FY2021 10-K Document - FINAL 11 15 21 - Flipbook - Page 22
Table of Contents
By focusing on customer intimacy and commitment to solving our customers' most demanding technical problems, we
have been able to expand our control product franchise to multiple markets; organically growing from a highperformance components manufacturer to a high-performance systems designer, manufacturer and systems
integrator. In addition, we continue expanding our content positions on our current platforms, seeking to be the
market-leading supplier in the niche markets we serve. We also look for innovation in all aspects of our business,
employing new technologies to improve productivity and operational performance.
Our fundamental long-term strategies to achieve our goals center around talent, lean and innovation and include:
• a strong leadership team that has positioned the Company for growth,
• utilizing our global capabilities and strong engineering heritage to innovate,
• maintaining our technological excellence by solving our customers’ most demanding technical problems in
applications "When Performance Really Matters®,"
• continuing to invest in talent development to strengthen employee performance, and
• maximizing customer value by implementing lean enterprise principles.
These fundamentals will help us achieve our financial objective of increasing shareholder value with sustainable
competitive advantages across our segments. In doing so, we expect to maintain a balanced, diversified portfolio in
terms of markets served, product applications, customer bases and geographic presence.
We focus on improving shareholder value through strategic revenue growth, both organic and acquired, through
improving operating efficiencies and manufacturing initiatives and through utilizing low cost manufacturing facilities
without compromising quality. Historically, we have taken a balanced approach to capital deployment in order to
maximize shareholder returns over the long-term. Our activities have included strategic acquisitions, share buybacks
and dividend payments. As we continue to adapt to the changing COVID-19 environment, we believe we are well
positioned to invest in our business and have returned to a balanced capital deployment strategy. We will organically
invest in our operations and explore opportunities to make strategic acquisitions and return capital to shareholders.
Acquisitions and Divestitures
All of our acquisitions are accounted for under the purchase method and, accordingly, the operating results for the
acquired companies are included in the Consolidated Statements of Earnings from the respective dates of acquisition.
Under purchase accounting, we record assets and liabilities at fair value and such amounts are reflected in the
respective captions on the Consolidated Balance Sheets. The purchase price described for each acquisition below is
net of any cash acquired, includes debt issued or assumed and the fair value of contingent consideration.
Acquisitions
In the first quarter of 2021, we acquired Genesys Aerosystems Group, Inc. ("Genesys"), headquartered in Mineral
Wells, Texas for a purchase price of $78 million. Genesys designs and manufactures a full suite of electronic flight
instrument systems and autopilot solutions. This operation is included in our Aircraft Controls segment.
In the first quarter of 2020, we acquired Gesellschaft für Antriebstechnik mbH and GAT Inc. ("GAT"), headquartered in
Geisenheim, Germany for a purchase price of $54 million. GAT designs and manufactures high-end fluid rotating
unions and slip rings. This operation is included in our Industrial Systems segment.
Divestitures
In the fourth quarter of 2021, we sold a non-core business of our Industrial Systems segment for $11 million in net
consideration and recorded a loss in other income of $2 million.
In the third quarter of 2021, we announced that we entered into a definitive agreement to sell the assets of our
Navigation Aids ("Navaids") business to Thales. Navaids is engaged in the business of designing, developing,
manufacturing and marketing ground and ship-based radio frequency navigation beacons and related antennas for
military and civilian applications. The business is based in Salt Lake City, Utah and is included in our Aircraft Controls
segment. The transaction is subject to regulatory review and customary closing conditions.
In the first quarter of 2020, we sold a non-core business of our Industrial Systems segment for $2 million in net
consideration and recorded a minimal gain in other income.
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