10-02 2017-09-30 0000067887 mog:CommercialCustomerMember mog:AircraftControlsMember 2018-09-30 2019-09-28 0000067887 mog:U.S.GovernmentCustomerMember mog:AircraftControlsMember 2018-09-30 2019-09-28 0000067887 us-gaap:OtherCustomerMember mog:SpaceAndDefenseControlsMember 2017-10-01 2018-09-29 0000067887 mog:U.S.GovernmentCustomerMember mog:AircraftControlsMember 2017-10-01 2018-09-29 0000067887 mog:U.S.GovernmentCustomerMember mog:IndustrialSystemsMember 2016-10-02 2017-09-30 0000067887 mog:CommercialCustomerMember mog:IndustrialSystemsMember 2018-09-30 2019-09-28 0000067887 us-gaap:OtherCustomerMember mog:IndustrialSystemsMember 2017-10-01 2018-09-29 0000067887 us-gaap:OtherCustomerMember mog:SpaceAndDefenseControlsMember 2018-09-30 2019-09-28 0000067887 mog:CommercialCustomerMember mog:SpaceAndDefenseControlsMember 2017-10-01 2018-09-29 0000067887 us-gaap:OtherCustomerMember mog:SpaceAndDefenseControlsMember 2016-10-02 2017-09-30 0000067887 mog:U.S.GovernmentCustomerMember mog:IndustrialSystemsMember 2017-10-01 2018-09-29 0000067887 us-gaap:OtherCustomerMember 2016-10-02 2017-09-30 0000067887 mog:CommercialCustomerMember 2017-10-01 2018-09-29 0000067887 us-gaap:OtherCustomerMember mog:AircraftControlsMember 2017-10-01 2018-09-29 0000067887 mog:CommercialCustomerMember 2018-09-30 2019-09-28 0000067887 mog:CommercialCustomerMember mog:AircraftControlsMember 2016-10-02 2017-09-30 0000067887 us-gaap:OtherCustomerMember 2018-09-30 2019-09-28 0000067887 us-gaap:OtherCustomerMember 2017-10-01 2018-09-29 0000067887 mog:CommercialCustomerMember mog:IndustrialSystemsMember 2016-10-02 2017-09-30 0000067887 mog:U.S.GovernmentCustomerMember 2016-10-02 2017-09-30 0000067887 mog:U.S.GovernmentCustomerMember mog:SpaceAndDefenseControlsMember 2017-10-01 2018-09-29 0000067887 us-gaap:OtherCustomerMember mog:IndustrialSystemsMember 2016-10-02 2017-09-30 0000067887 mog:CommercialCustomerMember mog:SpaceAndDefenseControlsMember 2018-09-30 2019-09-28 0000067887 mog:CommercialCustomerMember mog:IndustrialSystemsMember 2017-10-01 2018-09-29 0000067887 mog:CommercialCustomerMember mog:SpaceAndDefenseControlsMember 2016-10-02 2017-09-30 0000067887 mog:U.S.GovernmentCustomerMember mog:AircraftControlsMember 2016-10-02 2017-09-30 0000067887 mog:DefenseMember mog:SpaceAndDefenseControlsMember 2017-10-01 2018-09-29 0000067887 mog:SimulationandTestMember mog:IndustrialSystemsMember 2017-10-01 2018-09-29 0000067887 mog:EnergyMember mog:IndustrialSystemsMember 2016-10-02 2017-09-30 0000067887 mog:CommercialMember mog:AircraftControlsMember 2016-10-02 2017-09-30 0000067887 mog:MedicalMember mog:IndustrialSystemsMember 2018-09-30 2019-09-28 0000067887 mog:EnergyMember mog:IndustrialSystemsMember 2018-09-30 2019-09-28 0000067887 mog:SimulationandTestMember mog:IndustrialSystemsMember 2018-09-30 2019-09-28 0000067887 mog:SpaceMember mog:SpaceAndDefenseControlsMember 2017-10-01 2018-09-29 0000067887 mog:DefenseMember mog:SpaceAndDefenseControlsMember 2016-10-02 2017-09-30 0000067887 mog:SimulationandTestMember mog:IndustrialSystemsMember 2016-10-02 2017-09-30 0000067887 mog:MedicalMember mog:IndustrialSystemsMember 2016-10-02 2017-09-30 0000067887 mog:MedicalMember mog:IndustrialSystemsMember 2017-10-01 2018-09-29 0000067887 mog:SpaceMember mog:SpaceAndDefenseControlsMember 2016-10-02 2017-09-30 0000067887 mog:EnergyMember mog:IndustrialSystemsMember 2017-10-01 2018-09-29 0000067887 mog:MilitaryMember mog:AircraftControlsMember 2018-09-30 2019-09-28 0000067887 mog:IndustrialAutomationMember mog:IndustrialSystemsMember 2016-10-02 2017-09-30 0000067887 mog:CommercialMember mog:AircraftControlsMember 2018-09-30 2019-09-28 0000067887 mog:MilitaryMember mog:AircraftControlsMember 2017-10-01 2018-09-29 0000067887 mog:MilitaryMember mog:AircraftControlsMember 2016-10-02 2017-09-30 0000067887 mog:IndustrialAutomationMember mog:IndustrialSystemsMember 2018-09-30 2019-09-28 0000067887 mog:CommercialMember mog:AircraftControlsMember 2017-10-01 2018-09-29 0000067887 mog:DefenseMember mog:SpaceAndDefenseControlsMember 2018-09-30 2019-09-28 0000067887 mog:SpaceMember mog:SpaceAndDefenseControlsMember 2018-09-30 2019-09-28 0000067887 mog:IndustrialAutomationMember mog:IndustrialSystemsMember 2017-10-01 2018-09-29 0000067887 mog:GovernmentPrimeandSubContractMember 2016-10-02 2017-09-30 0000067887 mog:BoeingCommercialAirplanesMember 2018-09-30 2019-09-28 0000067887 mog:BoeingMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2017-10-01 2018-09-29 0000067887 mog:GovernmentPrimeandSubContractMember 2018-09-30 2019-09-28 0000067887 mog:BoeingCommercialAirplanesMember 2017-10-01 2018-09-29 0000067887 mog:BoeingMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2018-09-30 2019-09-28 0000067887 mog:GovernmentPrimeandSubContractMember 2017-10-01 2018-09-29 0000067887 us-gaap:SalesRevenueSegmentMember mog:AftermarketSalesMember mog:AircraftControlsMember 2018-09-30 2019-09-28 0000067887 us-gaap:SalesRevenueSegmentMember mog:AftermarketSalesMember mog:AircraftControlsMember 2016-10-02 2017-09-30 0000067887 mog:BoeingMember 2017-10-01 2018-09-29 0000067887 mog:BoeingCommercialAirplanesMember 2016-10-02 2017-09-30 0000067887 mog:BoeingMember 2016-10-02 2017-09-30 0000067887 mog:BoeingMember us-gaap:SalesRevenueNetMember us-gaap:CustomerConcentrationRiskMember 2016-10-02 2017-09-30 0000067887 mog:BoeingMember 2018-09-30 2019-09-28 0000067887 us-gaap:SalesRevenueSegmentMember mog:AftermarketSalesMember mog:AircraftControlsMember 2017-10-01 2018-09-29 0000067887 us-gaap:NonUsMember 2016-10-02 2017-09-30 0000067887 country:DE 2016-10-02 2017-09-30 0000067887 country:JP 2016-10-02 2017-09-30 0000067887 us-gaap:NonUsMember 2017-10-01 2018-09-29 0000067887 country:PH 2019-09-28 0000067887 country:FR 2018-09-30 2019-09-28 0000067887 us-gaap:NonUsMember 2018-09-30 2019-09-28 0000067887 country:US 2017-09-30 0000067887 country:FR 2016-10-02 2017-09-30 0000067887 country:US 2019-09-28 0000067887 country:JP 2018-09-30 2019-09-28 0000067887 country:JP 2017-10-01 2018-09-29 0000067887 country:FR 2017-10-01 2018-09-29 0000067887 country:GB 2018-09-29 0000067887 country:US 2016-10-02 2017-09-30 0000067887 us-gaap:NonUsMember 2017-09-30 0000067887 country:DE 2017-10-01 2018-09-29 0000067887 us-gaap:NonUsMember 2018-09-29 0000067887 country:PH 2017-09-30 0000067887 country:DE 2018-09-30 2019-09-28 0000067887 country:GB 2019-09-28 0000067887 country:US 2018-09-30 2019-09-28 0000067887 country:GB 2017-09-30 0000067887 country:US 2018-09-29 0000067887 us-gaap:NonUsMember 2019-09-28 0000067887 country:US 2017-10-01 2018-09-29 0000067887 country:PH 2018-09-29 0000067887 us-gaap:InterestRateSwapMember us-gaap:BankingMember 2018-09-30 2019-09-28 0000067887 us-gaap:CreditCardIntermediaryReceivablesMember us-gaap:BankingMember 2018-09-30 2019-09-28 0000067887 us-gaap:BankingMember 2019-09-28 0000067887 us-gaap:LeaseAgreementsMember us-gaap:BankingMember 2018-09-30 2019-09-28 0000067887 us-gaap:CreditCardIntermediaryReceivablesMember us-gaap:BankingMember 2017-10-01 2018-09-29 0000067887 us-gaap:PropertyPlantAndEquipmentMember 2019-09-28 0000067887 2018-12-30 2019-03-30 0000067887 2018-04-01 2018-06-30 0000067887 2017-12-31 2018-03-31 0000067887 2018-09-30 2018-12-29 0000067887 2018-07-01 2018-09-29 0000067887 2019-03-31 2019-06-29 0000067887 2017-10-01 2017-12-30 0000067887 2019-06-30 2019-09-28 0000067887 us-gaap:SubsequentEventMember 2019-10-31 0000067887 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2016-10-02 2017-09-30 0000067887 us-gaap:InventoryValuationReserveMember 2016-10-01 0000067887 us-gaap:AllowanceForCreditLossMember 2016-10-02 2017-09-30 0000067887 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2017-09-30 0000067887 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2018-09-29 0000067887 us-gaap:InventoryValuationReserveMember 2017-10-01 2018-09-29 0000067887 mog:ContractLossReserveMember 2018-09-30 2019-09-28 0000067887 mog:ContractLossReserveMember 2016-10-02 2017-09-30 0000067887 mog:ContractLossReserveMember 2018-09-29 0000067887 mog:ContractLossReserveMember 2016-10-01 0000067887 us-gaap:AllowanceForCreditLossMember 2018-09-29 0000067887 us-gaap:InventoryValuationReserveMember 2018-09-29 0000067887 us-gaap:AllowanceForCreditLossMember 2018-09-30 2019-09-28 0000067887 us-gaap:InventoryValuationReserveMember 2016-10-02 2017-09-30 0000067887 us-gaap:InventoryValuationReserveMember 2017-09-30 0000067887 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2017-10-01 2018-09-29 0000067887 mog:ContractLossReserveMember 2019-09-28 0000067887 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2016-10-01 0000067887 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2018-09-30 2019-09-28 0000067887 us-gaap:InventoryValuationReserveMember 2018-09-30 2019-09-28 0000067887 us-gaap:AllowanceForCreditLossMember 2019-09-28 0000067887 us-gaap:AllowanceForCreditLossMember 2017-10-01 2018-09-29 0000067887 mog:ContractLossReserveMember 2017-10-01 2018-09-29 0000067887 us-gaap:AllowanceForCreditLossMember 2017-09-30 0000067887 mog:ContractLossReserveMember 2017-09-30 0000067887 us-gaap:ValuationAllowanceOfDeferredTaxAssetsMember 2019-09-28 0000067887 us-gaap:AllowanceForCreditLossMember 2016-10-01 0000067887 us-gaap:InventoryValuationReserveMember 2019-09-28 iso4217:USD iso4217:USD xbrli:shares xbrli:pure xbrli:shares
Table of Contents


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
(Mark One)
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended September 28, 2019

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _________  to _________

Commission file number 1-05129
MOOG Inc.
(Exact name of registrant as specified in its charter)
New York
 
16-0757636
 
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
 
 
400 Jamison Rd
East Aurora,
New York
14052-0018
 
(Address of Principal Executive Offices)
(Zip Code)
 
(716) 652-2000
Registrant's telephone number, including area code

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Class A common stock
MOG.A
New York Stock Exchange
Class B common stock
MOG.B
New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:     None

Indicate by check mark if the registrant is a well-known issuer, as defined in Rule 405 of the Securities Act. Yes   No   

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 of Section 15(d) of the Act. Yes   No  
 
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.    Yes    No   


1

Table of Contents

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).     Yes    No   

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer
Accelerated filer
Non-accelerated filer  
Smaller reporting company
 
 
Emerging growth company
                
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes   No  
The aggregate market value of the common stock outstanding and held by non-affiliates (as defined in Rule 405 under the Securities Act of 1933) of the registrant, based upon the closing sale price of the common stock on the New York Stock Exchange on March 30, 2019, the last business day of the registrant’s most recently completed second fiscal quarter, was approximately $2,833 million.
The number of shares outstanding of each class of common stock as of November 5, 2019 was:
Class A common stock, 32,235,795 shares
Class B common stock, 2,416,828 shares

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the Moog Inc. Proxy Statement for the Annual Meeting of Shareholders to be held on February 11, 2020 ("2019 Proxy") are incorporated by reference into Part III of this Form 10-K.


























2




moogimagea11.jpg
FORM 10-K INDEX
 
 
PART I
 
 
 
 
 
 
 
PART II
 
 
 
 
 
 
 
PART III
 
 
 
 
 
 
PART IV
 
 
 
 
 
 
 

3


Disclosure Regarding Forward-Looking Statements
Information included or incorporated by reference in this report that does not consist of historical facts, including statements accompanied by or containing words such as “may,” “will,” “should,” “believes,” “expects,” “expected,” “intends,” “plans,” “projects,” “approximate,” “estimates,” “predicts,” “potential,” “outlook,” “forecast,” “anticipates,” “presume” and “assume,” are forward-looking statements. Such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and are subject to several factors, risks and uncertainties, the impact or occurrence of which could cause actual results to differ materially from the expected results described in the forward-looking statements. Certain of these factors, risks and uncertainties are discussed in the sections of this report entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” New factors, risks and uncertainties may emerge from time to time that may affect the forward-looking statements made herein. Given these factors, risks and uncertainties, investors should not place undue reliance on forward-looking statements as predictive of future results. We disclaim any obligation to update the forward-looking statements made in this report.
 


4

Table of Contents

PART I
The Registrant, Moog Inc., a New York corporation formed in 1951, is referred to in this report as “Moog” or in the nominative “we” or the possessive “our.”
Unless otherwise noted or the context otherwise requires, all references to years in this report are to fiscal years.  
Item 1. 
  
Business.
Description of the Business. Moog is a worldwide designer, manufacturer and systems integrator of high performance precision motion and fluid controls and controls systems for a broad range of applications in aerospace and defense and industrial markets. We have three operating segments: Aircraft Controls, Space and Defense Controls and Industrial Systems.
Additional information describing the business and comparative segment revenues, operating profits and related financial information for 2019, 2018 and 2017 are provided in Note 20, Segments, of Item 8, Financial Statements and Supplementary Data of this report.
Distribution. Our sales and marketing organization consists of individuals possessing highly specialized technical expertise. This expertise is required in order to effectively evaluate a customer’s precision control requirements and to facilitate communication between the customer and our engineering staff. Our sales staff is the primary contact with customers. Manufacturers’ representatives are used to cover certain domestic aerospace markets. Distributors are used selectively to cover certain industrial and medical markets.
Industry and Competitive Conditions. We experience considerable competition in our aerospace and defense and industrial markets. We believe that the principal points of competition in our markets are product quality, reliability, price, design and engineering capabilities, product development, conformity to customer specifications, timeliness of delivery, effectiveness of the distribution organization and quality of support after the sale. We believe we compete effectively on all of these bases. Competitors in our three operating segments include:
Aircraft Controls: Curtiss-Wright, Liebherr, Nabtesco, Parker Hannifin, UTC and Woodward.
Space and Defense Controls: Aerojet Rocketdyne, Airbus, ATA Engineering, Bradford Engineering, Chess Dynamics, Cobham, Curtiss-Wright, ElectroMiniatures, EOS, ESW, Fulcrum Concepts LLC, General Dynamics, Glenair, Honeywell, IHI-Aerospace, JASC, Kearfott, Kollmorgan, Kongsberg, LORD, Marotta, Mission Systems, Ram, RUAG, Rafael, PVP Advanced, Sargent Aerospace & Defense, Schleifring, SEAKR, Silent Sentinel, SL Montevideo, SwRI, UTC, Vacco, Valcor, ValveTech and Woodward.
Industrial Systems: Allied Motion, Baumüller, Atos, Bosch Rexroth, Cardinal Health, Eaton, MTS Systems, Parker-Hannifin, Schleifring, Shinano Kenshi, Smiths Medical, Stemman, Woodward.
Government Contracts. All U.S. Government contracts are subject to termination by the U.S. Government. In 2019, sales under U.S. Government contracts represented 35% of total sales and were primarily within our Aircraft Controls and Space and Defense Controls segments.
Backlog. Our twelve-month backlog represents confirmed orders we believe will be recognized as revenue within the next twelve months. As noted in Item 6, Selected Financial Data of this report, as of September 28, 2019, our twelve-month backlog was $1.5 billion, an increase of 1% compared to September 29, 2018. See Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations of this report for a discussion on the various business drivers and conditions contributing to the twelve-month backlog change.
Raw Materials. Materials, supplies and components are purchased from numerous suppliers. We believe the loss of any one supplier, although potentially disruptive in the short-term, would not materially affect our operations in the long-term.
Working Capital. See the discussion on operating cycle in Note 1, Summary of Significant Accounting Policies, of Item 8, Financial Statements and Supplementary Data of this report.
Seasonality. Our business is generally not seasonal; however, certain products and systems, such as those in the energy market of our Industrial Systems segment, do experience seasonal variations in sales levels.

5

Table of Contents

Patents. We maintain a patent portfolio of issued or pending patents and patent applications worldwide that generally includes the U.S., Europe, China, Japan and India. The portfolio includes patents that relate to electrohydraulic, electromechanical, electronics, hydraulics, components and methods of operation and manufacture as related to motion control and actuation systems. The portfolio also includes patents related to wind turbines, robotics, surveillance/security, vibration control and medical devices. We do not consider any one or more of these patents or patent applications to be material in relation to our business as a whole. The patent portfolio related to certain medical devices is significant to our position in this market as several of these products work exclusively together, and provide us future revenue opportunities.
Research Activities. Research and development activity has been, and continues to be, significant for us. Research and development expense was at least $125 million in each of the last three years and represented approximately 4% of sales in 2019.
Employees. On September 28, 2019, we employed 12,809 full-time employees.
Customers. Our principal customers are Original Equipment Manufacturers, or OEMs, and end users for whom we provide aftermarket support. Aerospace and defense OEM customers collectively represented 56% of 2019 sales. The majority of these sales are to a small number of large companies. Due to the long-term nature of many of the programs, many of our relationships with aerospace and defense OEM customers are based on long-term agreements. Our industrial OEM sales, which represented 32% of 2019 sales, are to a wide range of global customers and are normally based on lead times of 90 days or less. We also provide aftermarket support, consisting of spare and replacement parts and repair and overhaul services, for all of our products. Our major aftermarket customers are the U.S. Government and commercial airlines. In 2019, aftermarket sales accounted for 12% of total sales.
Significant customers in our three operating segments include:
Aircraft Controls: Boeing, Airbus, Lockheed Martin, United Technologies, Northrup Grumman, Japan Aerospace, General Dynamics, Honeywell, Bombardier, BAE Systems Aerospace and the U.S. Government.
Space and Defense Controls: Lockheed Martin, Northrup Grumman, Raytheon, Aerojet Rocketdyne, General Dynamics, Boeing, United Launch Alliance, United Technologies, Honeywell, Airbus, and the U.S. Government.
Industrial Systems: McKesson, Phillips Healthcare, CAE, Nutricia, Integrated Medical Systems, Flight Safety, TurboChef Technologies, MacArtney, Mitsubishi Hitachi Power Systems, and Becton Dickinson.
International Operations. Our operations outside the United States are conducted primarily through wholly-owned foreign subsidiaries and are located predominantly in Europe and the Asia-Pacific region. See Note 20, Segments, of Item 8, Financial Statements and Supplementary Data of this report for information regarding sales by geographic area and Exhibit 21 of Item 15, Exhibits and Financial Statement Schedules of this report for a list of subsidiaries. Our international operations are subject to the usual risks inherent in international trade, including currency fluctuations, local government contracting regulations, local governmental restrictions on foreign investment and repatriation of profits, exchange controls, regulation of the import and distribution of foreign goods, as well as changing economic and social conditions in countries in which our operations are conducted.
Environmental Matters. See the discussion in Note 22, Commitments and Contingencies, of Item 8, Financial Statements and Supplementary Data of this report.
Website Access to Information. Our internet address is www.moog.com. We make our annual reports on Form 10‑K, quarterly reports on Form 10-Q, current reports on Form 8-K and, if applicable, amendments to those reports, available on the investor relations portion of our website. The reports are free of charge and are available as soon as reasonably practicable after they are filed with the Securities and Exchange Commission. We have posted our corporate governance guidelines, Board committee charters and code of ethics to the investor relations portion of our website. This information is available in print to any shareholder upon request. All requests for these documents should be made to Moog’s Manager of Investor Relations by calling 716-687-4225.




6

Table of Contents

Information about our Executive Officers. Other than the changes noted below, the principal occupations of our executive officers for the past five years have been their employment with us in the same positions they currently hold.
On March 4, 2019, Michael J. Swope was named Controller and Principal Accounting Officer. He most recently served as Principal at Tronconi Segarra & Associates LLP and as Senior Manager at that firm since November 2017. Prior to that, he was employed by EY where he was was promoted from Manager to Senior Manager in October 2015.
On January 5, 2018, Jennifer Walter was named Vice President - Finance. Previously, she was Controller and Principal Accounting Officer, a position she held since 2008.
On December 1, 2017, Paul Wilkinson was named Vice President and Chief HR Officer. Previously, he was a Group Vice President and Global HR Director, Aircraft Group.
On August 11, 2015, Maureen M. Athoe was named Vice President and President, Space and Defense Group. Previously, she was a Group Vice President, Group General Manager and Site Manager.
On August 11, 2015, R. Eric Burghardt was named Vice President and President, Aircraft Group. Previously, he was a Group Vice President and Finance Director. Effective May 3, 2019 he stepped down as President, Aircraft Group.
On August 11, 2015, Mark J. Trabert was named Vice President and President, Aircraft Group. Previously, he was a Group Vice President and Deputy General Manager.
Executive Officers
 
Age
 
Year First Elected Officer
 
 
 
 
 
John R. Scannell
 
 
 
 
Director; Chairman of the Board; Chief Executive Officer
 
56
 
2006
Donald R. Fishback
 
 
 
 
Director; Vice President; Chief Financial Officer
 
63
 
1985
Maureen M. Athoe
 
 
 
 
Vice President
 
61
 
2015
Timothy P. Balkin
 
 
 
 
Treasurer; Assistant Secretary
 
60
 
2000
R. Eric Burghardt
 
 
 
 
Vice President
 
60
 
2015
Patrick J. Roche
 
 
 
 
Vice President
 
56
 
2012
Michael J. Swope
 
 
 
 
Controller; Principal Accounting Officer
 
35
 
2019
Mark J. Trabert
 
 
 
 
Vice President
 
60
 
2015
Jennifer Walter
 
 
 
 
Vice President - Finance
 
48
 
2008
Paul Wilkinson
 
 
 
 
Vice President
 
39
 
2017
In addition to the executive officers noted above, Robert J. Olivieri, 69, was elected Secretary in 2014. Mr. Olivieri's principal occupation is partner in the law firm of Hodgson Russ LLP.

7

Table of Contents

Item 1A. 
  
Risk Factors.
The markets we serve are cyclical and sensitive to domestic and foreign economic conditions and events, which may cause our operating results to fluctuate. The markets we serve are sensitive to fluctuations in general business cycles, domestic and foreign governmental tariff, trade and monetary policies, and economic conditions and events. For example, our defense programs are largely contingent on U.S. Department of Defense funding. In addition, our space programs rely on the same governmental funding as well as investment for commercial and exploration activities. Our aerospace programs are dependent on the highly cyclical commercial airline industry, driven by fuel price increases, demand for travel and economic conditions. Demand for our industrial products is dependent upon several factors, including capital investment, product innovations, economic growth, the price of oil and natural gas, cost-reduction efforts and technology upgrades. If global economic uncertainties continue or economic conditions deteriorate, our operations could be negatively impacted through declines in our sales, profitability and cash flows due to lower orders, payment delays and price pressures for our products.
We operate in highly competitive markets with competitors who may have greater resources than we possess. Many of our products are sold in highly competitive markets. Some of our competitors, especially in our industrial markets and medical markets, are larger, more diversified and have greater financial, marketing, production and research and development resources. Within the aerospace industry, suppliers have consolidated to widen their product offerings and secure long-term sole-source positions. As a result, these competitors may be better able to withstand the effects of periodic economic downturns, and their program wins could reduce the total number of viable suppliers and increase their market share. Our sales and operating margins will be negatively impacted if our competitors: 
develop products that are superior to our products,
develop products of comparable quality and performance that are more competitively priced than our products,
develop more efficient and effective manufacturing methods for their products and services, or
adapt more quickly than we do to technological innovations or evolving customer requirements.
We believe that the principal points of competition in our markets are product quality, reliability, design and engineering capabilities, price, innovation, conformity to customers' specifications, timeliness of delivery, effectiveness of the distribution organization and quality of support after the sale. Maintaining or improving our competitive position requires continued investment in manufacturing, engineering, quality standards, marketing, customer service and support and our distribution networks. If we do not maintain sufficient resources to make these investments, are not successful in meeting our quality or delivery standards or are not successful in maintaining our competitive position, we could face pricing pressures or loss in market share, causing our operations and financial performance to suffer.
We depend heavily on government contracts that may not be fully funded or may be terminated, and the failure to receive funding or the termination of one or more of these contracts could reduce our sales and increase our costs. Sales to the U.S. Government and its prime contractors and subcontractors represent a significant portion of our business. In 2019, sales under U.S. Government contracts represented 35% of our total sales, primarily within Aircraft Controls and Space and Defense Controls. Sales to foreign governments represented 7% of our total sales. Funding for government programs can be structured into a series of individual contracts and depend on annual congressional appropriations, which are cyclical. At times when there are perceived threats to national security, U.S. Defense spending can increase; at other times, defense spending can decrease. Future levels of defense spending beyond 2019 are uncertain and subject to congressional debate. Any reduction in future Department of Defense spending levels could adversely impact our sales, operating profit and our cash flow. We have resources applied to specific government contracts and if any of those contracts are rescheduled or terminated, we may incur substantial costs redeploying those resources.

8

Table of Contents

We make estimates in accounting for over-time contracts, and changes in these estimates may have significant impacts on our earnings. We have over-time contracts with some of our customers. These contracts are predominantly within Aircraft Controls and Space and Defense Controls. Revenue representing 64% of 2019 sales was accounted for using an input method that uses costs incurred to measure progress toward completion ("cost-to-cost"). Under this method, we recognize revenue as work progresses toward completion as determined by the ratio of cumulative costs incurred to date to estimated total contract costs at completion, multiplied by the total estimated contract revenue, less cumulative revenue recognized in prior periods. Changes in these required estimates could have a material adverse effect on sales and profits. Any adjustments are recognized in the period in which the change becomes known using the cumulative catch-up method of accounting. For contracts with anticipated losses at completion, we establish a provision for the entire amount of the estimated remaining loss and charge it against income in the period in which the loss becomes known and can be reasonably estimated. Amounts representing performance incentives, penalties, contract claims or impacts of scope change negotiations are considered in estimating revenues, costs and profits when they can be reliably estimated and realization is considered probable. Due to the substantial judgments involved with this process, our actual results could differ materially or could be settled unfavorably from our estimates.
We enter into fixed-price contracts, which could subject us to losses if we have cost overruns. In 2019, fixed-price contracts represented 91% of our sales that were accounted for using the cost-to-cost method. On fixed-price contracts, we agree to perform the scope of work specified in the contract for a predetermined price. Depending on the fixed price negotiated, these contracts may provide us with an opportunity to achieve higher profits based on the relationship between our total contract costs and the contract's fixed price. However, we bear the risk that increased or unexpected costs may reduce our profit or cause us to incur a loss on the contract, which would reduce our net earnings. Contract loss reserves are most commonly associated with fixed-price contracts that involve the design and development of innovative control systems to meet the customer's specifications.
We may not realize the full amounts reflected in our backlog as revenue, which could adversely affect our future revenue and growth prospects. As of September 28, 2019, our total backlog was $2.2 billion, which represents confirmed orders we believe will be recognized as revenue. There is no assurance that our customers will purchase all the orders represented in our backlog, due in part to governments' abilities to modify, curtail or terminate major programs. Due to the uncertain nature of our contracts with the U.S. Government and other foreign governments, we may never realize revenue from some of the orders that are included in our backlog. A portion of our backlog also relates to commercial aircraft programs as well as industrial programs. If there are aircraft entry into service delays, lower than anticipated aircraft deliveries due to production issues or overall weakening economic outlooks, we may never realize the full amounts included in our backlog. If this occurs, our future revenue and growth prospects may be adversely affected.
If our subcontractors or suppliers fail to perform their contractual obligations, our prime contract performance and our ability to obtain future business could be materially and adversely impacted. We rely on subcontracts with other companies to perform portions of the service we provide to our customers on many of our contracts. There is a risk that we may have disputes with our subcontractors, including disputes regarding the quality and timeliness of work performed by the subcontractor, customer concerns about the subcontractor, our failure to extend existing task orders or issue new task orders under a subcontract or our hiring of personnel of a subcontractor. Failure by our subcontractors to satisfactorily provide on a timely basis the agreed-upon, defect-free supplies, or perform the agreed-upon services, may materially and adversely impact our ability to perform our obligations as the prime contractor. Subcontractor performance deficiencies could result in a customer terminating our contract for default. A default termination could expose us to liability and substantially impair our ability to compete for future contracts and orders. In addition, a delay or failure in our ability to obtain components and equipment parts from our suppliers may adversely affect our ability to perform our obligations to our customers.
We may not be able to prevent, or timely detect, issues with our products and our manufacturing processes which may adversely affect our operations and our earnings. We must continuously improve product development and manufacturing processes and systems to ensure we deliver high-quality, technically advanced products. Due to growth in operations, there is a risk our current manufacturing processes and systems are unable to maintain our high-quality and on-time delivery standards for our customers. If we are unable to maintain these standards, we could experience late deliveries and penalties, recalls, increased warranty costs, order cancellations and litigation.


9

Table of Contents

Contracting on government programs is subject to significant regulation, including rules related to bidding, billing and accounting kickbacks, and any false claims or non-compliance could subject us to fines, penalties or possible debarment. Like all government contractors, we are subject to risks associated with this contracting, including substantial civil and criminal fines and penalties. These fines and penalties could be imposed for failing to follow procurement integrity and bidding rules, employing improper billing practices or otherwise failing to follow cost accounting standards, receiving or paying kickbacks or filing false claims. We have been, and expect to continue to be, subjected to audits and investigations by U.S. and foreign government agencies and authorities. The failure to comply with the terms of our government contracts could harm our business reputation. It could also result in our progress payments being withheld or our suspension or debarment from future government contracts, which could have a material affect on our operational and financial results.
The loss of The Boeing Company as a customer or a significant reduction in sales to The Boeing Company could adversely impact our operating results. We provide The Boeing Company, or Boeing, with controls for both military and commercial applications, which totaled 13% of our 2019 sales. Sales to Boeing's commercial airplane group are generally made under a long-term supply agreements. Boeing operates in a competitive environment and continues to evaluate the size, scope and cost of their supplier base. Any detrimental impact to Boeing's production rates or a reduction in our awarded content could reduce our orders from Boeing. A reduction in sales or the loss of Boeing as a customer could reduce our sales and earnings.
Our new products and technology research and development efforts are substantial and may not be successful which could reduce our sales and earnings. Technologies related to our products have undergone, and in the future may undergo, significant changes. In order to maintain a leadership position in the high-performance, precision controls market in future, we have incurred, and we expect to continue to incur, expenses associated with lengthy research and development activities during the introduction of new products. Our technology has been developed through customer-funded and internally-funded research and development, as well as through business acquisitions. If we fail to predict customers' preferences or fail to provide viable technological solutions, we may experience inefficiencies that could delay or prevent the acceptance of new products or product enhancements. Also, the research and development expenses we incur may exceed our cost estimates and the new products we develop may not generate sales sufficient to offset our costs. Additionally, our competitors may develop technologies and products that have more competitive advantages than ours and render our technology uncompetitive or obsolete.
Our inability to adequately enforce and protect our intellectual property or defend against assertions of infringement could prevent or restrict our ability to compete. Protecting our intellectual property is critical in order to maintain a competitive advantage. We therefore rely on internally developed and acquired patents, trademarks, proprietary knowledge and technologies. Our inability to defend against the unauthorized use of these rights and assets could have an adverse effect on our competitive position and on our results of operations and financial condition. Litigation may be necessary to protect our intellectual property rights or defend against claims of infringement. This litigation could result in significant costs and divert management's focus away from operations.
Our business operations may be adversely affected by information systems interruptions, intrusions or new software implementations. We are dependent on various information technologies throughout our company and third parties to administer, store and support multiple business activities. In addition, we store sensitive data including proprietary business information, intellectual property and confidential employee data on our servers and databases. Furthermore, we may have access to sensitive, confidential or personal information that may be subject to privacy and security laws and controls. Although we continue to review and enhance our computer systems and cybersecurity controls, information system disruptions, equipment failures or cybersecurity attacks, such as unauthorized access, malicious software and other intrusions, could still occur and may lead to potential data corruption and exposure of proprietary and confidential information. Any intrusion may cause operational stoppages, fines, penalties, diminished competitive advantages through reputational damages and increased operational costs. Additionally, we may incur additional costs to comply with our customers', including the U.S. Government's, increased cybersecurity protections and standards in our products. Prior cyberattacks directed at us have not had a material impact on our financial results. In addition, we have embarked on a multi-year business information system transformation and standardization project. This endeavor will occupy additional resources, diverting attention from other operational activities, may cause our information systems to perform unexpectedly and may increase our exposure to cyber risks. While we expect to invest significant resources throughout the planning and project management process, unanticipated delays could occur and would adversely affect our financial results.


10

Table of Contents

Our indebtedness and restrictive covenants under our credit facilities could limit our operational and financial flexibility. We have incurred significant indebtedness, and may incur additional debt for acquisitions, operations, research and development and capital expenditures. Our ability to make interest and scheduled principal payments and operate within the restrictive covenants could be adversely impacted by changes in the availability, terms and cost of capital, changes in interest rates or changes in our credit ratings or our outlook. These changes could increase our cost of business, limiting our ability to pursue acquisition opportunities, react to market conditions and meet operational and capital needs, thereby placing us at a competitive disadvantage.
Significant changes in discount rates, rates of return on pension assets, mortality tables and other factors could adversely affect our earnings and equity and increase our pension funding requirements. Pension costs and obligations are determined using actual results as well as actuarial valuations that involve several assumptions. The most critical assumptions are the discount rate, the long-term expected return on assets and mortality tables. Other assumptions include salary increases and retirement age. Some of these assumptions, such as the discount rate and return on pension assets, are reflective of economic conditions and largely out of our control. Despite fully funding our largest pension plan, changes in the pension assumptions could adversely affect our earnings, equity and funding requirements.
A write-off of all or part of our goodwill or other intangible assets could adversely affect our operating results and net worth. Goodwill and other intangible assets are a substantial portion of our assets. At September 28, 2019, goodwill was $784 million and other intangible assets were $80 million of our total assets of $3.1 billion. Our goodwill and other intangible assets may increase in the future since our growth strategy includes acquisitions. However, we may have to write off all or part of our goodwill or other intangible assets if their value becomes impaired. Although this write-off would be a non-cash charge, it could reduce our earnings and our financial condition significantly.
Our sales and earnings may be affected if we cannot identify, acquire or integrate strategic acquisitions, or if we engage in divesting activities. Acquisitions are a key part of our growth strategy. Our historical growth has depended, and our future growth is likely to depend, in part, on our ability to successfully identify, acquire and integrate acquired businesses. We intend to continue to seek additional acquisition opportunities, both to expand into new markets and to enhance our position in existing markets throughout the world. Growth by acquisition involves risk that could adversely affect our financial condition and operating results. We may not know the potential exposure to unanticipated liabilities. Additionally, the expected benefits or synergies might not be fully realized, integrating operations and personnel may be slowed and key employees, suppliers or customers of the acquired business may depart. We may also continue to engage in divesting activities if we deem the operations as non-strategic or underperforming. Divestitures could adversely affect our profitability and, under certain circumstances, require us to record impairment charges or a loss as a result of a transaction. In pursuing acquisition opportunities, integrating acquired businesses, or divesting business operations, management's time and attention may be diverted from our core business, while consuming resources and incurring expenses for these activities.
Our operations in foreign countries expose us to political and currency risks and adverse changes in local legal and regulatory environments. We have significant manufacturing and sales operations in foreign countries. In addition, our domestic operations sell to foreign customers. In 2019, 39% of our net sales were to customers outside of the United States. Our financial results may be adversely affected by fluctuations in foreign currencies and by the translation of the financial statements of our foreign subsidiaries from local currencies into U.S. dollars. We expect international operations and export sales to contribute to our earnings for the foreseeable future. Both the sales from international operations and export sales are subject in varying degrees to risks inherent in doing business outside of the United States. Such risks include the possibility of unfavorable circumstances arising from host country laws or regulations including privacy laws protecting personal data, changes in tariff and trade barriers and import or export licensing requirements. In addition, any local or global health issue or uncertain political climates, international hostilities, natural disasters, or any other terrorist activities could adversely affect customer demand, our operations and our ability to source and deliver products and services to our customers.
The United Kingdom's decision to exit the European Union may bring short-term and long-term adverse impacts on our results of operations. In 2019, our United Kingdom operations represented approximately 7% of our consolidated net sales across all three segments. The outcome of the United Kingdom's decision to leave the European Union ("Brexit") could adversely affect our business and our results of operations. In the short-term, volatility in the British Pound could continue, which would negatively impact our financial results. In the longer term, any impact from Brexit on our United Kingdom operations will depend on the outcome of yet-to-be negotiated tariff, trade, regulatory and other matters. While we have established cross-segment teams and adopted measures to mitigate the potential risks within the current uncertain environment, such measures may negatively impact our operations and our financial results.

11

Table of Contents

Escalating tariffs, restrictions on imports or other trade barriers between the United States and various countries may impact our results of operations. There is currently significant uncertainty about the future relationship between the United States and other countries, both where we source products and where we have large customers, with respect to trade policies, treaties, government regulations and tariffs. The current U.S. administration has called for substantial changes to U.S. foreign trade policy including imposing greater restrictions on international trade with significant increases in tariffs on goods imported into the U.S. In the near-term, we expect these tariffs will negatively impact our costs to in-source materials, primarily from China, which could negatively impact our operating results. In the longer-term, these tariffs may negatively impact customer order volume, specifically related to the new European commercial aircraft, if the resulting higher prices for aircraft restrict future orders. The potential loss of orders would negatively impact our financial results including lower sales, operating profits and cash flow.
Unforeseen exposure to additional income tax liabilities may affect our operating results. Our distribution of taxable income is subject to domestic and, as a result of our significant manufacturing and sales presence in foreign countries, foreign tax jurisdictions. Our effective tax rate and earnings may be affected by shifts in our mix of earnings in countries with varying statutory tax rates, changes in the valuation of deferred tax assets and outcomes of any audits performed on previous tax returns. Additionally, any alterations to tax regulations or interpretations could have significant impacts on our effective tax rates and on our deferred tax assets and liabilities.
Government regulations could limit our ability to sell our products outside the United States and otherwise adversely affect our business. In 2019, approximately 19% of our sales were subject to compliance with the United States export regulations. Our failure to obtain, or fully adhere to the limitations contained in the requisite licenses, meet registration standards or comply with other government export regulations would hinder our ability to generate revenues from the sale of our products outside the United States. In addition, the U.S. Government has established and, from time to time, revises sanctions that restrict or prohibit U.S. companies and their subsidiaries from doing business with certain foreign countries, entities and individuals. The absence of comparable restrictions on competitors in other countries may adversely affect our competitive position. In order to sell our products in European Union countries, we must satisfy certain technical requirements. If we are unable to comply with those requirements with respect to a significant quantity of our products, our sales in Europe would be restricted. Doing business internationally also subjects us to numerous U.S. and foreign laws and regulations, including regulations relating to import-export control, technology transfer restrictions, anti-bribery, privacy regulations and anti-boycott provisions. From time to time, we may file voluntary disclosure reports with the U.S. Department of State and the Department of Commerce regarding certain violations of U.S. export laws and regulations discovered by us in the course of our business activities, employee training or internal reviews and audits. To date, our voluntary disclosures have not resulted in a fine, penalty, or export privilege denial or restriction that has materially impacted our financial condition or ability to export. Our failure, or failure by an authorized agent or representative that is attributable to us, to comply with these laws and regulations could result in administrative, civil or criminal liabilities. In the extreme case, these failures could result in financial penalties, suspension or debarment from government contracts or suspension of our export privileges, which could have a material adverse effect on us.
The failure or misuse of our products may damage our reputation, necessitate a product recall or result in claims against us that exceed our insurance coverage, thereby requiring us to pay significant damages. Defects in the design and manufacture of our products or our subcontractors' products may necessitate a product recall. We include complex system designs and components in our products that could contain errors or defects, particularly when we incorporate new technologies into our products. If any of our products are defective, we could be required to redesign or recall those products, pay substantial damages or warranty claims and face actions by regulatory bodies and government authorities. Such an event could result in significant expenses, delay sales, inflate inventory, affect our company's and our products' reputations, and cause us to withdraw from certain markets. We are also exposed to product liability claims. Many of our products are used in applications where their failure or misuse could result in significant property loss and serious personal injury or death. We carry product liability insurance consistent with industry norms. However, these insurance coverages may not be sufficient to fully cover the payment of any potential claim. A product recall or a product liability claim not covered by insurance could have a material adverse effect on our business, financial condition and results of operations.
We are involved in various legal proceedings, the outcome of which may be unfavorable to us. Our business may be adversely impacted by the outcome of legal proceedings and other contingencies that cannot be predicted with certainty. We estimate loss contingencies and establish reserves based on our assessment where liability is deemed probable and reasonably estimable given the facts and circumstances known to us at a particular point in time. Subsequent developments may affect our assessment and estimates of the loss contingencies recorded as liabilities.

12

Table of Contents

Future terror attacks, war, natural disasters or other catastrophic events beyond our control could negatively impact our business. Terror attacks, war or other civil disturbances, natural disasters and other catastrophic events could lead to economic instability and decreased demand for commercial products, which could negatively impact our business, financial condition, results of operations and cash flows. From time to time, terrorist attacks worldwide have caused instability in global financial markets and the aviation industry. In 2019, 24% of our net sales were in the commercial aircraft market. Also, our facilities and suppliers are located throughout the world and could be subject to damage from fires, floods, earthquakes or other natural or man-made disasters. Although we carry third party property insurance covering these and other risks, our inability to meet customers' schedules as a result of a catastrophe may result in the loss of customers or significantly increase costs, including penalty claims under customer contracts.
Our operations are subject to environmental laws, and complying with those laws may cause us to incur significant costs. Our operations and facilities are subject to numerous stringent environmental laws and regulations. Although we believe that we are in material compliance with these laws and regulations, future changes in these laws, regulations or interpretations of them, or changes in the nature of our operations may require us to make significant capital expenditures to ensure compliance. We have been and are currently involved in environmental remediation activities. The cost of these activities may become significant depending on the discovery of additional environmental exposures at sites that we currently own or operate, at sites that we formerly owned or operated, or at sites to which we have sent hazardous substances or wastes for treatment, recycling or disposal.

13

Table of Contents

Item 1B.
  
Unresolved Staff Comments.
None.
Item 2.
  
Properties.
On September 28, 2019, we occupied 5,178,000 square feet of space, distributed by segment as follows:
  
 
Square Feet
  
 
                 Owned
 
                  Leased
 
                     Total
Aircraft Controls
 
1,383,000

 
416,000

 
1,799,000

Space and Defense Controls
 
869,000

 
357,000

 
1,226,000

Industrial Systems
 
1,632,000

 
499,000

 
2,131,000

Corporate Headquarters
 
20,000

 
2,000

 
22,000

Total
 
3,904,000

 
1,274,000

 
5,178,000

We have principal manufacturing facilities in the United States and countries throughout the world in the following locations:
Aircraft Controls - U.S., Philippines and United Kingdom.
Space and Defense Controls - U.S., United Kingdom and Ireland.
Industrial Systems - U.S., Germany, Czech Republic, Italy, Costa Rica, China, United Kingdom, Netherlands, Luxembourg, Philippines, Japan, Canada, India and Lithuania.
Our corporate headquarters is located in East Aurora, New York.
We believe that our properties have been adequately maintained and are generally in good condition. Operating leases for our properties expire at various times from 2020 through 2057. Upon the expiration of our current leases, we believe that we will be able to either secure renewal terms or enter into leases for alternative locations at market terms.
Item 3.
  
Legal Proceedings.
From time to time, we are involved in legal proceedings. We are not a party to any pending legal proceedings that management believes will result in a material adverse effect on our financial condition, results of operations or cash flows.
Item 4.
  
Mine Safety Disclosures.
Not applicable.


14

Table of Contents

PART II
Item 5.
 
Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Our two classes of common shares, Class A common stock and Class B common stock, are traded on the New York Stock Exchange ("NYSE") under the ticker symbols MOG.A and MOG.B.
The number of shareholders of record of Class A common stock and Class B common stock was 609 and 656, respectively, as of November 5, 2019.
The following table summarizes our purchases of our common stock for the quarter ended September 28, 2019.
Issuer Purchases of Equity Securities 
Period
(a) Total
Number of
Shares
Purchased (1)(2)
 
(b) Average
Price Paid
Per Share
 
(c) Total Number
of Shares
Purchased as
Part of Publicly
Announced  Plans
or Programs (3)
 
(d) Maximum
Number  (or  Approx.
Dollar Value) of
Shares that May
Yet Be Purchased
Under Plans or
Programs (3)
June 30, 2019 - July 31, 2019
100,454

 
$
87.58

 
35,919

 
3,252,727

August 1, 2019 - August 31, 2019
195,213

 
77.66

 
194,685

 
3,058,042

September 1, 2019 - September 28, 2019
12,114

 
80.35

 
10,735

 
3,047,307

Total
307,781

 
$
81.00

 
241,339

 
3,047,307


(1)
Reflects purchases by the Moog Inc. Stock Employee Compensation Trust Agreement ("SECT") of shares of Class B common stock from the Moog Inc. Retirement Savings Plan ("RSP") as follows: 16,399 shares at $92.79 per share during July. Also reflects purchases by the SECT of shares of Class B common stock from the Moog Inc. Employee Stock Purchase Plan ("ESPP") as follows: 3,409 shares at $90.06 per share during July, 528 shares at $79.15 during August and 1,074 shares at $84.06 during September. In connection with the issuance of shares to the Employee Stock Purchase Plan ('ESPP"), we purchased 42,859 Class B shares at $92.26 per share from the SECT during July.

(2)
In connection with the exercise of equity-based compensation awards, we accept delivery of shares to pay for the exercise price and withhold shares for tax withholding obligations. In July, we accepted delivery of 1,868 shares at $94.28 per share and in September, we accepted delivery of 305 shares at $84.89 per share, in connection with the exercise of equity-based awards.

(3)
The Board of Directors has authorized a share repurchase program. This program has been amended from time to time to authorize additional repurchases up to an aggregate 13 million common shares. The program permits the purchase of shares of Class A or Class B common stock in open market or privately negotiated transactions at the discretion of management. In July, we purchased 35,700 Class A and 219 Class B shares at averages prices of $78.95 and $90.88, respectively. In August, we purchased 194,109 Class A and 576 Class B shares at average prices of $77.65 and $79.52, respectively. In September, we purchased 10,677 Class A and 58 Class B shares at average prices of $79.81 and $86.83, respectively. The purchases identified with notes (1) and (2) in column (a) are not included in this program.



15

Table of Contents


Performance Graph

The following graph and tables show the performance of the Company's Class A common stock compared to the NYSE Composite-Total Return Index and the S&P Aerospace & Defense Index for a $100 investment made on September 30, 2014, including reinvestment of any dividends.

 
chart-a70c63127665517f80e.jpg
 
 
9/14
 
9/15
 
9/16
 
9/17
 
9/18
 
9/19
Moog Inc. - Class A Common Stock
 
$
100.00

 
$
79.05

 
$
87.05

 
$
121.97

 
$
126.47

 
$
120.77

NYSE Composite - Total Return Index
 
100.00

 
93.83

 
105.41

 
123.06

 
135.13

 
137.87

S&P Aerospace & Defense Index
 
100.00

 
103.76

 
122.29

 
175.54

 
217.15

 
231.28

 

16

Table of Contents

Item 6.
 
    Selected Financial Data.
For a more detailed discussion of 2017 through 2019, refer to Item 7, Management’s Discussion and Analysis of Financial Condition and Results of Operations of this report and Item 8, Financial Statements and Supplementary Data of this report.
(dollars in thousands, except per share data)
2019(1)(3)
2018(1)(3)
2017(1)(3)
2016(1)(2)(3)
2015(1)
RESULTS FROM OPERATIONS
 
 
 


Net sales
$
2,904,663

$
2,709,468

$
2,497,524

$
2,411,937

$
2,525,532

Net earnings (4)
179,748

96,507

141,280

126,745

131,883

Net earnings per share (4)
 
 
 


Basic
$
5.16

$
2.71

$
3.94

$
3.49

$
3.39

Diluted
$
5.11

$
2.68

$
3.90

$
3.47

$
3.35

Dividends declared per share
$
1.00

$
0.50

$

$

$

Weighted-average shares outstanding
 
 
 


Basic
34,854,614

35,661,638

35,852,448

36,277,445

38,945,880

Diluted
35,178,968

36,052,307

36,230,043

36,529,344

39,334,520

FINANCIAL POSITION

 



Cash and cash equivalents
$
89,702

$
125,584

$
368,073

$
325,128

$
309,853

Working capital
901,315

797,919

997,005

938,295

931,297

Total assets
3,114,237

2,964,048

3,090,592

3,004,974

3,036,573

Indebtedness - total
833,233

862,824

957,037

1,006,393

1,069,643

Shareholders’ equity
1,322,481

1,224,986

1,214,304

988,411

994,532

Shareholders’ equity per common share outstanding
$
38.12

$
35.20

$
33.94

$
27.56

$
27.09

SUPPLEMENTAL FINANCIAL DATA
 



Capital expenditures
$
118,422

$
94,517

$
75,798

$
67,208

$
80,693

Depreciation and amortization
85,260

88,572

90,167

98,732

103,609

Research and development
126,453

129,838

144,157

147,336

132,271

Total backlog
2,232,605

n/a
n/a
n/a
n/a
Twelve-month backlog (5)
1,502,028

1,481,230

1,211,797

1,224,878

1,273,495

RATIOS

 



Net return on sales
6.2
%
3.6
%
5.7
%
5.3
%
5.2
%
Return on shareholders’ equity
13.8
%
7.8
%
13.3
%
12.6
%
11.3
%
Current ratio
2.2

2.2

2.6

2.6

2.5

Net debt to capitalization (6)
36.0
%
37.6
%
32.7
%
40.8
%
43.3
%

(1)
Includes the effects of our share repurchase program. See the Consolidated Statements of Shareholders' Equity and Consolidated Statements of Cash Flow at Item 8, Financial Statements and Supplementary Data of this report.
(2)
Includes goodwill impairment charge. See Note 7, Goodwill and Intangible Assets, at Item 8, Financial Statements and Supplementary Data of this report.
(3)
Includes the effects of acquisitions and divestitures. See Note 3, Acquisitions, Divestitures and Equity Method Investments, at Item 8, Financial Statements and Supplementary Data of this report.
(4)
Represents net earnings attributable to common shareholders and net earnings per share attributable to common shareholders.
(5)
Twelve-month backlog is defined as confirmed orders we believe will be recognized as revenue within the next twelve months.
(6)
Net debt is total debt less cash and cash equivalents. Capitalization is the sum of net debt and shareholders’ equity.


17

Table of Contents

Item 7.
 
 Management's Discussion and Analysis of Financial Condition and Results of Operations.
OVERVIEW
We are a worldwide designer, manufacturer and systems integrator of high performance precision motion and fluid controls and control systems for a broad range of applications in aerospace and defense and industrial markets.
Within the aerospace and defense market, our products and systems include:
Defense market - primary and secondary flight controls for military aircraft, stabilization and automatic ammunition loading controls for armored combat vehicles, tactical and strategic missile steering controls and gun aiming controls.
Commercial aircraft market - primary and secondary flight controls for commercial aircraft.
Space market - satellite positioning controls and thrust vector controls for space launch vehicles.
In the industrial market, our products are used in a wide range of applications including:
Industrial automation market - injection molding, metal forming, heavy industry, material and automotive testing and pilot training simulators.
Medical market - enteral clinical nutrition and infusion therapy pumps, ultrasonic sensors and surgical handpieces and CT scanners.
Energy market - power generation and oil and gas exploration.
We operate under three segments, Aircraft Controls, Space and Defense Controls and Industrial Systems. Our principal manufacturing facilities are located in the United States, Philippines, United Kingdom, Germany, Czech Republic, Italy, Costa Rica, China, Netherlands, Luxembourg, Japan, Canada, India and Lithuania.
Under ASC 606, 64% of revenue was recognized over time for the year ended September 28, 2019, using the cost-to-cost method of accounting. The over-time method of revenue recognition is predominantly used in Aircraft Controls and Space and Defense Controls. We use this method for U.S. Government contracts and repair and overhaul arrangements as we are creating or enhancing assets that the customer controls. In addition, many of our large commercial contracts qualify for over-time accounting as our performance does not create an asset with an alternative use and we have an enforceable right to payment for performance completed to date.
For the year ended September 28, 2019, 36% of revenue was recognized at the point in time control transferred to the customer. This method of revenue recognition is used most frequently in Industrial Systems. We use this method for commercial contracts in which the asset being created has an alternative use. We determine the point in time control transfers to the customer by weighing the five indicators provided by ASC 606. When control has transferred to the customer, profit is generated as cost of sales is recorded and as revenue is recognized.
We concentrate on providing our customers with products designed and manufactured to the highest quality standards. Our technical experts work collaboratively around the world, delivering capabilities for mission-critical solutions. These core operational principles are necessary as our products are applied in demanding applications, "When Performance Really Matters®." By capitalizing on these core foundational strengths, we believe we have achieved a leadership position in the high performance, precision controls market. Additionally, these strengths yield a broad control product portfolio, across a diverse base of customers and end markets.
By focusing on customer intimacy and commitment to solving their most demanding technical problems, we have been able to expand our control product franchise to multiple markets; organically growing from a high-performance components manufacturer to a high-performance systems designer, manufacturer and systems integrator. In addition, we continue expanding our content positions on our current platforms, seeking to be the dominant supplier in the niche markets we serve. We also look for innovation in all aspects of our business, employing new technologies to improve productivity and operational performance.






18

Table of Contents

Our fundamental strategies to achieve our goals center around talent, lean and innovation and include:
a strong leadership team that has positioned the company for growth,
utilizing our global capabilities and strong engineering heritage to innovate,
maintaining our technological excellence by solving our customers’ most demanding technical problems in applications "When Performance Really Matters®,"
continuing to invest in talent development to strengthen employee performance, and
maximizing customer value by implementing lean enterprise principles.
These activities will help us achieve our financial objective of increasing shareholder value with sustainable competitive advantages across our segments. In doing so, we expect to maintain a balanced, diversified portfolio in terms of markets served, product applications, customer base and geographic presence.
We focus on improving shareholder value through strategic revenue growth, both acquired and organic, through improving operating efficiencies and manufacturing initiatives and through utilizing low cost manufacturing facilities without compromising quality. Additionally, we take a balanced approach to capital deployment in order to maximize shareholder returns over the long-term. Our activities may include strategic acquisitions, further share buybacks and dividend payments.
Financial Highlights
Net sales for fiscal 2019 increased 7% to $2.9 billion.
Total operating profit increased 22% to $321 million, as the prior year's $39 million of charges related to our exit of the wind pitch controls business did not repeat.
Effective tax rate was 23.1%.
Net earnings attributable to Moog increased to $180 million.
Diluted earnings per share increased to $5.11.
Cash from operating activities was $181 million.

Acquisitions, Divestitures and Equity Method Investments
All of our acquisitions are accounted for under the purchase method and, accordingly, the operating results for the acquired companies are included in the consolidated statements of earnings from the respective dates of acquisition. Under purchase accounting, we record assets and liabilities at fair value and such amounts are reflected in the respective captions on the consolidated balance sheets. The purchase price described for each acquisition below is net of any cash acquired, includes debt issued or assumed and the fair value of contingent consideration.
In 2019, we sold a non-core business of our Industrial Systems segment for $4 million in cash and recorded a gain in other income of $3 million.
In 2018, we sold a non-core business of our Space and Defense Controls segment for $5 million in cash, plus a $1 million note receivable and record a loss in other expense of $2 million.
On April 30, 2018, we acquired Electro-Optical Imaging, a designer and manufacturer of video trackers and imaging products, located in Florida, for $5 million. This operation is included in our Space and Defense Controls segment.
On March 29, 2018, we acquired a 100% ownership interest in VUES Brno s.r.o located in the Czech Republic, which included a 74% ownership interest in a subsidiary located in Germany, for $64 million. VUES designs and manufactures customized electric motors, generators and solutions. This operation is included in our Industrial Systems segment. On September 6, 2018, we acquired the remaining 26% noncontrolling interest for $2 million in cash.
On October 3, 2017, we, in collaboration with SIA Engineering Company, announced the joint venture company, Moog Aircraft Services Asia ("MASA"), in Singapore, of which we currently hold a 51% ownership. MASA is intended to provide maintenance, repair and overhaul services for our manufactured flight control systems. As we hold a majority ownership in MASA, but share voting control, we are accounting for this investment using the equity method. As of September 28, 2019, we have made total contributions of $5 million to MASA. This operation is included in our Aircraft Controls segment.




19

Table of Contents

CRITICAL ACCOUNTING POLICIES
Our financial statements and accompanying notes are prepared in accordance with U.S. generally accepted accounting principles. The preparation of these consolidated financial statements requires us to make estimates, assumptions and judgments that affect the amounts reported. These estimates, assumptions and judgments are affected by our application of accounting policies, which are discussed in Note 1, Summary of Significant Accounting Policies, of Item 8, Financial Statements and Supplementary Data of this report. We believe the accounting policies discussed below are the most critical in understanding and evaluating our financial results. These critical accounting policies have been reviewed with the Audit Committee of our Board of Directors.
Revenue Recognition on Over-Time Contracts
We recognize revenue from contracts with customers using the five-step model prescribed in ASC 606. For contracts that qualify for over time treatment, we recognize revenue as control of the promised goods or services is being transferred to the customer. Revenue recognized over time for the year ended September 28, 2019 was 64%. Revenue is recognized on contracts using the cost-to-cost method of accounting as determined by the ratio of cumulative costs incurred to date to estimated total contract costs at completion, multiplied by the total estimated contract revenue, less cumulative revenue recognized in prior periods. We believe this is an appropriate measure of progress toward satisfaction of performance obligations as this measure most accurately depicts the progress of our work and transfer of control to our customers. Changes in estimates affecting sales, costs and profits are recognized in the period in which the change becomes known using the cumulative catch-up method of accounting. Revenue and cost estimates for substantially all over-time contract performance obligations are reviewed and updated quarterly. For additional discussion on revenue recognition, see Note 2, Revenue from Contracts with Customers, of Item 8, Financial Statements and Supplementary Data, of this report.
Contract Reserves
At September 28, 2019, we had contract reserves of $61 million. Contract reserves are comprised of contract loss reserves, recall reserves, and contract-related reserves. Contract loss reserves are recorded for open contracts where it is anticipated that contract costs will be greater than contract income and are determined considering all direct and indirect contract costs, exclusive of any selling, general or administrative cost allocations that are treated as period expenses. In accordance with ASC 606, we calculate contract losses at the contract level, versus the performance obligation level. Recall reserves are recorded when additional work is needed on completed products for them to meet contract specifications. Contract-related reserves are recorded for other reasons, such as delivery issues outside of the ordinary scope of the contract. For all three types of reserves, a provision for the entire amount of the loss is charged against income in the period in which the loss becomes known and can be reasonably estimated by management.
Reserves for Inventory Valuation
At September 28, 2019, we had net inventories of $535 million, or 33% of current assets. Reserves for inventory were $134 million, or 20% of gross inventories. Inventories are stated at the lower of cost or net realizable value with cost determined primarily on the first-in, first-out method of valuation.
We record valuation reserves to provide for slow-moving or obsolete inventory by principally using a formula-based method that increases the valuation reserve as the inventory ages. We also take specific circumstances into consideration. We consider overall inventory levels in relation to firm customer backlog in addition to forecasted demand including aftermarket sales. Changes in these and other factors, such as low demand and technological obsolescence, could cause us to increase our reserves for inventory valuation, which would negatively impact our gross margin. As we record provisions within cost of sales to increase inventory valuation reserves, we establish a new, lower cost basis for the inventory.


20

Table of Contents

Reviews for Impairment of Goodwill
At September 28, 2019, we had $784 million of goodwill, or 25% of total assets. We test goodwill for impairment for each of our reporting units at least annually, during our fourth quarter, and whenever events occur or circumstances change, such as changes in the business climate, poor indicators of operating performance or the sale or disposition of a significant portion of a reporting unit. We also test goodwill for impairment when there is a change in reporting units.
We identify our reporting units by assessing whether the components of our operating segments constitute businesses for which discrete financial information is available and segment management regularly reviews the operating results of those components. We aggregate certain components based upon an evaluation of the facts and circumstances, including the nature of products and services and the extent of shared assets and resources. As a result, we have four reporting units.

Companies may perform a qualitative assessment as the initial step in the annual goodwill impairment testing process for all or selected reporting units. Companies are also allowed to bypass the qualitative analysis and perform a quantitative analysis if desired. Economic uncertainties and the length of time from the calculation of a baseline fair value are factors that we consider in determining whether to perform a quantitative test.

When we evaluate the potential for goodwill impairment using a qualitative assessment, we consider factors including, but not limited to, macroeconomic conditions, industry conditions, the competitive environment, changes in the market for our products and services, regulatory and political developments, entity specific factors such as strategy and changes in key personnel and overall financial performance. If, after completing this assessment, it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, we proceed to a quantitative two-step impairment test.

Quantitative testing first requires a comparison of the fair value of each reporting unit to its carrying value. We principally use the discounted cash flow method to estimate the fair value of our reporting units. The discounted cash flow method incorporates various assumptions, the most significant being projected revenue growth rates, operating margins and cash flows, the terminal growth rate and the discount rate. Management projects revenue growth rates, operating margins and cash flows based on each reporting unit's current business, expected developments and operational strategies typically over a five-year period. If the carrying value of the reporting unit exceeds its fair value, goodwill is considered impaired and any loss must be measured.

In measuring the impairment loss, the implied fair value of goodwill is determined by assigning a fair value to all of the reporting unit's assets and liabilities, including any unrecognized intangible assets, as if the reporting unit had been acquired in a business combination at fair value. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss would be recognized in an amount equal to that excess.

The determination of our assumptions is subjective and requires significant estimates. Changes in these estimates and assumptions could materially affect the results of our reviews for impairment of goodwill.
For our annual test of goodwill for impairment in 2019, we performed a qualitative assessment for each of our four reporting units.
We evaluated the potential for goodwill impairment by considering macroeconomic conditions, industry and market conditions, cost factors, both current and future expected financial performance, and relevant entity-specific events for each of the reporting units. We also considered our overall market performance discretely as well as in relation to our peers. The results of our qualitative assessment indicated that is more likely than not that the fair value of each of the reporting units exceed its carrying value; and therefore, a quantitative two-step impairment test was not necessary.

21

Table of Contents

Reviews for Impairment of Long-Lived Assets
Long-lived assets held for use, which primarily includes finite-lived intangible assets and property, plant and equipment, are evaluated for impairment whenever events or circumstances indicate that the undiscounted net cash flows to be generated by their use over their expected useful lives and eventual disposition are less than their carrying value. The long-term nature of these assets requires the estimation of their cash inflows and outflows several years into the future and only takes into consideration technological advances known at the time of the impairment test.

During 2019, we recorded $4 million of impairment charges for capitalized software costs that will not be placed in service.
Pension Assumptions
We maintain various defined benefit pension plans covering employees at certain locations. Pension expense for all defined benefit plans for 2019 was $40 million. Pension obligations and the related costs are determined using actuarial valuations that involve several assumptions. The most critical assumptions are the discount rate, mortality rates and the long-term expected return on assets. Other assumptions include salary increases and retirement age.
We use the spot rate approach to estimate the service and interest cost components of the net periodic benefit cost for most of our plans. Under this approach the service cost is determined by applying the discount rates along the yield curve to the specific service cost cash flows to determine the present value. The interest cost component is computed by using each assumed discount rate along the curve. The discount rates used in determining expense for the U.S. Employees’ Retirement Plan, our largest plan, in 2019 were 4.4% for service cost and 4.1% for interest cost, compared to 4.2% and 3.5%, respectively, in 2018. A 50 basis point decrease in the discount rates would increase our annual pension expense by $6 million. The discount rates are used to state expected future cash flows at present value. Using a higher discount rate decreases the present value of pension obligations and decreases pension expense. We use the Aon Hewitt AA Above Median yield curve to determine the discount rate for our U.S. defined benefit plans at year end. We believe that the Aon Hewitt AA Above Median yield curve best mirrors the yields of bonds that would be selected by management if actions were taken to settle our obligation.
Mortality rates are used to estimate the life expectancy of plan participants during which they are expected to receive benefit payments. We use a modified version of the mortality table and projection scale published by the Society of Actuaries (SOA), which reflects improvements consistent with the Social Security Administration, as a basis for our mortality assumptions for our U.S. plans. We believe the use of this modified table and projection scale best reflects our demographics and anticipated plan outcomes.
The long-term expected return on assets assumption reflects the average rate of return expected on funds invested or to be invested to provide for the benefits included in the projected benefit obligation. In determining the long-term expected return on assets assumption, we consider our current and target asset allocations. We consider the relative weighting of plan assets, the historical performance of total plan assets and individual asset classes and economic and other indicators of future performance. Asset management objectives include maintaining an adequate level of diversification to reduce interest rate and market risk and to provide adequate liquidity to meet immediate and future benefit payment requirements. In determining the 2019 expense for our largest plan, we used a 5.25% return on assets assumption, compared to 7.00% for 2018. A 25 basis point decrease in the long-term expected return on assets assumption would increase our annual pension expense by $2 million.
Income Taxes
Our annual tax rate is based on our earnings before tax by jurisdiction, applicable statutory tax rates, the impacts of permanent differences, tax incentives and tax planning opportunities in the various jurisdictions in which we operate.  Significant judgment is required in determining our annual tax rate and in evaluating our tax positions.
An estimated annual effective tax rate is applied to our quarterly ordinary operating results. For certain significant, unusual or infrequent events, we recognize the tax impact in the quarter in which it occurs.
We record reserves against tax benefits when it’s more likely than not that we will not sustain a position if the appropriate taxing jurisdiction had full information and examined our position. We adjust these reserves when facts and circumstances change, such as when progress is made by taxing authorities in their review of our position. There is a considerable amount of judgment in making these assessments. There were no significant reserves taken in 2019. 

22

Table of Contents

Valuation allowances associated with deferred tax assets is another area that requires judgment. We record a valuation allowance to reduce deferred tax assets to the amount of future tax benefit that we believe is more likely than not to be realized. We consider recent earnings projections, allowable tax carryforward periods, tax planning strategies and historical earnings performance to determine the amount of the valuation allowance. Changes in these factors could cause us to adjust our valuation allowance, which would impact our income tax expense when we determine that these factors have changed.
At September 28, 2019, we had gross deferred tax assets of $177 million and deferred tax asset valuation allowances of $13 million. The deferred tax assets principally relate to benefit accruals, inventory obsolescence, tax benefit carryforwards and contract reserves. The deferred tax assets include $13 million related to tax benefit carryforwards associated with net operating losses and tax credits, for which $10 million of deferred tax asset valuation allowances are recorded.


23

Table of Contents

CONSOLIDATED RESULTS OF OPERATIONS
  
 
 
  
 
 
2019 vs. 2018
2018 vs. 2017
(dollars and shares in millions, except per share data)
2019
 
2018
 
2017
$ Variance
% Variance
$ Variance
% Variance
Net sales
$
2,905

 
$
2,709

 
$
2,498

 
$
195

 
7
%
 
$
212

 
8
%
Gross margin
28.1
%
 
28.6
%
 
29.4
%
 

 


 

 

Research and development expenses
$
126

 
$
130

 
$
144

 
$
(3
)
 
(3
%)
 
$
(14
)
 
(10
%)
Selling, general and administrative expenses as a percentage of sales
13.9
%
 
14.3
%
 
13.9
%
 

 


 

 


Interest expense
$
39

 
$
36

 
$
35

 
$
3

 
8
%
 
$
2

 
5
%
Restructuring expense
$

 
$
29

 
$

 
$
(29
)
 
(100
%)
 
$
29

 
n/a

Other
$
12

 
$
7

 
$
27

 
$
5

 
68
%
 
$
(20
)
 
(74
%)
Effective tax rate
23.1
%
 
47.4
%
 
22.7
%
 

 


 

 


Net earnings attributable to Moog and noncontrolling interest
$
180

 
$
97

 
$
140

 
$
83

 
86
%
 
$
(44
)
 
(31
%)
Diluted average common shares outstanding
35

 
36

 
36

 
(1
)
 
(2
%)
 

 
%
Diluted earnings per share
$
5.11

 
$
2.68