☒ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
1301 East 9th Street, | Suite 3000, | Cleveland, | Ohio | 44114 | |||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbol | Name of exchange on which registered | ||||||||||||
Common Stock, $0.01 par value | TDG | New York Stock Exchange |
Page | ||||||||
PART I | ||||||||
PART II | ||||||||
PART III | ||||||||
PART IV | ||||||||
Location | Reporting Segment |
Square
Footage |
||||||
Brea, CA(1)
|
Airframe | 315,000 | ||||||
Stillington, United Kingdom | Airframe | 274,800 | ||||||
Montreal, Canada | Airframe | 271,700 | ||||||
Miesbach, Germany | Power & Control | 242,000 | ||||||
Liberty, SC(1)
|
Power & Control | 219,000 | ||||||
Waco, TX | Power & Control | 218,800 | ||||||
Ingolstadt, Germany | Airframe | 191,900 | ||||||
Kent, OH(1)
|
Airframe | 185,000 | ||||||
Liverpool, NY | Power & Control | 176,800 | ||||||
Bridport, United Kingdom | Airframe | 174,700 | ||||||
Union Gap, WA(1)
|
Airframe | 142,000 | ||||||
Coachella, CA(1)
|
Power & Control | 140,000 | ||||||
Phoenix, AZ | Airframe | 138,700 | ||||||
Paks, Hungary | Airframe | 137,800 | ||||||
Los Angeles, CA | Power & Control | 131,000 | ||||||
Kortrijk, Belgium | Airframe | 130,000 | ||||||
Bohemia, NY(1)
|
Power & Control | 124,000 | ||||||
Buena Park, CA | Power & Control | 115,000 | ||||||
Llangeinor, United Kingdom | Airframe | 110,000 | ||||||
Bourges, France | Power & Control | 109,400 | ||||||
Westbury, NY | Power & Control | 106,800 | ||||||
Hampshire, United Kingdom | Non-aviation | 102,000 | ||||||
Kent, WA(1)
|
Airframe | 100,000 | ||||||
Painesville, OH | Power & Control | 94,200 | ||||||
Valencia, CA(1)
|
Airframe | 88,400 | ||||||
Letchworth, United Kingdom | Airframe | 88,200 | ||||||
Placentia, CA | Airframe | 86,600 | ||||||
Addison, IL(1)
|
Power & Control | 83,300 | ||||||
Sarralbe, France | Power & Control | 77,900 | ||||||
Herstal, Belgium | Airframe | 73,700 | ||||||
Niort, France | Airframe | 69,000 | ||||||
Clearwater, FL | Power & Control | 64,200 | ||||||
South Euclid, OH | Power & Control | 60,000 | ||||||
Wichita, KS | Power & Control | 57,000 | ||||||
Branford, CT | Airframe | 52,000 | ||||||
Xenia, OH | Airframe | 51,000 | ||||||
Avenel, NJ | Power & Control | 48,500 | ||||||
Rancho Cucamonga, CA(1)
|
Power & Control | 47,000 | ||||||
Pennsauken, NJ | Airframe | 38,000 | ||||||
Ryde, United Kingdom | Power & Control | 33,200 | ||||||
Rancho Cucamonga, CA | Airframe | 32,700 | ||||||
Melaka, Malaysia | Power & Control | 24,800 | ||||||
Deerfield Beach, FL | Non-aviation | 20,000 |
Location | Reporting Segment |
Square
Footage |
||||||
East Camden, AR | Power & Control | 276,000 | ||||||
Everett, WA | Airframe | 216,000 | ||||||
Nittambuwa, Sri Lanka | Airframe | 168,000 | ||||||
Santa Ana, CA | Airframe | 159,200 | ||||||
Holmestrand, Norway | Airframe | 149,300 | ||||||
Dayton, NV | Airframe | 144,000 | ||||||
Tijuana, Mexico | Airframe | 141,000 | ||||||
Everett, WA | Airframe | 121,000 | ||||||
Whippany, NJ | Power & Control | 115,300 | ||||||
Whippany, NJ | Power & Control | 114,300 | ||||||
Melbourne, FL | Power & Control | 111,200 | ||||||
Farnborough, United Kingdom | Power & Control | 103,400 | ||||||
Goldsboro, NC | Power & Control | 101,000 | ||||||
Fullerton, CA | Airframe | 100,000 | ||||||
Anaheim, CA | Airframe | 99,900 | ||||||
Sylmar, CA | Airframe | 93,000 | ||||||
Elkhart, IN | Non-aviation | 91,500 | ||||||
Davis Junction, IL | Airframe | 84,500 | ||||||
Kanata, Canada | Airframe | 82,900 | ||||||
Miesbach, Germany | Power & Control | 80,800 | ||||||
Kunshan, China | Non-aviation | 75,300 | ||||||
Kunshan, China | Airframe | 75,000 | ||||||
Camarillo, CA | Power & Control | 70,000 | ||||||
Gloucestor, United Kingdom | Airframe | 67,800 | ||||||
Tijuana, Mexico | Power & Control | 63,500 | ||||||
Matamoros, Mexico | Power & Control | 60,500 | ||||||
Tijuana, Mexico | Non-aviation | 49,300 | ||||||
Lillington, NC | Power & Control | 48,800 | ||||||
Sugar Grove, IL | Airframe | 45,000 | ||||||
Zunyi, China | Power & Control | 43,000 | ||||||
Harelbeke, Belgium | Airframe | 40,500 | ||||||
Tempe, AZ | Power & Control | 40,200 | ||||||
Anaheim, CA | Airframe | 39,000 | ||||||
Collegeville, PA | Airframe | 37,000 | ||||||
Chongqing, China | Airframe | 36,300 | ||||||
Rancho Santa Margarita, CA | Airframe | 35,200 | ||||||
Ashford, United Kingdom | Power & Control | 28,000 | ||||||
London, United Kingdom | Airframe | 27,400 | ||||||
Nogales, Mexico | Airframe | 27,000 | ||||||
Toulouse, France | Airframe | 26,000 | ||||||
Bridgend, United Kingdom | Airframe | 24,800 | ||||||
Harrow, United Kingdom | Non-aviation | 24,500 | ||||||
Duluth, GA | Airframe | 22,800 | ||||||
Ravenna, OH | Airframe | 22,500 | ||||||
Platteville, WI | Airframe | 21,200 | ||||||
Pennsauken, NJ | Airframe | 20,500 | ||||||
Cleveland, OH | Corporate | 20,100 |
9/30/15 | 9/30/16 | 9/30/17 | 9/30/18 | 9/30/19 | 9/30/20 | ||||||||||||||||||||||||||||||
TransDigm Group Inc. | 100.00 | 136.11 | 142.55 | 207.60 | 307.21 | 296.48 | |||||||||||||||||||||||||||||
S&P 500 Index | 100.00 | 115.43 | 136.91 | 161.43 | 168.30 | 193.80 | |||||||||||||||||||||||||||||
S&P Aerospace & Defense Select Index | 100.00 | 119.68 | 166.61 | 210.56 | 228.84 | 189.07 |
Date | Acquisition | ||||
January 4, 2016 | Breeze-Eastern Corporation (“Breeze-Eastern”) | ||||
June 23, 2016 | Data Device Corporation (“DDC”) | ||||
September 23, 2016 | Young & Franklin Inc. / Tactair Fluid Controls Inc. (“Y&F/Tactair”) | ||||
February 22, 2017 |
Schroth Safety Products Group (“Schroth”)(1)
|
||||
May 5, 2017, May 31, 2017 and June 1, 2017 | North Hills Signal Processing Corp, Cablecraft Motion Controls LLC and Preece Incorporated (together, the “Third Quarter 2017 Acquisitions”) | ||||
March 15, 2018 | Kirkhill Elastomers (“Kirkhill”) | ||||
April 24, 2018 et al. | Extant Components Group Holdings, Inc. (together with related subsequent product line acquisitions, “Extant”) | ||||
July 13, 2018 | Skandia Inc. (“Skandia”) | ||||
March 14, 2019 |
Esterline Technologies Corporation (“Esterline”)(2)
|
Fiscal Years Ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
(in millions, except per share amounts ) | |||||||||||||||||||||||||||||
Statement of Income Data: | |||||||||||||||||||||||||||||
Net sales | $ | 5,103 | $ | 5,223 | $ | 3,811 | $ | 3,504 | $ | 3,171 | |||||||||||||||||||
Gross profit(1)
|
2,647 | 2,809 | 2,177 | 1,985 | 1,728 | ||||||||||||||||||||||||
Selling and administrative expenses | 727 | 748 | 450 | 413 | 383 | ||||||||||||||||||||||||
Amortization of intangible assets | 169 | 135 | 72 | 89 | 78 | ||||||||||||||||||||||||
Income from operations(1)
|
1,751 | 1,926 | 1,655 | 1,483 | 1,267 | ||||||||||||||||||||||||
Interest expense—net | 1,029 | 859 | 663 | 602 | 484 | ||||||||||||||||||||||||
Refinancing costs | 28 | 3 | 6 | 40 | 16 | ||||||||||||||||||||||||
Other (income) expense(2)
|
(46) | 1 | — | 3 | (1) | ||||||||||||||||||||||||
Income from continuing operations before income taxes | 740 | 1,063 | 986 | 838 | 768 | ||||||||||||||||||||||||
Income tax provision(3)
|
87 | 222 | 24 | 209 | 182 | ||||||||||||||||||||||||
Income from continuing operations | 653 | 841 | 962 | 629 | 586 | ||||||||||||||||||||||||
Income (Loss) from discontinued operations, net of tax(4)
|
47 | 51 | (5) | (32) | — | ||||||||||||||||||||||||
Net income | 700 | 892 | 957 | 597 | 586 | ||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | (1) | (2) | — | — | — | ||||||||||||||||||||||||
Net income attributable to TD Group | $ | 699 | $ | 890 | $ | 957 | $ | 597 | $ | 586 | |||||||||||||||||||
Net income applicable to TD Group common stockholders(5)
|
$ | 514 | $ | 779 | $ | 901 | $ | 438 | $ | 583 | |||||||||||||||||||
Denominator for basic and diluted earnings per share under the two-class method: | |||||||||||||||||||||||||||||
Weighted-average common shares outstanding | 53.9 | 53.1 | 52.3 | 52.6 | 53.3 | ||||||||||||||||||||||||
Vested options deemed participating securities | 3.4 | 3.2 | 3.3 | 3.0 | 2.8 | ||||||||||||||||||||||||
Total shares for basic and diluted earnings per share | 57.3 | 56.3 | 55.6 | 55.6 | 56.1 | ||||||||||||||||||||||||
Earnings per share: | |||||||||||||||||||||||||||||
Earnings per share from continuing operations—basic and diluted | $ | 8.14 | $ | 12.94 | $ | 16.28 | $ | 8.45 | $ | 10.39 | |||||||||||||||||||
Earnings (Loss) per share from discontinued operations—basic and diluted | 0.82 | 0.90 | (0.08) | (0.57) | — | ||||||||||||||||||||||||
Earnings per share(6)
|
$ | 8.96 | $ | 13.84 | $ | 16.20 | $ | 7.88 | $ | 10.39 | |||||||||||||||||||
Cash dividends paid per common share | $ | 32.50 | $ | 30.00 | $ | — | $ | 46.00 | $ | — |
As of September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Balance Sheet Data: | |||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 4,717 | $ | 1,467 | $ | 2,073 | $ | 651 | $ | 1,587 | |||||||||||||||||||
Working capital | 5,344 | 3,327 | 2,757 | 1,263 | 2,178 | ||||||||||||||||||||||||
Total assets | 18,395 | 16,255 | 12,197 | 9,976 | 10,726 | ||||||||||||||||||||||||
Total net debt | 20,009 | 16,899 | 12,878 | 11,763 | 10,196 | ||||||||||||||||||||||||
TD Group stockholders’ deficit | (3,972) | (2,894) | (1,808) | (2,951) | (651) |
Fiscal Years Ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Other Financial Data: | |||||||||||||||||||||||||||||
Cash flows provided by (used in): | |||||||||||||||||||||||||||||
Operating activities | $ | 1,213 | $ | 1,015 | $ | 1,022 | $ | 789 | $ | 683 | |||||||||||||||||||
Investing activities(1)
|
799 | (3,889) | (684) | (287) | (1,443) | ||||||||||||||||||||||||
Financing activities | 1,230 | 2,271 | 1,086 | (1,444) | 1,632 | ||||||||||||||||||||||||
Depreciation and amortization | 283 | 226 | 129 | 141 | 122 | ||||||||||||||||||||||||
Capital expenditures | 105 | 102 | 73 | 71 | 44 | ||||||||||||||||||||||||
Ratio of earnings to fixed charges(2)
|
1.7x | 2.2x | 2.5x | 2.4x | 2.6x | ||||||||||||||||||||||||
Other Data: | |||||||||||||||||||||||||||||
EBITDA(3)
|
$ | 2,052 | $ | 2,148 | $ | 1,778 | $ | 1,581 | $ | 1,374 | |||||||||||||||||||
EBITDA As Defined(3)
|
$ | 2,278 | $ | 2,419 | $ | 1,877 | $ | 1,711 | $ | 1,495 |
Fiscal Years Ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Income from continuing operations | $ | 653 | $ | 841 | $ | 962 | $ | 629 | $ | 586 | |||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Depreciation and amortization expense | 283 | 226 | 129 | 141 | 122 | ||||||||||||||||||||||||
Interest expense, net | 1,029 | 859 | 663 | 602 | 484 | ||||||||||||||||||||||||
Income tax provision | 87 | 222 | 24 | 209 | 182 | ||||||||||||||||||||||||
EBITDA | 2,052 | 2,148 | 1,778 | 1,581 | 1,374 | ||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Inventory purchase accounting adjustments(1)
|
— | 77 | 7 | 21 | 23 | ||||||||||||||||||||||||
Acquisition integration costs(2)
|
30 | 61 | 18 | 6 | 19 | ||||||||||||||||||||||||
Acquisition transaction-related expenses(3)
|
1 | 31 | 4 | 4 | 15 | ||||||||||||||||||||||||
Stock compensation expense(4)
|
93 | 93 | 59 | 46 | 48 | ||||||||||||||||||||||||
Refinancing costs(5)
|
28 | 3 | 6 | 40 | 16 | ||||||||||||||||||||||||
COVID-19 pandemic & 737 MAX restructuring costs(6)
|
54 | — | — | — | — | ||||||||||||||||||||||||
Other, net(7)
|
20 | 6 | 5 | 13 | — | ||||||||||||||||||||||||
EBITDA As Defined | $ | 2,278 | $ | 2,419 | $ | 1,877 | $ | 1,711 | $ | 1,495 |
Fiscal Years Ended September 30, | |||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||||||||
Net cash provided by operating activities | $ | 1,213 | $ | 1,015 | $ | 1,022 | $ | 789 | $ | 683 | |||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Changes in assets and liabilities, net of effects from acquisitions of businesses | (99) | 176 | 4 | 87 | 111 | ||||||||||||||||||||||||
Interest expense, net(1)
|
996 | 831 | 641 | 581 | 468 | ||||||||||||||||||||||||
Income tax provision—current | 63 | 222 | 175 | 210 | 176 | ||||||||||||||||||||||||
Stock compensation expense(2)
|
(93) | (93) | (58) | (46) | (48) | ||||||||||||||||||||||||
Refinancing costs(3)
|
(28) | (3) | (6) | (40) | (16) | ||||||||||||||||||||||||
EBITDA | 2,052 | 2,148 | 1,778 | 1,581 | 1,374 | ||||||||||||||||||||||||
Adjustments: | |||||||||||||||||||||||||||||
Inventory purchase accounting adjustments(4)
|
— | 77 | 7 | 21 | 23 | ||||||||||||||||||||||||
Acquisition integration costs(5)
|
30 | 61 | 18 | 6 | 19 | ||||||||||||||||||||||||
Acquisition transaction-related expenses(6)
|
1 | 31 | 4 | 4 | 15 | ||||||||||||||||||||||||
Stock compensation expense(2)
|
93 | 93 | 59 | 46 | 48 | ||||||||||||||||||||||||
Refinancing costs(3)
|
28 | 3 | 6 | 40 | 16 | ||||||||||||||||||||||||
COVID-19 pandemic & 737 MAX restructuring costs(7)
|
54 | — | — | — | — | ||||||||||||||||||||||||
Other, net(8)
|
20 | 6 | 5 | 13 | — | ||||||||||||||||||||||||
EBITDA As Defined | $ | 2,278 | $ | 2,419 | $ | 1,877 | $ | 1,711 | $ | 1,495 |
Fiscal Years Ended September 30, | |||||||||||||||||||||||||||||||||||
2020 |
2020 % of
Sales |
2019 |
2019 % of
Sales |
2018 |
2018 % of
Sales |
||||||||||||||||||||||||||||||
Net sales | $ | 5,103 | 100.0 | % | $ | 5,223 | 100.0 | % | $ | 3,811 | 100.0 | % | |||||||||||||||||||||||
Cost of sales | 2,456 | 48.1 | % | 2,414 | 46.2 | % | 1,634 | 42.9 | % | ||||||||||||||||||||||||||
Selling and administrative expenses | 727 | 14.2 | % | 748 | 14.3 | % | 450 | 11.8 | % | ||||||||||||||||||||||||||
Amortization of intangible assets | 169 | 3.3 | % | 135 | 2.6 | % | 72 | 1.9 | % | ||||||||||||||||||||||||||
Income from operations | 1,751 | 34.3 | % | 1,926 | 36.9 | % | 1,655 | 43.4 | % | ||||||||||||||||||||||||||
Interest expense—net | 1,029 | 20.2 | % | 859 | 16.4 | % | 663 | 17.4 | % | ||||||||||||||||||||||||||
Refinancing costs | 28 | 0.5 | % | 3 | 0.1 | % | 6 | 0.2 | % | ||||||||||||||||||||||||||
Other (income) expense | (46) | (0.9) | % | 1 | — | % | — | — | % | ||||||||||||||||||||||||||
Income tax provision | 87 | 1.7 | % | 222 | 4.3 | % | 24 | 0.6 | % | ||||||||||||||||||||||||||
Income from continuing operations | 653 | 12.8 | % | 841 | 16.1 | % | 962 | 25.2 | % | ||||||||||||||||||||||||||
Income (Loss) from discontinued operations, net of tax | 47 | 0.9 | % | 51 | 1.0 | % | (5) | (0.1) | % | ||||||||||||||||||||||||||
Net income | 700 | 13.7 | % | 892 | 17.1 | % | 957 | 25.1 | % | ||||||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | (1) | — | % | (2) | — | % | — | — | % | ||||||||||||||||||||||||||
Net income attributable to TD Group | $ | 699 | 13.7 | % | $ | 890 | 17.0 | % | $ | 957 | 25.1 | % |
Fiscal Years Ended | Change |
% Change
Total Sales |
|||||||||||||||||||||
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
Organic sales | $ | 4,404 | $ | 5,127 | $ | (723) | (13.8) | % | |||||||||||||||
Acquisition sales | 699 | 96 | 603 | 11.5 | % | ||||||||||||||||||
$ | 5,103 | $ | 5,223 | $ | (120) | (2.3) | % |
Fiscal Years Ended | Change | % Change | |||||||||||||||||||||
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
Cost of sales—excluding costs below | $ | 2,414 | $ | 2,358 | $ | 56 | 2.4 | % | |||||||||||||||
% of total sales | 47.3 | % | 45.1 | % | |||||||||||||||||||
COVID-19 restructuring costs | 37 | — | 37 | 100.0 | % | ||||||||||||||||||
% of total sales | 0.7 | % | — | % | |||||||||||||||||||
Foreign currency loss (gain) | 22 | (5) | 27 | 540.0 | % | ||||||||||||||||||
% of total sales | 0.4 | % | (0.1) | % | |||||||||||||||||||
Acquisition integration costs | 10 | 13 | (3) | (23.1) | % | ||||||||||||||||||
% of total sales | 0.2 | % | 0.2 | % | |||||||||||||||||||
Stock compensation expense | 9 | 9 | — | — | % | ||||||||||||||||||
% of total sales | 0.2 | % | 0.2 | % | |||||||||||||||||||
Inventory acquisition accounting adjustments | — | 77 | (77) | (100.0) | % | ||||||||||||||||||
% of total sales | — | % | 1.5 | % | |||||||||||||||||||
Loss contract amortization | (36) | (38) | 2 | 5.3 | % | ||||||||||||||||||
% of total sales | (0.7) | % | (0.7) | % | |||||||||||||||||||
Total cost of sales | $ | 2,456 | $ | 2,414 | $ | 42 | 1.7 | % | |||||||||||||||
% of total sales | 48.1 | % | 46.2 | % | |||||||||||||||||||
Gross profit | $ | 2,647 | $ | 2,809 | $ | (162) | (5.8) | % | |||||||||||||||
Gross profit percentage | 51.9 | % | 53.8 | % |
Fiscal Years Ended | Change | % Change | |||||||||||||||||||||
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
Selling and administrative expenses—excluding costs below | $ | 592 | $ | 579 | $ | 13.0 | 2.2 | % | |||||||||||||||
% of total sales | 11.6 | % | 11.1 | % | |||||||||||||||||||
Stock compensation expense | 84 | 84 | — | — | % | ||||||||||||||||||
% of total sales | 1.6 | % | 1.6 | % | |||||||||||||||||||
Bad debt expense | 21 | 6 | 15 | 250.0 | % | ||||||||||||||||||
% of total sales | 0.4 | % | 0.1 | % | |||||||||||||||||||
Acquisition-related expenses | 21 | 79 | (58) | (73.4) | % | ||||||||||||||||||
% of total sales | 0.4 | % | 1.5 | % | |||||||||||||||||||
COVID-19 restructuring costs | 9 | — | 9 | 100.0 | % | ||||||||||||||||||
% of total sales | 0.2 | % | — | % | |||||||||||||||||||
Total selling and administrative expenses | $ | 727 | $ | 748 | $ | (21) | (2.8) | % | |||||||||||||||
% of total sales | 14.2 | % | 14.3 | % | |||||||||||||||||||
Fiscal Years Ended September 30, | Change | % Change | |||||||||||||||||||||||||||||||||
2020 | % of Sales | 2019 | % of Sales | ||||||||||||||||||||||||||||||||
Power & Control | $ | 2,695 | 52.8 | % | $ | 2,736 | 52.4 | % | $ | (41) | (1.5) | % | |||||||||||||||||||||||
Airframe | 2,253 | 44.2 | % | 2,329 | 44.6 | % | (76) | (3.3) | % | ||||||||||||||||||||||||||
Non-aviation | 155 | 3.0 | % | 158 | 3.0 | % | (3) | (1.9) | % | ||||||||||||||||||||||||||
$ | 5,103 | 100.0 | % | $ | 5,223 | 100.0 | % | $ | (120) | (2.3) | % |
Fiscal Years Ended September 30, | Change | % Change | |||||||||||||||||||||||||||||||||
2020 |
% of Segment
Sales |
2019 |
% of Segment
Sales |
||||||||||||||||||||||||||||||||
Power & Control | $ | 1,345 | 49.9 | % | $ | 1,395 | 51.0 | % | $ | (50) | (3.6) | % | |||||||||||||||||||||||
Airframe | 955 | 42.4 | % | 1,063 | 45.6 | % | (108) | (10.2) | % | ||||||||||||||||||||||||||
Non-aviation | 54 | 34.8 | % | 51 | 32.3 | % | 3 | 5.9 | % | ||||||||||||||||||||||||||
$ | 2,354 | 46.1 | % | $ | 2,509 | 48.0 | % | $ | (155) | (6.2) | % |
As of September 30, 2020 | ||||||||
Cash and cash equivalents | $ | 4,717 | ||||||
Availability on revolving credit facility | 521 | |||||||
Cash liquidity | $ | 5,238 |
Term Loans Facility | Aggregate Principal | Maturity Date | Interest Rate | |||||||||||||||||
Tranche E | $2,199 million | May 30, 2025 | LIBOR + 2.25% | |||||||||||||||||
Tranche F | $3,489 million | December 9, 2025 | LIBOR + 2.25% | |||||||||||||||||
Tranche G | $1,761 million | August 22, 2024 | LIBOR + 2.25% |
Senior Subordinated Notes | Aggregate Principal | Maturity Date | Interest Rate | |||||||||||||||||
2024 Notes | $1,200 million | July 15, 2024 | 6.50% | |||||||||||||||||
2025 Notes | $750 million | May 15, 2025 | 6.50% | |||||||||||||||||
2025 Secured Notes | $1,100 million | December 15, 2025 | 8.00% | |||||||||||||||||
2026 Secured Notes | $4,400 million | March 15, 2026 | 6.25% | |||||||||||||||||
6.875% 2026 Notes | $500 million | May 15, 2026 | 6.875% | |||||||||||||||||
6.375% 2026 Notes | $950 million | June 15, 2026 | 6.375% | |||||||||||||||||
7.50% 2027 Notes | $550 million | March 15, 2027 | 7.50% | |||||||||||||||||
5.50% 2027 Notes | $2,650 million | November 15, 2027 | 5.50% |
(in millions) | September 30, 2020 | September 30, 2019 | ||||||||||||
Current assets | $ | 5,398 | $ | 2,458 | ||||||||||
Noncurrent assets | 9,157 | 8,286 | ||||||||||||
Current liabilities | 972 | 742 | ||||||||||||
Noncurrent liabilities | 20,423 | 17,328 | ||||||||||||
Amounts due to subsidiaries that are non-issuers and non-guarantors - net | 103 | 171 |
(in millions) | Fiscal Year Ended September 30, 2020 | |||||||
Net sales | $ | 4,040 | ||||||
Sales to subsidiaries that are non-issuers and non-guarantors | 36 | |||||||
Cost of sales | 1,818 | |||||||
Expense from subsidiaries that are non-issuers and non-guarantors - net | 39 | |||||||
Income from continuing operations | 577 | |||||||
Net income attributable to TD Group | 692 |
2021 | 2022 | 2023 | 2024 | 2025 |
2026 and
thereafter |
Total | |||||||||||||||||||||||||||||||||||
Senior Secured Term Loans(1)
|
$ | 75 | $ | 75 | $ | 75 | $ | 1,764 | $ | 2,145 | $ | 3,315 | $ | 7,449 | |||||||||||||||||||||||||||
Revolving Credit Facility(2)
|
— | — | 200 | — | — | — | 200 | ||||||||||||||||||||||||||||||||||
2024 Notes | — | — | — | 1,200 | — | — | 1,200 | ||||||||||||||||||||||||||||||||||
2025 Notes | — | — | — | — | 750 | — | 750 | ||||||||||||||||||||||||||||||||||
2025 Secured Notes | — | — | — | — | — | 1,100 | 1,100 | ||||||||||||||||||||||||||||||||||
6.875% 2026 Notes | — | — | — | — | — | 500 | 500 | ||||||||||||||||||||||||||||||||||
6.375% 2026 Notes | — | — | — | — | — | 950 | 950 | ||||||||||||||||||||||||||||||||||
2026 Secured Notes | — | — | — | — | — | 4,400 | 4,400 | ||||||||||||||||||||||||||||||||||
7.50% 2027 Notes | — | — | — | — | — | 550 | 550 | ||||||||||||||||||||||||||||||||||
5.50% 2027 Notes | — | — | — | — | — | 2,650 | 2,650 | ||||||||||||||||||||||||||||||||||
Securitization Facility | 350 | — | — | — | — | — | 350 | ||||||||||||||||||||||||||||||||||
Scheduled Interest Payments(3)
|
1,043 | 1,073 | 1,089 | 1,046 | 806 | 579 | 5,636 | ||||||||||||||||||||||||||||||||||
Government Refundable Advances | — | 4 | 4 | 4 | 4 | 12 | 28 | ||||||||||||||||||||||||||||||||||
Operating Leases | 28 | 24 | 19 | 16 | 13 | 35 | 135 | ||||||||||||||||||||||||||||||||||
Finance Leases | 6 | 6 | 6 | 6 | 6 | 70 | 100 | ||||||||||||||||||||||||||||||||||
Pension Funding Minimums | 6 | 6 | 6 | 6 | 6 | 28 | 58 | ||||||||||||||||||||||||||||||||||
Purchase Obligations | 421 | 54 | 16 | 3 | 3 | 1 | 498 | ||||||||||||||||||||||||||||||||||
Total Contractual Cash Obligations | $ | 1,929 | $ | 1,242 | $ | 1,415 | $ | 4,045 | $ | 3,733 | $ | 14,190 | $ | 26,554 |
Name | Age | Position | |||||||||
W. Nicholas Howley | 68 | Executive Chairman of the Board of Directors | |||||||||
Kevin Stein | 54 | President, Chief Executive Officer and Director | |||||||||
Robert S. Henderson | 64 | Vice Chairman | |||||||||
Jorge L. Valladares III | 46 | Chief Operating Officer | |||||||||
Michael Lisman | 38 | Chief Financial Officer | |||||||||
Sarah Wynne | 46 | Chief Accounting Officer | |||||||||
Bernt G. Iversen II | 63 | Executive Vice President—Mergers & Acquisitions and Business Development | |||||||||
Halle Terrion | 52 | General Counsel, Chief Compliance Officer & Secretary |
Plan category |
Number of Securities to Be Issued upon Exercise of Outstanding Options, Warrants and Rights
(a) |
Weighted-Average Exercise Price of Outstanding Options, Warrants and Rights
(b) |
Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (excluding securities reflected in column (a))
(c) |
|||||||||||||||||
Equity compensation plans approved by security holders(1)
|
5,850,366 |
(2)
|
$ | 290.69 | 5,316,998 |
(3)
|
Page | |||||
Report of Independent Registered Public Accounting Firm |
F-1
|
||||
Consolidated Balance Sheets as of September 30, 2020 and 2019 |
F-3
|
||||
Consolidated Statements of Income for Fiscal Years Ended September 30, 2020, 2019 and 2018 |
F-4
|
||||
Consolidated Statements of Comprehensive Income for Fiscal Years Ended September 30, 2020, 2019 and 2018 |
F-5
|
||||
Consolidated Statements of Changes in Stockholders’ Deficit for Fiscal Years Ended September 30, 2020, 2019 and 2018 |
F-6
|
||||
Consolidated Statements of Cash Flows for Fiscal Years Ended September 30, 2020, 2019 and 2018 |
F-7
|
||||
Notes to Consolidated Financial Statements for Fiscal Years Ended September 30, 2020, 2019 and 2018 | pages F-8 to F-47 | ||||
(a) (2) Financial Statement Schedules | |||||
Valuation and Qualifying Accounts for the Fiscal Years Ended September 30, 2020, 2019 and 2018 |
F-48
|
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Second Amended and Restated Certificate of Incorporation, filed April 28, 2014, of TransDigm Group Incorporated | ||||||||||||||
Third Amended and Restated Bylaws of TransDigm Group Incorporated | ||||||||||||||
Certificate of Incorporation, filed July 2, 1993, of NovaDigm Acquisition, Inc. (now known as TransDigm Inc.) | ||||||||||||||
Certificate of Amendment, filed July 22, 1993, of the Certificate of Incorporation of NovaDigm Acquisition, Inc. (now known as TransDigm Inc.) | ||||||||||||||
Bylaws of NovaDigm Acquisition, Inc. (now known as TransDigm Inc.) | ||||||||||||||
Certificate of Incorporation, filed July 10, 2009, of Acme Aerospace, Inc. | ||||||||||||||
By-laws of Acme Aerospace, Inc. | ||||||||||||||
Articles of Incorporation, filed July 30, 1986, of ARP Acquisition Corporation (now known as Adams Rite Aerospace, Inc.) | ||||||||||||||
Certificate of Amendment, filed September 12, 1986, of the Articles of Incorporation of ARP Acquisition Corporation (now known as Adams Rite Aerospace, Inc.) | ||||||||||||||
Certificate of Amendment, filed January 27, 1992, of the Articles of Incorporation of Adams Rite Products, Inc. (now known as Adams Rite Aerospace, Inc.) | ||||||||||||||
Certificate of Amendment, filed December 31, 1992, of the Articles of Incorporation of Adams Rite Products, Inc. (now known as Adams Rite Aerospace, Inc.) | ||||||||||||||
Certificate of Amendment, filed August 11, 1997, of the Articles of Incorporation of Adams Rite Sabre International, Inc. (now known as Adams Rite Aerospace, Inc.) | ||||||||||||||
Amended and Restated Bylaws of Adams Rite Aerospace, Inc. | ||||||||||||||
Certificate of Incorporation, filed June 18, 2007, of AeroControlex Group, Inc. | ||||||||||||||
By-laws of AeroControlex Group, Inc. | ||||||||||||||
Certificate of Formation, filed September 25, 2013, of Aerosonic LLC | ||||||||||||||
Limited Liability Company Agreement of Aerosonic LLC | ||||||||||||||
Certificate of Incorporation, filed November 13, 2009, of Airborne Acquisition, Inc. | ||||||||||||||
Bylaws of Airborne Acquisition, Inc. |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Amended and Restated Certificate of Incorporation, filed January 25, 2010, of HDT International Holdings, Inc. (now known as Airborne Global, Inc.) | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed February 24, 2010, of HDT International Holdings, Inc. (now known as Airborne Global, Inc.) | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed December 10, 2013, of HDT Global, Inc. (now known as Airborne Global, Inc.) | ||||||||||||||
Bylaws of HDT International Holdings, Inc. (now known as Airborne Global, Inc.) | ||||||||||||||
Certificate of Incorporation, filed November 13, 2009, of Airborne Holdings, Inc. | ||||||||||||||
Bylaws of Airborne Holdings, Inc. | ||||||||||||||
Certificate of Incorporation, filed September 1, 1995, of Wardle Storeys Inc. (now known as Airborne Systems NA Inc.) | ||||||||||||||
Certificate of Amendment to Certificate of Incorporation, filed May 28, 2002, of Wardle Storeys Inc. (now known as Airborne Systems NA Inc.) | ||||||||||||||
Bylaws of Airborne Systems NA Inc., as amended | ||||||||||||||
Certificate of Incorporation, filed April 23, 2007, of Airborne Systems North America Inc. | ||||||||||||||
Bylaws of Airborne Systems North America Inc. | ||||||||||||||
Certificate of Incorporation, filed April 25, 1989, of Irvin Industries (Del), Inc. (now known as Airborne Systems North America of CA Inc.) | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed June 2, 1989, of Irvin Industries (Del), Inc. (now known as Airborne Systems North America of CA Inc.) | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed April 30, 1996, of Irvin Industries, Inc. (now known as Airborne Systems North America of CA Inc.) | ||||||||||||||
Certificate of Amendment to Certificate of Incorporation, filed April 23, 2007, of Irvin Aerospace Inc. (now known as Airborne Systems North America of CA Inc.) | ||||||||||||||
Bylaws of Airborne Systems North America of CA Inc. | ||||||||||||||
Certificate of Incorporation, Profit, filed October 28, 1994, of Wardle Storeys (Parachutes) Inc. (now known as Airborne Systems North America of NJ Inc.) | ||||||||||||||
Certificate of Merger, filed February 9, 1995, of Para-Flite Inc. with and into Wardle Storeys (Parachutes) Inc. (now known as Airborne Systems North America of NJ Inc.) |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Certificate of Amendment to Certificate of Incorporation, filed April 23, 2007, of Para-Flite Inc. (now known as Airborne Systems North America of NJ Inc.) | ||||||||||||||
Certificate of Correction to Certificate of Incorporation, filed June 27, 2007, of Airborne Systems North America of NJ Inc. | ||||||||||||||
Bylaws, as amended, of Airborne Systems North America of NJ Inc. | ||||||||||||||
Certificate of Incorporation, filed May 8, 1985, of Am-Safe, Inc. (now known as AmSafe, Inc.) | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed May 19, 2005, of Am-Safe, Inc. (now known as AmSafe, Inc.) | ||||||||||||||
By-Laws of Am-Safe, Inc. (now known as AmSafe, Inc.) | ||||||||||||||
Certificate of Incorporation, filed October 16, 2007, of AmSafe Global Holdings, Inc. | ||||||||||||||
Second Amended and Restated By-Laws of AmSafe Global Holdings, Inc. | ||||||||||||||
Restated Certificate of Incorporation, filed July 10, 1967, of Arkwin Industries, Inc. | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed November 4, 1981, of Arkwin Industries, Inc. | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed June 11, 1999, of Arkwin Industries, Inc. | ||||||||||||||
By-laws of Arkwin Industries, Inc. | ||||||||||||||
Amended and Restated Certificate of Incorporation of Aviation Technologies, Inc. | ||||||||||||||
By-laws of Wings Holdings, Inc. (now known as Aviation Technologies, Inc.) | ||||||||||||||
Certificate of Formation, effective June 28, 2007, of Avionic Instruments LLC | ||||||||||||||
Limited Liability Company Agreement of Avionic Instruments LLC | ||||||||||||||
Articles of Incorporation, filed December 29, 1992, of Avionics Specialties, Inc. | ||||||||||||||
Bylaws of Avionics Specialties, Inc. | ||||||||||||||
Articles of Incorporation, filed October 3, 1963, of Avtech Corporation (now known as AvtechTyee, Inc.) |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Amendment to Articles of Incorporation, filed March 30, 1984, of Avtech Corporation (now known as AvtechTyee, Inc.) | ||||||||||||||
Amendment to Articles of Incorporation, filed April 17, 1989, of Avtech Corporation (now known as AvtechTyee, Inc.) | ||||||||||||||
Articles of Amendment of Articles of Incorporation, filed July 17, 1998, of Avtech Corporation (now known as AvtechTyee, Inc.) | ||||||||||||||
Articles of Amendment to Articles of Incorporation, filed May 20, 2003, of Avtech Corporation (now known as Avtech Tyee, Inc.) | ||||||||||||||
Articles of Amendment to Articles of Incorporation, filed May 2, 2012, of AvtechTyee, Inc. | ||||||||||||||
By-laws of Avtech Corporation (now known as AvtechTyee, Inc.) | ||||||||||||||
Certificate of Incorporation, filed October 24, 1977, of Transformer Technology Corporation (now known as Beta Transformer Technology Corporation) | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed December 1, 1977, of Transformer Technology Corporation (now known as Beta Transformer Technology Corporation) | ||||||||||||||
By-laws of Transformer Technology Corporation (now known as Beta Transformer Technology Corporation) |
|
|||||||||||||
Amended and Restated Limited Liability Company Agreement, filed July 7, 2016, of Beta Transformer Technology LLC |
|
|||||||||||||
Limited Liability Company Certificate of Formation of Breeze-Eastern LLC | ||||||||||||||
Limited Liability Company Agreement of Breeze-Eastern LLC | ||||||||||||||
Articles of Incorporation, filed February 6, 1998, of Air Carrier Acquisition Corp. (now known as Bridport-Air Carrier, Inc.) | ||||||||||||||
Articles of Amendment, filed February 23, 1998, of Air Carrier Acquisition Corp. (now known as Bridport-Air Carrier, Inc.) | ||||||||||||||
Articles of Amendment, filed December 14, 1999, of Bridport-Air Carrier, Inc. | ||||||||||||||
Amended and Restated By-Laws of Bridport-Air Carrier, Inc. | ||||||||||||||
Certificate of Incorporation, filed May 9, 2000, of Erie Acquisition Corp. (now known as Bridport Erie Aviation, Inc.) | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed May 30, 2000, of Erie Acquisition Corp. (now known as Bridport Erie Aviation, Inc.) | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed June 19, 2000, of Bridport Erie Aviation, Inc. |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Amended and Restated By-Laws of Erie Acquisition Corp. (now known as Bridport Erie Aviation, Inc.) | ||||||||||||||
Certificate of Incorporation, filed July 2, 2004, of Bridport Holdings, Inc. | ||||||||||||||
Amended and Restated By-Laws of Bridport Holdings, Inc. | ||||||||||||||
Certificate of Incorporation, filed August 6, 2007, of Bruce Aerospace Inc. | ||||||||||||||
By-laws of Bruce Aerospace Inc. | ||||||||||||||
Articles of Organization of CDA InterCorp LLC | ||||||||||||||
Operating Agreement of CDA InterCorp LLC | ||||||||||||||
Certificate of Formation, filed September 30, 2009, of CEF Industries, LLC | ||||||||||||||
Limited Liability Company Agreement of CEF Industries, LLC | ||||||||||||||
Certificate of Formation, effective June 30, 2007, of Champion Aerospace LLC | ||||||||||||||
Limited Liability Company Agreement of Champion Aerospace LLC | ||||||||||||||
Certificate of Incorporation, filed October 23, 1970, of ILC Data Devices Corporation (now known as Data Device Corporation) | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed April 23, 1999, of ILC Data Device Corporation (now known as Data Device Corporation) | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed July 14, 2014, of Data Device Corporation |
|
|||||||||||||
By-laws of ILC Data Devices Corporation (now known as Data Device Corporation) | ||||||||||||||
Certificate of Incorporation, filed November 20, 2009, of Dukes Aerospace, Inc. | ||||||||||||||
By-laws of Dukes Aerospace, Inc. | ||||||||||||||
Certificate of Formation, filed February 29, 2000, of Western Sky Industries, LLC (now known as Electromech Technologies LLC) | ||||||||||||||
Certificate of Amendment, filed December 18, 2013, of Western Sky Industries, LLC (now known as Electromech Technologies LLC) |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Fourth Amended and Restated Limited Liability Agreement of Electromech Technologies LLC | ||||||||||||||
Articles of Organization, as amended, of HarcoSemco LLC | ||||||||||||||
First Amended and Restated Limited Liability Company Agreement of HarcoSemco LLC | ||||||||||||||
Articles of Incorporation, filed May 10, 1957, of Hartwell Aviation Supply Company (now known as Hartwell Corporation) | ||||||||||||||
Certificate of Amendment, filed June 9, 1960, of Articles of Incorporation of Hartwell Aviation Supply Company (now known as Hartwell Corporation) | ||||||||||||||
Certification of Amendment, filed October 23, 1987, of Articles of Incorporation of Hartwell Corporation | ||||||||||||||
Certificate of Amendment, filed April 9, 1997, of Articles of Incorporation of Hartwell Corporation | ||||||||||||||
By-laws of Hartwell Corporation | ||||||||||||||
Amended and Restated Certificate of Incorporation of ILC Holdings, Inc. |
|
|||||||||||||
By-laws, as amended, of ILC Holdings, Inc. | ||||||||||||||
Certificate of Formation, filed January 26, 2007, of Johnson Liverpool LLC | ||||||||||||||
Amended and Restated Limited Liability Company Agreement of Johnson Liverpool LLC | ||||||||||||||
Certificate of Incorporation, filed March 28, 1994, of MPT Acquisition Corp. (now known as MarathonNorco Aerospace, Inc.) | ||||||||||||||
Certificate of Amendment, filed May 18, 1994, of the Certificate of Incorporation of MPT Acquisition Corp. (now known as MarathonNorco Aerospace, Inc.) | ||||||||||||||
Certificate of Amendment, filed May 24, 1994, of the Certificate of Incorporation of MPT Acquisition Corp. (now known as MarathonNorco Aerospace, Inc.) | ||||||||||||||
Certificate of Amendment, filed August 28, 2003, of the Certificate of Incorporation of Marathon Power Technologies Company (now known as MarathonNorco Aerospace, Inc.) | ||||||||||||||
Bylaws of MPT Acquisition Corp. (now known as MarathonNorco Aerospace, Inc.) | ||||||||||||||
Certificate of Incorporation, filed April 13, 2007, of McKechnie Aerospace DE, Inc. | ||||||||||||||
By-laws of McKechnie Aerospace DE, Inc. |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Certificate of Incorporation, filed April 25, 2007, of McKechnie Aerospace Holdings, Inc. | ||||||||||||||
By-laws of McKechnie Aerospace Holdings, Inc. | ||||||||||||||
Certificate of Formation, filed May 11, 2005, of Melrose US 3 LLC (now known as McKechnie Aerospace US LLC) | ||||||||||||||
Certificate of Amendment, filed May 11, 2007, to Certificate of Formation of Melrose US 3 LLC (now known as McKechnie Aerospace US LLC) | ||||||||||||||
Limited Liability Company Agreement of McKechnie Aerospace US LLC | ||||||||||||||
Restated Certificate of Incorporation, filed June 27, 2014, of North Hills Signal Processing Corp. | ||||||||||||||
By-laws of Porta Systems Corp. (now known as North Hills Signal Processing Corp.) | ||||||||||||||
Certificate of Incorporation, as amended, of Porta Systems Overseas Corp. (now known as North Hills Signal Processing Overseas Corp.) | ||||||||||||||
By-laws of Porta Systems Overseas Corp. (now known as North Hills Signal Processing Overseas Corp.) | ||||||||||||||
Certificate of Incorporation, filed April 28, 2015, of PX Acquisition Co. (now known as Pexco Aerospace, Inc.) | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed May 14, 2015, of PX Acquisition Co. (now known as Pexco Aerospace, Inc.) | ||||||||||||||
By-laws of PX Acquisition Co. (now known as Pexco Aerospace, Inc.) | ||||||||||||||
Articles of Incorporation, filed October 3, 1956, of PneuDraulics, Inc. | ||||||||||||||
Certificate of Amendment of Articles of Incorporation, filed December 9, 1970, of Articles of Incorporation of PneuDraulics, Inc. | ||||||||||||||
Restated By-laws of PneuDraulics, Inc. | ||||||||||||||
Limited Liability Company Certificate of Formation, filed May 30, 2007, of Schneller LLC | ||||||||||||||
Amended and Restated Limited Liability Company Agreement, dated August 31, 2011, of Schneller LLC | ||||||||||||||
Certificate of Incorporation, as amended, of Semco Instruments, Inc. | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed October 17, 2012, of Semco Instruments, Inc. | ||||||||||||||
Amended and Restated By-laws of Semco Instruments, Inc. |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Certificate of Incorporation, filed September 16, 1994, of Am-Safe Commercial Products, Inc. (now known as Shield Restraint Systems, Inc.) | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed May 19, 2005, of AmSafe Commercial Products, Inc. (now known as Shield Restraint Systems, Inc.) | ||||||||||||||
Certificate of Amendment of Certificate of Incorporation, filed August 27, 2014, of AmSafe Commercial Products, Inc. (now known as Shield Restraint Systems, Inc.) |
|
|||||||||||||
By-laws of Am-Safe Commercial Products, Inc. (now known as Shield Restraint Systems, Inc.) | ||||||||||||||
Certificate of Incorporation, filed December 22, 2004, of Skurka Aerospace Inc. | ||||||||||||||
By-laws, as amended, of Skurka Aerospace Inc. | ||||||||||||||
Certificate of Incorporation, filed August 22, 1986, of Tactair Fluid Controls, Inc. | ||||||||||||||
Certificate of Amendment, filed June 8, 1998, of Certificate of Incorporation of Tactair Fluid Controls, Inc. | ||||||||||||||
By-Laws, as amended, of Tactair Fluid Controls, Inc. | ||||||||||||||
Certificate of Formation, filed March 27, 2015, of Telair International LLC | ||||||||||||||
Limited Liability Company Agreement of Telair International LLC | ||||||||||||||
Certificate of Formation, filed February 23, 2015, of Telair US LLC | ||||||||||||||
Limited Liability Company Agreement of Telair US LLC | ||||||||||||||
Articles of Incorporation, filed August 6, 1999, of Texas Rotronics, Inc. | ||||||||||||||
By-laws, as amended, of Texas Rotronics, Inc. | ||||||||||||||
Certificate of Formation, effective June 30, 2007, of Transicoil LLC | ||||||||||||||
Limited Liability Company Agreement of Transicoil LLC | ||||||||||||||
Certificate of Formation, filed June 13, 2013, of Whippany Actuation Systems, LLC | ||||||||||||||
Limited Liability Company Agreement of Whippany Actuation Systems, LLC |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Restated Certificate of Incorporation of Young & Franklin Inc. | ||||||||||||||
By-laws, as amended, of Young & Franklin Inc. | ||||||||||||||
Certificate of Formation, filed May 30, 2013, of Beta Transformer Technology LLC | ||||||||||||||
Amended and Restated By-laws of Kirkhill Inc. | ||||||||||||||
Certificate of Incorporation, as amended, of KH Acquisition I Co. (now known as Kirkhill Inc.) | ||||||||||||||
Certificate of Incorporation of TransDigm UK Holdings plc | ||||||||||||||
Articles of Association of TransDigm UK Holdings plc | ||||||||||||||
Amended and Restated Certificate of Incorporation of Extant Components Group Holdings, Inc. | ||||||||||||||
Bylaws of Extant Components Group Holdings, Inc. | ||||||||||||||
Certificate of Incorporation of Extant Components Group Intermediate, Inc. | ||||||||||||||
Bylaws of Extant Components Group Intermediate, Inc. | ||||||||||||||
Articles of Organization, as amended, of Symetrics Industries, LLC | ||||||||||||||
Amended and Restated Limited Liability Company Agreement of Symetrics Industries, LLC | ||||||||||||||
Articles of Organization, as amended, of Symetrics Technology Group, LLC | ||||||||||||||
Amended and Restated Limited Liability Company Agreement of Symetrics Technology Group, LLC | ||||||||||||||
Certificate of Incorporation, as amended, of TEAC Aerospace Holdings, Inc. | ||||||||||||||
Bylaws of TEAC Aerospace Holdings, Inc. | ||||||||||||||
Certificate of Incorporation, as amended, of TEAC Aerospace Technologies, Inc. | ||||||||||||||
Bylaws of TEAC Aerospace Technologies, Inc. | ||||||||||||||
Articles of Incorporation, filed January 2, 1992, of Skandia, Inc. |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Amended and Restated By-laws of Skandia, Inc. | ||||||||||||||
Fifth Amended and Restated Certificate of Incorporation of Esterline Technologies Corporation | ||||||||||||||
Second Amended and Restated By-laws of Esterline Technologies Corporation | ||||||||||||||
Certificate of Formation of Esterline International Company | ||||||||||||||
Amended and Restated Bylaws of Esterline International Company | ||||||||||||||
Certificate of Incorporation, as amended, of Leach Holding Corporation | ||||||||||||||
Amended and Restated Bylaws of Leach Holding Corporation | ||||||||||||||
Certificate of Incorporation, as amended, of Leach International Corporation | ||||||||||||||
Amended and Restated Bylaws of Leach International Corporation | ||||||||||||||
Certificate of Incorporation of Leach Technology Group, Inc. | ||||||||||||||
Amended and Restated Bylaws of Leach Technology Group, Inc. | ||||||||||||||
Restated Articles of Incorporation of TA Aerospace Co. | ||||||||||||||
Amended and Restated Bylaws of TA Aerospace Co. | ||||||||||||||
Certificate of Formation of CMC Electronics Aurora LLC | ||||||||||||||
Amended and Restated Limited Liability Company Agreement of CMC Electronics Aurora LLC |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Certificate of Formation of Esterline Europe Company LLC | ||||||||||||||
Amended and Restated Limited Liability Company Agreement of Esterline Europe Company LLC | ||||||||||||||
Certificate of Formation, as amended, of Esterline Georgia US LLC (now known as TREALITY SVS LLC) | ||||||||||||||
Amended and Restated Limited Liability Company Agreement of TREALITY SVS LLC | ||||||||||||||
Amended and Restated Certificate of Formation, as amended, of Esterline Federal LLC (now known as ScioTeq LLC) | ||||||||||||||
Amended and Restated Limited Liability Company Agreement of ScioTeq LLC | ||||||||||||||
Certificate of Incorporation, as amended, of Angus Electronics Co. | ||||||||||||||
Amended and Restated Bylaws of Angus Electronics Co. | ||||||||||||||
Amended and Restated Articles of Incorporation of Avista, Incorporated | ||||||||||||||
Amended and Restated Bylaws of Avista, Incorporated | ||||||||||||||
Certificate of Incorporation, as amended, of Esterline Sensors Services Americas, Inc. (now known as Auxitrol Weston USA, Inc.) | ||||||||||||||
Amended and Restated Bylaws of Esterline Sensors Services Americas, Inc. (now known as Auxitrol Weston USA, Inc.) | ||||||||||||||
Certificate of Formation of Esterline Technologies SGIP LLC | ||||||||||||||
Limited Liability Company Agreement of Esterline Technologies SGIP LLC | ||||||||||||||
Certificate of Incorporation of Hytek Finishes Co. | ||||||||||||||
Amended and Restated Bylaws of Hytek Finishes Co. |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Restated Articles of Incorporation of Janco Corporation | ||||||||||||||
Amended and Restated Bylaws of Janco Corporation | ||||||||||||||
Certificate of Incorporation, as amended, of Mason Electric Co. | ||||||||||||||
Amended and Restated Bylaws of Mason Electric Co. | ||||||||||||||
Amended and Restated Articles of Incorporation, as amended, of NMC Group, Inc. | ||||||||||||||
Amended and Restated Bylaws of NMC Group, Inc. | ||||||||||||||
Certificate of Incorporation, as amended, of Norwich Aero Products, Inc. | ||||||||||||||
Amended and Restated By-laws of Norwich Aero Products, Inc. | ||||||||||||||
Certificate of Incorporation, as amended, of Palomar Products, Inc. | ||||||||||||||
Amended and Restated Bylaws of Palomar Products, Inc. | ||||||||||||||
Certificate of Formation of 17111 Waterview Pkwy LLC | ||||||||||||||
Limited Liability Company Agreement of 17111 Waterview Pkwy LLC | ||||||||||||||
Certificate of Incorporation of Korry Electronics Co. | ||||||||||||||
Amended and Restated Bylaws of Korry Electronics Co. | ||||||||||||||
Certificate of Incorporation of Armtec Defense Products Co. |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Amended and Restated Bylaws of Armtec Defense Products Co. | ||||||||||||||
Certificate of Incorporation of Armtec Countermeasures Co. | ||||||||||||||
Amended and Restated Bylaws of Armtec Countermeasures Co. | ||||||||||||||
Certificate of Incorporation, as amended, of Armtec Countermeasures TNO Co. | ||||||||||||||
Amended and Restated Bylaws of Armtec Countermeasures TNO Co. | ||||||||||||||
Certificate of Incorporation of Racal Acoustics, Inc. | ||||||||||||||
Amended and Restated Bylaws of Racal Acoustics, Inc. | ||||||||||||||
Certificate of Incorporation of TDG ESL Holdings Inc. | ||||||||||||||
By-laws of TDG ESL Holdings Inc. | ||||||||||||||
Form of Stock Certificate | ||||||||||||||
Indenture, dated as of June 4, 2014, among TransDigm Inc., TransDigm Group Incorporated, the guarantors listed on the signature pages thereto and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to TransDigm Inc.’s 6.50% Senior Subordinated Notes due 2024 | ||||||||||||||
Indenture, dated as of May 14, 2015, among TransDigm Inc., TransDigm Group Incorporated, the guarantors listed on the signature pages thereto and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to TransDigm Inc.’s 6.50% Senior Subordinated Notes due 2025 | ||||||||||||||
Indenture, dated as of June 9, 2016, among TransDigm Inc., as issuer, TransDigm Group Incorporated, as a guarantor, the subsidiary guarantors party thereto and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to TransDigm Inc.’s 6.375% Senior Subordinated Notes due 2026 | ||||||||||||||
Indenture, dated as of May 8, 2018, among TransDigm UK Holdings plc, as issuer, TransDigm Group Incorporated and TransDigm Inc., as guarantors, the subsidiary guarantors party thereto and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to TransDigm UK Holdings plc’s 6.875% Senior Subordinated Notes due 2026 |
|
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Indenture, dated as of February 13, 2019, among TransDigm Inc., as issuer, TransDigm Group Incorporated, as a guarantor, the subsidiary guarantors party thereto, The Bank of New York Mellon Trust Company, N.A., as trustee and US collateral agent, and The Bank of New York Mellon, as UK collateral agent, relating to TransDigm Inc.’s 6.25% Senior Secured Notes due 2026 | ||||||||||||||
Indenture, dated as of February 13, 2019, among TransDigm Inc., as issuer, TransDigm Group Incorporated, as a guarantor, the subsidiary guarantors party thereto and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to TransDigm Inc.’s 7.50% Senior Subordinated Notes due 2027 | ||||||||||||||
Indenture, dated as of November 13, 2019, among TransDigm Inc., as issuer, TransDigm Group Incorporated, as a guarantor, the subsidiary guarantors party thereto and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to TransDigm Inc.’s 5.50% Senior Subordinated Notes due 2027 | ||||||||||||||
Indenture, dated as of April 8, 2020, among TransDigm Inc., as issuer, TransDigm Group Incorporated, as a guarantor, the subsidiary guarantors party thereto and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to TransDigm Inc.’s 8.00% Senior Subordinated Notes due 2025 | ||||||||||||||
Indenture, dated as of April 17, 2020, among TransDigm Inc., as issuer, TransDigm Group Incorporated, as a guarantor, the subsidiary guarantors party thereto and The Bank of New York Mellon Trust Company, N.A., as trustee, relating to TransDigm Inc.’s 6.25% Senior Secured Notes due 2026 | ||||||||||||||
Form of Supplemental Indenture to Add New Guarantors | ||||||||||||||
Form of TransDigm Inc.’s 6.50% Senior Subordinated Notes due 2024 | ||||||||||||||
Form of TransDigm Inc.’s 6.50% Senior Subordinated Notes due 2025 | ||||||||||||||
Form of TransDigm Inc.’s 6.375% Senior Subordinated Notes due 2026 | ||||||||||||||
Form of TransDigm UK Holdings plc’s 6.875% Senior Subordinated Notes due 2026 | ||||||||||||||
Form of TransDigm Inc.’s 6.25% Senior Secured Notes due 2026 | ||||||||||||||
Form of TransDigm Inc.’s 7.50% Senior Subordinated Notes due 2027 | ||||||||||||||
Form of TransDigm Inc.’s 5.50% Senior Subordinated Notes due 2027 | ||||||||||||||
Form of TransDigm Inc.’s 8.00% Senior Subordinated Notes due 2025 | ||||||||||||||
Form of TransDigm Inc.’s 6.25% Senior Secured Notes due 2026 |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Description of Securities | ||||||||||||||
Registration Rights Agreement, dated as of November 13, 2019, among TransDigm Inc., as issuer, TransDigm Group Incorporated, as a guarantor, the subsidiary guarantors party thereto and Morgan Stanley & Co. LLC, as representative for the initial purchasers listed therein
|
|
|||||||||||||
Fifth Amended and Restated Employment Agreement, dated April 26, 2018, between TransDigm Group Incorporated and W. Nicholas Howley* | ||||||||||||||
Employment Agreement, dated July 27, 2018, between TransDigm Group Incorporated and Michael Lisman* | ||||||||||||||
Second Amended and Restated Employment Agreement, dated April 26, 2018, between TransDigm Group Incorporated and Kevin Stein* | ||||||||||||||
Third Amended and Restated Employment Agreement, dated November 6, 2018, between TransDigm Group Incorporated and Robert Henderson* | ||||||||||||||
Employment Agreement, dated October 28, 2013, between TransDigm Group Incorporated and Jorge Valladares* |
|
|||||||||||||
Employment Agreement, Dated February 24, 2011, between TransDigm Group Incorporated and Bernt Iversen* | ||||||||||||||
First Amendment to Employment Agreement, dated April 20, 2012, between TransDigm Group Incorporated and Bernt Iversen* | ||||||||||||||
Form of Amendment to Employment Agreement between TransDigm Group Incorporated and Bernt Iversen* | ||||||||||||||
Form of Amendment to Employment Agreement, dated October 2015, between TransDigm Group Incorporated and each of Bernt Iversen and Jorge Valladares* | ||||||||||||||
Fourth Amendment to Employment Agreement, dated November 11, 2016, between TransDigm
Group Incorporated and Bernt Iversen* |
|
|||||||||||||
Second Amendment to Employment Agreement, dated July 30, 2018, between TransDigm Group Incorporated and Jorge Valladares* | ||||||||||||||
TransDigm Group Incorporated Fourth Amended and Restated 2003 Stock Option Plan* | ||||||||||||||
Amendment No. 1 to the TransDigm Group Incorporated Fourth Amended and Restated 2003 Stock Option Plan* | ||||||||||||||
Amendment No. 2 to the TransDigm Group Incorporated Fourth Amended and Restated 2003 Stock Option Plan* | ||||||||||||||
Amendment No. 3 to the TransDigm Group Incorporated Fourth Amended and Restated 2003 Stock Option Plan* | ||||||||||||||
TransDigm Group Incorporated 2006 Stock Incentive Plan* |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Amendment No. 1, dated October 20, 2006, to the TransDigm Group Incorporated 2006 Stock Incentive Plan* | ||||||||||||||
Second Amendment to TransDigm Group Incorporated 2006 Stock Incentive Plan, dated April 25, 2008* | ||||||||||||||
Amended and Restated TransDigm Group Incorporated 2014 Stock Option Plan* | ||||||||||||||
TransDigm Group Incorporated 2019 Stock Option Plan* | ||||||||||||||
TransDigm Group Incorporated 2016 Director Share Plan* | ||||||||||||||
Form of Option Agreement for options granted in fiscal 2015* | ||||||||||||||
Form of Option Agreement for options granted in fiscal 2016* | ||||||||||||||
Form of Stock Option Agreement for options awarded in fiscal 2017* |
|
|||||||||||||
Form of Stock Option Agreement for options awarded in fiscal 2018* | ||||||||||||||
Form of Stock Option Agreement for options awarded in fiscal 2019* | ||||||||||||||
Form of Stock Option Agreement for options awarded in fiscal 2020* | ||||||||||||||
Fourth Amended and Restated TransDigm Group Incorporated 2003 Stock Option Plan Dividend Equivalent Plan* | ||||||||||||||
Third Amended and Restated TransDigm Group Incorporated 2006 Stock Incentive Plan Dividend Equivalent Plan* | ||||||||||||||
TransDigm Group Incorporated 2014 Stock Option Plan Dividend Equivalent Plan* | ||||||||||||||
Amendment and Restatement Agreement, and Second Amendment and Restated Credit Agreement, dated as of June 4, 2014, among TransDigm Inc., TransDigm Group Incorporated, the subsidiaries of TransDigm Inc. from time to time party thereto, the lenders party thereto, as lenders, and Credit Suisse AG, as administrative agent | ||||||||||||||
Incremental Assumption and Refinancing Facility Agreement, dated as of May 14, 2015, among TransDigm Inc., TransDigm Group Incorporated, the subsidiary guarantors party thereto, Credit Suisse AG, as administrative agent and collateral agent, and the other agents and lenders named therein |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Loan Modification Agreement, dated as of May 20, 2015, among TransDigm Inc., TransDigm Group Incorporated, the subsidiary guarantors party thereto, Credit Suisse AG, as administrative agent and collateral agent, and the other agents and lenders party thereto | ||||||||||||||
Incremental Revolving Credit Assumption and Refinancing Facility Agreement, dated as of May 20, 2015, among TransDigm Inc., TransDigm Group Incorporated, the subsidiary guarantors party thereto, Credit Suisse AG, as administrative agent and collateral agent and the other agents and lenders party thereto | ||||||||||||||
Incremental Term Loan Assumption Agreement dated October 14, 2016 among TransDigm Inc., TransDigm Group Incorporated, the subsidiaries of TransDigm Inc. party thereto, the lenders party thereto and Credit Suisse AG, as administrative and collateral agent | ||||||||||||||
Amendment No. 2 to the Second Amended and Restated Credit Agreement, dated as of March 6, 2017, among TransDigm Inc., as borrower, TransDigm Group Incorporated, as guarantor, the subsidiary guarantors party thereto, Credit Suisse AG, as administrative agent and collateral agent, and the other agents and lenders named therein | ||||||||||||||
Amendment No. 3 to the Second Amended and Restated Credit Agreement, dated as of August 22, 2017, among TransDigm Inc., as borrower, TransDigm Group Incorporated, as guarantor, the subsidiary guarantors party thereto, Credit Suisse AG, as administrative agent and collateral agent, and the other agents and lenders named therein | ||||||||||||||
Amendment No. 4 to the Second Amended and Restated Credit Agreement, dated as of November 30, 2017, among TransDigm Inc., as borrower, TransDigm Group Incorporated, as guarantor, the subsidiary guarantors party thereto, Credit Suisse AG, as administrative agent and collateral agent, and the other agents and lenders named therein | ||||||||||||||
Refinancing Facility Agreement to the Second Amended and Restated Credit Agreement, dated as of February 22, 2018, among TransDigm Inc., as borrower, TransDigm Group Incorporated, as guarantor, the subsidiary guarantors party thereto, Credit Suisse AG, as administrative agent and collateral agent, and the other agents and lenders named therein | ||||||||||||||
Amendment No. 5, Incremental Assumption Agreement and Refinancing Facility Agreement, dated as of May 30, 2018, relating to the Second Amended and Restated Credit Agreement, dated as of June 4, 2014, among TransDigm Inc., TransDigm Group Incorporated, each subsidiary of TransDigm Inc. party thereto, the lenders party thereto, and Credit Suisse AG, as administrative agent and collateral agent for the lenders | ||||||||||||||
Amendment No. 6 and Incremental Revolving Credit Assumption Agreement, dated as of March 14, 2019, to the Second Amended and Restated Credit Agreement, dated as of June 4, 2014, among TransDigm Inc., TransDigm Group Incorporated, each subsidiary of TransDigm Inc. party thereto, the lenders party thereto, and Credit Suisse AG, as administrative agent and collateral agent for the lenders. |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Amendment No. 7 and Incremental Revolving Credit Assumption Agreement, dated as of February 6, 2020, to the Second Amended and Restated Credit Agreement, dated as of June 4, 2014, among TransDigm Inc., TransDigm Group Incorporated, each subsidiary of TransDigm Inc. party thereto, the lenders party thereto, and Credit Suisse AG, as administrative agent and collateral agent for the lenders. | ||||||||||||||
Guarantee and Collateral Agreement, dated as of June 23, 2006, as amended and restated as of December 6, 2010, as further amended and restated as of February 14, 2011 and February 28, 2013, among TransDigm Inc., TransDigm Group Incorporated, the subsidiaries of TransDigm Inc. named therein and Credit Suisse AG as administrative agent and collateral agent | ||||||||||||||
Receivables Purchase Agreement, dated October 21, 2013, among TransDigm Receivables LLC, TransDigm Inc., PNC Bank, National Association as a Purchaser and a Purchaser Agent, the various other Purchasers and Purchaser Agents from time to time party thereto, and PNC National Association as Administrator | ||||||||||||||
First Amendment to the Receivables Purchase Agreement, dated March 25, 2014, among TransDigm Receivables LLC, TransDigm Inc., PNC Bank, National Association as a Purchaser, Purchaser Agent for its Purchaser Group and as Administrator
|
||||||||||||||
Second Amendment to the Receivables Purchase Agreement, dated August 8, 2014, among TransDigm Receivables LLC, TransDigm Inc., PNC Bank, National Association, as a Committed Purchaser, as a Purchaser Agent for its Purchaser Group and Administrator, and Credit Agricole Corporate and Investment Bank, as a Committed Purchaser and as a Purchase Agent for its Purchaser Group
|
||||||||||||||
Third Amendment to the Receivables Purchase Agreement, dated March 20, 2015, among TransDigm Receivables LLC, TransDigm Inc., PNC Bank, National Association, as a Committed Purchaser, as a Purchaser Agent for its Purchaser Group and Administrator, Atlantic Asset Securitization LLC, as a Conduit Purchaser, and Credit Agricole Corporate and Investment Bank, as a Committed Purchaser and as a Purchase Agent for its and Atlantic’s Purchaser Group
|
||||||||||||||
Fourth Amendment to the Receivables Purchase Agreement dated as of August 4, 2015, among TransDigm Receivables LLC, TransDigm Inc., PNC Bank, National Association, as a Committed Purchaser, as a Purchaser Agent for its Purchaser Group and Administrator, Atlantic Asset Securitization LLC, as a Conduit Purchaser, and Credit Agricole Corporate and Investment Bank, as a Committed Purchaser and as a Purchaser Agent for its and Atlantic’s Purchaser Group
|
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Ninth Amendment to the Receivables Purchase Agreement dated as of August 1, 2017, among TransDigm Receivables LLC, TransDigm Inc., PNC Bank, National Association, as a Committed Purchaser, as Purchaser Agent for its Purchaser Group and as Administrator, Atlantic Asset Securitization LLC, as a Conduit Purchaser, Credit Agricole Corporate and Investment Bank, as a Committed Purchaser and as a Purchaser Agent for its and Atlantic’s Purchaser Group, and Fifth Third Bank, as a Committed Purchaser and as Purchaser Agent for its Purchaser Group | ||||||||||||||
Tenth Amendment to the Receivables Purchase Agreement dated as of July 31, 2018, among TransDigm Receivables LLC, TransDigm Inc., PNC Bank, National Association, as a Committed Purchaser, as Purchaser Agent for its Purchaser Group and as Administrator, Atlantic Asset Securitization LLC, as a Conduit Purchaser, Credit Agricole Corporate and Investment Bank, as a Committed Purchaser and as a Purchaser Agent for its and Atlantic’s Purchaser Group, and Fifth Third Bank, as a Committed Purchaser and as Purchaser Agent for its Purchaser Group | ||||||||||||||
Eleventh Amendment to the Receivables Purchase Agreement dated as of July 30, 2019, among TransDigm Receivables LLC, TransDigm Inc., PNC Bank, National Association, as a Committed Purchaser, as Purchaser Agent for its Purchaser Group and as Administrator, Atlantic Asset Securitization LLC, as a Conduit Purchaser, Credit Agricole Corporate and Investment Bank, as a Committed Purchaser and as a Purchaser Agent for its and Atlantic’s Purchaser Group, and Fifth Third Bank, as a Committed Purchaser and as Purchaser Agent for its Purchaser Group | ||||||||||||||
Twelfth Amendment to the Receivables Purchase Agreement dated as of July 22, 2020, among TransDigm Receivables LLC, TransDigm Inc., PNC Bank, National Association, as a Committed Purchaser, as Purchaser Agent for its Purchaser Group and as Administrator, Atlantic Asset Securitization LLC, as a Conduit Purchaser, Credit Agricole Corporate and Investment Bank, as a Committed Purchaser and as a Purchaser Agent for its and Atlantic’s Purchaser Group, and Fifth Third Bank, as a Committed Purchaser and as Purchaser Agent for its Purchaser Group | ||||||||||||||
Subsidiaries of TransDigm Group Incorporated | ||||||||||||||
Consent of Independent Registered Public Accounting Firm | ||||||||||||||
Certification by Principal Executive Officer of TransDigm Group Incorporated pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||||||||
Certification by Principal Financial Officer of TransDigm Group Incorporated pursuant to Rule 13a-14(a) or 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||||||||
Certification by Principal Executive Officer of TransDigm Group Incorporated pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
Exhibit No. | Description | Filed Herewith or Incorporated by Reference From | ||||||||||||
Certification by Principal Financial Officer of TransDigm Group Incorporated pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||||||||
101.INS | Inline XBRL Instance Document: The XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | Filed Herewith | ||||||||||||
101.SCH | Inline XBRL Taxonomy Extension Schema | Filed Herewith | ||||||||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase | Filed Herewith | ||||||||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase | Filed Herewith | ||||||||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase | Filed Herewith | ||||||||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase | Filed Herewith | ||||||||||||
104 |
Cover Page Interactive Data File: the cover page XBRL tags are embedded within the Inline XBRL document and are contained within Exhibit 101
|
Filed Herewith |
* | Indicates management contract or compensatory plan contract or arrangement. |
TRANSDIGM GROUP INCORPORATED | |||||
By: | /s/ Michael Lisman | ||||
Name: | Michael Lisman | ||||
Title: | Chief Financial Officer |
Signature | Title | Date | ||||||||||||
/s/ Kevin Stein | President, Chief Executive Officer and Director (Principal Executive Officer) | November 12, 2020 | ||||||||||||
Kevin Stein | ||||||||||||||
/s/ Michael Lisman | Chief Financial Officer (Principal Financial Officer) | November 12, 2020 | ||||||||||||
Michael Lisman | ||||||||||||||
/s/ Sarah Wynne | Chief Accounting Officer (Principal Accounting Officer) | November 12, 2020 | ||||||||||||
Sarah Wynne | ||||||||||||||
/s/ W. Nicholas Howley | Executive Chairman | November 12, 2020 | ||||||||||||
W. Nicholas Howley | ||||||||||||||
/s/ David Barr | Director | November 12, 2020 | ||||||||||||
David Barr | ||||||||||||||
/s/ Mervin Dunn | Director | November 12, 2020 | ||||||||||||
Mervin Dunn | ||||||||||||||
/s/ Michael Graff | Director | November 12, 2020 | ||||||||||||
Michael Graff | ||||||||||||||
/s/ Sean P. Hennessy | Director | November 12, 2020 | ||||||||||||
Sean P. Hennessy | ||||||||||||||
/s/ Raymond F. Laubenthal | Director | November 12, 2020 | ||||||||||||
Raymond F. Laubenthal | ||||||||||||||
/s/ Gary E. McCullough | Director | November 12, 2020 | ||||||||||||
Gary E. McCullough | ||||||||||||||
/s/ Michele Santana | Director | November 12, 2020 | ||||||||||||
Michele Santana | ||||||||||||||
/s/ Robert J. Small | Director | November 12, 2020 | ||||||||||||
Robert J. Small | ||||||||||||||
/s/ John Staer | Director | November 12, 2020 | ||||||||||||
John Staer |
Page | |||||
Financial Statements: | |||||
Report of Independent Registered Public Accounting Firm |
F-1
|
||||
Consolidated Balance Sheets as of September 30, 2020 and 2019 |
F-3
|
||||
Consolidated Statements of Income for Fiscal Years Ended September 30, 2020, 2019 and 2018 |
F-4
|
||||
Consolidated Statements of Comprehensive Income for Fiscal Years Ended September 30, 2020, 2019 and 2018 |
F-5
|
||||
Consolidated Statements of Changes in Stockholders’ Deficit for Fiscal Years Ended September 30, 2020, 2019 and 2018 |
F-6
|
||||
Consolidated Statements of Cash Flows for Fiscal Years Ended September 30, 2020, 2019 and 2018 |
F-7
|
||||
Notes to Consolidated Financial Statements for Fiscal Years Ended September 30, 2020, 2019 and 2018 | F-8 to F-47 | ||||
Supplementary Data: | |||||
Valuation and Qualifying Accounts for the Fiscal Years Ended September 30, 2020, 2019 and 2018 |
F-48
|
Valuation of goodwill | |||||||||||
Description of the Matter
|
At September 30, 2020, the Company’s goodwill balance was $7.9 billion. As discussed in Note 1 to the consolidated financial statements, the Company evaluates the carrying amount of goodwill for impairment annually as of the first day of the fourth quarter or more frequently if indicators of impairment exist. The Company’s goodwill is initially assigned to its reporting units as of the acquisition date. Management performs an initial assessment of qualitative factors to determine whether it is more likely than not that the reporting unit’s fair value is less than its carrying value. If management concludes the qualitative assessment is not sufficient to conclude on whether the fair value is less than the carrying value, a quantitative impairment test is performed. As part of the quantitative approach, the Company determines the fair value of the reporting unit through the use of a discounted cash flow valuation model. Given the adverse global economic and market conditions attributable to the COVID-19 pandemic, particularly as it pertains to the commercial sector of the aerospace and defense industry, the Company determined that an interim impairment evaluation of goodwill was necessary for certain reporting units in which it was concluded a potential impairment existed.
Auditing management’s goodwill impairment assessment was complex and judgmental due to the significant estimation required to determine the fair value of the reporting units derived using the quantitative approach. In particular, the fair value estimate was sensitive to significant assumptions, such as changes in the discount rate applied, revenue growth rates, and EBITDA margins, which are affected by expectations about future market or economic conditions. |
||||||||||
How We Addressed the Matter in Our Audit
|
We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over the Company’s goodwill impairment process. This included controls over management’s review of the valuation model and the significant assumptions underlying the fair value determination, as described above.
To test the implied fair value of the Company’s reporting units, we performed audit procedures that included, among others, assessing the use of the discounted cash flow valuation model and testing the significant assumptions and underlying data used by the Company. We utilized internal valuation specialists in assessing the fair value methodologies applied and evaluating the reasonableness of certain assumptions selected by management. We compared the significant assumptions used by management to current industry and economic trends, recent historical performance, and other relevant factors. We assessed the historical accuracy of management’s estimates, and we performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of the reporting units that would result from changes in the assumptions. |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
NET SALES | $ | 5,103 | $ | 5,223 | $ | 3,811 | |||||||||||
COST OF SALES | 2,456 | 2,414 | 1,634 | ||||||||||||||
GROSS PROFIT | 2,647 | 2,809 | 2,177 | ||||||||||||||
SELLING AND ADMINISTRATIVE EXPENSES | 727 | 748 | 450 | ||||||||||||||
AMORTIZATION OF INTANGIBLE ASSETS | 169 | 135 | 72 | ||||||||||||||
INCOME FROM OPERATIONS | 1,751 | 1,926 | 1,655 | ||||||||||||||
INTEREST EXPENSE—NET | 1,029 | 859 | 663 | ||||||||||||||
REFINANCING COSTS | 28 | 3 | 6 | ||||||||||||||
OTHER (INCOME) EXPENSE | (46) | 1 | — | ||||||||||||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 740 | 1,063 | 986 | ||||||||||||||
INCOME TAX PROVISION | 87 | 222 | 24 | ||||||||||||||
INCOME FROM CONTINUING OPERATIONS | 653 | 841 | 962 | ||||||||||||||
INCOME (LOSS) FROM DISCONTINUED OPERATIONS, NET OF TAX | 47 | 51 | (5) | ||||||||||||||
NET INCOME | 700 | 892 | 957 | ||||||||||||||
LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS | (1) | (2) | — | ||||||||||||||
NET INCOME ATTRIBUTABLE TO TD GROUP | $ | 699 | $ | 890 | $ | 957 | |||||||||||
NET INCOME APPLICABLE TO TD GROUP COMMON STOCKHOLDERS | $ | 514 | $ | 779 | $ | 901 | |||||||||||
Earnings per share attributable to TD Group common stockholders: | |||||||||||||||||
Earnings per share from continuing operations—basic and diluted | $ | 8.14 | $ | 12.94 | $ | 16.28 | |||||||||||
Earnings (Loss) per share from discontinued operations—basic and diluted | 0.82 | 0.90 | (0.08) | ||||||||||||||
Earnings per share | $ | 8.96 | $ | 13.84 | $ | 16.20 | |||||||||||
Cash dividends paid per common share | $ | 32.50 | $ | 30.00 | $ | — | |||||||||||
Weighted-average shares outstanding: | |||||||||||||||||
Basic and diluted | 57.3 | 56.3 | 55.6 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net income | $ | 700 | 892 | 957 | |||||||||||||
Less: Net income attributable to noncontrolling interests | (1) | (2) | — | ||||||||||||||
Net income attributable to TD Group | 699 | 890 | 957 | ||||||||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||
Foreign currency translation | 76 | (115) | (10) | ||||||||||||||
Unrealized (loss) gain on derivatives | (130) | (239) | 94 | ||||||||||||||
Pensions and other postretirement benefits | 32 | (29) | 5 | ||||||||||||||
Other comprehensive (loss) income, net of tax, attributable to TD Group | (22) | (383) | 89 | ||||||||||||||
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO TD GROUP | $ | 677 | $ | 507 | $ | 1,046 |
TD Group Stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock |
Additional
Paid-In Capital |
Accumulated Deficit |
Accumulated
Other Comprehensive (Loss) Income |
Treasury Stock | |||||||||||||||||||||||||||||||||||||||||||||||||
Number
of Shares |
Common
Stock |
Number
of Shares |
Value | Non-controlling Interests | Total | ||||||||||||||||||||||||||||||||||||||||||||||||
BALANCE—September 30, 2017 | 56,093,659 | $ | 1 | $ | 1,095 | $ | (3,187) | $ | (85) | (4,159,207) | $ | (775) | — | $ | (2,951) | ||||||||||||||||||||||||||||||||||||||
Accrued unvested dividend equivalents and other | — | — | — | (17) | — | — | — | — | (17) | ||||||||||||||||||||||||||||||||||||||||||||
Compensation expense recognized for employee stock options and restricted stock | — | — | 56 | — | — | — | — | — | 56 | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of employee stock options and restricted stock activity, net | 800,955 | — | 58 | — | — | (2,119) | — | — | 58 | ||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | 1,072 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to TD Group | — | — | — | 957 | — | — | — | — | 957 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | — | (10) | — | — | — | (10) | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on derivatives, net of tax | — | — | — | — | 94 | — | — | — | 94 | ||||||||||||||||||||||||||||||||||||||||||||
Pensions and other postretirement benefits adjustments, net of tax | — | — | — | — | 5 | — | — | — | 5 | ||||||||||||||||||||||||||||||||||||||||||||
BALANCE—September 30, 2018 | 56,895,686 | $ | 1 | $ | 1,209 | $ | (2,247) | $ | 4 | (4,161,326) | $ | (775) | $ | — | $ | (1,808) | |||||||||||||||||||||||||||||||||||||
Cumulative effect of ASC 606, adopted October 1, 2018 | — | — | — | 3 | — | — | — | — | 3 | ||||||||||||||||||||||||||||||||||||||||||||
Cumulative effect of ASU 2018-02, adopted October 1, 2018 | — | — | — | 2 | (2) | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interests assumed related to acquisitions | — | — | — | — | — | — | — | 8 | 8 | ||||||||||||||||||||||||||||||||||||||||||||
Dividends paid | — | — | — | (1,688) | — | — | — | — | (1,688) | ||||||||||||||||||||||||||||||||||||||||||||
Accrued unvested dividend equivalents and other | — | — | — | (80) | — | — | — | — | (80) | ||||||||||||||||||||||||||||||||||||||||||||
Compensation expense recognized for employee stock options | — | — | 88 | — | — | — | — | — | 88 | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of employee stock options | 726,750 | — | 82 | — | — | — | — | — | 82 | ||||||||||||||||||||||||||||||||||||||||||||
Common stock issued | 875 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to TD Group | — | — | — | 890 | — | — | — | 2 | 892 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | — | (115) | — | — | — | (115) | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on derivatives, net of tax | — | — | — | — | (237) | — | — | — | (237) | ||||||||||||||||||||||||||||||||||||||||||||
Pensions and other postretirement benefits adjustments, net of tax | — | — | — | — | (29) | — | — | — | (29) | ||||||||||||||||||||||||||||||||||||||||||||
BALANCE—September 30, 2019 | 57,623,311 | $ | 1 | $ | 1,379 | $ | (3,120) | $ | (379) | (4,161,326) | $ | (775) | $ | 10 | $ | (2,884) | |||||||||||||||||||||||||||||||||||||
Noncontrolling interests attributable to divestiture | — | — | — | — | — | — | — | (6) | (6) | ||||||||||||||||||||||||||||||||||||||||||||
Dividends paid | — | — | — | (1,864) | — | — | — | — | (1,864) | ||||||||||||||||||||||||||||||||||||||||||||
Accrued unvested dividend equivalents and other | — | — | — | (74) | — | — | — | — | (74) | ||||||||||||||||||||||||||||||||||||||||||||
Compensation expense recognized for employee stock options | — | — | 86 | — | — | — | — | — | 86 | ||||||||||||||||||||||||||||||||||||||||||||
Exercise of employee stock options | 988,717 | — | 116 | — | — | — | — | — | 116 | ||||||||||||||||||||||||||||||||||||||||||||
Treasury stock purchased | — | — | — | — | — | (36,900) | (19) | — | (19) | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to TD Group | — | — | — | 699 | — | — | — | — | 699 | ||||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | — | — | — | — | 76 | — | — | — | 76 | ||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on derivatives, net of tax | — | — | — | — | (130) | — | — | — | (130) | ||||||||||||||||||||||||||||||||||||||||||||
Pensions and other postretirement benefits adjustments, net of tax | — | — | — | — | 32 | — | — | — | 32 | ||||||||||||||||||||||||||||||||||||||||||||
BALANCE—September 30, 2020 | 58,612,028 | $ | 1 | $ | 1,581 | $ | (4,359) | $ | (401) | (4,198,226) | $ | (794) | $ | 4 | $ | (3,968) |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
OPERATING ACTIVITIES: | |||||||||||||||||
Net income | $ | 700 | $ | 892 | $ | 957 | |||||||||||
Net (income) loss from discontinued operations | (47) | (51) | 5 | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation | 114 | 91 | 57 | ||||||||||||||
Amortization of intangible assets | 169 | 135 | 72 | ||||||||||||||
Amortization of debt issuance costs, original issue discount and premium | 33 | 28 | 22 | ||||||||||||||
Amortization of inventory step-up | — | 77 | 7 | ||||||||||||||
Amortization of loss contract reserves | (36) | (38) | (10) | ||||||||||||||
Refinancing costs | 28 | 3 | 6 | ||||||||||||||
Non-cash stock compensation | 93 | 93 | 58 | ||||||||||||||
Deferred income taxes | 24 | — | (151) | ||||||||||||||
Changes in assets/liabilities, net of effects from acquisitions and sales of businesses: | |||||||||||||||||
Trade accounts receivable | 352 | (82) | (44) | ||||||||||||||
Inventories | (62) | (36) | (18) | ||||||||||||||
Income taxes (receivable) or payable | (144) | (3) | 36 | ||||||||||||||
Other assets | (16) | (27) | (5) | ||||||||||||||
Accounts payable | (62) | (1) | 18 | ||||||||||||||
Accrued interest | 85 | (4) | 14 | ||||||||||||||
Accrued and other liabilities | (18) | (62) | (2) | ||||||||||||||
Net cash provided by operating activities | 1,213 | 1,015 | 1,022 | ||||||||||||||
INVESTING ACTIVITIES: | |||||||||||||||||
Capital expenditures | (105) | (102) | (73) | ||||||||||||||
Payments made in connection with acquisitions | — | (3,976) | (668) | ||||||||||||||
Proceeds in connection with the sale of discontinued operations | 904 | 189 | 57 | ||||||||||||||
Net cash provided by (used in) investing activities | 799 | (3,889) | (684) | ||||||||||||||
FINANCING ACTIVITIES: | |||||||||||||||||
Proceeds from exercise of stock options | 116 | 82 | 58 | ||||||||||||||
Dividends and dividend equivalent payments | (1,928) | (1,712) | (56) | ||||||||||||||
Treasury stock purchases | (19) | — | — | ||||||||||||||
Proceeds from revolving credit facility | 200 | — | — | ||||||||||||||
Proceeds from term loans, net | — | — | 12,779 | ||||||||||||||
Repayment on term loans | (75) | (77) | (12,174) | ||||||||||||||
Redemption of senior subordinated notes due 2020, net | — | (550) | — | ||||||||||||||
Redemption of senior subordinated notes due 2022, net | (1,167) | — | — | ||||||||||||||
Proceeds from 7.50% senior subordinated notes due 2027, net | — | 544 | 490 | ||||||||||||||
Proceeds from 5.50% senior subordinated notes due 2027, net | 2,625 | — | — | ||||||||||||||
Proceeds from 8.00% senior secured notes due 2025, net | 1,090 | — | — | ||||||||||||||
Proceeds from 6.25% senior secured notes due 2026, net | 399 | 3,936 | — | ||||||||||||||
Proceeds from trade receivable securitization facility, net | — | 49 | — | ||||||||||||||
Financing costs and other, net | (11) | (1) | (11) | ||||||||||||||
Net cash provided by financing activities | 1,230 | 2,271 | 1,086 | ||||||||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 8 | (3) | (2) | ||||||||||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 3,250 | (606) | 1,422 | ||||||||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 1,467 | 2,073 | 651 | ||||||||||||||
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ | 4,717 | $ | 1,467 | $ | 2,073 | |||||||||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||||||||||||
Cash paid during the period for interest | $ | 923 | $ | 878 | $ | 635 | |||||||||||
Cash paid during the period for income taxes, net of refunds | $ | 223 | $ | 215 | $ | 129 |
Assets acquired, excluding cash: | |||||
Trade accounts receivable | $ | 384 | |||
Inventories | 583 | ||||
Prepaid expenses and other current assets | 423 | ||||
Property, plant, and equipment | 469 | ||||
Other intangible assets | 1,301 | ||||
Goodwill | 2,256 | ||||
Other | 20 | ||||
Total assets acquired, excluding cash | 5,436 | ||||
Liabilities assumed: | |||||
Accounts payable | 146 | ||||
Other current liabilities | 751 | ||||
Other noncurrent liabilities | 615 | ||||
Total liabilities assumed | 1,512 | ||||
Net assets acquired | $ | 3,924 |
September 30, 2020 | September 30, 2019 | Change | |||||||||||||||
Contract assets, current (1)
|
$ | 36 | $ | 44 | $ | (8) | |||||||||||
Contract assets, non-current (2)
|
6 | 7 | (1) | ||||||||||||||
Total contract assets | 42 | 51 | (9) | ||||||||||||||
Contract liabilities, current (3)
|
18 | 18 | — | ||||||||||||||
Contract liabilities, non-current (4)
|
9 | 13 | (4) | ||||||||||||||
Total contract liabilities | 27 | 31 | (4) | ||||||||||||||
Net contract assets | $ | 15 | $ | 20 | $ | (5) |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Numerator for earnings per share: | |||||||||||||||||
Income from continuing operations | $ | 653 | $ | 841 | $ | 962 | |||||||||||
Less: Net income attributable to noncontrolling interests | (1) | (2) | — | ||||||||||||||
Net income from continuing operations attributable to TD Group | 652 | 839 | 962 | ||||||||||||||
Less: Special dividends declared or paid on participating securities, including dividend equivalent payments | (185) | (111) | (56) | ||||||||||||||
467 | 728 | 906 | |||||||||||||||
Income (Loss) from discontinued operations, net of tax | 47 | 51 | (5) | ||||||||||||||
Net income applicable to TD Group common stockholders - basic and diluted | $ | 514 | $ | 779 | $ | 901 | |||||||||||
Denominator for basic and diluted earnings per share under the two-class method: | |||||||||||||||||
Weighted-average common shares outstanding | 53.9 | 53.1 | 52.3 | ||||||||||||||
Vested options deemed participating securities | 3.4 | 3.2 | 3.3 | ||||||||||||||
Total shares for basic and diluted earnings per share | 57.3 | 56.3 | 55.6 | ||||||||||||||
Earnings per share from continuing operations—basic and diluted | $ | 8.14 | $ | 12.94 | $ | 16.28 | |||||||||||
Earnings (Loss) per share from discontinued operations—basic and diluted | 0.82 | 0.90 | (0.08) | ||||||||||||||
Earnings per share | $ | 8.96 | $ | 13.84 | $ | 16.20 |
September 30, 2020 | September 30, 2019 | ||||||||||
Trade accounts receivable—gross | $ | 757 | $ | 1,085 | |||||||
Allowance for uncollectible accounts | (37) | (17) | |||||||||
Trade accounts receivable—net | $ | 720 | $ | 1,068 |
September 30, 2020 | September 30, 2019 | ||||||||||
Raw materials and purchased component parts | $ | 881 | $ | 805 | |||||||
Work-in-progress | 358 | 360 | |||||||||
Finished goods | 222 | 192 | |||||||||
Total | 1,461 | 1,357 | |||||||||
Reserves for excess and obsolete inventory | (178) | (124) | |||||||||
Inventories—Net | $ | 1,283 | $ | 1,233 |
September 30, 2020 | September 30, 2019 | ||||||||||
Land and improvements | $ | 103 | $ | 96 | |||||||
Buildings and improvements | 350 | 408 | |||||||||
Machinery, equipment and other | 782 | 628 | |||||||||
Construction in progress | 57 | 52 | |||||||||
Total | 1,292 | 1,184 | |||||||||
Accumulated depreciation | (540) | (427) | |||||||||
Property, plant and equipment—net | $ | 752 | $ | 757 |
2020 | 2019 | ||||||||||||||||||||||||||||||||||
Gross Carrying
Amount |
Accumulated
Amortization |
Net |
Gross Carrying
Amount |
Accumulated
Amortization |
Net | ||||||||||||||||||||||||||||||
Trademarks and trade names | $ | 958 | $ | — | $ | 958 | $ | 956 | $ | — | $ | 956 | |||||||||||||||||||||||
Technology | 1,842 | 589 | 1,253 | 1,806 | 496 | 1,310 | |||||||||||||||||||||||||||||
Order backlog | 93 | 93 | — | 107 | 45 | 62 | |||||||||||||||||||||||||||||
Customer relationships | 443 | 52 | 391 | 438 | 30 | 408 | |||||||||||||||||||||||||||||
Other | 18 | 10 | 8 | 17 | 9 | 8 | |||||||||||||||||||||||||||||
Total | $ | 3,354 | $ | 744 | $ | 2,610 | $ | 3,324 | $ | 580 | $ | 2,744 |
Fiscal years ended September 30, | |||||
2020 | $ | 169 | |||
2019 | 135 | ||||
2018 | 72 |
Fiscal years ending September 30, | |||||
2021 | $ | 115 | |||
2022 | 114 | ||||
2023 | 114 | ||||
2024 | 114 | ||||
2025 | 114 |
Power &
Control |
Airframe |
Non-
aviation |
Total | ||||||||||||||||||||
Balance at September 30, 2018 | $ | 3,678 | $ | 2,452 | $ | 93 | $ | 6,223 | |||||||||||||||
Goodwill acquired during the year (Note 2) | 469 | 1,180 | 546 | 2,195 | |||||||||||||||||||
Divestiture of goodwill acquired | — | — | (43) | (43) | |||||||||||||||||||
Reclass of goodwill acquired to assets held-for-sale (Note 23) | — | — | (480) | (480) | |||||||||||||||||||
Purchase price allocation adjustments(1)
|
(9) | (23) | — | (32) | |||||||||||||||||||
Currency translation adjustments | (17) | (11) | (15) | (43) | |||||||||||||||||||
Balance at September 30, 2019 | 4,121 | 3,598 | 101 | 7,820 | |||||||||||||||||||
Purchase price allocation adjustments(1)
|
(1) | 39 | — | 38 | |||||||||||||||||||
Currency translation adjustments | 21 | 10 | — | 31 | |||||||||||||||||||
Balance at September 30, 2020 | $ | 4,141 | $ | 3,647 | $ | 101 | $ | 7,889 |
September 30, 2020 | September 30, 2019 | ||||||||||
Compensation and related benefits | $ | 173 | $ | 178 | |||||||
Interest | 178 | 93 | |||||||||
Interest rate swap agreements | 56 | 13 | |||||||||
Product warranties | 32 | 34 | |||||||||
Dividend equivalent payments—current (Note 18) | 72 | 64 | |||||||||
Environmental and other litigation reserves | 15 | 12 | |||||||||
Income taxes payable | 19 | 44 | |||||||||
Loss contract reserves | 42 | 64 | |||||||||
Other | 186 | 173 | |||||||||
Total | $ | 773 | $ | 675 |
September 30, 2020 | |||||||||||||||||||||||
Gross Amount | Debt Issuance Costs | Original Issue Discount or Premium | Net Amount | ||||||||||||||||||||
Short-term borrowings—trade receivable securitization facility | $ | 350 | $ | (1) | $ | — | $ | 349 | |||||||||||||||
Term loans | $ | 7,449 | $ | (48) | $ | (23) | $ | 7,378 | |||||||||||||||
Revolving credit facility | 200 | — | — | 200 | |||||||||||||||||||
2024 Notes | 1,200 | (5) | — | 1,195 | |||||||||||||||||||
2025 Notes | 750 | (3) | 3 | 750 | |||||||||||||||||||
2025 Secured Notes | 1,100 | (9) | — | 1,091 | |||||||||||||||||||
6.375% 2026 Notes | 950 | (6) | — | 944 | |||||||||||||||||||
6.875% 2026 Notes | 500 | (4) | (3) | 493 | |||||||||||||||||||
2026 Secured Notes | 4,400 | (55) | 5 | 4,350 | |||||||||||||||||||
7.50% 2027 Notes | 550 | (5) | — | 545 | |||||||||||||||||||
5.50% 2027 Notes | 2,650 | (21) | — | 2,629 | |||||||||||||||||||
Government refundable advances | 28 | — | — | 28 | |||||||||||||||||||
Finance lease obligations | 57 | — | — | 57 | |||||||||||||||||||
19,834 | (156) | (18) | 19,660 | ||||||||||||||||||||
Less: current portion | 277 | (1) | — | 276 | |||||||||||||||||||
Long-term debt | $ | 19,557 | $ | (155) | $ | (18) | $ | 19,384 |
September 30, 2019 | |||||||||||||||||||||||
Gross Amount | Debt Issuance Costs | Original Issue Discount or Premium | Net Amount | ||||||||||||||||||||
Short-term borrowings—trade receivable securitization facility | $ | 350 | $ | — | $ | — | $ | 350 | |||||||||||||||
Term loans | $ | 7,524 | $ | (58) | $ | (17) | $ | 7,449 | |||||||||||||||
2022 Notes | 1,150 | (4) | — | 1,146 | |||||||||||||||||||
2024 Notes | 1,200 | (6) | — | 1,194 | |||||||||||||||||||
2025 Notes | 750 | (3) | 3 | 750 | |||||||||||||||||||
6.375% 2026 Notes | 950 | (7) | — | 943 | |||||||||||||||||||
6.875% 2026 Notes | 500 | (6) | (3) | 491 | |||||||||||||||||||
2026 Secured Notes | 4,000 | (60) | 2 | 3,942 | |||||||||||||||||||
7.50% 2027 Notes | 550 | (5) | — | 545 | |||||||||||||||||||
Government refundable advances | 39 | — | — | 39 | |||||||||||||||||||
Finance lease obligations | 50 | — | — | 50 | |||||||||||||||||||
16,713 | (149) | (15) | 16,549 | ||||||||||||||||||||
Less: current portion | 81 | (1) | — | 80 | |||||||||||||||||||
Long-term debt | $ | 16,632 | $ | (148) | $ | (15) | $ | 16,469 |
Term Loan Facility | Maturity Date | Interest Rate | Aggregate Principal as of September 30, | |||||||||||||||||||||||
2020 | 2019 | |||||||||||||||||||||||||
Tranche E | May 30, 2025 | LIBOR + 2.25% | $ | 2,199 | $ | 2,221 | ||||||||||||||||||||
Tranche F | December 9, 2025 | LIBOR + 2.25% | $ | 3,489 | $ | 3,524 | ||||||||||||||||||||
Tranche G | August 22, 2024 | LIBOR + 2.25% | $ | 1,761 | $ | 1,779 |
Fiscal years ending September 30, | |||||
2021 | $ | 77 | |||
2022 | 81 | ||||
2023 | 281 | ||||
2024 | 2,970 | ||||
2025 | 2,902 | ||||
Thereafter | 13,523 | ||||
$ | 19,834 |
U.S. Defined Benefit Pension Plans | Non-U.S. Defined Benefit Pension Plans | ||||||||||||||||||||||
Principal assumptions as of year end: | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Discount rate | 2.47% | 3.03% | 1.90% | 2.20% | |||||||||||||||||||
Rate of increase in future compensation levels | 4.45% | 4.48% | 2.90% | 2.98% | |||||||||||||||||||
Assumed long-term rate of return on plan assets | 5.99% | 6.00% | 3.69% | 4.16% |
U.S. Post-Retirement Pension Plans | Non-U.S. Post Retirement Pension Plans | ||||||||||||||||||||||
Principal assumptions as of year end: | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||
Discount rate | 1.99% | 2.86% | 2.28% | 2.68% | |||||||||||||||||||
Initial weighted average health care trend rate | 7.27% | 7.46% | 5.50% | 5.60% | |||||||||||||||||||
Ultimate weighted average health care trend rate | 6.00% | 6.00% | 4.10% | 4.10% |
Actual | ||||||||||||||||||||
Plan assets allocation as of fiscal year end: | Target | 2020 | 2019 | |||||||||||||||||
Equity securities | 35 - 70% | 39.1% | 35.1% | |||||||||||||||||
Debt securities | 30 - 65% | 57.0% | 59.5% | |||||||||||||||||
Cash | —% | 3.9% | 5.4% | |||||||||||||||||
Total | 100.0% | 100.0% |
Fair Value Hierarchy | ||||||||||||||||||||
Level 1 | Level 2 | Total | ||||||||||||||||||
Investments measured at fair value by category: | ||||||||||||||||||||
Equity Funds:(1)
|
||||||||||||||||||||
U.S. Equity Securities | $ | 4 | $ | — | $ | 4 | ||||||||||||||
Non-U.S. Equity Securities | 48 | — | 48 | |||||||||||||||||
Fixed Income Securities:(2)
|
||||||||||||||||||||
Non-U.S. Foreign Commercial and Government Bonds | — | 58 | 58 | |||||||||||||||||
Cash and Cash Equivalents(3)
|
22 | — | 22 | |||||||||||||||||
$ | 74 | $ | 58 | $ | 132 | |||||||||||||||
Investments measured at net asset value by category:(4)
|
||||||||||||||||||||
Equity Funds:(1)
|
||||||||||||||||||||
Commingled Trust Funds - Non-U.S. Securities | 153 | |||||||||||||||||||
Non-U.S. Equity Securities | 9 | |||||||||||||||||||
Fixed Income Securities:(2)
|
||||||||||||||||||||
U.S. Government Bonds and Securities | 80 | |||||||||||||||||||
U.S Corporate Bonds | 123 | |||||||||||||||||||
Non-U.S. Corporate Bonds | 18 | |||||||||||||||||||
Non-U.S. Foreign Commercial and Government Bonds | 31 | |||||||||||||||||||
Total | $ | 546 |
Fair Value Hierarchy | ||||||||||||||||||||
Level 1 | Level 2 | Total | ||||||||||||||||||
Investments measured at fair value by category: | ||||||||||||||||||||
Equity Funds:(1)
|
||||||||||||||||||||
U.S. Equity Securities | $ | 3 | $ | — | $ | 3 | ||||||||||||||
Non-U.S. Equity Securities | 48 | — | 48 | |||||||||||||||||
Fixed Income Securities:(2)
|
||||||||||||||||||||
Non-U.S. Foreign Commercial and Government Bonds | — | 86 | 86 | |||||||||||||||||
Cash and Cash Equivalents(3)
|
30 | — | 30 | |||||||||||||||||
$ | 81 | $ | 86 | $ | 167 | |||||||||||||||
Investments measured at net asset value by category:(4)
|
||||||||||||||||||||
Equity Funds:(1)
|
||||||||||||||||||||
Commingled Trust Funds - Non-U.S. Securities | 142 | |||||||||||||||||||
Fixed Income Securities:(2)
|
||||||||||||||||||||
U.S. Government Bonds and Securities | 86 | |||||||||||||||||||
U.S Corporate Bonds | 108 | |||||||||||||||||||
Non-U.S. Corporate Bonds | 18 | |||||||||||||||||||
Non-U.S. Foreign Commercial and Government Bonds | 30 | |||||||||||||||||||
Total | $ | 551 |
Defined Benefit Pension Plans | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | ||||||||||||||||||||||||||||||||||||
U.S. Pension Plans | Non-U.S. Pension Plans | U.S. Pension Plans | Non-U.S. Pension Plans | U.S. Pension Plans | Non-U.S. Pension Plans | |||||||||||||||||||||||||||||||||
Service cost | $ | 9 | $ | 6 | $ | 5 | $ | 3 | $ | 1 | $ | 1 | ||||||||||||||||||||||||||
Interest cost | 10 | 5 | 7 | 5 | 1 | 2 | ||||||||||||||||||||||||||||||||
Expected return on plan assets | (19) | (8) | (10) | (6) | (1) | (3) | ||||||||||||||||||||||||||||||||
Amortization of actuarial loss (gain) | 1 | 1 | — | — | — | 1 | ||||||||||||||||||||||||||||||||
Curtailment/settlement loss (gain) | (1) | (1) | — | — | — | — | ||||||||||||||||||||||||||||||||
Net periodic pension cost | $ | — | $ | 3 | $ | 2 | $ | 2 | $ | 1 | $ | 1 |
Fiscal Year | ||||||||
2021 | $ | 31 | ||||||
2022 | 31 | |||||||
2023 | 32 | |||||||
2024 | 33 | |||||||
2025 | 34 | |||||||
2026 - 2030 | 182 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
United States | $ | 635 | $ | 878 | $ | 827 | |||||||||||
Foreign | 105 | 185 | 159 | ||||||||||||||
$ | 740 | $ | 1,063 | $ | 986 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Current | |||||||||||||||||
Federal | $ | 26 | $ | 154 | $ | 137 | |||||||||||
State | 3 | 15 | 12 | ||||||||||||||
Foreign | 34 | 54 | 27 | ||||||||||||||
63 | 223 | 176 | |||||||||||||||
Deferred | 24 | (1) | (152) | ||||||||||||||
$ | 87 | $ | 222 | $ | 24 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Tax at statutory rate of 21% (21% for fiscal 2019 and 24.5% for fiscal 2018 )
|
$ | 155 | $ | 223 | $ | 242 | |||||||||||
Stock compensation | (79) | (58) | (51) | ||||||||||||||
Domestic manufacturing deduction | — | — | (15) | ||||||||||||||
U.S. tax reform(1)
|
— | — | (146) | ||||||||||||||
Foreign rate differential | 5 | 2 | (14) | ||||||||||||||
Foreign derived intangible income | (20) | (16) | — | ||||||||||||||
Foreign tax credits | (5) | (18) | (3) | ||||||||||||||
Changes in valuation allowances impacting results(2)
|
31 | 66 | — | ||||||||||||||
Other—net | — | 23 | 11 | ||||||||||||||
Income tax provision | $ | 87 | $ | 222 | $ | 24 |
2020 | 2019 | ||||||||||
Deferred tax assets (liabilities): | |||||||||||
Intangible assets | $ | (730) | $ | (710) | |||||||
Property, plant and equipment | (59) | (64) | |||||||||
Employee benefits | 110 | 123 | |||||||||
Interest rate swaps and caps | 92 | 55 | |||||||||
U.S. interest expense limitation | 87 | 65 | |||||||||
Loss contract reserves | 55 | 63 | |||||||||
Net operating losses | 54 | 58 | |||||||||
Inventories | 41 | 39 | |||||||||
Non-U.S. income tax credits | 21 | 24 | |||||||||
U.S. income tax credits | 17 | 17 | |||||||||
Environmental reserves | 12 | 10 | |||||||||
Product warranty reserves | 10 | 8 | |||||||||
Other | 9 | 4 | |||||||||
Total | (281) | (308) | |||||||||
Add: Valuation allowance | (132) | (118) | |||||||||
Total net deferred tax | $ | (413) | $ | (426) |
2020 | 2019 | ||||||||||
Balance at October 1 | $ | 37 | $ | 14 | |||||||
Additions based on tax positions related to the prior year | 7 | 26 | |||||||||
Additions based on tax positions related to the current year | 2 | — | |||||||||
Reductions based on tax positions related to the prior year | (1) | (2) | |||||||||
Settlement with tax authorities | (2) | — | |||||||||
Lapse in statute of limitations | (2) | (1) | |||||||||
Balance at September 30 | $ | 41 | $ | 37 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net sales to external customers | |||||||||||||||||
Power & Control | |||||||||||||||||
Commercial OEM | $ | 623 | $ | 686 | $ | 499 | |||||||||||
Commercial Aftermarket | 673 | 769 | 665 | ||||||||||||||
Defense | 1,399 | 1,281 | 975 | ||||||||||||||
Total Power & Control | 2,695 | 2,736 | 2,139 | ||||||||||||||
Airframe | |||||||||||||||||
Commercial OEM | 783 | 836 | 509 | ||||||||||||||
Commercial Aftermarket | 689 | 865 | 701 | ||||||||||||||
Defense | 781 | 628 | 321 | ||||||||||||||
Total Airframe | 2,253 | 2,329 | 1,531 | ||||||||||||||
Total Non-aviation | 155 | 158 | 141 | ||||||||||||||
$ | 5,103 | $ | 5,223 | $ | 3,811 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
EBITDA As Defined | |||||||||||||||||
Power & Control | $ | 1,345 | $ | 1,395 | $ | 1,115 | |||||||||||
Airframe | 955 | 1,063 | 759 | ||||||||||||||
Non-aviation | 54 | 51 | 44 | ||||||||||||||
Total segment EBITDA As Defined | 2,354 | 2,509 | 1,918 | ||||||||||||||
Unallocated corporate expenses | 76 | 90 | 41 | ||||||||||||||
Total Company EBITDA As Defined | 2,278 | 2,419 | 1,877 | ||||||||||||||
Depreciation and amortization | 283 | 225 | 129 | ||||||||||||||
Interest expense - net | 1,029 | 859 | 663 | ||||||||||||||
Acquisition-related costs | 31 | 169 | 29 | ||||||||||||||
Stock compensation expense | 93 | 93 | 58 | ||||||||||||||
Refinancing costs | 28 | 3 | 6 | ||||||||||||||
COVID-19 pandemic & 737 MAX restructuring costs | 54 | — | — | ||||||||||||||
Other, net | 20 | 7 | 6 | ||||||||||||||
Income from continuing operations before income taxes | $ | 740 | $ | 1,063 | $ | 986 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Capital expenditures | |||||||||||||||||
Power & Control | $ | 89 | $ | 50 | $ | 39 | |||||||||||
Airframe | 10 | 48 | 32 | ||||||||||||||
Non-aviation | 4 | 3 | 2 | ||||||||||||||
Corporate | 2 | 1 | — | ||||||||||||||
$ | 105 | $ | 102 | $ | 73 | ||||||||||||
Depreciation and amortization | |||||||||||||||||
Power & Control | $ | 117 | $ | 99 | $ | 67 | |||||||||||
Airframe | 157 | 119 | 56 | ||||||||||||||
Non-aviation | 7 | 6 | 5 | ||||||||||||||
Corporate | 2 | 2 | 1 | ||||||||||||||
$ | 283 | $ | 226 | $ | 129 |
September 30, 2020 | September 30, 2019 | ||||||||||
Total assets | |||||||||||
Power & Control | $ | 7,005 | $ | 7,037 | |||||||
Airframe | 6,575 | 6,672 | |||||||||
Non-aviation | 251 | 262 | |||||||||
Corporate | 4,564 | 1,322 | |||||||||
Assets of discontinued operations (Note 23) | — | 962 | |||||||||
$ | 18,395 | $ | 16,255 |
Fiscal Years Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Risk-free interest rate |
0.26% to 1.65%
|
2.33% to 3.03%
|
2.01% to 2.84%
|
||||||||||||||
Expected life of options |
5 to 5.5 years
|
5.5 years | 5.2 years | ||||||||||||||
Expected dividend yield of stock | — | — | — | ||||||||||||||
Expected volatility of stock |
25% to 39%
|
25% | 25% |
Number of
Options |
Weighted-Average
Exercise Price Per Option |
Weighted-Average
Remaining Contractual Term |
Aggregate
Intrinsic Value |
||||||||||||||||||||
Outstanding at September 30, 2019 | 3,167,458 | $ | 323.73 | ||||||||||||||||||||
Granted | 742,840 | 538.92 | |||||||||||||||||||||
Exercised | (34,495) | 284.21 | |||||||||||||||||||||
Forfeited | (261,946) | 372.81 | |||||||||||||||||||||
Expired | — | — | |||||||||||||||||||||
Outstanding at September 30, 2020 | 3,613,857 | $ | 364.79 | 7.6 years | $ | 398,716,843 | |||||||||||||||||
Expected to vest | 1,235,922 | $ | 332.98 | 7.5 years | $ | 175,676,981 | |||||||||||||||||
Exercisable at September 30, 2020 | 1,709,551 | $ | 336.58 | 7.2 years | $ | 236,841,196 |
Number of
Options |
Weighted-Average
Exercise Price Per Option |
Weighted-Average
Remaining Contractual Term |
Aggregate
Intrinsic Value |
||||||||||||||||||||
Outstanding at September 30, 2019 | 3,134,022 | $ | 155.34 | ||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||
Exercised | (887,842) | 115.15 | |||||||||||||||||||||
Forfeited | (10,500) | 226.34 | |||||||||||||||||||||
Expired | — | — | |||||||||||||||||||||
Outstanding at September 30, 2020 | 2,235,680 | $ | 170.97 | 3.4 years | $ | 679,982,072 | |||||||||||||||||
Exercisable at September 30, 2020 | 2,235,680 | $ | 170.97 | 3.4 years | $ | 679,982,072 |
Classification | Fiscal Year Ended September 30, 2020 | ||||||||||
Operating lease cost | Cost of Sales or Selling and Administrative Expenses | $ | 29 | ||||||||
Finance lease cost | |||||||||||
Amortization of leased assets | Cost of Sales | 3 | |||||||||
Interest on lease liabilities | Interest Expense - Net | 4 | |||||||||
Total lease cost | $ | 36 |
Classification | September 30, 2020 | ||||||||||
Operating Leases | |||||||||||
Operating lease right-of-use assets | Other Assets | $ | 103 | ||||||||
Current operating lease liabilities | Accrued Liabilities | 22 | |||||||||
Long-term operating lease liabilities | Other Non-current Liabilities | 87 | |||||||||
Total operating lease liabilities | $ | 109 |
Finance Leases | |||||||||||
Finance lease right-of-use assets, net | Property, Plant and Equipment—Net | $ | 67 | ||||||||
Current finance lease liabilities | Accrued Liabilities | 2 | |||||||||
Long-term finance lease liabilities | Other Non-current Liabilities | 55 | |||||||||
Total finance lease liabilities | $ | 57 |
Weighted-average remaining lease term | |||||
Operating leases | 6.5 years | ||||
Finance leases | 16.4 years | ||||
Weighted-average discount rate | |||||
Operating leases | 6.2% | ||||
Finance leases | 7.2% |
Operating Leases | Finance Leases | ||||||||||
2021 | $ | 28 | $ | 6 | |||||||
2022 | 24 | 6 | |||||||||
2023 | 19 | 6 | |||||||||
2024 | 16 | 6 | |||||||||
2025 | 13 | 6 | |||||||||
Thereafter | 35 | 70 | |||||||||
Total future minimum lease payments | 135 | 100 | |||||||||
Less: imputed interest | 26 | 43 | |||||||||
Present value of lease liabilities reported | $ | 109 | $ | 57 |
September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||||||||
Level |
Carrying
Amount |
Fair Value |
Carrying
Amount |
Fair Value | |||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||
Cash and cash equivalents | 1 | $ | 4,717 | $ | 4,717 | $ | 1,467 | $ | 1,467 | ||||||||||||||||||||
Interest rate cap agreements(1)
|
2 | — | — | 1 | 1 | ||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Interest rate swap agreements(2)
|
2 | 56 | 56 | 13 | 13 | ||||||||||||||||||||||||
Interest rate swap agreements(3)
|
2 | 328 | 328 | 202 | 202 | ||||||||||||||||||||||||
Foreign currency forward exchange contracts(3)
|
2 | 1 | 1 | 6 | 6 | ||||||||||||||||||||||||
Short-term borrowings - trade receivable securitization facility(4)
|
1 | 349 | 349 | 350 | 350 | ||||||||||||||||||||||||
Long-term debt, including current portion: | |||||||||||||||||||||||||||||
Term loans(4)
|
2 | 7,378 | 7,004 | 7,449 | 7,478 | ||||||||||||||||||||||||
Revolving credit facility(4)
|
2 | 200 | 200 | — | — | ||||||||||||||||||||||||
2022 Notes(4)
|
1 | — | — | 1,146 | 1,167 | ||||||||||||||||||||||||
2024 Notes(4)
|
1 | 1,195 | 1,194 | 1,194 | 1,239 | ||||||||||||||||||||||||
2025 Notes(4)
|
1 | 750 | 743 | 750 | 782 | ||||||||||||||||||||||||
2025 Secured Notes(4)
|
1 | 1,091 | 1,194 | — | — | ||||||||||||||||||||||||
6.375% 2026 Notes(4)
|
1 | 944 | 948 | 943 | 999 | ||||||||||||||||||||||||
6.875% 2026 Notes(4)
|
1 | 493 | 500 | 491 | 535 | ||||||||||||||||||||||||
6.25% 2026 Notes(4)
|
1 | 4,350 | 4,604 | 3,942 | 4,290 | ||||||||||||||||||||||||
7.50% 2027 Notes(4)
|
1 | 545 | 569 | 545 | 595 | ||||||||||||||||||||||||
5.50% 2027 Notes(4)
|
1 | 2,629 | 2,544 | — | — | ||||||||||||||||||||||||
Government refundable advances
|
2 | 28 | 28 | 39 | 39 | ||||||||||||||||||||||||
Finance lease obligations | 2 | 57 | 57 | 50 | 50 |
Aggregate Notional Amount
(in millions) |
Start Date | End Date | Related Term Loans | Conversion of Related Variable Rate Debt to Fixed Rate of: | ||||||||||
$500 | 6/29/2018 | 3/31/2025 | Tranche E | 5.25% (3.0% plus the 2.25% margin percentage) | ||||||||||
$750 | 6/30/2020 | 6/30/2022 | Tranche E | 4.75% (2.5% plus the 2.25% margin percentage) | ||||||||||
$1,500 | 6/30/2022 | 3/31/2025 | Tranche E | 5.35% (3.1% plus the 2.25% margin percentage) | ||||||||||
$1,000 | 6/28/2019 | 12/9/2025 | Tranche F | 4.05% (1.8% plus the 2.25% margin percentage) | ||||||||||
$1,400 | 6/30/2021 | 12/9/2025 | Tranche F | 5.25% (3.0% plus the 2.25% margin percentage) | ||||||||||
$500 | 12/30/2016 | 12/31/2021 | Tranche G | 4.15% (1.9% plus the 2.25% margin percentage) | ||||||||||
$400 | 9/30/2017 | 9/30/2022 | Tranche G | 4.15% (1.9% plus the 2.25% margin percentage) | ||||||||||
$900 | 12/31/2021 | 6/28/2024 | Tranche G | 5.35% (3.1% plus the 2.25% margin percentage) | ||||||||||
$400 | 9/30/2022 | 6/28/2024 | Tranche G | 5.25% (3.0% plus the 2.25% margin percentage) |
Aggregate Notional Amount
(in millions) |
Start Date | End Date | Related Debt | Offsets Variable Rate Debt Attributable to Fluctuations Above: | ||||||||||
$750 | 6/30/2020 | 6/30/2022 | Tranche E | Three month LIBOR of 2.5% | ||||||||||
$400 | 6/30/2016 | 6/30/2021 | Tranche F | Three month LIBOR of 2.0% | ||||||||||
$400 | 12/30/2016 | 12/31/2021 | Tranche G | Three month LIBOR of 2.5% |
September 30, 2020 | September 30, 2019 | |||||||||||||||||||||||||
Asset | Liability | Asset | Liability | |||||||||||||||||||||||
Interest rate cap agreements | $ | — | $ | — | $ | 1 | $ | — | ||||||||||||||||||
Interest rate swap agreements(1)
|
— | (384) | — | (216) | ||||||||||||||||||||||
Net derivatives as classified in the balance sheet(2)
|
$ | — | $ | (384) | $ | 1 | $ | (216) |
Unrealized (loss) gain on derivatives designated and qualifying as cash flow hedges(1)
|
Defined benefit pension plan activity(2)
|
Currency translation adjustment
|
Total | ||||||||||||||||||||
Balance at September 30, 2018 | $ | 67 | $ | (11) | $ | (52) | $ | 4 | |||||||||||||||
Cumulative effect of ASU 2018-02, adopted October 1, 2018 | (2) | — | — | (2) | |||||||||||||||||||
Current-period other comprehensive loss | (241) | (29) | (115) | (385) | |||||||||||||||||||
Amounts reclassified from AOCI related to derivative instruments
|
4 | — | — | 4 | |||||||||||||||||||
Net current-period other comprehensive loss
|
(239) | (29) | (115) | (383) | |||||||||||||||||||
Balance at September 30, 2019 | (172) | (40) | (167) | (379) | |||||||||||||||||||
Current-period other comprehensive (loss) gain | (130) | 32 | 76 | (22) | |||||||||||||||||||
Balance at September 30, 2020 | $ | (302) | $ | (8) | $ | (91) | $ | (401) |
Amount Reclassified
|
||||||||||||||
Fiscal Years Ended September 30,
|
||||||||||||||
Description of reclassifications out of accumulated other comprehensive (loss) income
|
2020 | 2019 | ||||||||||||
Amortization from redesignated interest rate swap and cap agreements(1)
|
$ | 4 | $ | 3 | ||||||||||
Losses from settlement of foreign currency forward exchange contracts(2)
|
(4) | — | ||||||||||||
Deferred tax expense on reclassifications out of accumulated other comprehensive (loss) income | — | 1 | ||||||||||||
Losses reclassified into earnings, net of tax | $ | — | $ | 4 |
Fiscal Year Ended September 30, | |||||||||||||||||
2020 | 2019 | 2018 | |||||||||||||||
Net sales | $ | 79 | $ | 294 | $ | 12 | |||||||||||
Income (loss) from discontinued operations, before income taxes | 11 | — | — | ||||||||||||||
Income tax provision (benefit) | 4 | (13) | (2) | ||||||||||||||
Income from discontinued operations, net of tax | 7 | 13 | 2 | ||||||||||||||
Gain (loss) from sale of discontinued operations, net of tax | 40 | 38 | (7) | ||||||||||||||
Income (loss) from discontinued operations, net of tax | $ | 47 | $ | 51 | $ | (5) |
Assets and Liabilities of Discontinued Operations Held-for-Sale | Fiscal Year Ended September 30, 2019 | |||||||
Cash and cash equivalents | $ | 29 | ||||||
Trade accounts receivable—Net | 67 | |||||||
Inventories—Net | 88 | |||||||
Prepaid expenses and other | 2 | |||||||
Property, plant and equipment—Net | 101 | |||||||
Goodwill | 480 | |||||||
Other intangibles—Net | 194 | |||||||
Other | 1 | |||||||
Total assets of discontinued operations | $ | 962 | ||||||
Accounts payable | $ | 33 | ||||||
Accrued liabilities | 55 | |||||||
Long-term debt | 6 | |||||||
Deferred income taxes | 42 | |||||||
Other | 21 | |||||||
Total liabilities of discontinued operations | $ | 157 |
First Quarter
Ended December 28, 2019 |
Second Quarter
Ended March 28, 2020 |
Third Quarter
Ended June 27, 2020 |
Fourth Quarter
Ended September 30, 2020 |
||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||
Fiscal Year Ended September 30, 2020(1)
|
|||||||||||||||||||||||
Net sales(2)
|
$ | 1,465 | $ | 1,443 | $ | 1,022 | $ | 1,173 | |||||||||||||||
Gross profit(2)
|
801 | 818 | 491 | 536 | |||||||||||||||||||
Income (Loss) from continuing operations, net of tax(2)
|
234 | 323 | (5) | 101 | |||||||||||||||||||
Income (Loss) from discontinued operations, net of tax(2)
|
71 | (4) | (1) | (19) | |||||||||||||||||||
Less: Net income attributable to noncontrolling interests(2)
|
(1) | — | — | — | |||||||||||||||||||
Net income (loss) attributable to TD Group(2)
|
$ | 304 | $ | 319 | $ | (6) | $ | 82 | |||||||||||||||
Net income (loss) attributable to TD Group common stockholders(3)
|
$ | 119 | $ | 319 | $ | (6) | $ | 82 | |||||||||||||||
Earnings (Loss) per share from continuing operations—basic and diluted(4)
|
$ | 0.83 | $ | 5.63 | $ | (0.09) | $ | 1.76 | |||||||||||||||
Earnings (Loss) per share from discontinued operations—basic and diluted(4)
|
1.24 | (0.07) | (0.01) | (0.33) | |||||||||||||||||||
Earnings (Loss) per share(4)
|
$ | 2.07 | $ | 5.56 | $ | (0.10) | $ | 1.43 |
First Quarter
Ended December 29, 2018 |
Second Quarter
Ended March 30, 2019 |
Third Quarter
Ended June 29, 2019 |
Fourth Quarter
Ended September 30, 2019 |
||||||||||||||||||||
(in millions, except per share amounts) | |||||||||||||||||||||||
Fiscal Year Ended September 30, 2019(1)
|
|||||||||||||||||||||||
Net sales(2)
|
$ | 993 | $ | 1,168 | $ | 1,521 | $ | 1,541 | |||||||||||||||
Gross profit(2)
|
564 | 650 | 713 | 882 | |||||||||||||||||||
Income from continuing operations, net of tax(2)
|
196 | 200 | 128 | 317 | |||||||||||||||||||
Income from discontinued operations, net of tax(2)
|
— | 2 | 17 | 32 | |||||||||||||||||||
Less: Net income attributable to noncontrolling interests(2)
|
— | — | — | (2) | |||||||||||||||||||
Net income attributable to TD Group(2)
|
$ | 196 | $ | 202 | $ | 145 | $ | 347 | |||||||||||||||
Net income attributable to TD Group common stockholders(3)
|
$ | 172 | $ | 202 | $ | 145 | $ | 260 | |||||||||||||||
Earnings per share from continuing operations—basic and diluted(4)
|
$ | 3.05 | $ | 3.56 | $ | 2.27 | $ | 4.08 | |||||||||||||||
Earnings per share from discontinued operations—basic and diluted(4)
|
— | 0.04 | 0.30 | 0.55 | |||||||||||||||||||
Earnings per share(4)
|
$ | 3.05 | $ | 3.60 | $ | 2.57 | $ | 4.63 |
Column A | Column B | Column C | Column D | Column E | |||||||||||||||||||||||||
Balance at
Beginning of Period |
Additions |
Deductions from
Reserve(1)
|
Balance at
End of Period |
||||||||||||||||||||||||||
Description |
Charged to Costs
and Expenses |
Acquisitions & Purchase Price Adjustments | |||||||||||||||||||||||||||
Fiscal Year Ended September 30, 2020 | |||||||||||||||||||||||||||||
Allowance for uncollectible accounts | $ | 17 | $ | 21 | $ | 3 | $ | (4) | $ | 37 | |||||||||||||||||||
Inventory valuation reserves | 124 | 34 | 37 | (17) | 178 | ||||||||||||||||||||||||
Valuation allowance for deferred tax assets | 118 | 15 | (1) | — | 132 | ||||||||||||||||||||||||
Fiscal Year Ended September 30, 2019 | |||||||||||||||||||||||||||||
Allowance for uncollectible accounts | $ | 5 | $ | 5 | $ | 9 | $ | (2) | $ | 17 | |||||||||||||||||||
Reserve for excess and obsolete inventory | 99 | 17 | 17 | (9) | 124 | ||||||||||||||||||||||||
Valuation allowance for deferred tax assets | 47 | 40 | 31 | — | 118 | ||||||||||||||||||||||||
Fiscal Year Ended September 30, 2018 | |||||||||||||||||||||||||||||
Allowance for uncollectible accounts | $ | 4 | $ | 2 | $ | 1 | $ | (2) | $ | 5 | |||||||||||||||||||
Reserve for excess and obsolete inventory | 80 | 15 | 11 | (11) | 95 | ||||||||||||||||||||||||
Valuation allowance for deferred tax assets | 33 | 14 | — | — | 47 |
EXHIBIT
NO. |
DESCRIPTION | |||||||
101.SCH | Inline XBRL Taxonomy Extension Schema | |||||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase | |||||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase | |||||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase | |||||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase | |||||||
104 | Cover Page Interactive Data File: the cover page XBRL tags are embedded within the Inline XBRL document and are contained within Exhibit 101 |
* | Indicates management contract or compensatory plan contract or arrangement. |
Participant: | ____________________________________________________________________________ | ||||||||||
Grant Date: | ____________________________________________________________________________ | ||||||||||
Exercise Price per Share: | $___________________________________________________________________________ | ||||||||||
Total Number of Shares Subject to the Option: | ______________________________________________________________________Shares | ||||||||||
Expiration Date: | ____________________________________________________________________________ |
Type of Option: |
¨ Incentive Stock Option x Non-Qualified Stock Option
|
|||||||
Vesting Schedule: |
Subject to the terms of the Stock Option Agreement (including without limitation all exhibits thereto), the Option shall be eligible to become exercisable upon the achievement of performance objectives over the period set forth in Exhibit B hereto (provided that the Participant is an Eligible Person (as defined in the Plan) at all times during the period beginning on the Grant Date and ending on the applicable vesting date):
|
1 |
For the avoidance of doubt, the term “Option” as used herein only describes options granted pursuant to the Stock Option Grant Notice to which this Agreement is an Exhibit.
|
Termination Date
|
Percent of Remaining Options That May Continue to Vest
|
||||
Prior to October 1, 2020 | 0% | ||||
On or after October 1, 2020 but prior to October 1, 2021 | 20% | ||||
On or after October 1, 2021 but prior to October 1, 2022 | 40% | ||||
On or after October 1, 2022 but prior to October 1, 2023 | 60% | ||||
On or after October 1, 2023 but prior to October 1, 2024 | 80% | ||||
On or after October 1, 2024 | 100% |
Minimum Vesting (10% Growth) | Maximum Vesting (17.5% Growth) | |||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year (A)
|
% of Shares
Vesting (B) |
YE Operating
Performance (per Diluted Share) (C) |
% of Shares
Vesting (D) |
YE Operating
Performance (per Diluted Share) (E) |
||||||||||||||||||||||||||||||||||||||||||||||
2020 | 5 | % | $ | 277.63 | 20 | % | $ | 296.56 | ||||||||||||||||||||||||||||||||||||||||||
2021 | 5 | % | $ | 305.39 | 20 | % | $ | 348.46 | ||||||||||||||||||||||||||||||||||||||||||
2022 | 5 | % | $ | 335.93 | 20 | % | $ | 409.44 | ||||||||||||||||||||||||||||||||||||||||||
2023 | 5 | % | $ | 369.53 | 20 | % | $ | 481.09 | ||||||||||||||||||||||||||||||||||||||||||
2024 | 5 | % | $ | 406.48 | 20 | % | $ | 565.28 |
1 |
As of a given date, the Company’s “Annual Operational Performance per Diluted Share” shall mean the ratio of (1) the excess of (a) the product of (i) EBITDA and (ii) the Fixed Market Multiple (as defined below) over (b) Net Debt to (2) the Company’s number of Diluted Shares as of such date, where “EBITDA,” “Net Debt” and “Diluted Shares” have the meanings set forth in the Stock Option Agreement set forth on Exhibit A. For purposes of this Exhibit B, the Fixed Market Multiple shall mean 11.393, as adjusted for the weighted EBITDA multiple of future acquisitions as determined by the Committee.
|
Minimum Vesting (10% Growth) | Maximum Vesting (17.5% Growth) | |||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year (A)
|
% of Shares
Vesting (B) |
YE Operating Performance (per Diluted Share)
(C) |
% of Shares
Vesting (D) |
YE Operating Performance (per Diluted Share)
(E) |
||||||||||||||||||||||||||||||||||||||||||||||
2023 | 12.5 | % | $ | 369.53 | 50 | % | $ | 481.09 | ||||||||||||||||||||||||||||||||||||||||||
2024 | 12.5 | % | $ | 406.48 | 50 | % | $ | 565.28 |
2 |
As of a given date, the Company’s “Annual Operational Performance per Diluted Share” shall mean the ratio of (1) the excess of (a) the product of (i) EBITDA and (ii) the Fixed Market Multiple (as defined below) over (b) Net Debt to (2) the Company’s number of Diluted Shares as of such date, where “EBITDA,” “Net Debt” and “Diluted Shares” have the meanings set forth in the Stock Option Agreement set forth on Exhibit A. For purposes of this Exhibit C, the Fixed Market Multiple shall mean 11.393, as adjusted for the weighted EBITDA multiple of future acquisitions as determined by the Committee.
|
Name of Subsidiary
|
Jurisdiction of
Incorporation or Organization
|
|||||||
1711 Waterview Pkwy LLC
|
Delaware
|
|||||||
Acme Aerospace, Inc.
|
Delaware
|
|||||||
Adams Rite Aerospace, Inc.
|
California
|
|||||||
Adams Rite Aerospace GmbH
|
Germany
|
|||||||
Advanced Inflatable Products Limited
|
United Kingdom
|
|||||||
AeroControlex Group, Inc.
|
Delaware
|
|||||||
Aerosonic LLC
|
Delaware
|
|||||||
Air-Sea Survival Equipment Trustee Limited
|
England
|
|||||||
Airborne Acquisition, Inc.
|
Delaware
|
|||||||
Airborne Global, Inc.
|
Delaware
|
|||||||
Airborne Holdings, Inc.
|
Delaware
|
|||||||
Airborne Systems Canada Ltd.
|
Ontario, Canada
|
|||||||
Airborne Systems Group Limited
|
United Kingdom
|
|||||||
Airborne Systems Holdings Limited
|
United Kingdom
|
|||||||
Airborne Systems Limited
|
United Kingdom
|
|||||||
Airborne Systems NA, Inc.
|
Delaware
|
|||||||
Airborne Systems North America Inc.
|
Delaware
|
|||||||
Airborne Systems North America of CA Inc.
|
Delaware
|
|||||||
Airborne Systems North America of NJ Inc.
|
New Jersey
|
|||||||
Airborne Systems Pension Trust Limited
|
United Kingdom
|
|||||||
Airborne UK Acquisition Limited
|
United Kingdom
|
|||||||
Airborne UK Parent Limited
|
United Kingdom
|
|||||||
Aircraft Materials Limited
|
United Kingdom
|
|||||||
Air-Sea Survival Equipment Trustee Limited
|
United Kingdom
|
|||||||
AmSafe Aviation (Chongqing), Ltd.
|
China
|
|||||||
AmSafe Bridport (Kunshan) Co., Ltd.
|
China
|
|||||||
AmSafe Bridport (Private) Ltd.
|
Sri Lanka
|
|||||||
AmSafe Bridport Ltd.
|
United Kingdom
|
|||||||
AmSafe Global Holdings, Inc.
|
Delaware
|
|||||||
AmSafe Global Services (Private) Limited
|
Sri Lanka
|
|||||||
AmSafe, Inc.
|
Delaware
|
|||||||
Angus Electronics Co.
|
Delaware
|
|||||||
ARA Deutschland GmbH
|
Germany
|
|||||||
ARA Holding GmbH
|
Germany
|
|||||||
Arkwin Industries, Inc.
|
New York
|
|||||||
Armtec Countermeasures Co.
|
Delaware
|
|||||||
Armtec Countermeasures TNO Co.
|
Delaware
|
|||||||
Armtec Defense Products Co.
|
Delaware
|
|||||||
Auxitrol SAS
|
France
|
|||||||
Auxitrol Weston Mexico, S. de R.L. de C.V.
|
Mexico
|
Name of Subsidiary
|
Jurisdiction of
Incorporation or Organization
|
|||||||
Auxitrol Weston Singapore Pte. Ltd.
|
Singapore
|
|||||||
Auxitrol Weston USA, Inc.
|
Delaware
|
|||||||
Aviation Technologies, Inc.
|
Delaware
|
|||||||
Avionic Instruments LLC
|
Delaware
|
|||||||
Avionics Specialties, Inc.
|
Virginia
|
|||||||
AVISTA, Incorporated
|
Wisconsin
|
|||||||
AvtechTyee, Inc.
|
Washington
|
|||||||
Beta Transformer Mexico, S. de R.L. de C.V.
|
Mexico
|
|||||||
Beta Transformer Technology Corporation
|
New York
|
|||||||
Beta Transformer Technology LLC
|
Delaware
|
|||||||
Breeze-Eastern LLC
|
Delaware
|
|||||||
Bridport Erie Aviation, Inc.
|
Delaware
|
|||||||
Bridport Holdings, Inc.
|
Delaware
|
|||||||
Bridport Ltd.
|
United Kingdom
|
|||||||
Bridport-Air Carrier, Inc.
|
Washington
|
|||||||
Bruce Aerospace, Inc.
|
Delaware
|
|||||||
CDA InterCorp LLC
|
Florida
|
|||||||
CEF Industries, LLC
|
Delaware
|
|||||||
Champion Aerospace LLC
|
Delaware
|
|||||||
CMC Electronics Aurora LLC
|
Delaware
|
|||||||
CMC Electronics Inc.
|
Quebec, Canada
|
|||||||
CMC Electronics ME Inc.
|
Quebec, Canada
|
|||||||
Darchem Engineering Limited
|
United Kingdom
|
|||||||
Darchem Holdings Limited
|
United Kingdom
|
|||||||
Data Device Corporation
|
Delaware
|
|||||||
DDC Electronics K.K.
|
Japan
|
|||||||
DDC Electronics Ltd.
|
United Kingdom
|
|||||||
DDC Electronics Private Limited
|
India
|
|||||||
DDC Electronique, S.A.R.L.
|
France
|
|||||||
DDC Elektronik, GmbH
|
Germany
|
|||||||
Dukes Aerospace, Inc.
|
Delaware
|
|||||||
Edlaw Limited
|
United Kingdom
|
|||||||
Electromech Technologies LLC
|
Delaware
|
|||||||
Elektro-Metall Export GmbH
|
Germany
|
|||||||
Elektro-Metall Paks KFT
|
Hungary
|
|||||||
EST Defence Company UK Limited
|
United Kingdom
|
|||||||
Esterline Acquisition Ltd
|
United Kingdom
|
|||||||
Esterline do Brasil Assessoria e Intermediação Ltda
|
Brazil
|
|||||||
Esterline Europe Company LLC
|
Delaware
|
|||||||
Esterline Foreign Sales Corporation
|
US Virgin Islands
|
|||||||
Esterline International Company
|
Delaware
|
Name of Subsidiary
|
Jurisdiction of
Incorporation or Organization |
|||||||
Esterline Mexico, S. de R.L. de C.V.
|
Mexico
|
|||||||
Esterline Services China Ltd.
|
China
|
|||||||
Esterline Technologies Acquisition Ltd
|
United Kingdom
|
|||||||
Esterline Technologies Corporation
|
Delaware
|
|||||||
Esterline Technologies Europe Limited
|
United Kingdom
|
|||||||
Esterline Technologies France Holding SAS
|
France
|
|||||||
Esterline Technologies French Acquisition Limited
|
United Kingdom
|
|||||||
Esterline Technologies Global Limited
|
United Kingdom
|
|||||||
Esterline Technologies Holdings Limited
|
United Kingdom
|
|||||||
Esterline Technologies Management France SAS
|
France
|
|||||||
Esterline Technologies SGIP, LLC
|
Delaware
|
|||||||
Esterline Technologies Unlimited
|
United Kingdom
|
|||||||
Extant Components Group Holdings, Inc.
|
Delaware
|
|||||||
Extant Components Group Intermediate, Inc.
|
Delaware
|
|||||||
GQ Parachutes Limited
|
United Kingdom
|
|||||||
Guizhou Leach-Tianyi Aviation Electrical Company Ltd
|
China
|
|||||||
HarcoSemco LLC
|
Connecticut
|
|||||||
Hartwell Corporation
|
California
|
|||||||
Hytek Finishes Co.
|
Delaware
|
|||||||
ILC Holdings, Inc.
|
Delaware
|
|||||||
Irvin Aerospace Limited
|
United Kingdom
|
|||||||
IrvinGQ France SAS
|
France
|
|||||||
IrvinGQ Limited
|
United Kingdom
|
|||||||
Janco Corporation
|
California
|
|||||||
Johnson Liverpool LLC
|
Delaware
|
|||||||
Jupiter SAS
|
France
|
|||||||
Kirkhill Inc.
|
Delaware
|
|||||||
Korry Electronics Co.
|
Delaware
|
|||||||
Kunshan Shield Restraint Systems, Ltd.
|
China
|
|||||||
Leach Holding Corporation
|
Delaware
|
|||||||
Leach International Asia-Pacific Ltd
|
Hong Kong
|
|||||||
Leach International Corporation
|
Delaware
|
|||||||
Leach International Europe S.A.S.
|
France
|
|||||||
Leach International Germany GmbH
|
Germany
|
|||||||
Leach International Mexico S. de R. L. de C. V.
|
Mexico
|
|||||||
Leach International UK Ltd
|
United Kingdom
|
|||||||
Leach Technology Group, Inc.
|
Delaware
|
|||||||
MarathonNorco Aerospace, Inc.
|
Delaware
|
|||||||
Mason Electric Co.
|
Delaware
|
Name of Subsidiary
|
Jurisdiction of
Incorporation or Organization |
|||||||
McKechnie Aerospace (Europe) Ltd.
|
United Kingdom
|
|||||||
McKechnie Aerospace DE, Inc.
|
Delaware
|
|||||||
McKechnie Aerospace DE, LP
|
United Kingdom
|
|||||||
McKechnie Aerospace Holdings, Inc.
|
Delaware
|
|||||||
McKechnie Aerospace US LLC
|
Delaware
|
|||||||
Mecanismos de Matamoros S.A. de C.V.
|
Mexico
|
|||||||
Militair Aviation, Ltd.
|
United Kingdom
|
|||||||
NMC Group, Inc.
|
California
|
|||||||
Nordisk Asia Pacific Limited
|
Hong Kong
|
|||||||
Nordisk Asia Pacific Pte Ltd
|
Singapore
|
|||||||
Nordisk Aviation Products (Kunshan) Ltd.
|
China
|
|||||||
Nordisk Aviation Products AS
|
Norway
|
|||||||
North Hills Signal Processing Corp.
|
Delaware
|
|||||||
North Hills Signal Processing Overseas Corp.
|
Delaware
|
|||||||
Norwich Aero Products Inc.
|
New York
|
|||||||
Palomar Products, Inc.
|
Delaware
|
|||||||
Pascall Electronics Limited
|
United Kingdom
|
|||||||
Pexco Aerospace, Inc.
|
Delaware
|
|||||||
PneuDraulics, Inc.
|
California
|
|||||||
Pressure Systems International Ltd
|
United Kingdom
|
|||||||
Racal Acoustics Limited
|
United Kingdom
|
|||||||
Racal Acoustics, Inc.
|
Delaware
|
|||||||
Rancho TransTechnology Corporation
|
California
|
|||||||
Retainers, Inc.
|
New Jersey
|
|||||||
Schneller Asia Pte. Ltd.
|
Singapore
|
|||||||
Schneller LLC
|
Delaware
|
|||||||
Schneller S.A.R.L.
|
France
|
|||||||
ScioTeq bvba
|
Belgium
|
|||||||
ScioTeq LLC
|
Delaware
|
|||||||
ScioTeq Ltd.
|
Israel
|
|||||||
ScioTeq Pte. Ltd.
|
Singapore
|
|||||||
ScioTeq SAS
|
France
|
|||||||
Semco Instruments, Inc.
|
Delaware
|
|||||||
Shield Restraint Systems, Inc.
|
Delaware
|
|||||||
Shield Restraint Systems Ltd.
|
United Kingdom
|
|||||||
Signal Processing Matamoros S.A. de C.V.
|
Mexico
|
|||||||
Skandia, Inc.
|
Illinois
|
|||||||
Skurka Aerospace, Inc.
|
Delaware
|
|||||||
SSP Industries
|
California
|
|||||||
Symetrics Industries, LLC
|
Florida
|
|||||||
Symetrics Technology Group, LLC
|
Florida
|
|||||||
TA Aerospace Co.
|
California
|
|||||||
TA Mfg Limited
|
United Kingdom
|
Name of Subsidiary
|
Jurisdiction of
Incorporation or Organization |
|||||||
Tactair Fluid Controls, Inc.
|
New York
|
|||||||
TDG ESL Holdings Inc.
|
Delaware
|
|||||||
TDG France Ultimate Parent SAS
|
France
|
|||||||
TDG Germany GmbH
|
Germany
|
|||||||
TEAC Aerospace Holdings, Inc.
|
Delaware
|
|||||||
TEAC Aerospace Technologies, Inc.
|
Delaware
|
|||||||
Technical Airborne Components Industries SPRL
|
Belgium
|
|||||||
Telair International AB
|
Sweden
|
|||||||
Telair International GmbH
|
Germany
|
|||||||
Telair International LLC
|
Delaware
|
|||||||
Telair International Services PTE Ltd
|
Singapore
|
|||||||
Telair US LLC
|
Delaware
|
|||||||
Texas Rotronics, Inc.
|
Texas
|
|||||||
TransDigm (Barbados) SRL
|
Barbados
|
|||||||
TransDigm Canada ULC
|
Quebec, Canada
|
|||||||
TransDigm European Holdings Limited
|
United Kingdom
|
|||||||
TransDigm Ireland Ltd.
|
Ireland
|
|||||||
TransDigm Receivables LLC
|
Delaware
|
|||||||
TransDigm Technologies India Private Limited
|
India
|
|||||||
TransDigm UK Holdings plc
|
United Kingdom
|
|||||||
Transicoil (Malaysia) Sendirian Berhad
|
Malaysia
|
|||||||
Transicoil LLC
|
Delaware
|
|||||||
TREALITY SVS LLC
|
Delaware
|
|||||||
TTERUSA, Inc.
|
New Jersey
|
|||||||
Wallop Industries Limited
|
United Kingdom
|
|||||||
Weston Aerospace Ltd
|
United Kingdom
|
|||||||
Whippany Actuation Systems, LLC
|
Delaware
|
|||||||
XCEL Power Systems Ltd.
|
United Kingdom
|
|||||||
Young & Franklin Inc.
|
New York
|
(1) |
Registration Statements (Form S-8 No. 333-174122 and Form S-8 No. 333-152847) pertaining to the TransDigm Group Incorporated 2006 Stock Incentive Plan,
|
(2)
|
Registration Statement (Form S-8 No. 333-132808) pertaining to the TransDigm Group Incorporated 2006 Stock Incentive Plan and the TransDigm Group Fourth Amended and Restated 2003 Stock Option Plan, as amended, and
|
(3)
|
Registration Statement (Form S-8 No. 333-200204) pertaining to the TransDigm Group 2014 Stock Option Plan;
|
/s/ Kevin Stein | ||
Name: Kevin Stein | ||
Title: President, Chief Executive Officer and Director | ||
(Principal Executive Officer) |
/s/ Michael Lisman | ||
Name: Michael Lisman | ||
Title: Chief Financial Officer | ||
(Principal Financial Officer) |
/s/ Kevin Stein | ||
Name: Kevin Stein | ||
Title: President, Chief Executive Officer and Director | ||
(Principal Executive Officer) |
/s/ Michael Lisman | ||
Name: Michael Lisman | ||
Title: Chief Financial Officer | ||
(Principal Financial Officer) |