Moog (MOG-A) FY2025 10-K Risk Factors: 71 New, 51 Dropped

What the changes say

Moog operates globally in aerospace, defense, and industrial markets with strong demand driving recent sales growth.

What changed since the prior 10-K

New

New
Total 4,201,000 1,501,000 5,702,000
New
Total 130,409 $ 187.42 — 1,660,107
New
During the preparation of our consolidated financial statements for the year ended September 27, 2025, management identified misstatements in previously issued annual consolidated financial statements and interim consolidated condensed financial statements, impacting prior periods
Management identified financial statement misstatements related to Commercial Aircraft aftermarket service contracts and warranty costs.
New
Twelve-month backlog $ 3,000 $ 2,500 $ 2,420 $ 500 20 % $ 80 3 %
New
Research and development expenses decreased in 2025 compared to 2024 due to lower level of activity, primarily in Industrial. Research and development expenses increased in 2024 compared to 2023, driven by activities supporting our new growth programs in Space and Defense and Industrial
New
Interest expense increased in 2025 compared to 2024, driven by higher outstanding debt balances, partially offset by lower interest rates. Interest expense increased in 2024 compared to 2023, driven by higher interest rates, as well as higher debt balances
New
Operating margin decreased in 2025 compared to 2024, driven by the benefit from the Employee Retention Credit associated with the CARES Act in 2024 and expenses associated with the settlement of a legal dispute in 2025, partially offset by profitable sales growth
New
Operating margin increased in 2025 compared to 2024, driven by stronger business performance and pricing, which was partially offset by the benefit from the Employee Retention Credit and the gain from the sale of a mature product line in 2024
New
Operating margin decreased in 2025 compared to 2024, driven by pressure associated with tariffs, offset by the sale of a non-core product line as part of our portfolio shaping activities
Commercial Aircraft operating margins faced downward pressure from tariffs.
New
Operating margin increased in 2025 compared to 2024 due to the benefits of our ongoing simplification initiatives, as well as prior year charges related to those initiatives. These were partially offset by the benefit from the Employee Retention Credit in 2024
New
Net cash used by investing activities in 2024 included $152 million of capital expenditures. Net cash used by investing activities in 2024 also included $6 million associated with the acquisition of DCL
New
We operate within the aerospace and defense and industrial markets. A common factor throughout our markets is the continuing demand for technologically advanced products
New
Our simulation and test products operate in markets that are largely affected by the same factors as our commercial aircraft market. Demand for our flight simulation systems will match the airline training market and the change in domestic and foreign flight hours
New
Net earnings $ 235,028 $ 208,786 $ 175,156
New
In 2025, we recorded impairment charges on long-lived assets in our Industrial segment related to property and equipment that experienced a decline in value. These charges are included in asset impairment in the Consolidated Statements of Earnings
New
Income Statement -Reporting Comprehensive Income-Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement Expenses
New
We consider the applicability and impact of all Accounting Standard Updates ("ASU"). ASUs not listed above were assessed and determined to be either not applicable, or had or are expected to have an immaterial impact on our financial statements and related disclosures
New
Net contract assets $ 371,364 $ 388,446
New
In 2025, an additional $3,320 was received for ERC under the CARES Act and was recorded as contra expense to personnel related costs of $3,084 to Costs of sales and $236 to Selling, general and administrative costs in our Consolidated Statement of Earnings
New
Property, plant and equipment, net $ 1,019,906 $ 928,588
New
Total finance lease cost $ 18,532 $ 13,406 $ 7,627
New
Financing cash flow for finance leases 10,159 6,037 4,313
New
Total finance lease liabilities $ 134,075 $ 110,396
New
Intangible assets 12 $ 271,701 $ (205,600) $ 261,780 $ (198,301)
New
Net investment balance $ 5,278 $ 3,401
New
Other accrued liabilities $ 320,075 $ 313,373
New
Total liability derivatives $ 8 $ —
New
Balance at end of period $ 473 $ 2,839
New
Balance at September 27, 2025 $ 2,298 $ — $ — $ 6,531 $ 8,829
New
Total investments at fair value $ 8,072 $ 75,106 $ 30,598 $ 113,776
New
Balance at September 27, 2025 $ 27,046
New
Total $ 455,393 $ 122,933 $ 3,273
New
Our accounting policy is to treat tax on the Global Intangible Low-Tax Income ("GILTI") as a current period cost included in tax expense the year incurred. As such, we don't measure the impact of the GILTI in our determination of deferred taxes
New
Total current 84,164 90,611 81,359
New
Income taxes $ 77,620 $ 60,960 $ 46,364
New
Total net deferred tax assets $ 196,249 $ 191,956
New
Exercisable at September 27, 2025 469,601 $ 79.16 3.44 $ 59,547
New
Net reclassification from AOCIL into earnings $ (410) $ 449
New
Net reclassification from AOCIL into earnings $ 12,656 $ (11)
New
Net sales $ 3,860,624 $ 3,608,960 $ 3,316,190
New
(dollars in thousands) September 27, 2025 September 28, 2024 September 30, 2023
New
Total net sales $ 3,860,624 $ 3,608,960 $ 3,316,190
New
Total cost of sales $ 2,794,802 $ 2,589,525 $ 2,414,090
New
Total inventory write-down $ 8,474 $ 7,027 $ 4,345
New
Total research and development $ 93,671 $ 112,773 $ 106,551
New
Total selling, general and administrative $ 553,968 $ 501,253 $ 474,937
New
Total other operating expenses $ 10,381 $ 41,648 $ 8,647
New
Total operating profit 449,606 404,465 344,038
New
Earnings before income taxes $ 312,648 $ 269,746 $ 221,520
New
Total depreciation and amortization $ 103,728 $ 96,027 $ 89,304
New
Total assets $ 4,426,055 $ 4,077,647 $ 3,768,347
New
Total capital expenditures $ 144,731 $ 151,995 $ 177,309
New
Note 24 - Subsequent Events
New
Note 25 - Revision of Previously Issued Consolidated Financial Statements
New
Net earnings $ 170,998 $ 4,158 $ 175,156
New
Net earnings $ 47,812 $ 4,823 $ 52,635
New
Net earnings $ 60,003 $ (5,497) $ 54,506 $ 107,815 $ (674) $ 107,141
New
Net earnings $ 107,815 $ (674) $ 107,141
New
Net earnings $ 56,360 $ 2,751 $ 59,111 $ 164,175 $ 2,077 $ 166,252
New
Net earnings $ 164,175 $ 2,077 $ 166,252
New
Net earnings $ 207,220 $ 1,566 $ 208,786
New
Net earnings $ 53,113 $ 4,413 $ 57,526
New
Other 2,708 (1,307) 1,401
New
Net earnings $ 55,754 $ (1,144) $ 54,610 $ 108,867 $ 3,269 $ 112,136
New
Net earnings $ 108,867 $ 3,269 $ 112,136
New
Net earnings $ 59,707 $ (1,221) $ 58,486 $ 168,574 $ 2,048 $ 170,622
New
Net earnings $ 168,574 $ 2,048 $ 170,622
New
ii)Enhance the design of certain policies and controls relating to access rights, data control, and change management in our information technology applications associated with the key reports used for these long-term aftermarket service contracts
New
iv)Reevaluate the talent and skillset of individuals involved in key management review control procedures for these contracts
New
Attestation Report of Independent Registered Public Accounting Firm
New
Deferred tax valuation allowance 10,905 2,571 1,159 — 12,317

Dropped

Dropped
Total 4,124,000 1,479,000 5,603,000
Dropped
Total 130,237 $ 180.03 — 2,172,081
Dropped
Acquisitions, Divestitures and Assets Held for Sale
Dropped
Equity Method and Other Investments
Dropped
Reviews for Impairment of Goodwill
Dropped
For our annual test of goodwill for impairment in 2024, we performed a qualitative assessment for each of our four reporting units
Dropped
Reviews for Impairment of Long-Lived Assets
Dropped
CONSOLIDATED RESULTS OF OPERATIONS
Details regarding the purchase accounting method used for acquisitions.
Dropped
Gross margin increased in 2024 compared to 2023, driven by improved performance on our space vehicle development programs, a $14 million benefit from the Employee Retention Credit associated with the CARES Act and the results of our pricing and simplification initiatives across all of our segments
Dropped
Interest expense decreased in 2024 compared to 2023 due to capitalizing $10 million of interest associated with certain major long term capital projects in 2023 and 2024. Mostly offsetting the reduction was the impact of higher rates on outstanding debt balances, as well as higher debt balances
Dropped
The effective tax rate was higher in 2024 compared to 2023, as the prior year included higher amounts of research and development tax credit benefits
Dropped
Military Aircraft net sales increased in 2024 compared to 2023, driven by growth on development and production aircraft. Sales increased $88 million in military OEM programs, driven by the ramp-up of activity on the FLRAA program and other OEM production programs
Dropped
Operating margin 9.1 % 10.4 % 8.0 %
Dropped
We operate within the aerospace and defense and industrial markets
Goodwill impairment testing methodology and valuation details.
Dropped
The industrial market we serve with our industrial automation products is influenced by several factors including capital investment levels, the pace of product and technology innovation, economic conditions and cost-reduction efforts. Our industrial automation customers mainly serve the automotive market
Dropped
Net earnings $ 207,220 $ 170,998 $ 155,177
Dropped
Net contract assets $ 409,282 $ 328,624
Dropped
Property, plant and equipment, net $ 929,357 $ 814,696
Dropped
Total finance lease cost $ 10,290 $ 8,274 $ 3,941
Dropped
Financing cash flow for finance leases 6,496 4,620 2,524
Dropped
Total finance lease liabilities $ 109,344 $ 76,846
Dropped
The operating lease ROU and finance lease disclosures above reflect write downs of $2,849 and $2,086 for the years 2024 and 2023, respectively as a result of restructuring actions taken to simplify our business operations through facility closures
Dropped
Intangible assets 12 $ 261,780 $ (198,301) $ 263,639 $ (192,002)
Dropped
Losses from equity method investments and joint ventures were $226, $62 and $724 in 2024, 2023 and 2022, respectively and are included in Other in the Consolidated Statements of Earnings
Dropped
Suffolk Technologies Fund 1, L.P., is a limited partnership included in our Industrial segment that invests in startups to transform the construction, real estate and property maintenance industries in the U.S. We have a remaining on-call capital commitment of up to $5,663
Dropped
Other accrued liabilities $ 305,180 $ 211,769
Dropped
We use forward currency contracts to hedge our net investment in certain foreign subsidiaries. As of September 28, 2024, we had no outstanding net investment hedges
Dropped
Foreign currency contracts Accrued liabilities and other $ — $ 581
Dropped
Balance at end of year $ 2,839 $ 3,089
Dropped
Balance at September 28, 2024 $ 1,400 $ 624 $ 760 $ 9,394 $ 12,178
Dropped
Amount recognized in AOCIL, before taxes $ 128,544 $ 145,536 $ 18,962 $ 11,463
Dropped
2024 2023 2022 2024 2023 2022
Dropped
Total investments at fair value $ 7,672 $ 87,894 $ 1,618 $ 97,184
Dropped
Balance at September 28, 2024 $ 30,598
Dropped
Total $ 122,933 $ 105,396 $ 3,779
Dropped
Effective income tax rate 22.6 % 20.9 % 23.6 %
Dropped
Total current 92,328 80,585 36,063
Dropped
Income taxes $ 60,593 $ 45,054 $ 47,802
Dropped
Total net deferred tax assets $ 189,918 $ 163,645
Dropped
Exercisable at September 28, 2024 523,336 $ 77.94 3.98 years $ 63,072
Dropped
Reclassification from AOCIL into earnings for the Retirement liability are included in the computation of non-service pension expense, which is included in Other and Pension settlement on the Consolidated Statements of Earnings
Dropped
Net sales $ 3,609,160 $ 3,319,122 $ 3,035,783
Dropped
Total operating profit 395,341 342,917 282,848
Dropped
Earnings before income taxes $ 267,813 $ 216,052 $ 202,979
Dropped
Total depreciation and amortization $ 93,106 $ 90,233 $ 88,389
Dropped
Total assets $ 4,093,626 $ 3,808,036 $ 3,431,840
Dropped
Total capital expenditures $ 156,018 $ 173,286 $ 139,431
Dropped
Note 23 - Related Party Transactions
Dropped
On October 31, 2024, the Board of Directors declared a $0.28 per share quarterly dividend payable on issued and outstanding shares of our Class A and Class B common stock on December 6, 2024 to shareholders of record at the close of business on November 21, 2024
Dropped
During the quarter ended September 28, 2024, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K
Dropped
Deferred tax valuation allowance 6,430 4,693 218 — 10,905

Reworded

100% rewritten
September 27, 2025 September 28, 2024
Was: 2025 2024 $ Variance % Variance
100% rewritten
2025 2024 2023 2025 2024 2023
Was: September 28, 2024 September 30, 2023
100% rewritten
Market Type 2025 2024 2023
Updated fiscal year net sales figures across Space, Defense, Military Aircraft, Commercial Aircraft, and Industrial markets.
Was: Market Type 2024 2023 2022
99% rewritten
Revenue Recognition Method 2025 2024 2023
Updated figures for over-time and point-in-time revenue recognition methods across all segments.
Was: Revenue Recognition Method 2024 2023 2022
98% rewritten
Customer Type 2025 2024 2023
Updated customer type breakdown for net sales across commercial, U.S. government, and other categories.
Was: Customer Type 2024 2023 2022
97% rewritten
Finance leases 6.4 % 6.4 %
Was: Finance leases 6.4 % 6.5 %
97% rewritten
Note 11 - Other Accrued Liabilities
97% rewritten
Non-U.S. Plans, September 27, 2025 Level 1 Level 2 Level 3 Total
Was: Non-U.S. Plans, September 30, 2023 Level 1 Level 2 Level 3 Total
97% rewritten
Evaluation of Disclosure Controls and Procedures
Was: Disclosure Controls and Procedures
96% rewritten
Statements of Earnings location 2025 2024
Was: Statements of Earnings location 2024 2023
94% rewritten
Note 6 - Property, Plant and Equipment
93% rewritten
Net reclassification from AOCIL into earnings $ 8,644 $ 8,126
Was: Net reclassification from AOCIL into earnings $ 8,126 $ 18,342
93% rewritten
Total operating lease liabilities $ 64,246 $ 64,352
Was: Total operating lease liabilities $ 64,352 $ 67,681
92% rewritten
Federal statutory income tax rate 21.0 % 21.0 % 21.0 %
91% rewritten
Derivatives designated as hedging instruments
91% rewritten
(dollars in millions) 2025 2024 2023 $ Variance $ Variance
Was: (dollars in millions) 2024 2023 2022 $ Variance % Variance $ Variance % Variance
89% rewritten
U.S. Plans, September 28, 2024 Level 1 Level 2 Level 3 Total
Was: U.S. Plans, September 30, 2023 Level 1 Level 2 Level 3 Total
89% rewritten
Changes in Internal Control over Financial Reporting
89% rewritten
Projected benefit obligation at measurement date $ 562,997 $ 575,426 $ 146,711 $ 151,637
Was: Projected benefit obligation at measurement date $ 575,426 $ 494,876 $ 151,637 $ 130,174
88% rewritten
Rate of compensation increase 3.2 % 3.8 % 3.8 % 2.5 % 3.2 % 3.2 %
Was: Rate of compensation increase 3.8 % 3.8 % 3.5 % 3.2 % 3.2 % 3.0 %
88% rewritten
Goodwill in our Space and Defense segment is net of a $4,800 accumulated impairment loss at September 27, 2025 and September 28, 2024. Goodwill in our Medical Devices reporting unit, included in our Industrial segment, is net of a $38,200 accumulated impairment loss at September 27, 2025 and September 28, 2024
Was: Goodwill in our Space and Defense segment is net of a $4,800 accumulated impairment loss at September 28, 2024 and September 30, 2023. Goodwill in our Medical Devices reporting unit, included in our Industrial segment, is net of a $38,200 accumulated impairment loss at September 28, 2024 and September 30, 2023
86% rewritten
Operating lease cost $ 32,428 $ 31,065 $ 29,982
Was: Operating lease cost $ 31,065 $ 30,031 $ 28,670
86% rewritten
Amount recognized in AOCIL, before taxes $ 2,362 $ 3,717
Was: Amount recognized in AOCIL, before taxes $ 3,717 $ 5,252
86% rewritten
Amount recognized in assets and liabilities $ (85,515) $ (102,793) $ (44,375) $ (37,861)
Was: Amount recognized in assets and liabilities $ (102,793) $ (102,432) $ (37,861) $ (32,990)
85% rewritten
Description of the Matter
85% rewritten
Acquired intangible asset amortization $ 9,702 $ 10,131 $ 11,514
Was: Acquired intangible asset amortization $ 10,131 $ 11,514 $ 13,106
84% rewritten
Acquired Intangible Assets: Acquired identifiable intangible assets are recorded at fair value and are amortized over their estimated useful lives
Was: Acquired Intangible Assets: Acquired identifiable intangible assets are recorded at cost and are amortized over their estimated useful lives
84% rewritten
There are no material inventoried costs relating to over-time contracts where revenue is accounted for using the cost-to-cost method of accounting as of September 27, 2025 and September 28, 2024
Was: There are no material inventoried costs relating to over-time contracts where revenue is accounted for using the cost-to-cost method of accounting as of September 28, 2024 and September 30, 2023
84% rewritten
We maintain short-term line of credit facilities with banks throughout the world that are principally demand lines subject to revision by the banks
83% rewritten
Total liabilities $ 1,983 $ 2,867
Was: Total liabilities $ 2,867 $ 3,994
81% rewritten
Total expense for defined contribution plans $ 61,599 $ 61,449 $ 54,518
Was: Total expense for defined contribution plans $ 61,449 $ 54,518 $ 51,707
81% rewritten
$ 17,085 $ 23,688 $ 38,427 $ 4,908 $ 4,069 $ 4,181
Was: $ 23,688 $ 38,427 $ 23,856 $ 4,069 $ 4,181 $ 7,475
79% rewritten
Funded status and amount recognized in assets and liabilities $ (85,515) $ (102,793) $ (44,375) $ (37,861)
Was: Funded status and amount recognized in assets and liabilities $ (102,793) $ (102,432) $ (37,861) $ (32,990)
78% rewritten
SEGMENT RESULTS OF OPERATIONS
77% rewritten
Note 8 - Goodwill and Intangible Assets
76% rewritten
Note 17 - Earnings per Share
74% rewritten
We presently anticipate contributing approximately $5,700 to the SERP Trust for the non-qualified plan and $4,500 to the non-U.S. plans in 2026
Was: We presently anticipate contributing approximately $6,200 to the SERP Trust for the non-qualified plan and $8,300 to the non-U.S. plans in 2025
74% rewritten
Employee Stock Purchase Plan
71% rewritten
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
71% rewritten
Note 21 - Accumulated Other Comprehensive Income (Loss)
70% rewritten
We operate under four segments, Space and Defense, Military Aircraft, Commercial Aircraft and Industrial. Our principal manufacturing facilities are located in the United States, Philippines, United Kingdom, Germany, Italy, Costa Rica, China, Netherlands, Japan, Canada, India and Lithuania
70% rewritten
Remaining Performance Obligations
67% rewritten
Employee Benefit Plans: The measurement date for plan assets and benefit obligations is the month end closest to our fiscal year end
67% rewritten
Our funding policy is to contribute at least the amount required by law in the respective countries
64% rewritten
Deferred tax assets and liabilities are reported in separate captions on the Consolidated Balance Sheets
63% rewritten
Net periodic postretirement benefit income $ (1,297) $ (1,706) $ (2,139)
Was: Net periodic postretirement benefit income $ (1,706) $ (2,139) $ (1,151)
62% rewritten
Our derivatives are valued using various pricing models or discounted cash flow analyses that incorporate observable market data, such as interest rate yield curves and currency rates, and are classified as Level 2 within the valuation hierarchy
61% rewritten
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
61% rewritten
The commercial aftermarket is driven by usage and the age of the existing aircraft fleet for passenger and cargo aircraft, which drives the need for maintenance and repairs. We have seen higher demand levels for our maintenance services and spare parts due to the increased number of flight hours across existing fleets
59% rewritten
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
59% rewritten
Fair value of plan assets 4,462 50,619
Was: Fair value of plan assets 50,619 13,107
57% rewritten
Long-term debt $ 944,123 $ 874,139
Was: Long-term debt $ 874,139 $ 863,092
57% rewritten
Opinion on Internal Control over Financial Reporting
55% rewritten
We have an Employee Stock Purchase Plan ("ESPP") that allows for qualified employees (as defined in the plan) to purchase our common stock at a price equal to 85% of the fair market value at the lower of the beginning or the end of the semi-annual offering period
53% rewritten
We are a worldwide designer, manufacturer and systems integrator of high-performance precision motion and fluid controls and control systems for a broad range of applications in aerospace and defense and industrial markets
50% rewritten
As of September 27, 2025, total unvested compensation expense associated with nonvested TVAs amounted to $5,559 and will be recognized over a weighted-average period of two years
Was: As of September 28, 2024, total unvested compensation expense associated with nonvested TVAs amounted to $4,865 and will be recognized over a weighted-average period of two years
48% rewritten
Note 9 - Equity Method and Other Investments
47% rewritten
Net deferral in AOCIL of retirement liability $ 15,334 $ (1,811)
Was: Net deferral in AOCIL of retirement liability $ (2,752) $ (6,716)
47% rewritten
For contracts recognized using the cost-to-cost method, the amount of unbilled receivables or contract advances and progress billings is determined for each contract to determine the contract asset or contract liability position at the end of each reporting period
46% rewritten
Credit and Securitization Agreements
46% rewritten
Suffolk Technologies Fund 1, L.P., is a limited partnership included in our Industrial segment that invests in startups to transform the construction, real estate and property maintenance industries in the U.S. We have a remaining on-call capital commitment of up to $4,774
Was: Suffolk Technologies Fund 1, L.P., is a limited partnership included in our Industrial segment that invests in startups to transform the construction, real estate and property maintenance industries in the U.S. We have a remaining on-call capital commitment of up to $6 million
44% rewritten
In the normal course of business, we are exposed to interest rate risk from our long-term debt. To manage these risks, we may enter into derivative instruments such as interest rate swaps which are used to adjust the proportion of total debt that is subject to variable and fixed interest rates
42% rewritten
Derivatives not designated as hedging instruments
41% rewritten
Reserves for Inventory Valuation
40% rewritten
Investment in insurance contracts: Valued at contract value, which is the fair value of the underlying investment of the insurance company
37% rewritten
The amount sold to the Purchasers was $125,000 at September 27, 2025, 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 $668,021 at September 27, 2025
Was: The amount sold to the Purchasers was $125,000 at September 28, 2024, 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 $578,124 at September 28, 2024
37% rewritten
Note 12 - Derivative Financial Instruments
36% rewritten
Income Taxes (Topic 740): Improvements to Income Tax Disclosures
34% rewritten
Stock Appreciation Rights
32% rewritten
Our corporate headquarters is located in East Aurora, New York
31% rewritten
Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures
30% rewritten
Right-of-use lease liabilities - See Note 7 - Leases, for details on obligations and timing of expected future payments, including a five-year maturity schedule
30% rewritten
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
28% rewritten
Class A and B shares reserved for issuance 12,473,258
Was: Class A and B shares reserved for issuance 11,210,367
27% rewritten
Non-U.S. Plans, September 28, 2024 Level 1 Level 2 Level 3 Total
27% rewritten
We maintain multiple employee benefit plans, covering employees at certain locations
27% rewritten
We obtained an understanding, evaluated the design and tested the operating effectiveness of the control over management’s review of estimated total contract costs at completion for these select long-term production contracts, including the data used in determining the underlying assumptions described above
Was: We obtained an understanding, evaluated the design and tested the operating effectiveness of controls over management’s review of estimated contract costs at completion, including the determination of the underlying significant assumptions described above
27% rewritten
Our large commercial production programs include the Boeing 787 and the Airbus A350 programs. Our additional production programs include the Boeing 737 MAX, the Airbus A320 and A330, the Embraer E195-E2 and various Gulfstream business jets
26% rewritten
Within aerospace and defense, we serve three end markets: defense, commercial aircraft and space
26% rewritten
An estimated annual effective tax rate is applied to our quarterly ordinary operating results. For certain significant, unusual or infrequent events, we recognize the tax impact in the quarter in which it occurs
25% rewritten
Receivables, net $ 506,768 $ 419,971
Was: Receivables, net $ 419,971 $ 434,723
25% rewritten
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
24% rewritten
Note 18 - Shareholders’ Equity
23% rewritten
Rate of compensation increase 3.2 % 3.2 % 3.8 % 2.5 % 2.4 % 3.2 %
Was: Rate of compensation increase 3.2 % 3.8 % 3.8 % 2.4 % 3.2 % 3.1 %
22% rewritten
Certain Relationships and Related Transactions, and Director Independence

All 186 risk factors

Headings as the filing states them, in filing order.

Other

01The CIST, led by our CISO, is responsible for leading enterprise-wide cybersecurity strategy, policy, standards, architecture and processes that protect, detect and respond in the defense of our data and enterprise computing systems and networks
02Total 4,201,000 1,501,000 5,702,000New
03Our corporate headquarters is located in East Aurora, New York32% rewritten
04Total 130,409 $ 187.42 — 1,660,107New
05The following discussion and analysis of our financial condition and results of operations should be read together with our consolidated financial statements and the related notes appearing elsewhere in this report
06We are a worldwide designer, manufacturer and systems integrator of high-performance precision motion and fluid controls and control systems for a broad range of applications in aerospace and defense and industrial markets53% rewritten
07We operate under four segments, Space and Defense, Military Aircraft, Commercial Aircraft and Industrial. Our principal manufacturing facilities are located in the United States, Philippines, United Kingdom, Germany, Italy, Costa Rica, China, Netherlands, Japan, Canada, India and Lithuania70% rewritten
08CRITICAL ACCOUNTING POLICIES AND ESTIMATES
09Revenue Recognition on Over-Time Contracts
10Reserves for Inventory Valuation41% rewritten
11An estimated annual effective tax rate is applied to our quarterly ordinary operating results. For certain significant, unusual or infrequent events, we recognize the tax impact in the quarter in which it occurs26% rewritten
12During the preparation of our consolidated financial statements for the year ended September 27, 2025, management identified misstatements in previously issued annual consolidated financial statements and interim consolidated condensed financial statements, impacting prior periodsNew
13Twelve-month backlog $ 3,000 $ 2,500 $ 2,420 $ 500 20 % $ 80 3 %New
14Research and development expenses decreased in 2025 compared to 2024 due to lower level of activity, primarily in Industrial. Research and development expenses increased in 2024 compared to 2023, driven by activities supporting our new growth programs in Space and Defense and IndustrialNew
15Interest expense increased in 2025 compared to 2024, driven by higher outstanding debt balances, partially offset by lower interest rates. Interest expense increased in 2024 compared to 2023, driven by higher interest rates, as well as higher debt balancesNew
16SEGMENT RESULTS OF OPERATIONS78% rewritten
17Operating margin decreased in 2025 compared to 2024, driven by the benefit from the Employee Retention Credit associated with the CARES Act in 2024 and expenses associated with the settlement of a legal dispute in 2025, partially offset by profitable sales growthNew
18Operating margin increased in 2025 compared to 2024, driven by stronger business performance and pricing, which was partially offset by the benefit from the Employee Retention Credit and the gain from the sale of a mature product line in 2024New
19Operating margin decreased in 2025 compared to 2024, driven by pressure associated with tariffs, offset by the sale of a non-core product line as part of our portfolio shaping activitiesNew
20Operating margin increased in 2025 compared to 2024 due to the benefits of our ongoing simplification initiatives, as well as prior year charges related to those initiatives. These were partially offset by the benefit from the Employee Retention Credit in 2024New
21(dollars in millions) 2025 2024 2023 $ Variance $ Variance91% rewritten
22Net cash used by investing activities in 2024 included $152 million of capital expenditures. Net cash used by investing activities in 2024 also included $6 million associated with the acquisition of DCLNew
23In the normal course of business, we are exposed to interest rate risk from our long-term debt. To manage these risks, we may enter into derivative instruments such as interest rate swaps which are used to adjust the proportion of total debt that is subject to variable and fixed interest rates44% rewritten
24The SECT has a revolving credit facility with a borrowing capacity of $25 million, maturing on October 26, 2026. Interest was 6.36% as of September 27, 2025 and is based on SOFR plus a margin of 2.23%
25At September 27, 2025, we had $925 million of unused capacity, including $901 million from the U.S. revolving credit facility after considering standby letters of credit and other limitations
26We 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
27Right-of-use lease liabilities - See Note 7 - Leases, for details on obligations and timing of expected future payments, including a five-year maturity schedule30% rewritten
28We operate within the aerospace and defense and industrial markets. A common factor throughout our markets is the continuing demand for technologically advanced productsNew
29Within aerospace and defense, we serve three end markets: defense, commercial aircraft and space26% rewritten
30The commercial aftermarket is driven by usage and the age of the existing aircraft fleet for passenger and cargo aircraft, which drives the need for maintenance and repairs. We have seen higher demand levels for our maintenance services and spare parts due to the increased number of flight hours across existing fleets61% rewritten
31Our simulation and test products operate in markets that are largely affected by the same factors as our commercial aircraft market. Demand for our flight simulation systems will match the airline training market and the change in domestic and foreign flight hoursNew
32RECENT ACCOUNTING PRONOUNCEMENTS
33Item 7A. Quantitative and Qualitative Disclosures about Market Risk59% rewritten
34Net earnings $ 235,028 $ 208,786 $ 175,156New
35Note 1 - Summary of Significant Accounting Policies
36Fiscal Year: Our fiscal year ends on the Saturday that is closest to September 30. The consolidated financial statements include 52 weeks for the years ended September 27, 2025, September 28, 2024 and September 30, 2023
37Foreign 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
38Revenue 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
39Selling, General and Administrative Expenses: Selling, general and administrative expenses are expensed as incurred. Such expenses include, but are not limited to advertising, bid and proposal, consulting, depreciation, employee payroll and related benefits, legal and professional costs
40Restricted Cash: Restricted cash principally represents funds held to satisfy supplemental retirement obligations
41Inventories: Inventories are stated at the lower of cost or net realizable value with cost determined primarily on the first-in, first-out (FIFO) method of valuation
42Acquired Intangible Assets: Acquired identifiable intangible assets are recorded at fair value and are amortized over their estimated useful lives84% rewritten
43In 2025, we recorded impairment charges on long-lived assets in our Industrial segment related to property and equipment that experienced a decline in value. These charges are included in asset impairment in the Consolidated Statements of EarningsNew
44Product Warranties: In the ordinary course of business, we warrant our products against defect in design, materials and workmanship typically over periods ranging from twelve to sixty months. We determine warranty reserves needed by product line based on historical experience and current facts and circumstances
45Employee Benefit Plans: The measurement date for plan assets and benefit obligations is the month end closest to our fiscal year end67% rewritten
46Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures31% rewritten
47Income Taxes (Topic 740): Improvements to Income Tax Disclosures36% rewritten
48Income Statement -Reporting Comprehensive Income-Expense Disaggregation Disclosures (Topic 220): Disaggregation of Income Statement ExpensesNew
49We consider the applicability and impact of all Accounting Standard Updates ("ASU"). ASUs not listed above were assessed and determined to be either not applicable, or had or are expected to have an immaterial impact on our financial statements and related disclosuresNew
50Note 2 - Revenue from Contracts with Customers
51Contract Assets and Liabilities
52For contracts recognized using the cost-to-cost method, the amount of unbilled receivables or contract advances and progress billings is determined for each contract to determine the contract asset or contract liability position at the end of each reporting period47% rewritten
53Net contract assets $ 371,364 $ 388,446New
54Remaining Performance Obligations70% rewritten
55Receivables, net $ 506,768 $ 419,97125% rewritten
56The amount sold to the Purchasers was $125,000 at September 27, 2025, 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 $668,021 at September 27, 202537% rewritten
57There 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 provisions71% rewritten
58In 2025, an additional $3,320 was received for ERC under the CARES Act and was recorded as contra expense to personnel related costs of $3,084 to Costs of sales and $236 to Selling, general and administrative costs in our Consolidated Statement of EarningsNew
59There are no material inventoried costs relating to over-time contracts where revenue is accounted for using the cost-to-cost method of accounting as of September 27, 2025 and September 28, 202484% rewritten
60Note 6 - Property, Plant and Equipment94% rewritten
61Property, plant and equipment, net $ 1,019,906 $ 928,588New
62Operating lease cost is included in Cost of sales and Selling, general and administrative on the Consolidated Statements of Earnings. Finance lease cost is included in Cost of sales, Selling, general and administrative and Interest on the Consolidated Statements of Earnings
63Operating lease cost $ 32,428 $ 31,065 $ 29,98286% rewritten
64Total finance lease cost $ 18,532 $ 13,406 $ 7,627New
65Financing cash flow for finance leases 10,159 6,037 4,313New
66September 27, 2025 September 28, 2024100% rewritten
67Total operating lease liabilities $ 64,246 $ 64,35293% rewritten
68Total finance lease liabilities $ 134,075 $ 110,396New
69Finance leases 6.4 % 6.4 %97% rewritten
70Note 8 - Goodwill and Intangible Assets77% rewritten
71Goodwill in our Space and Defense segment is net of a $4,800 accumulated impairment loss at September 27, 2025 and September 28, 2024. Goodwill in our Medical Devices reporting unit, included in our Industrial segment, is net of a $38,200 accumulated impairment loss at September 27, 2025 and September 28, 202488% rewritten
72Intangible assets 12 $ 271,701 $ (205,600) $ 261,780 $ (198,301)New
73Acquired intangible asset amortization $ 9,702 $ 10,131 $ 11,51485% rewritten
74Note 9 - Equity Method and Other Investments48% rewritten
75Net investment balance $ 5,278 $ 3,401New
76Suffolk Technologies Fund 1, L.P., is a limited partnership included in our Industrial segment that invests in startups to transform the construction, real estate and property maintenance industries in the U.S. We have a remaining on-call capital commitment of up to $4,77446% rewritten
77We maintain short-term line of credit facilities with banks throughout the world that are principally demand lines subject to revision by the banks84% rewritten
78Long-term debt $ 944,123 $ 874,13957% rewritten
79Note 11 - Other Accrued Liabilities97% rewritten
80Other accrued liabilities $ 320,075 $ 313,373New
81Note 12 - Derivative Financial Instruments37% rewritten
82Derivatives designated as hedging instruments91% rewritten
83Derivatives not designated as hedging instruments42% rewritten
84Total liability derivatives $ 8 $ —New
85Our derivatives are valued using various pricing models or discounted cash flow analyses that incorporate observable market data, such as interest rate yield curves and currency rates, and are classified as Level 2 within the valuation hierarchy62% rewritten
86Total liabilities $ 1,983 $ 2,86783% rewritten
87Balance at end of period $ 473 $ 2,839New
88Balance at September 27, 2025 $ 2,298 $ — $ — $ 6,531 $ 8,829New
89We maintain multiple employee benefit plans, covering employees at certain locations27% rewritten
90Total expense for defined contribution plans $ 61,599 $ 61,449 $ 54,51881% rewritten
91Projected benefit obligation at measurement date $ 562,997 $ 575,426 $ 146,711 $ 151,63789% rewritten
92Funded status and amount recognized in assets and liabilities $ (85,515) $ (102,793) $ (44,375) $ (37,861)79% rewritten
93Amount recognized in assets and liabilities $ (85,515) $ (102,793) $ (44,375) $ (37,861)86% rewritten
94Our funding policy is to contribute at least the amount required by law in the respective countries67% rewritten
95Fair value of plan assets 4,462 50,61959% rewritten
96Fair value of plan assets 519,513 523,253
972025 2024 2023 2025 2024 2023100% rewritten
98Rate of compensation increase 3.2 % 3.8 % 3.8 % 2.5 % 3.2 % 3.2 %88% rewritten
99Rate of compensation increase 3.2 % 3.2 % 3.8 % 2.5 % 2.4 % 3.2 %23% rewritten
100Shares of registered investment companies: Consists of both equity and fixed income mutual funds. Valued at quoted market prices that represent the net asset value ("NAV") of shares held by the plan at year end
101Investment in insurance contracts: Valued at contract value, which is the fair value of the underlying investment of the insurance company40% rewritten
102Non-U.S. Plans, September 27, 2025 Level 1 Level 2 Level 3 Total97% rewritten
103U.S. Plans, September 28, 2024 Level 1 Level 2 Level 3 Total89% rewritten
104Non-U.S. Plans, September 28, 2024 Level 1 Level 2 Level 3 Total27% rewritten
105Total investments at fair value $ 8,072 $ 75,106 $ 30,598 $ 113,776New
106Balance at September 27, 2025 $ 27,046New
107Total $ 455,393 $ 122,933 $ 3,273New
108$ 17,085 $ 23,688 $ 38,427 $ 4,908 $ 4,069 $ 4,18181% rewritten
109We presently anticipate contributing approximately $5,700 to the SERP Trust for the non-qualified plan and $4,500 to the non-U.S. plans in 202674% rewritten
110Amount recognized in AOCIL, before taxes $ 2,362 $ 3,71786% rewritten
111Net periodic postretirement benefit income $ (1,297) $ (1,706) $ (2,139)63% rewritten
112Federal statutory income tax rate 21.0 % 21.0 % 21.0 %92% rewritten
113Our accounting policy is to treat tax on the Global Intangible Low-Tax Income ("GILTI") as a current period cost included in tax expense the year incurred. As such, we don't measure the impact of the GILTI in our determination of deferred taxesNew
114Total current 84,164 90,611 81,359New
115Income taxes $ 77,620 $ 60,960 $ 46,364New
116Total net deferred tax assets $ 196,249 $ 191,956New
117Deferred tax assets and liabilities are reported in separate captions on the Consolidated Balance Sheets64% rewritten
118Note 17 - Earnings per Share76% rewritten
119Note 18 - Shareholders’ Equity24% rewritten
120Class A and B shares reserved for issuance 12,473,25828% rewritten
121Note 19 - Equity-Based Compensation
122We have an Employee Stock Purchase Plan ("ESPP") that allows for qualified employees (as defined in the plan) to purchase our common stock at a price equal to 85% of the fair market value at the lower of the beginning or the end of the semi-annual offering period55% rewritten
123As of September 27, 2025, total unvested compensation expense associated with nonvested TVAs amounted to $5,559 and will be recognized over a weighted-average period of two years50% rewritten
124Employee Stock Purchase Plan74% rewritten
125Stock Appreciation Rights34% rewritten
126Exercisable at September 27, 2025 469,601 $ 79.16 3.44 $ 59,547New
127Note 20 - Stock Employee Compensation Trust and Supplemental Retirement Plan Trust
128Note 21 - Accumulated Other Comprehensive Income (Loss)71% rewritten
129Statements of Earnings location 2025 202496% rewritten
130Net reclassification from AOCIL into earnings $ 8,644 $ 8,12693% rewritten
131Net reclassification from AOCIL into earnings $ (410) $ 449New
132Net reclassification from AOCIL into earnings $ 12,656 $ (11)New
133Net deferral in AOCIL of retirement liability $ 15,334 $ (1,811)47% rewritten
134Our large commercial production programs include the Boeing 787 and the Airbus A350 programs. Our additional production programs include the Boeing 737 MAX, the Airbus A320 and A330, the Embraer E195-E2 and various Gulfstream business jets27% rewritten
135Market Type 2025 2024 2023100% rewritten
136Customer Type 2025 2024 202398% rewritten
137Revenue Recognition Method 2025 2024 202399% rewritten
138Net sales $ 3,860,624 $ 3,608,960 $ 3,316,190New
139(dollars in thousands) September 27, 2025 September 28, 2024 September 30, 2023New
140Total net sales $ 3,860,624 $ 3,608,960 $ 3,316,190New
141Total cost of sales $ 2,794,802 $ 2,589,525 $ 2,414,090New
142Total inventory write-down $ 8,474 $ 7,027 $ 4,345New
143Total research and development $ 93,671 $ 112,773 $ 106,551New
144Total selling, general and administrative $ 553,968 $ 501,253 $ 474,937New
145Total other operating expenses $ 10,381 $ 41,648 $ 8,647New
146Total operating profit 449,606 404,465 344,038New
147Earnings before income taxes $ 312,648 $ 269,746 $ 221,520New
148Total depreciation and amortization $ 103,728 $ 96,027 $ 89,304New
149Total assets $ 4,426,055 $ 4,077,647 $ 3,768,347New
150Total capital expenditures $ 144,731 $ 151,995 $ 177,309New
151From 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 flows30% rewritten
152Note 24 - Subsequent EventsNew
153Note 25 - Revision of Previously Issued Consolidated Financial StatementsNew
154Net earnings $ 170,998 $ 4,158 $ 175,156New
155Net earnings $ 47,812 $ 4,823 $ 52,635New
156Net earnings $ 60,003 $ (5,497) $ 54,506 $ 107,815 $ (674) $ 107,141New
157Net earnings $ 107,815 $ (674) $ 107,141New
158Net earnings $ 56,360 $ 2,751 $ 59,111 $ 164,175 $ 2,077 $ 166,252New
159Net earnings $ 164,175 $ 2,077 $ 166,252New
160Net earnings $ 207,220 $ 1,566 $ 208,786New
161Net earnings $ 53,113 $ 4,413 $ 57,526New
162Other 2,708 (1,307) 1,401New
163Net earnings $ 55,754 $ (1,144) $ 54,610 $ 108,867 $ 3,269 $ 112,136New
164Net earnings $ 108,867 $ 3,269 $ 112,136New
165Net earnings $ 59,707 $ (1,221) $ 58,486 $ 168,574 $ 2,048 $ 170,622New
166Net earnings $ 168,574 $ 2,048 $ 170,622New
167Opinion on the Financial Statements
168Description of the Matter85% rewritten
169We obtained an understanding, evaluated the design and tested the operating effectiveness of the control over management’s review of estimated total contract costs at completion for these select long-term production contracts, including the data used in determining the underlying assumptions described above27% rewritten
170MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING61% rewritten
171Opinion on Internal Control over Financial Reporting57% rewritten
172We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects
173Definition and Limitations of Internal Control Over Financial Reporting
174Evaluation of Disclosure Controls and Procedures97% rewritten
175ii)Enhance the design of certain policies and controls relating to access rights, data control, and change management in our information technology applications associated with the key reports used for these long-term aftermarket service contractsNew
176iv)Reevaluate the talent and skillset of individuals involved in key management review control procedures for these contractsNew
177Changes in Internal Control over Financial Reporting89% rewritten
178Attestation Report of Independent Registered Public Accounting FirmNew
179Directors, Executive Officers and Corporate Governance
180We have adopted a code of ethics that applies to our Chief Executive Officer, Chief Financial Officer and Controller. The code of ethics is available upon request without charge by contacting our Chief Financial Officer at 716-652-2000
181Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters25% rewritten
182Certain Relationships and Related Transactions, and Director Independence22% rewritten
183Exhibits and Financial Statement Schedules
184Valuation and Qualifying Accounts
185Credit and Securitization Agreements46% rewritten
186Deferred tax valuation allowance 10,905 2,571 1,159 — 12,317New

Other Moog 10-Ks

FY2024 10-K risk factors
166 risks
Aerospace and defense sales dominate Moog's business, representing 73% of 2024 revenue. Defense spending and military programs like FLRAA drive key segments.
Filed Nov 27, 2024

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The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.