FY2021 10-K Document - FINAL 11 15 21 - Flipbook - Page 4
Table of Contents
PART I
The Registrant, Moog Inc., a New York corporation formed in 1951, is referred to in this report as “Moog” or the
"Company" or in the nominative “we” or the possessive “our.”
Unless otherwise noted or the context otherwise requires, all references to years in this report are to fiscal years.
Item 1.
Business.
Description of the Business. Moog is a worldwide designer, manufacturer and systems integrator of high
performance precision motion and fluid controls and controls systems for a broad range of applications in aerospace
and defense and industrial markets. We have three operating segments: Aircraft Controls, Space and Defense
Controls and Industrial Systems.
Additional information describing the business and comparative segment revenues, operating profits and related
financial information for 2021, 2020 and 2019 are provided in Note 21, Segments, of Item 8, Financial Statements and
Supplementary Data of this report.
Distribution. Our sales and marketing organization consists of individuals possessing highly specialized technical
expertise. This expertise is required in order to effectively evaluate a customer’s precision control requirements and to
facilitate communication between the customer and our engineering staff. Our sales staff is the primary contact with
customers. Manufacturers’ representatives are used to cover certain domestic aerospace markets. Distributors are
used selectively to cover certain industrial and medical markets.
Industry and Competitive Conditions. We experience considerable competition in our aerospace and defense and
industrial markets. We believe that the principal points of competition in our markets are product quality, reliability,
price, design and engineering capabilities, product development, conformity to customer specifications, timeliness of
delivery, effectiveness of the distribution organization and quality of support after the sale. We believe we compete
effectively on all of these bases. Competitors in our three operating segments include:
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Aircraft Controls: Curtiss-Wright, Liebherr, Nabtesco, Parker-Hannifin, Raytheon Technologies and
Woodward.
Space and Defense Controls: Aerojet Rocketdyne, Airbus, Amphenol, Cobham, Curtiss-Wright, Eaton, Elbit,
General Dynamics, Glenair, Honeywell, IHI-Aerospace, Kongsberg, LORD, RUAG, Rafael Advanced Defense
Systems, Raytheon Technologies, Schleifring, SEAKR, and Woodward.
Industrial Systems: Allied Motion, Baumüller, Atos S.p.A, Bosch Rexroth, Cardinal Health, Eaton, ebm-papst,
MTS Systems, Nidec, Parker-Hannifin, Schleifring, Shinano Kenshi, Smiths Medical, Wittenstein Group and
Woodward.
Government Contracts. All United States ("U.S.") Government contracts are subject to termination by the U.S.
Government. In 2021, sales under U.S. Government contracts represented 44% of total sales and were primarily
within our Aircraft Controls and Space and Defense Controls segments.
Backlog. Our twelve-month backlog represents confirmed orders we believe will be recognized as revenue within the
next twelve months. As noted in Item 6, Selected Financial Data of this report, as of October 2, 2021, our twelvemonth backlog was $2.1 billion, an increase of 24% compared to October 3, 2020. See Item 7, Management’s
Discussion and Analysis of Financial Condition and Results of Operations of this report for a discussion on the various
business drivers and conditions contributing to the twelve-month backlog change.
Raw Materials. Materials, supplies and components are purchased from numerous suppliers. We believe the loss of
any one supplier, although potentially disruptive in the short-term, would not materially affect our operations in the
long-term.
Working Capital. See the discussion on operating cycle in Note 1, Summary of Significant Accounting Policies, of
Item 8, Financial Statements and Supplementary Data of this report.
Seasonality. Our business is generally not seasonal; however, certain products and systems, such as those in the
energy market of our Industrial Systems segment, do experience seasonal variations in sales levels.
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