10-K FY 2022 FINAL MOOG Inc - Flipbook - Page 84
Table of Contents
Note 22 - Related Party Transactions
John Scannell, Moog's Chairman of the Board of Directors and Chief Executive Officer, is a member of the Board of
Directors of M&T Bank Corporation and M&T Bank. We currently engage with M&T Bank in the ordinary course of
business for various financing activities, all of which were initiated prior to the election of Mr. Scannell to the Board.
M&T Bank provides credit extension for routine purchases, which totaled $14,284, $14,176 and $15,533 for 2022,
2021 and 2020, respectively. At October 1, 2022, we held outstanding leases with a total original cost of $16,609. At
October 1, 2022, outstanding deposits on our behalf for future equipment leases totaled $2,445. M&T Bank also
maintains an interest of approximately 12% in our U.S. revolving credit facility. Further details of the U.S. revolving
credit facility can be found in Note 9 - Indebtedness. Wilmington Trust, a subsidiary of M&T Bank, is the trustee of the
pension assets for our qualified U.S. defined benefit pension plan. For further details, see Note 14 - Employee Benefit
Plans.
Note 23 - Commitments and Contingencies
From time to time, we are involved in legal proceedings. We are not a party to any pending legal proceedings which
management believes will result in a material adverse effect on our financial condition, results of operations or cash
flows.
We are engaged in administrative proceedings with governmental agencies and legal proceedings with governmental
agencies and other third parties in the normal course of our business, including litigation under Superfund laws,
regarding environmental matters. We believe that adequate reserves have been established for our share of the
estimated cost for all currently pending environmental administrative or legal proceedings and do not expect that
these environmental matters will have a material adverse effect on our financial condition, results of operations or
cash flows.
In the ordinary course of business we could be subject to ongoing claims or disputes from our customers, the ultimate
settlement of which could have a material adverse impact on our consolidated results of operations. While the
receivables and any loss provisions recorded to date reflect management's best estimate of the projected costs to
complete a given project, there is still significant effort required to complete the ultimate deliverable. Future variability
in internal cost and future profitability is dependent upon a number of factors including deliveries, performance and
government budgetary pressures. The inability to achieve a satisfactory contractual solution, further unplanned
delays, additional developmental cost growth or variations in any of the estimates used in the existing contract
analysis could lead to further loss provisions. Additional losses could have a material adverse impact on our financial
condition, results of operations or cash flows in the period in which the loss may be recognized.
We are contingently liable for $20,450 of standby letters of credit issued by a bank to third parties on our behalf at
October 1, 2022. Purchase commitments outstanding at October 1, 2022 are $1,113,990 including $64,594 for
property, plant and equipment.
Note 24 - Subsequent Events
On October 27, 2022, we entered into the Sixth Amended and Restated Loan Agreement (the "Agreement") amending
the terms of the Company's Fifth Amended and Restated Loan Agreement. Among other matters, the Agreement
extended the maturity of the credit facility from October 15, 2024 to October 27, 2027.
On November 3, 2022, the Board of Directors declared a $0.26 per share quarterly dividend payable on issued and
outstanding shares of our Class A and Class B common stock on December 5, 2022 to shareholders of record at the
close of business on November 18, 2022.
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