FY2021 10-K Document - FINAL 11 15 21 - Flipbook - Page 47
Table of Contents
Notes to Consolidated Financial Statements
(dollars in thousands, except per share data)
Note 1 - Summary of Significant Accounting Policies
Consolidation: The consolidated financial statements include the accounts of Moog Inc. and all of our U.S. and
foreign subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Fiscal Year: Our fiscal year ends on the Saturday that is closest to September 30. The consolidated financial
statements include 52 weeks for the year ended October 2, 2021, 53 weeks for the year ended October 3, 2020 and
52 weeks for the year ended September 28, 2019.
Operating Cycle: Consistent with industry practice, aerospace and defense related inventories, unbilled recoverable
costs and profits on over-time contract receivables, customer advances, warranties and contract reserves include
amounts relating to contracts having long production and procurement cycles, portions of which are not expected to
be realized or settled within one year.
Foreign Currency Translation: Assets and liabilities of subsidiaries that prepare financial statements in currencies
other than the U.S. dollar are translated using rates of exchange as of the balance sheet date and the statements of
earnings are translated at the average rates of exchange for each reporting period.
Use of Estimates: The preparation of financial statements in conformity with U.S. generally accepted accounting
principles requires management to make estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent liabilities at the date of the financial statements and the reported amounts of
revenues and expenses during the reporting periods. Actual results could differ from those estimates and
assumptions.
Revenue Recognition: We recognize revenue from contracts with customers using an over-time, cost-to-cost method
of accounting or at the point in time that control transfers to the customer. For additional discussion on revenue
recognition, see Note 2, Revenue from Contracts with Customers.
Shipping and Handling Costs: Shipping and handling costs are included in cost of sales.
Research and Development: Research and development costs are expensed as incurred and include salaries,
benefits, consulting, material costs and depreciation.
Bid and Proposal Costs: Bid and proposal costs are expensed as incurred and classified as selling, general and
administrative expenses.
Equity-Based Compensation: Our equity-based compensation plans allow for various types of equity-based
incentive awards. The types and mix of these incentive awards are evaluated on an on-going basis and may vary
based on our overall strategy regarding compensation. Equity-based compensation expense is based on awards that
are ultimately expected to vest over the requisite service periods and are based on the fair value of the award
measured on the grant date. Vesting requirements vary for directors, officers and key employees. In general, awards
granted to officers and key employees principally vest over three years, in equal annual installments for time-based
awards and in three years cliff vest for performance-based awards. We have elected to account for forfeitures when
the forfeiture of the underlying awards occur. Equity-based compensation expense is included in selling, general and
administrative expenses.
Cash and Cash Equivalents: All highly liquid investments with an original maturity of three months or less are
considered cash equivalents.
Restricted Cash: Restricted cash principally represents funds held to satisfy supplemental retirement obligations.
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