ࡱ>  l \pThe Free Software Foundation B=PF0*8X@"1 Helvetica1Courier1 Courier New1 Courier New1 Helvetica$#,##0_);($#,##0)$#,##0_);[Red]($#,##0)$#,##0.00_);($#,##0.00)$#,##0.00_);[Red]($#,##0.00)-**_($* #,##0_);_($* (#,##0);_($* "-"_);_(@_)*)'_(* #,##0_);_(* (#,##0);_(* "-"_);_(@_)5,2_($* #,##0.00_);_($* (#,##0.00);_($* "-"??_);_(@_)2+/_(* #,##0.00_);_(* (#,##0.00);_(* "-"??_);_(@_)2$#,##0.00;[Red]$#,##0.003$#,##0.00;[Red]($#,##0.00)4$#,##0;[Red]($#,##00)50.00%;[Red](0.00%)6 0%;[Red](0%)7#,##0.00;[Red](#,##0.00)8#,##0;[Red](#,##0)                + ) , *   Ј ~~ ؈ ~~#؈ ~~ ؈ ~~8#܈ ~~4#܈ ~~<#܈ ~~3#܈ ~~7#܈ ~~83ffff̙̙3f3fff3f3f33333f333MTS SYSTEMS CORPORATION#MTS SYSTEMS COR (1)+Table of ContentsE Balance SheetkIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIES";NOTE 4 WARRANTY OBLIGATIONSq Property and Equipment(Goodwill+Intangible AssetsAIntangible Asse (1)VIntangible Asse (2)&teAssets and Liabilities Measured"yAssets and Liabilities (1)"Other Financial InstrumentsOther Financial (1)&|NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)&Cash Flow Hedging Currency RiskInterest Rate Swaps&Foreign Currency Balance Sheet !NOTE 8 FINANCING6NOTE 8 FINANCIN (1)XD Stock Options%SNOTE 10 EMPLOYEE BENEFIT PLANSgShare IssuancewTangible Equity Units!׈NOTE 13 EARNINGS PER SHARE&ʠNOTE 14 OTHER COMPREHENSIVE INCnNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)[NOTE 14 OTHER C (3) NOTE 14 OTHER C (4)&Q,NOTE 15 BUSINESS SEGMENT INFORM&bBNOTE 16 RESTRUCTURING AND RELAT%WNOTE 16 RESTRUCTURING AND (1)%1mNOTE 16 RESTRUCTURING AND (2)%ƀNOTE 16 RESTRUCTURING AND (3)$iNOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)&Pro Forma Financial Information:Results of OperationsResults of Oper (1)Revenue  Gross Profit$Selling and Marketing Expense&3General and Administrative Expe&THResearch and Development Expens\Income from OperationsqInterest Expense Net}Other Income Expense Net#Income Tax Provision BenefitW Net IncomezResults of Oper (2)7 Revenue (1)Gross Profit (1)!$Selling and Marketing (1)^General and Adm (1)$0Research and Development (1)DIncome from Ope (1)YResults of Oper (3)?tResults of Oper (4) Revenue (2)Gross Profit (2)!Selling and Marketing (2)6General and Adm (2)$Research and Development (2)"Income Loss from Operations&Item 2 Unregistered Sales of Eq l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } 0} +      MTS SYSTEMS CORP 10-Q 08/07/2017MTS SYSTEMS CORPORATION    Minnesota  41-0908057$ (State or other jurisdiction, $(I.R.S. Employer Identification No.)) !of incorporation or organization)  14000 Technology Drive~ `Eden Prairie, Minnesota0((Address of principal executive offices) (Zip Code)$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0wk_GO,=PF0*8X> @ l  +  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONTable of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } $4} !      MTS SYSTEMS CORP 10-Q 08/07/2017MTS SYSTEMS CORPORATION  ! Large accelerated filer ? Accelerated filer ?   Non-accelerated filer ?# Smaller reporting company ?3 +(Do not check if smaller reporting company) !Emerging growth company ?$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/, |wk_G^-!=PF0*8X> @ l  ;'=E  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1) Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } y } :} } $ ;     MTS SYSTEMS CORP 10-Q 08/07/2017Table of Contents    & PART I ? FINANCIAL INFORMATION       Item 1. Financial Statements      .&Consolidated Balance Sheets as of July~  /'1, 2017 (unaudited) and October 1, 2016-%Consolidated Statements of Income for~ 4,the Three and Nine Months Ended July 1, 2017$and July 2, 2016 (unaudited)0(Consolidated Statements of Comprehensive~ 2*Income for the Three and Nine Months Ended1)July 1, 2017 and July 2, 2016 (unaudited)-%Consolidated Statements of Cash Flows~ 2*for the Nine Months Ended July 1, 2017 and July 2, 2016 (unaudited)2*Notes to Consolidated Financial Statements 6-30 (unaudited)Dyl}qe5xH6@BN !"#$%&'()*+,-./0123456789: Item 2., $Management?s Discussion and Analysis 31-44 !8!0of Financial Condition and Results of Operations"""#Item 3.0#(Quantitative and Qualitative Disclosures~ ##$$About Market Risk%%%&Item 4.&Controls and Procedures~ &&'''#(PART II ? OTHER INFORMATION()))*Item 1.*Legal Proceedings~ **+++,Item 1A., Risk Factors~ ,,---.Item 2./.'Unregistered Sales of Equity Securities~ ..//and Use of Proceeds0001Item 5.1Other Information~ 112223Item 6.3Exhibits~ 334445 SIGNATURES~ 5567$8____________________________19)Created by Morningstar Document Research.0:(http://documentresearch.morningstar.com/:X46qMX4a1%=PF0*8X> @2::998855((  l  BZ1h i  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of ContentsIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } 7} $ B                                 MTS SYSTEMS CORP 10-Q 08/07/2017 Balance Sheet             July 1, 2017  October 1, 2016    (Unaudited)  (Note) Assets       Current assets      !Cash and cash equivalents~ 3~ ,-%Accounts receivable, net of allowance~ ~ %3+for doubtful accounts of $4,923 and $3,923, respectively$Unbilled accounts receivable~ f~ JInventories, net~ ~ Z1)Prepaid expenses and other current assets~ l~ Total current assets~ *%~ &#Property and equipment, net~ n+~ &Goodwill~ ދ~ Intangible assets, net~  ~ HOther long-term assets~ C~ ODeferred income taxes~ B~ T Total assets~ 6H~ ҂H,$Liabilities and Shareholders' EquityCurrent liabilities-%Current maturities of long-term debt,~ 1~ D luiY,x`$V{c ! " # $ % & ' ( ) * + , - . / 0 1 2 3 4 5 6 7 8 9 : ; < = > ?  net!Accounts payable!~ ! !!~ !!)"!Accrued payroll and related costs"~ "f""~ ""'#Advance payments from customers#~ #b##~ #bp#$Accrued warranty costs$~ $U$$~ $ZY$%Accrued income taxes%~ %/%%~ %5%&Accrued dividends&~ &N&&~ &:M&!'Other accrued liabilities'~ 'F=''~ 'z'!(Total current liabilities(~ (+ ((~ (0 (0)(Long-term debt, less current maturities,)~ )B))~ )f) *net+Deferred income taxes+~ +*++~ +@+(, Non-current accrued income taxes,~ ,.e,,~ ,ba,/-'Defined benefit pension plan obligation-~ -v--~ --#.Other long-term liabilities.~ .U..~ .*X./Total liabilities/~ /.//~ ///000001Shareholders' Equity11111142,Common stock, $0.25 par value; 64,000 shares2~ 2A22~ 2A233+authorized: 16,832 and 16,660 shares issued465.and outstanding as of July 1, 2017 and October61, 2016, respectively"7Additional paid-in capital7~ 7 77~ 7s 78Retained earnings8~ 8v88~ 868.9&Accumulated other comprehensive income9~ 9ހ99~ 9]9:(loss)";Total shareholders' equity;~ ;;;~ ;2;2<*Total liabilities and shareholders' equity<~ <6H<<~ <҂H<=>$?____________________________D@ l+Vtxi}F:mtt@ A 1@)Created by Morningstar Document Research.0A(http://documentresearch.morningstar.com/=PF0*8X> @JIAA@@??<<<<;;;;9999888877772222////....----,,,,++++))))((((''''&&&&%%%%$$$$####""""!!!!     l  1.O  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } 2} $ 1     MTS SYSTEMS CORP 10-Q 08/07/2017Income Statement                    Three Months Ended  Nine Months Ended   July 1,  July 2,  July 1,  July 2,  ~  ~  ~  ~  Revenue            Product~ : ~ 6e ~  n  ~ Service~ ~ : ~  \  ~  Total Revenue~  ~   ~  #  ~  Cost of Sales    Product~ 3~ Bc ~  I  ~ Service~ ~ ΰ ~  N  ~ ITotal Cost of Sales~ 7~  ~    ~  Gross Profit~ ~  ~     ~  Operating Expenses    Selling and marketing~ ~ l ~  j  ~ "General and administrative~ $~ ' ~     ~ N Research and development~ ~ ` ~    ~ r  Total Operating Expenses~ ~  ~  VS   ~ Income From Operations~ ~ f ~  >  ~ 6Interest expense, net~ ~ & ~  ޡ  ~ #Other income (expense), net~ ~ r  ~     ~ F"Income Before Income Taxes~ |~  ~  "&  ~ v&Income tax provision (benefit)~ ~ B, ~  :  ~ SDl~rf;?FA/ N` !"#$%&'()*+,-./0  Net Income ~ ʥ  ~ o  ~ 0  ~ V !!!!!! ! ! !"Earnings Per Share""""""" " " " "" #Basic####### # # # ##$Earnings per share$$Q?$$$q= ףp?$$ $ {Gz?$ $ $\(\?$2%*Weighted average common shares outstanding%~ %)%%~ %j%% ~ % )% % ~ %%&&&&&& & & &'Diluted''''''' ' ' ' ''(Earnings per share((?(((q= ףp?(( ( RQ?( ( (333333?(2)*Weighted average common shares outstanding)~ ) +))~ ))) ~ ) *) ) ~ ))****** * * *$+Dividends declared per share++333333?+++333333?++ + ?+ + +?+,-$.____________________________1/)Created by Morningstar Document Research.00(http://documentresearch.morningstar.com/& @R8.`$ =PF0*8X> @*e00//..++++++ ++)))))) ))(((((( ((%%%%%% %%$$$$$$ $$                            l   ڬ  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome Statement Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } 0} $      MTS SYSTEMS CORP 10-Q 08/07/2017Income Statement                    Three Months Ended  Nine Months Ended   July 1,  July 2,  July 1,  July 2,  ~  ~  ~  ~   Net income ~ ʥ  ~ o  ~ 0  ~ V .&Other comprehensive income (loss), net    of tax0(Foreign currency translation gain (loss)~ Z~ 6 ~    ~  adjustmentsDerivative instruments    "Unrealized net gain (loss)~ ~  ~  $  ~ b0(Net (gain) loss reclassified to earnings~ f~ : ~  .  ~ $Defined benefit pension plan    "Unrealized net gain (loss)~ ~  ~    ~ 0(Net (gain) loss reclassified to earnings~ ~  ~    ~ *"Currency exchange rate gain (loss)~ ~  ~    ~ )!Other comprehensive income (loss)~ J~ F ~  "  ~ Comprehensive income~ ~ S ~  S  ~ ^>$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/Dl~rf;?(j(\ =PF0*8X> @1                    l  d~  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1)NOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } I;} $ d                                 MTS SYSTEMS CORP 10-Q 08/07/2017 Cash Flows            Nine Months Ended    July 1, 2017   July 2, 2016, $Cash Flows from Operating Activities        Net income ~ 0  ~ V .&Adjustments to reconcile net income to0(net cash provided by (used in) operating activities Stock-based compensation~ V=~ P91Excess tax benefits from stock-based compensation~ ~ 3+Fair value adjustment to acquired inventory~ | ?)!Net periodic pension benefit cost~ J~ N %Depreciation and amortization~ Z~ n+#Amortization of debt issuance costs~ **~ 6Deferred income taxes~ F~  *"Bad debt provision (recovery), net~ ~ :3+Changes in operating assets and liabilities2*Accounts and unbilled contracts receivable~  ~ N Inventories~ ʯ~ Prepaid expenses~ ~ Accounts payable~ ~ ^J)!Accrued payroll and related costs~ ~ +'Advance payments from customers~ X~ jpD lxlw#i^p B ! " # $ % & ' ( ) * + , - . / 0 1 2 3 4 5 6 7 8 9 : ; < = > ?  Accrued warranty costs ~ b  ~ ~ $!Other assets and liabilities!~ !V!!~ !vK!0"(Net Cash Provided by (Used in) Operating"~ "2""~ ""# Activities,$$Cash Flows from Investing Activities$$$$$$+%#Purchases of property and equipment%~ %&1%%~ %%4&,Proceeds from sale of property and equipment&~ &&&~ &&.'&Purchases of business, net of acquired'~ 'b'' '?' (cash.)&(Increase) decrease in restricted cash) )?))~ )RX)0*(Net Cash Provided by (Used in) Investing*~ *:"**~ *r*+ Activities,,$Cash Flows from Financing Activities,,,,,,!-Payment of long-term debt-~ -&-- -?-4.,Payment of debt issuance costs for long-term.~ ...~ .f. /debt40,Payment of debt component of tangible equity0~ 0Ɯ00 0?0 1units42,Payment of debt issuance costs for revolving2~ 2>22~ 2J23credit facility/4'Proceeds from issuance of common stock,4 4?44~ 4ʏ45net of issuance costs26*Proceeds from issuance of equity component6 6?66~ 6b-617)of tangible equity units, net of issuance 8costs+9#Payment for capped call transaction9 9?99~ 990:(Proceeds from issuance of debt component: :?::~ :: ;of tangible equity units/<'Payment of debt issuance costs for debt< <?<<~ <b<*="component of tangible equity units,>$Receipts under short-term borrowings> >?>>~ >8>,?$Payments under short-term borrowings? ????~ ?z?D lqraD#m\c?@ A B C D E F G H I J K L M N O P Q R S T U V W X Y Z [ \ ] ^ _ 9@1Excess tax benefits from stock-based compensation@~ @*@@~ @@ACash dividendsA~ AAA~ AftA/B'Proceeds from exercise of stock optionsB~ B2WBB~ BR;B(C and employee stock purchase plan.D&Payments to purchase and retire commonD~ D2DD~ DD Estock0F(Net Cash Provided by (Used in) FinancingF~ FƸFF~ FFG Activities/H'Effect of Exchange Rate Changes on CashH~ HBHH~ HRHIand Cash Equivalents!JCash and Cash EquivalentsJJJJJJ-K%Increase (decrease) during the periodK~ K"KK~ KaK$LBalance, beginning of periodL~ L,LL~ L(LMBalance, end of periodM~ M3MM~ M MNNNNN.O&Supplemental Disclosures of Cash FlowsOOOOOO'PCash paid during the period forPPPPPPQ Interest, netQ~ QvVQQ~ QJ QRIncome taxes, netR~ RRR~ RR3S+Non-cash investing and financing activitiesSSSS-T%Property and equipment acquired underT~ TR&TT T?TU capital lease0V(Dividends declared not yet paid recordedV~ VNVV~ VMVWin accrued dividends0X(Common stock issuance costs not yet paidX X?XX~ XX.Y&recorded in accounts payable and otherZaccrued liabilities6[.Issuance costs on equity component of tangible[ [?[[~ [[6\.equity units not yet paid recorded in accounts-]%payable and other accrued liabilities1^)Debt issuance costs net yet paid recorded^ ^?^^~ ^^9_1in accounts payable and other accrued liabilitiesD lwfWA5D HxcCs` a b c `$a____________________________1b)Created by Morningstar Document Research.0c(http://documentresearch.morningstar.com/ <=PF0*8X> @Rjccbbaa^^^^[[[[XXXXVVVVTTTTRRRRQQQQMMMMLLLLKKKKHHHHFFFFDDDDBBBBAAAA@@@@????>>>><<<<::::99996666444422220000....----****))))''''&&&&%%%%""""!!!!        l  N  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } 0.} $                        MTS SYSTEMS CORP 10-Q 08/07/2017NOTE 3 INVENTORIES          (in thousands)  July 1,   October 1,  ~  ~ (  Components, assemblies and parts ~ C  ~ >Q . &Customer projects in various stages of ~   ~   completionFinished goods~ ~ "Total inventories, net~ ~ Z$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0|pd]gQ}qe==PF0*8X> @z         l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } 0.} $      MTS SYSTEMS CORP 10-Q 08/07/2017#NOTE 4 WARRANTY OBLIGATIONS                    Three Months Ended  Nine Months Ended (in thousands)  July 1,  July 2,  July 1,  July 2,  ~  ~  ~  ~  Beginning balance ~ Q  ~ "L  ~ ZY  ~ ^I Warranty claims~ "~  ~  V  ~ Warranty provisions~ 2~  ~  &  ~ @.&Adjustments to pre-existing warranties~ Z~  ~    ~ Currency translation~ V~  ~  &   ?Ending balance~ U~ K ~  U  ~ K$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4 sg[0&q==PF0*8X> @*%                 l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONS GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } *} $                           MTS SYSTEMS CORP 10-Q 08/07/2017Property and Equipment          (in thousands)  July 1,   October 1,  ~  ~  Land and improvements ~ ,  ~ , " Buildings and improvements ~ ҥ  ~ Z Machinery and equipment~ N ~ z ( Assets held under capital leases~ R& ?+#Total property and equipment, gross~ 6 ~ [&Less: Accumulated depreciation~ :!~ B)!Total property and equipment, net~ n+~ &$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6xl`Yz g=PF0*8X> @         l  *  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and EquipmentIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } -}  $                       MTS SYSTEMS CORP 10-Q 08/07/2017Goodwill              (in thousands)  Test  Sensors  Total Balance, October 1, 2016 ~   ~    ~  - %Adjustment related to finalization of  ?  ~   ~   purchase accounting 1Currency translation~ ~ > ~  N Balance, July 1, 2017~  ~  ~  ދ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.kzn`(u=PF0*8X> @           l  ?  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } }  $ } $      MTS SYSTEMS CORP 10-Q 08/07/2017Intangible Assets                   July 1, 2017 (in thousands)  Gross Carrying Amount  Accumulated Amortization  Net Carrying Value  Weighted               Average               Useful Life (in Years)"Software development costs~ ~ &  ~  6  ~ Technology and patents~ ~ { ~  Q  -@"Trademarks and trade names~ ^j~  ~  ZF  9@Customer lists~  ~ bV ~  f  /@Land-use rights~ $~  ~     333333:@ Trade names~ r ? ~  r   IndefiniteTotal intangible assets~ ~  ~     ~ >$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8> }qe;!w"sg[3=PF0*8X> @          l  [U  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } }  $ } $      MTS SYSTEMS CORP 10-Q 08/07/2017Intangible Assets                  October 1, 2016 (in thousands)  Gross Carrying Amount  Accumulated Amortization  Net Carrying Value  Weighted               Average               Useful Life (in Years)"Software development costs~ Bj~  ~  ڀ  ~ Technology and patents~ B~  ~  u  -@"Trademarks and trade names~ k~ & ~  N  9@Customer lists~  ~ R ~  >`   /@Land-use rights~ %~ . ~  2!  L:@ Trade names~ r ? ~  r   IndefiniteTotal intangible assets~ ~ \ ~  H  333333.@$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8E }qe~8tl`T,=PF0*8X> @          l  d  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } 0} $      MTS SYSTEMS CORP 10-Q 08/07/2017Intangible Assets     (in thousands) Amortization Expense     Remainder of 2017~ 8 ~ ~ ~ ~ "~ ~ ~ ~ ~ ~  Thereafter~ *$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6}qe5lD\=PF0*8X> @Z    l  *x  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)Assets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $      MTS SYSTEMS CORP 10-Q 08/07/2017JBAssets and Liabilities Measured at Fair Value on a Recurring Basis                     July 1, 2017 (in thousands)  Level 1  Level 2  Level 3  Total Assets         Currency contracts 1  $?  ~    $?  ~  Interest rate swaps 2 ?~ 6   ?  ~ 6 Total assets $?~ "8   $?  ~ "8    Liabilities   Currency contracts 1 $?~    $?  ~ Total liabilities $?~    $?  ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6 dXL@4h82z0x=PF0*8X> @            l  w  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredOther Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $      MTS SYSTEMS CORP 10-Q 08/07/2017JBAssets and Liabilities Measured at Fair Value on a Recurring Basis                    October 1, 2016 (in thousands)  Level 1  Level 2  Level 3  Total Assets         Currency contracts 1  $?  ~ V   $?  ~ V  Total assets $?~ V   $?  ~ V    Liabilities   Currency contracts 1 $?~     $?  ~  Total liabilities $?~     $?  ~  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4 dXL@4h5/w[,wk_7=PF0*8X> @           l  T  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } a/} $      MTS SYSTEMS CORP 10-Q 08/07/2017#Other Financial Instruments                         July 1, 2017 (in thousands)  Carrying   Fair Value  Level 1  Level 2  Level 3   Value/ 'Debt component of tangible equity units ~ *#  ~ _   $?  ~ _   $? ~ Tranche B term loan 4~ ~    ?  ~  ? Total debt~ ~ W   $?  ~ W $?$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0sg[_/vM\Nq]=PF0*8X> @             l  ?  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial Instruments!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } a/} $      MTS SYSTEMS CORP 10-Q 08/07/2017#Other Financial Instruments                        October 1, 2016 (in thousands)  Carrying   Fair Value  Level 1  Level 2  Level 3   Value/ 'Debt component of tangible equity units ~ f  ~ ¶   $?  ~ ¶   $? ~ Tranche B term loan 4~ ~ h   ?  ~ h ? Total debt~ ~    $?  ~  $?$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/0sg[_,sJYKnZ=PF0*8X> @             l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)NOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } m)} $                             MTS SYSTEMS CORP 10-Q 08/07/2017<4NOTE 7 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES             July 1, 2017 (in thousands)  Prepaid Expenses   Other Accrued    and Other   Liabilities   Current Assets$Designated hedge derivativesCash flow derivatives~ ~ NInterest rate swaps~ 6 ?*"Total designated hedge derivatives~ "8~ N( Hedge derivatives not designated!Balance sheet derivatives ?~ Total hedge derivatives~ "8~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/:XrfZNB?MvLmaU-=PF0*8X> @       l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } '} $                           MTS SYSTEMS CORP 10-Q 08/07/2017<4NOTE 7 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES            October 1, 2016 (in thousands)  Prepaid Expenses   Other Accrued    and Other   Liabilities   Current Assets$Designated hedge derivativesCash flow derivatives~ V~  ( Hedge derivatives not designated!Balance sheet derivatives ?~ :Total hedge derivatives~ V~  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6OrfZNB @z       l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $      MTS SYSTEMS CORP 10-Q 08/07/2017<4NOTE 7 DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES                          (in thousands)  Gross  Gross  Net   Derivatives  Cash  Net    Recognized  Offset  Amount   Subject to   Collateral  Amount 1   Amount  Amount   Presented  Offset  Received  July 1, 2017            Assets~ "8 $? ~  "8   $? $?~ "8 Liabilities~ N ? ~  N   ? ?~ N   October 1, 2016    Assets~ V $? ~  V  ~  $?~   Liabilities~   ? ~     ~  ?~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6 rfZNBM0:B=PF0*8X> @b,                   l  W  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)Interest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } U5} $      MTS SYSTEMS CORP 10-Q 08/07/2017( Cash Flow Hedging Currency Risks                    Three Months Ended  Nine Months Ended (in thousands)  July 1,  July 2,  July 1,  July 2,  ~  ~  ~  ~ / 'Beginning unrealized net gain (loss) in ~ 6  ~   ~   ~    AOCI1)Net (gain) loss reclassified into revenue~ ~ ~ ~  f  ~ 6(effective portion)4,Net gain (loss) recognized in OCI (effective~ ~  ~     ~ Rportion)1)Ending unrealized net gain (loss) in AOCI~ ~  ~    ~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6znbV+!VFyZvi=PF0*8X> @               l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency Risk!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } U5} $      MTS SYSTEMS CORP 10-Q 08/07/2017Interest Rate Swaps                    Three Months Ended  Nine Months Ended (in thousands)  July 1,  July 2,  July 1,  July 2,  ~  ~  ~  ~ / 'Beginning unrealized net gain (loss) in ~ ZC   $?   $?   $?  AOCI2*Net (gain) loss reclassified into interest~  ? ~  Z    ?#expense (effective portion)4,Net gain (loss) recognized in OCI (effective~ ^ ? ~  6-   ?portion)1)Ending unrealized net gain (loss) in AOCI~ 6 $? ~  6   $?$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/6{oc8.cS`~q=PF0*8X> @               l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate SwapsNOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } 2} $      MTS SYSTEMS CORP 10-Q 08/07/20172*Foreign Currency Balance Sheet Derivatives                    Three Months Ended  Nine Months Ended (in thousands)  July 1,  July 2,  July 1,  July 2,  ~  ~  ~  ~ 2 *Net gain (loss) recognized in other income ~ b  ~   ~ 6  ~  (expense), net$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*h|pdXL!I/#=PF0*8X> @            l   4  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } 7} $                                 MTS SYSTEMS CORP 10-Q 08/07/2017NOTE 8 FINANCING          (in thousands)  July 1,   October 1,  ~  ~  Long-term debt    1 )Tranche B term loan, 1.00% amortizing per ~   ~  #year, maturing July 5, 20235-Tangible equity units, 8.75% coupon, maturing~ *#~ fJuly 1, 2019 1!Capital lease obligations~ ^% ?Total long-term debt~ &~ 1)Less: Unamortized underwriting discounts,~ R#~ &commissions and other expenses2*Less: Current maturities of Tranche B term~ +~ " loan debt 2.&Less: Current maturities of TEU debt 2~ rs~ z1)Less: Current maturities of capital lease~  ? obligations6.Total long-term debt, less current maturities,~ B~ f net$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/D l~rf_m^qG0=PF0*8X> @       l  C  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCING Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $      MTS SYSTEMS CORP 10-Q 08/07/2017NOTE 8 FINANCING      (in thousands)  Notional Amount  October 3, 2017 ~ b  October 3, 2018 ~    October 3, 2019 ~   October 3, 2020~ " April 3, 2021 ?$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.~rf*[[=PF0*8X> @J      l  %S  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } U} $} $ } U} $      MTS SYSTEMS CORP 10-Q 08/07/2017 Stock Options          Nine Months Ended    July 1, 2017   July 2, 2016 Expected life (in years) ~    ffffff@  Risk-free interest rate  ? %  ? %Expected volatility333333=@ %33333:@ %Dividend yield@ %~   %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.ui*~=PF0*8X> @2    l  e  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock OptionsShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } $} $      MTS SYSTEMS CORP 10-Q 08/07/2017&NOTE 10 EMPLOYEE BENEFIT PLANS                    Three Months Ended  Nine Months Ended (in thousands)  July 1,  July 2,  July 1,  July 2,  ~  ~  ~  ~   Service cost ~   ~   ~ ^  ~ b   Interest cost~ ~ f ~    ~ &Expected return on plan assets~ ~  ~    ~ %Net amortization and deferral~ ~ N ~  n   ~ !Net periodic benefit cost~ ~ ~ ~  J  ~ N $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2|pdX-#s?vjB=PF0*8X> @ !                l  uv  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } U5}  $                       MTS SYSTEMS CORP 10-Q 08/07/2017Share Issuance             (in thousands)  Common Stock   Additional  Total      Paid-in Capital Public offering~ j  ~   ~ > 4 ,Less: Underwriting discounts and commissions ?  ~ J  ~ J Less: Other expenses 1 ?~ r~  r %Issuance of common stock, net~ j~ ~   $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.qthgk=PF0*8X> @            l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } U5}  $                         MTS SYSTEMS CORP 10-Q 08/07/2017Tangible Equity Units            . &(in thousands, except fair value price Equity Component  Debt Component  Total per TEU)" Fair value price per TEU 2 \( S@   (\7@  ~        Gross proceeds~ X~ ~   4,Less: Underwriting discounts and commissions~ ~ *~   Less: Other expenses 3~ ~ ~  B Issuance of TEUs, net~ ~(~ ~  : $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2Ryma@,P2# =PF0*8X> @           l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity Units!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } 2} $      MTS SYSTEMS CORP 10-Q 08/07/2017"NOTE 13 EARNINGS PER SHARE                    Three Months Ended  Nine Months Ended- %(in thousands, except per share data)  July 1,  July 2,  July 1,  July 2,  ~  ~  ~  ~   Net income ~ ʥ  ~ o  ~ 0  ~ V    2*Weighted average common shares outstanding~ )~ j ~  )  ~ %Effect of dilutive securities    Stock-based compensation~ Z~ J ~    ~ Tangible equity units ?~    ?  ~ V/'Weighted average dilutive common shares~  +~  ~  *  ~  outstanding   Earnings per share     BasicQ?q= ףp?  {Gz?  \(\?Diluted?q= ףp?  RQ?  333333?$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@E Dth\1b(,aJ0w|=PF0*8X> @J)                  l  =  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARENOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } 0} $      MTS SYSTEMS CORP 10-Q 08/07/20171)NOTE 14 OTHER COMPREHENSIVE INCOME (LOSS)                            Three Months Ended  Nine Months Ended    July 1, 2017 (in thousands)  Pretax  Tax  Net  Pretax  Tax  Net0 (Foreign currency translation gain (loss) ~ Z   $?  ~ Z  ~    $?  ~   adjustmentsDerivative instruments    "Unrealized net gain (loss)~ ~  ~    ~ 9~ .~ $0(Net (gain) loss reclassified to earnings~ ~  ~  f  ~ ~ r~ .$Defined benefit pension plan    "Unrealized net gain (loss)~ ~  ~    ~ >~ ~ 0(Net (gain) loss reclassified to earnings~ ~  ~    ~ n ~ ~ *"Currency exchange rate gain (loss)~  ? ~    ~  ?~ )!Other comprehensive income (loss)~ E~  ~  J  ~ B=~ ~ "$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<}qeYM!{cSB6*=PF0*8X> @6                    l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } 0} $      MTS SYSTEMS CORP 10-Q 08/07/20171)NOTE 14 OTHER COMPREHENSIVE INCOME (LOSS)                            Three Months Ended  Nine Months Ended    July 2, 2016 (in thousands)  Pretax  Tax  Net  Pretax  Tax  Net0 (Foreign currency translation gain (loss) ~ 6   $?  ~ 6  ~    $?  ~   adjustmentsDerivative instruments    "Unrealized net gain (loss)~ ~  ~    ~ R~ ~ b0(Net (gain) loss reclassified to earnings~ ~~  ~  :  ~ 6~ ~ $Defined benefit pension plan    "Unrealized net gain (loss)~ ~  ~    ~ V~ ~ 0(Net (gain) loss reclassified to earnings~ N~ R ~    ~ ~ ~ *"Currency exchange rate gain (loss)~  ? ~    ~  ?~ )!Other comprehensive income (loss)~ ~  ~  F  ~ ~~ Z~ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/<}qeYM!{cSB6*=PF0*8X> @6                    l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } @}  $ !!!!!!!!!! ! ! ! ! !!!!!!!!!!!!!MTS SYSTEMS CORP 10-Q 08/07/20171)NOTE 14 OTHER COMPREHENSIVE INCOME (LOSS)                                    Three Months Ended  Nine Months Ended    July 1, 2017    Adjustments   Adjustments (in thousands)  Foreign   Unrealized  Defined  Total  Foreign   Unrealized  Defined  TotalCurrency Derivative  Benefit Currency DerivativeBenefit Translation Instrument   Pension Plan  Translation Instrument Pension PlanBeginning balance~ R~ ) ~  i  ~ 6~  ~ ~ fW~ ] =5Other comprehensive net gain (loss) reclassifications~ Z~  ~  N  ~ D~ ~ $~ R~  0(Net (gain) loss reclassified to earnings ?~ f ~    ~  ?~ .~ ~ * )!Other comprehensive income (loss)~ Z~ 2 ~    ~ J~ ~ $~ N ~ " Ending balance~ ~   ~  b  ~ ހ~ ~  ~ b~ ހ $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8}qeYMb2sC=PF0*8X> @"D                       l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } @}  $ !!!!!!!!!! ! ! ! ! !!!!!!!!!!!!!MTS SYSTEMS CORP 10-Q 08/07/20171)NOTE 14 OTHER COMPREHENSIVE INCOME (LOSS)                                    Three Months Ended  Nine Months Ended    July 2, 2016    Adjustments   Adjustments (in thousands)  Foreign   Unrealized  Defined  Total  Foreign   Unrealized  Defined  TotalCurrency Derivative  Benefit Currency DerivativeBenefit Translation Instrument   Pension Plan  Translation Instrument Pension PlanBeginning balance~ F~  ~    ~ n~ ~  ~ "~ ި =5Other comprehensive net gain (loss) reclassifications~ 6~  ~    ~ r~ ~ b~ ~  0(Net (gain) loss reclassified to earnings ?~ : ~    ~  ?~ ~ ~  )!Other comprehensive income (loss)~ 6~  ~  F  ~ F~ ~ n~ ~  Ending balance~ z~ v ~  Ɨ  ~ ~ z~ v~ Ɨ~  $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/8}qeYMb2sC=PF0*8X> @"D                       l  "c)<*  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } 8} $ } $ "     MTS SYSTEMS CORP 10-Q 08/07/20171)NOTE 14 OTHER COMPREHENSIVE INCOME (LOSS)                      Three Months Ended  Nine Months Ended ! Affected Line Item in the                   Consolidated Statements (in thousands)  July 1,  July 2,  July 1,  July 2,   of Income  ~  ~  ~  ~ Derivative instruments    /'Currency exchange contracts gain (loss)~ ~  ~     ~ Revenue0(Interest rate swap contracts gain (loss)~ * ? ~     ?Interest expense, net$Income tax benefit (expense)~ ^~ F ~    ~ *&Income tax provision (benefit)7/Total net gain (loss) on derivative instruments~ ~  ~    ~  Net income   $Defined benefit pension plan    Actuarial loss~ ~  ~    ~ J Cost of salesActuarial loss~ ~ Z ~    ~ Selling and marketingActuarial loss~ V~  ~    ~ "General and administrativeTotal actuarial loss~ ~  ~    ~ ."Income before income taxesIncome tax benefit~ .~  ~  r  ~ &Income tax provision (benefit)&Total net loss on pension plan~ J~ f ~    ~ > Net income   .&Total net-of-tax reclassifications out~ ~ . ~    ~ 2&of AOCI included in net income$____________________________Dl}qeYMi'/EYu !1 )Created by Morningstar Document Research.0!(http://documentresearch.morningstar.com/=PF0*8X> @9!!                     l  @  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } *} $      MTS SYSTEMS CORP 10-Q 08/07/2017,$NOTE 15 BUSINESS SEGMENT INFORMATION                    Three Months Ended  Nine Months Ended (in thousands)  July 1,  July 2,  July 1,  July 2,  ~  ~  ~  ~  Revenue             Test~ ~ "& ~  &  ~ XSensors~ v<~ y ~     ~ 8 Total revenue~  ~   ~  #  ~    %Income (Loss) from Operations     Test~ ~  ~    ~ dSensors~ {~ z ~    ~ 2L+#Total income (loss) from operations~ ~ f ~  >  ~ 6$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/: vj^R'z'v Q7+=PF0*8X> @*%               l  U  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } !} $      MTS SYSTEMS CORP 10-Q 08/07/2017/'NOTE 16 RESTRUCTURING AND RELATED COSTS                            Three Months Ended  Nine Months Ended    July 1, 2017 (in thousands)  Test  Sensors  Total  Test  Sensors  Total  Cost of sales  $?  ~   ~    $?  ~    ~   Selling and marketing ?~ * ~  *   ?~ "~ ""General and administrative ?~ > ~  >   ?~ ~  Research and development ? ?   ?   ? ? ?#Total restructuring expense $?~ r ~  r   $?~ 2~ 2$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2 sg[O#u=PF0*8X> @R*                  l  jk  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } !} $      MTS SYSTEMS CORP 10-Q 08/07/2017/'NOTE 16 RESTRUCTURING AND RELATED COSTS                            Three Months Ended  Nine Months Ended    July 2, 2016 (in thousands)  Test  Sensors  Total  Test  Sensors  Total  Cost of sales ~    $?  ~   ~    $?  ~  Selling and marketing~ ~  ~    ~ ~ ~ "General and administrative~ z~  ~     ~ z~ ~   Research and development~  ? ~    ~  ?~ #Total restructuring expense~ > ~  ~  V  ~ > ~ ~ V$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2 sg[O#m=PF0*8X> @R*                  l  G  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $      MTS SYSTEMS CORP 10-Q 08/07/2017/'NOTE 16 RESTRUCTURING AND RELATED COSTS                   ~  ~ z   (in thousands)  Q3 Restructuring  Q4 Restructuring   Restructuring  Total Balance, October 1, 2016 ~   ~   ~ v  ~ #  Restructuring expense  ?  ~ 2   ?  ~ 2 Payments~ ~ 2 ~    ~ Other adjustments ? ? ~  6  ~ 6Currency translation~ ~ J ~    ~ FBalance, July 1, 2017~ >~ F ~     ~ .$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/29 sg[O+ `<0$=PF0*8X> @ !               l  ~  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } <(} $                       MTS SYSTEMS CORP 10-Q 08/07/2017/'NOTE 16 RESTRUCTURING AND RELATED COSTS          (in thousands)  July 1,   October 1,  ~  ~ ) !Accrued payroll and related costs ~   ~  ! Other accrued liabilities ~   ~ " #Other long-term liabilities~ ~  )!Total severance and related costs~ .~ #$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/.sg[OH^rfZ2=PF0*8X> @z         l  ˞  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } 2} $      MTS SYSTEMS CORP 10-Q 08/07/2017%NOTE 17 BUSINESS ACQUISITIONS     (in thousands) . &Consideration paid to PCB shareholders~ f#  and employees 1* "Consideration for PCB closing cash~ r ( Deferred endowment consideration~ $Net pre-acquisition earn-out~ &Net working capital adjustment~  Cash acquired~ &[2*Total purchase price, net of cash acquired~ 6#$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/4}qeY)TU=PF0*8X> @R    l  &  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONS!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } $4} $ &     MTS SYSTEMS CORP 10-Q 08/07/2017%NOTE 17 BUSINESS ACQUISITIONS     (in thousands)  Assets   Accounts receivable~ BH   Inventories~  3+ Prepaid expenses and other current assets~ $  Property and equipment~ 3 Intangible assets Customer lists~ d & Trademarks and trade names~  Technology~ 'Land-use rights~   Other long-term assets~ *"Total identifiable assets acquired~ Bw Liabilities Accounts payable~ +# Accrued payroll and related costs~ ~*"Non-current deferred tax liability~ A1) Other accrued and long-term liabilities~ N.&Total identifiable liabilities assumed~ ( Net identifiable assets acquired~ Goodwill~ *DAl}qeY)w&A R/f !"#$%/ 'Total purchase price consideration, net~ 6# !of cash acquired"$#____________________________1$)Created by Morningstar Document Research.0%(http://documentresearch.morningstar.com/~dc=PF0*8X> @%%$$##    l  S  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)Results of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } -} $      MTS SYSTEMS CORP 10-Q 08/07/20173+Pro Forma Financial Information (Unaudited)          Three Months Ended  Nine Months Ended- %(in thousands, except per share data)  July 2, 2016 Revenue~ .M   ~ "   Net income~ #  ~ t Earnings per share Basic)\(?(\?Diluted)\(?(\?$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/2{ocWKOv4th@=PF0*8X> @r        l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } $}  $ } } $ } $      MTS SYSTEMS CORP 10-Q 08/07/2017Results of Operations                       Three Months Ended       Estimated    (in thousands)  July 1,  Business % Acquisition / Restructuring 1  Currency  July 2,  ~   Change      Translation ~ Revenue~  ~ R ~  .  ~  ~   Cost of sales~ 7~ B ~  Q  ~  *~  Gross profit~ ~  ~  :  ~  ~  Gross margin~  %    33333sB@ %    Operating expenses    Selling and marketing~ ~ f ~    ~  b~ l"General and administrative~ $~  ~  ]  ~  ~ ' Research and development~ ~  ~  R&  ~  ~ ` Total operating expenses~ ~  ~  Z  ~  ~ Income from operations~ ~ P ~  J  ~  ~ f$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@Dymaq;T ;[OC=PF0*8X> @0                   l  |  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of Operations Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } $} $ } $      MTS SYSTEMS CORP 10-Q 08/07/2017Results of Operations                        Nine Months Ended      Estimated   (in thousands)  July 1,  Business % Acquisition / Restructuring 1  Currency  July 2,  ~   Change     Translation ~ Revenue~ #~  ~    ~ ~  Cost of sales~ ~ Ά ~    ~ ~  Gross profit~  ~  ~  Y  ~ "~   Gross margin33333sC@ %   fffffA@ %   Operating expenses   Selling and marketing~ j~  ~    ~ J~ "General and administrative~  ~  ~  7  ~ ~ N Research and development~ ~  ~  bp  ~ .~ r  Total operating expenses~ VS ~ R# ~  l  ~ ~ Income from operations~ >~ v ~    ~ ~ 6$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@IDymae0m9@\zx=PF0*8X> @8                   l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } }  $ }  } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017Revenue                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   % Revenue ~    ~    ~ 3   fffff6@ % ~ #  ~   ~ :    YA@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*h{olQE9=PF0*8X> @                     l     dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) RevenueSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } $} $ } $} $ }  } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017 Gross Profit                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   %  Gross profit ~   ~   ~   ~ z % ~    ~    ~ f   fffff&G@ % Gross margin~  %33333sB@ %  @   ppts33333sC@ %fffffA@ %@ ppts$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,: |vjgK=PF0*8X> @ !                      l  2  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross Profit!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } $} $ } $} $ }  } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017%Selling and Marketing Expense                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   % Selling and marketing ~   ~ l  ~    YB@ % ~ j  ~   ~ z   ̌E@ % % of Revenueffffff0@ %-@ %    /@ %-@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,` |}qeYVp-=PF0*8X> @                     l  F  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } $} $ } $} $ }  } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017*"General and Administrative Expense                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   %" General and administrative ~ $  ~ '  ~     % ~    ~ N  ~ >   333333F@ % % of Revenueffffff#@ %~ 2 %    &@ %%@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,f |xl`TQk#=PF0*8X> @                     l  b[  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative ExpeIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } $} $ } $} $ }  } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017( Research and Development Expense                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   % Research and development ~   ~ `  ~ !   ffffffA@ % ~   ~ r   ~ z   @J@ % % of Revenue333333@ %333333@ %    @ %~  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,b |znbVSm'=PF0*8X> @                     l  o  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } $} $ } $} $ } $} $ }  } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017Income from Operations                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   % Income from operations ~   ~ f  ~ Bl   Q@ % ~ >  ~ 6  ~    ~  % % of Revenue333333!@ %ffffff@ %    @ %@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,V |xl`]w7=PF0*8X> @                     l  F  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } }  $ }  } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017Interest Expense, Net                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   % Interest expense, net ~ ~x  ~   ~ r   33333@ % ~ &^  ~    ~ "Q   fffff<@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hyma^x5)=PF0*8X> @                     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } !}  $ }  } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017#Other Income (Expense), Net                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   %# Other income (expense), net ~   ~ r   ~ &   fffffm % ~    ~ F  ~    t %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*hsg[Xr)=PF0*8X> @                     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense Net Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } $} $ } $} $ } $} $ }  } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017&Income Tax Provision (Benefit)                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   %& Income tax provision (benefit) ~   ~ B,  ~    h % ~ :  ~ S  ~ N   333333\ %Effective Rate33333s@ %ffffff<@ %      %333333@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,l ||pdXUo#=PF0*8X> @                     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision BenefitResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } -}  $ }  } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017 Net Income                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased)- %(in thousands, except per share data) ~  ~  ~   % ~  ~  ~   %  Net income ~ ʥ  ~ o  ~ 6   333333H@ % ~ 0  ~ V  ~ b  ~  %"Diluted earnings per share?q= ףp?   ףp= ?  3@ %RQ?333333?Qۿ33333= %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,y |xli8=PF0*8X> @                      l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net Income Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } $} $ } $} $ } $} $ } $ !!!!!!!!!! ! ! ! ! !!!!!!!!!!!!!!!!!MTS SYSTEMS CORP 10-Q 08/07/2017Results of Operations                                    Three Months Ended  Nine Months Ended      Estimated       Estimated   (in thousands)  July 1,  Business  Currency  July 2,  July 1,  Business  Currency  July 2,  ~   Change   Translation ~  ~   Change   Translation ~ Revenue~ ~  ~  b  ~ "&~ &~  ~ ~ X  Cost of sales~ ~ r ~    ~ [~  ~ F?~ z~   Gross profit~ ~~ . ~    ~ r~ >~ j~ 6~ Q  Gross margiň@@ %    A@ %~  %ffffff@@  %   Operating expenses     Selling and marketing~ ~  ~    ~ ,~ r/~ ~  ~ 8 "General and administrative~ ~  ~     ~ ʬ~ ^~ n}~ ~~   Research and development~ E~ b ~    ~ J~ n~ ~ ~   Total operating expenses~ j~  ~    ~ #~ v~ ~ Z~  Income from operations~ ~ b ~    ~ ~ ~ 7~ ~ d $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@Dymavy0IK=PF0*8X> @[                              l  {  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } }  $ }  } $} $ } U} $      MTS SYSTEMS CORP 10-Q 08/07/2017Revenue                                  Three Months Ended      Nine Months Ended       July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   % Revenue ~   ~ "&  ~ p    % ~ &  ~ X  ~ Z    @ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*h{o @                     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } $} $ } $} $ }  } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017 Gross Profit                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   %  Gross profit ~ ~  ~ r  ~    333333$ % ~ >  ~ Q  ~    ffffff%@ % Gross margiň@@ %A@ %     ppts~  %ffffff@@ %@ ppts$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,> |vjgG=PF0*8X> @ !                      l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } $} $ } $} $ }  } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017%Selling and Marketing Expense                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   % Selling and marketing ~   ~ ,  ~     % ~ r/  ~ 8  ~     % % of Revenue,@ %,@ %   +@ %,@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,0 |}qeYVp- =PF0*8X> @                     l  P/  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } $} $ } $} $ }  } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017*"General and Administrative Expense                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   %" General and administrative ~   ~ ʬ  ~     % ~ ^  ~   ~ u   8@ % % of Revenueffffff @ % @ %   ffffff$@ %!@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,: |xl`TQk#=PF0*8X> @                     l  C  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } $} $ } $} $ }  } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017( Research and Development Expense                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   % Research and development ~ E  ~ J  ~ Z   ffffff % ~ n  ~   ~ V   +@ % % of Revenue @ % @ %   333333@ % @ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,6 |znbVSm'=PF0*8X> @                     l  W  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } $} $ } $} $ } $} $ }  } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017Income from Operations                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   % Income from operations ~   ~   ~ *   2 % ~   ~ d  ~ >   1@ % % of Revenue~  %~ " %   ffffff@ %@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/," |xl`]w3 =PF0*8X> @                     l  q  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } y#} $ } $} $ } $      MTS SYSTEMS CORP 10-Q 08/07/2017Results of Operations                        Three Months Ended       Estimated    (in thousands)  July 1,  Business % Acquisition / Restructuring 1  Currency  July 2,  ~   Change       Translation ~ Revenue~ v<~ : ~  .  ~ ~ y Cost of sales~ b"~  ~  Q  ~ ~ ^ Gross profit~ ~  ~  :  ~ ~  Gross marginH@ %   I@ %   Operating expenses   Selling and marketing~ ~  ~    ~ J~ @"General and administrative~ ~ f ~  ]  ~ ~ z Research and development~ ~=~ : ~  R&  ~ ~  Total operating expenses~ ~ J ~  Z  ~ ~ %Income (loss) from operations~ {~ o ~  J  ~ 6~ z$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@Dymae/ @8                   l  ӌ  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } y#} $ } $} $ } $      MTS SYSTEMS CORP 10-Q 08/07/2017Results of Operations                        Nine Months Ended       Estimated    (in thousands)  July 1,  Business % Acquisition / Restructuring 1  Currency  July 2,  ~   Change       Translation ~ Revenue~  ~  ~    ~ ~ 8 Cost of sales~ F~ G ~    ~ &~  Gross profit~ V~ ^I ~  Y  ~ ~ B0 Gross margin~  %   fffffI@ %   Operating expenses   Selling and marketing~ |~  ~    ~ B~ F"General and administrative~ F~ Z ~  7  ~ ~ v Research and development~ ~~ n ~  bp  ~ Z~ ZA Total operating expenses~ ~  ~  l  ~ .~ %Income (loss) from operations~ ~  ~    ~ ~ 2L$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/@|Dymae0=l 0NlymE=PF0*8X> @8                   l  [  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } }  $ }  } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017Revenue                                  Three Months Ended      Nine Months Ended       July 1,  July 2,  Increased /(Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   % Revenue ~ v<  ~ y  ~    \g@ % ~    ~ 8  ~ k   h@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/*h{o @                     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } $} $ } $} $ }  } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017 Gross Profit                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   %  Gross profit ~   ~   ~ X  ~  % ~ V  ~ B0  ~    d@ % Gross marginH@ %I@ %     ppts~  %fffffI@ %333333 ppts$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,: |vjgK=PF0*8X> @ !                      l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)General and Adm (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } $} $ } $} $ }  } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017%Selling and Marketing Expense                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   % Selling and marketing ~   ~ @  ~    in@ % ~ |  ~ F  ~    Ym@ % % of RevenueL4@ %~ F %   333333@ %1@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,, |}qeYVp- =PF0*8X> @                     l  (  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)Research and Development (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } $} $ } $} $ } U} $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017*"General and Administrative Expense                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   %" General and administrative ~   ~ z  ~ &    ffffff @ % ~ F  ~ v  ~    U@ % % of Revenue(@ %@@@ %   *@ %5@ %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,: |xl`TQk#=PF0*8X> @                     l  a  dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Income Loss from Operations!Item 2 Unregistered Sales of EqU } } $ } $} $ } $} $ }  } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017( Research and Development Expense                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   % Research and development ~ ~=  ~   ~ b'   33333Cf@ % ~ ~  ~ ZA  ~ &q   33333e@ % % of Revenue@ %@ %   @ %~  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,2 |znbVSm'=PF0*8X> @                     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)!Item 2 Unregistered Sales of EqU } y#} $ } $} $ } $} $ }  } $} $ } $} $ } $} $ }  } $      MTS SYSTEMS CORP 10-Q 08/07/2017%Income (Loss) from Operations                                  Three Months Ended    Nine Months Ended     July 1,  July 2,  Increased / (Decreased)  July 1,  July 2,  Increased / (Decreased) (in thousands) ~  ~  ~   % ~  ~  ~   %% Income (loss) from operations ~ {  ~ z  ~    @ % ~   ~ 2L  ~ n   Lk@ % % of Revenue&@ %ffffff %   @ %~  %$____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/,4 |}qeYVp%=PF0*8X> @                     l    dMbP?_*+%,&٭e2?'٭e2?(٭e2?)٭e2?",D/??GMTS SYSTEMS CORPORATIONMTS SYSTEMS COR (1)Table of Contents Balance SheetIncome StatementIncome Statemen (1) Cash FlowsNOTE 3 INVENTORIESNOTE 4 WARRANTY OBLIGATIONSProperty and Equipment GoodwillIntangible AssetsIntangible Asse (1)Intangible Asse (2)!Assets and Liabilities MeasuredAssets and Liabilities (1)Other Financial InstrumentsOther Financial (1)!NOTE 7 DERIVATIVE INSTRUMENTS ANOTE 7 DERIVATIVE (1)NOTE 7 DERIVATIVE (2)!Cash Flow Hedging Currency RiskInterest Rate Swaps!Foreign Currency Balance Sheet NOTE 8 FINANCINGNOTE 8 FINANCIN (1) Stock Options NOTE 10 EMPLOYEE BENEFIT PLANSShare IssuanceTangible Equity UnitsNOTE 13 EARNINGS PER SHARE!NOTE 14 OTHER COMPREHENSIVE INCNOTE 14 OTHER C (1)NOTE 14 OTHER C (2)NOTE 14 OTHER C (3)NOTE 14 OTHER C (4)!NOTE 15 BUSINESS SEGMENT INFORM!NOTE 16 RESTRUCTURING AND RELAT NOTE 16 RESTRUCTURING AND (1) NOTE 16 RESTRUCTURING AND (2) NOTE 16 RESTRUCTURING AND (3)NOTE 17 BUSINESS ACQUISITIONSNOTE 17 BUSINESS (1)!Pro Forma Financial InformationResults of OperationsResults of Oper (1) Revenue Gross ProfitSelling and Marketing Expense!General and Administrative Expe!Research and Development ExpensIncome from OperationsInterest Expense NetOther Income Expense NetIncome Tax Provision Benefit Net IncomeResults of Oper (2) Revenue (1)Gross Profit (1)Selling and Marketing (1)General and Adm (1)Research and Development (1)Income from Ope (1)Results of Oper (3)Results of Oper (4) Revenue (2)Gross Profit (2)Selling and Marketing (2)General and Adm (2)Research and Development (2)Income Loss from OperationsU } !} $ } <} $ } <} $ } <} $      MTS SYSTEMS CORP 10-Q 08/07/2017KCItem 2. Unregistered Sales of Equity Securities and Use of Proceeds                  Total Number   Average    Total Number   Maximum     of Shares    Price Paid    of Shares    Number of    Purchased    per Share    Purchased as   Shares          Part of    that May Yet Publicly    be Purchased  Announced    Under the Plans or   Plans or Programs   Programs#April 2, 2017 - May 6, 2017 ? $?  ?  ~   "May 7, 2017 - June 3, 2017 ? $?  ?  ~   #June 4, 2017 - July 1, 2017 ? $?  ?  ~    Total ? $?  ?    $____________________________1)Created by Morningstar Document Research.0(http://documentresearch.morningstar.com/: cWK?3`S> =PF0*8X> @R        Root Entry FBook    !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~      !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~      !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~