10-K FY 2022 FINAL MOOG Inc - Flipbook - Page 23
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. These activities have included strategic acquisitions, share
buybacks and dividend payments. Today, we believe we can create long term value for our shareholders by continuing
to invest in our business through both capital expenditures, as well as investments in new market opportunities. We
will also continue exploring opportunities to make strategic acquisitions and return capital to shareholders.
COVID-19 impacts on our business
Substantially all of our operations and production activities have, to-date, remained operational. However, the residual
effects of the COVID-19 pandemic, including constraints and inflated prices within our supply chain, and localized
lockdowns in China, impacted our business. While our backlog continues to grow across our end markets, ongoing
COVID-19 disruptions continue to challenge our business. As economic activity continues to recover, we will continue
to monitor the situation, assessing further possible implications on our operations, supply chain, liquidity, cash flow
and customer orders.
Acquisitions, Divestitures and Equity Method Investments
All of our acquisitions are accounted for under the purchase method and, accordingly, the operating results for the
acquired companies are included in the Consolidated Statements of Earnings from the respective dates of acquisition.
Under purchase accounting, we record assets and liabilities at fair value and such amounts are reflected in the
respective captions on the Consolidated Balance Sheets. The purchase price described for each acquisition below is
net of any cash acquired, includes debt issued or assumed and the fair value of contingent consideration.
Acquisitions
On February 21, 2022, we acquired TEAM Accessories Limited ("TEAM") based in Dublin, Ireland for a purchase
price, net of acquired cash, of $15 million, consisting of $12 million in cash and contingent consideration with an initial
fair value of $3 million. TEAM specializes in Maintenance, Report and Overhaul ("MRO") of engine and airframe
components. This operation is included in our Aircraft Controls segment. The purchase price allocation is subject to
adjustments as we obtain additional information for our estimates during the measurement period.
On December 18, 2020, we acquired Genesys Aerosystems Group, Inc. ("Genesys"), headquartered in Mineral Wells,
Texas for a purchase price of $78 million, net of acquired cash. Genesys designs and manufactures a full suite of
electronic flight instrument systems and autopilot solutions. This operation is included in our Aircraft Controls segment.
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