10-K FY 2022 FINAL MOOG Inc - Flipbook - Page 54
Table of Contents
On December 3, 2021, we sold the assets of our Navigation Aids ("NAVAIDS") business based in Salt Lake City, Utah
previously included in our Aircraft Controls segment. We received net proceeds of $35,550 and recorded a gain of
$16,146, net of transaction costs. The gain is subject to adjustments associated with amounts currently held in
escrow.
In the fourth quarter of 2021, we sold a non-core business of our Industrial Systems segment. We received net
proceeds of $11,285 and recorded a loss of $1,536.
In the first quarter of 2021, we sold a non-core business in our Aircraft Controls segment for $2,081 in net
consideration and recorded a loss of $683.
Equity Method Investments
On August 31, 2022, we contributed $1,024 to Suffolk Technologies Fund 1, L.P., a limited partnership that invests in
startups to transform the construction, real estate and property maintenance industries in the U.S. As we are a limited
partner in this investment, we are accounting for it using the equity method. We have a remaining on-call capital
commitment of up to $6,976. This operation is included in our Industrial Systems segment.
On June 3, 2022, we increased our investment in NOVI LLC ("NOVI") by $571 and now hold a 42.5% ownership
interest. NOVI specializes is applying machine learning algorithms to space situational awareness. We are accounting
for this investment using the equity method. This operation is included in our Space and Defense Controls segment.
Note 4 - Receivables
Receivables consist of:
October 1,
2022
$
363,137
614,760
16,973
(4,608)
$
990,262
Accounts receivable
Unbilled receivables
Other
Less allowance for credit losses
Receivables, net
October 2,
2021
$
395,674
546,764
7,842
(4,351)
$
945,929
Net receivables disclosed above reflects a non-cash write-down of $642 recorded for the year ended October 1, 2022
associated with Russian activities in Ukraine.
On November 4, 2021, Moog Receivables LLC (the "Receivables Subsidiary"), a wholly owned bankruptcy remote
special purpose subsidiary of Moog Inc. (the "Company"), as seller, the Company, as master servicer, Wells Fargo
Bank, N.A., as administrative agent (the "Agent") and certain purchasers (collectively, the "Purchasers") entered into
an Amended and Restated Receivables Purchase Agreement (the "RPA"). The RPA matures on November 4, 2024
and is subject to customary termination events related to transactions of this type.
Under the RPA, the Receivables Subsidiary may sell receivables to the Purchasers in amounts up to a $100,000 limit.
The receivables will be sold to the Purchasers in consideration for the Purchasers making payments of cash, which is
referred to as "capital" for purposes of the RPA, to the Receivables Subsidiary in accordance with the terms of the
RPA. The Receivables Subsidiary may sell receivables to the Purchasers so long as certain conditions are satisfied,
including that, at any date of determination, the aggregate capital paid to the Receivables Subsidiary does not exceed
a "capital coverage amount", equal to an adjusted net receivables pool balance minus a required reserve. Each
Purchaser's share of capital accrues yield at a variable rate plus an applicable margin.
The parties intend that the conveyance of receivables to the Agent, for the ratable benefit of the Purchasers will
constitute a purchase and sale of receivables and not a pledge for security. The Receivables Subsidiary has
guaranteed to each Purchaser and Agent the prompt payment of sold receivables, and to secure the prompt payment
and performance of such guaranteed obligations, the Receivables Subsidiary has granted a security interest to the
Agent, for the benefit of the Purchasers, in all assets of the Receivables Subsidiary. The assets of the Receivables
Subsidiary are not available to pay our creditors or any affiliate thereof. In our capacity as master servicer under the
RPA, we are responsible for administering and collecting receivables and have made customary representations,
warranties, covenants and indemnities. We also provided a performance guarantee for the benefit of the Purchaser.
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