10-K FY 2022 FINAL MOOG Inc - Flipbook - Page 55
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The proceeds of the RPA are classified as operating activities in our Consolidated Statement of Cash Flows and were
used to pay off the outstanding balance of the Securitization Program. Cash received from collections of sold
receivables is used by the Receivables Subsidiary to fund additional purchases of receivables on a revolving basis or
to return all or any portion of outstanding capital of the Purchaser. Subsequent collections on the pledged receivables,
which have not been sold, will be classified as operating cash flows at the time of collection. Total receivables sold
under the RPA were $522,822 for the year ended October 1, 2022. Total cash collections under the RPA were
$422,822 for the year ended October 1, 2022. The fair value of the sold receivables approximated book value due to
their credit quality and short-term nature, and as a result, no gain or loss on sale of receivables was recorded.
The amount sold to the Purchasers was $100,000 at October 1, 2022, which was derecognized from the Consolidated
Balance Sheets. As collateral against sold receivables, the Receivables Subsidiary maintains a certain level of unsold
receivables, which was $657,658 at October 1, 2022.
Previously we securitized certain trade receivables in transactions that were accounted for as secured borrowings (the
"Securitization Program"). We maintained a subordinated interest in a portion of the pool of trade receivables that
were securitized. The retained interest, which is included in Receivables in the Consolidated Balance Sheets, is
recorded at fair value, which approximates the total amount of the designated pool of accounts receivable. Refer to
Note 9 - Indebtedness, for additional disclosures related to the Securitization Program.
Over-time contract receivables are primarily associated with prime contractors and subcontractors in connection with
U.S. Government contracts, as well as commercial aircraft and satellite manufacturers. Amounts billed for over-time
contracts to the U.S. Government were $18,750 at October 1, 2022 and $11,330 at October 2, 2021. Unbilled
recoverable costs and accrued profits under over-time contracts to be billed to the U.S. Government were $38,020 at
October 1, 2022 and $32,245 at October 2, 2021. Unbilled recoverable costs and accrued profits principally represent
revenues recognized on contracts that were not billable on the balance sheet date. These amounts will be billed in
accordance with contract terms, generally as certain milestones are reached or upon shipment. Unbilled amounts
expected to be collected beyond one year are not material. In situations where billings exceed revenues recognized,
the excess is included in contract advances.
There are no material amounts of claims or unapproved change orders included in the Consolidated Balance Sheets.
There are no material balances billed but not paid by customers under retainage provisions.
Concentrations of credit risk on receivables are limited to those from significant customers who are believed to be
financially sound. Receivables from Boeing were $235,405 at October 1, 2022 and $209,653 at October 2, 2021 and
receivables from Lockheed Martin were $99,707 at October 1, 2022 and $88,744 at October 2, 2021. We perform
periodic credit evaluations of our customers’ financial condition and generally do not require collateral.
Note 5 - Inventories
Inventories, net of reserves, consist of:
October 1,
2022
$
219,893
305,328
63,245
$
588,466
Raw materials and purchased parts
Work in progress
Finished goods
Inventories, net
October 2,
2021
$
231,406
315,762
65,927
$
613,095
There are no material inventoried costs relating to over-time contracts where revenue is accounted for using the costto-cost method of accounting as of October 1, 2022 and October 2, 2021.
In 2022, we have recorded impairment charges on inventory of $1,907 associated with Russian actions in the
Ukraine. See Note 13 - Restructuring for additional disclosures relating to inventory write-downs.
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