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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

x     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended
October 27, 2006

OR

 ̈TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934

For the transition period from 
  to

Commission file number 1-6357

ESTERLINE TECHNOLOGIES CORPORATION

(Exact name of registrant as specified in its charter)



|                                                               |  |                                     
|-------------------------------------------------------------- |  | ------------------------------------
|Delaware                                                       |  | 13-2595091                          
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)



|                                         |  |           
|---------------------------------------- |  | ----------
|500 108thAvenue NE Bellevue, Washington  |  | 98004     
|(Address of principal executive offices) |  | (Zip code)

Registrants telephone number, including area code
425/453-9400

Securities registered pursuant to Section 12(b) of the Act:



|                                                              |  |                                                
|------------------------------------------------------------- |  | -----------------------------------------------
|Title of each class                                           |  | Name of each exchange on which registered      
|Common Stock ($.20 par value) Preferred Stock Purchase Rights |  | New York Stock Exchange New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act.    Yes  x    No ̈

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the
Act.    Yes ̈No  x

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    
Yes  x    No ̈



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Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of
Regulation S-K is not contained herein, and will not be contained, to the best of registrants knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K.  x

Indicate by check mark whether the registrant is a large accelerated
filer, an accelerated filer, or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer  x                Accelerated filer ̈Non-accelerated filer ̈

Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ̈Yes    x  No

As of January 3, 2007,
25,572,476 shares of the Registrants common stock were outstanding. The aggregate market value of shares of common stock held by non-affiliates as of April 28, 2006 was $1,122,871,753 (based upon the closing sales price of $44.32 per
share).

DOCUMENTS INCORPORATED BY REFERENCE

Portions of Annual Report to Shareholders for fiscal year ended October 27, 2006  Parts I, II and IV.

Portions of Definitive
Proxy Statement relating to the 2007 Annual Meeting of Shareholders, to be held on March 7, 2007  Part III.



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PART I

This Report includes a number of forward-looking statements that reflect the Companys current views with respect to future events and financial performance. Please refer to the section addressing forward-looking information on
page 12 for further discussion. In this report, we, our, us, Company, and Esterline refer to Esterline Technologies Corporation and subsidiaries, unless otherwise noted or context
otherwise indicates.

Item 1. Business

(a) General Development of Business.

Esterline, a Delaware corporation formed in 1967, is a leading specialized manufacturing company
principally serving aerospace and defense customers. We design, manufacture and market highly engineered products and systems for application within the industries we serve.

Our strategy is to maintain a leadership position in niche markets for the development and manufacture of highly engineered products that are essential to our customers. We are concentrating our efforts to expand
selectively our capabilities in these markets, to anticipate the global needs of our customers and to respond to such needs with comprehensive solutions. Our current business and strategic growth plan focuses on the continuous development of these
products in three key technology segments  avionics and controls, sensors and systems, and advanced materials including thermally engineered components and specialized high-performance elastomers and other complex materials, principally for
aerospace and defense markets. As part of our implementation of this growth plan, we focus on, among other things, expansion of our capabilities as a more comprehensive supplier to our customers, which in fiscal 2006 included the acquisition of
Wallop Defence Systems Limited, FR Countermeasures and Darchem Holdings Limited, as described in more detail in the Overview section of Managements Discussion and Analysis of Financial Condition and Results of Continuing Operations
contained in the Annual Report to Shareholders for the fiscal year ended October 27, 2006 included as Exhibit 13 to this report. Our products are often mission-critical equipment, which have been designed into particular military and
commercial platforms and in certain cases can only be replaced by products of other manufacturers following a formal certification process.

Our products
have a long history in the aerospace and defense industry and are found on most military and commercial aircraft, helicopters, and land-based systems. For example, our products are used on the majority of active and in-production U.S. military
aircraft and on every Boeing commercial aircraft platform manufactured in the past 65 years. In addition, our products are supplied to Airbus, all of the major regional and business jet manufacturers, and the major aircraft engine manufacturers. We
differentiate ourselves through our engineering and manufacturing capabilities and our reputation for quality, reliability, and innovation. We work closely with original equipment manufacturers (OEMs) on new, highly engineered product designs which
often results in our products being designed into their platforms; this integration often results in sole-source positions for OEM production and aftermarket business. In fiscal 2006, we estimate that 25% of our sales to commercial and military
aerospace customers were derived from aftermarket business. Our aftermarket sales, including retrofits, spare parts, and repair services, historically carry a higher gross margin and have more stability than sales to OEMs. In many cases, aftermarket
sales extend well beyond the OEM production period, supporting the platform during its entire life cycle.



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Our sales are diversified across three broad markets: defense, commercial aerospace, and general industrial. For fiscal
2006, we estimate we derived approximately 38% of our sales from the defense market, 43% from the commercial aerospace market and 19% from the general industrial market.

(b) Financial Information About Industry Segments.

A summary of net sales to unaffiliated customers, operating
earnings and identifiable assets attributable to our business segments for fiscal years 2006, 2005 and 2004 is reported in Note 16 to the Companys Consolidated Financial Statements contained in the Annual Report to Shareholders for the
fiscal year ended October 27, 2006. The Annual Report is included as Exhibit 13 to this report.

(c) Narrative Description of Business.

Avionics & Controls

Our
Avionics & Controls business segment designs and manufactures technology interface systems for military and commercial aircraft and land- and sea-based military vehicles, secure communications systems, specialized medical equipment, and
other industrial applications.

We are a market leader in the development, manufacturing and marketing of sophisticated high reliability technology
interface systems for commercial and military aircraft. These products include lighted push-button and rotary switches, keyboards, lighted indicators, panels and displays that are used in a broad variety of control and display applications. They
have been integrated into many existing aircraft designs, including every Boeing commercial aircraft platform currently in production. This large installed base provides us with a significant spare parts and retrofit business. We are a Tier 1
supplier on the Boeing 787 program to design and manufacture all of the cockpit overhead panels and embedded software for these systems. In addition, we manufacture control sticks, grips and wheels, as well as specialized switching systems. In this
area, we primarily serve commercial and military aviation, and airborne and ground-based military equipment manufacturing customers. For example, we are a leading manufacturer of pilot control grips for most types of military fighter jets and
helicopters. Additionally, our software engineering center supports our customers needs with such applications as primary flight displays, flight management systems, air data computers and engine control systems.

Our proprietary products meet critical operational requirements and provide customers with significant technological advantages in such areas as night vision
compatibility and active-matrix liquid-crystal displays (a technology enabling pilots to read display screens in a variety of light conditions as well as from extreme angles). Our products are incorporated in a wide variety of platforms ranging from
military helicopters, fighters and transports, to commercial wide-body, regional and business jets. In fiscal 2006, some of our largest customers for these products included The Boeing Company, Honeywell, BAE Systems, Lockheed Martin, Smiths
Aerospace and Sikorsky.

We are also a supplier in custom input integration with a full line of keyboard switch and input technologies for specialized
medical equipment, communications systems and comparable equipment for military applications. These products include custom keyboards, keypads, and input devices that integrate cursor control devices, bar-code scanners, displays, laser pointers, and
voice activation. We also produce meters that are used for point-of-use and point-of-care in vitro diagnostics. We have developed a wide variety of technologies, including plastic and vinyl membranes that protect high-



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use switches and fully depressible buttons, and backlighted elastomer switch coverings that are resistant to exposure from harsh chemicals. These
technologies now serve as the foundation for a small but growing portion of our product line. In fiscal 2006, some of our largest customers for these products included Roche, Lockheed Martin, Philips, and General Electric.

Sensors & Systems

Our Sensors & Systems business
segment produces high-precision temperature, pressure sensors and speed sensors, electrical power switching, control and data communication devices, fluid control components, micro-motors, motion control sensors, and other related systems
principally for aerospace and defense customers. We are a market leader for these products in Europe with growing positions in the United States. For example, we are the sole-source supplier of temperature probes for use on all versions of the
General Electric/Snecma CFM-56 jet engine. The CFM-56 has an installed base of over 16,000 engines, is standard equipment on new generation Boeing 737 aircraft and was selected as the engine for approximately 45% of all Airbus aircraft delivered to
date. We are contracted to design and manufacture the 787s sensors for the environmental control system and the primary power distribution assembly for the new Airbus A400M military transport. Additionally, we have secured a Tier 1 position
with Rolls Royce for the complete suite of sensors for the engine that will power the A400M. The principal customers for our products in this business segment are jet engine manufacturers and airframe manufacturers. In fiscal 2006, some of our
largest customers for these products included Flame, SAFRAN, British Ministry of Defence, Rolls Royce, General Electric, Avnet, The Boeing Company, Honeywell, and BAE Systems.

Advanced Materials

Our Advanced Materials business segment develops and manufactures high-performance elastomer
products used in a wide range of commercial aerospace and military applications, and combustible ordnance for military applications. We also develop and manufacture highly engineered thermal components for commercial aerospace and industrial
applications. This segment focuses principally on process-related technologies.

Specialized High-Performance Applications. We specialize in the
development of proprietary formulations for silicone rubber and other elastomer products. Our elastomer products are engineered to address specific customer requirements where superior performance in high temperature, high pressure, caustic,
abrasive and other difficult environments is critical. These products include clamping devices, thermal fire barrier insulation products, seals, tubing and coverings designed in custom-molded shapes. Some of the products include proprietary
elastomers that are specifically designed for use on or near a jet engine. We are a leading U.S. supplier of high-performance elastomer products to the aerospace industry, with our primary customers for these products being jet and rocket engine
manufacturers, commercial and military airframe manufacturers, as well as commercial airlines. In fiscal 2006, some of the largest customers for these products included the U.S. Department of Defense, Alliant Techsystems, The Boeing Company, General
Dynamics, KAPCO, Honeywell, Lockheed Martin, and Goodrich. We also develop and manufacture high temperature lightweight insulation equipment for aerospace and automotive applications. Our commercial aerospace programs include the 737 and A320 series
aircraft and the V2500 and BR710 engines. Our insulation material is used on diesel engine manifolds for earthmover and agricultural applications. In addition, we specialize in the development of thermal protection for petrochemical fire protection
systems and nuclear insulation. We design and manufacture high temperature components for industrial and marine markets. Our manufacturing processes consist of cutting, pressing, welding (including laser) stainless steel, Inconel and titanium
fabrications. In fiscal 2006,



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some of the largest customers of these products included Airbus, BAE Systems, and Spirit AeroSystems.

Other Defense Applications. We develop and manufacture combustible ordnance and electronic warfare countermeasure devices for military customers. We manufacture
molded fiber cartridge cases, mortar increments, igniter tubes and other combustible ordnance components primarily for the U.S. Department of Defense. We are currently the sole supplier of combustible casings utilized by the U.S. Armed Forces. Sales
are made either directly to the U.S. Department of Defense or through prime contractors, Alliant Techsystems and General Dynamics. These products include the combustible case for the U.S. Armys new generation 155mm Modular Artillery Charge
System, the 120mm combustible case used with the main armament system on the U.S. Army and Marine Corps M1-A1/2 tanks, and the 60mm, 81mm and 120mm combustible mortar increments. We are also currently the only U.S. supplier of radar
countermeasure chaff and one of two suppliers to the U.S. Army of infrared decoy flares used by aircraft to help protect against radar and infrared guided missiles.

A summary of product lines contributing sales of 10% or more of total sales for fiscal years 2006, 2005 and 2004 is reported in Note 16 to the Consolidated Financial Statements contained in the Annual Report to
Shareholders for the fiscal year ended October 27, 2006. The Annual Report is included as Exhibit 13 to this report.

Marketing and
Distribution

We believe that a key to continued success is our ability to meet customer requirements both domestically and internationally. We have
and will continue to improve our world-wide sales and distribution channels in order to provide a wider variety of products and to improve the effectiveness of our customers supply chain. For example, our medical device assembly operation in
Shanghai, China, which was opened in 2005, serves our global medical customers. In addition, our service center in Singapore has improved our capabilities in Asia for our temperature sensor customers. Other enhancements include combining sales and
marketing forces of our operating units where appropriate, cross-training our sales representatives on multiple product lines, and cross-stocking our spares parts and components.

In the technical and highly engineered product segments in which we compete, relationship selling is particularly appropriate in targeted marketing segments where customer and supplier design and engineering inputs
need to be tightly integrated. Participation in industry trade shows is an effective method of meeting customers, introducing new products, and exchanging technical specifications. In addition to technical and industry conferences, our products are
supported through direct internal international sales efforts, as well as through manufacturer representatives and selected distributors. Currently, 201 sales people, 215 representatives, and 129 distributors support our operations internationally.

Backlog

Backlog at October 27, 2006, was
$653.5 million, compared with $482.8 million at October 28, 2005. We estimate that approximately $165.8 million of backlog is scheduled to be shipped after fiscal 2007.

Backlog is subject to cancellation until delivered, and therefore, we cannot assure that our backlog will be converted into revenue in any particular period or at all.
Backlog does not include the total



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contract value of cost-plus reimbursable contracts, which are funded as we incur the costs. Except for the released portion, backlog also does not include
fixed-price multi-year contracts.

Competition

Our
products and services are affected by varying degrees of competition. We compete with other companies in most markets we serve, many of which have far greater sales volumes and financial resources. The principal competitive factors in the commercial
markets in which we participate are product performance, service and price. Part of product performance requires expenditures in research and development that lead to product improvement. The market for many of our products may be affected by rapid
and significant technological changes and new product introductions. Our principal competitors include Eaton, ECE, Gables Engineering, Otto Controls, Ultra Electronics and Telephonics in our Avionics & Controls segment; Ametek, Meggitt,
Deutsch, Tyco, MPC Products and Goodrich in our Sensors & Systems segment; and Kmass, ULVA, Doncasters, Astec, Hitemp, Meggitt (including Dunlop Standard Aerospace Group), Adel Wiggins, RE Darling and Parker in our Advanced Materials
segment.

Research and Development

Currently, our
product development and design programs utilize an extensive base of professional engineers, technicians and support personnel, supplemented by outside engineering and consulting firms when needed. In fiscal 2006, approximately $52.6 million
was expended for research, development and engineering, compared with $42.2 million in fiscal 2005 and $25.9 million in fiscal 2004. We believe continued product development is key to our long-term growth, and consequently, we consistently
invest in research and development. Examples include research and development projects relating to a ground fault interrupter for aircraft applications, insulation material for various rocket and missile programs, high temperature, low observable
material for military applications, and kinematic countermeasure flares for military applications, as well as new sensing technologies including silicon-on-insulator pressure sensors. In fiscal 2005 and 2004, we began bidding and winning new
aerospace programs which will result in increased company-funded research and development. These programs included the A400M power distribution assembly, TP400 engine sensors, 787 overhead control panel and 787 environmental control system programs.
In addition, we actively participate in customer-funded research and development programs, including applications on the new MMA aircraft, UH-60M Blackhawk, VH-71 Presidential Helicopter and Russian Regional Jet.

Foreign Operations

Our principal foreign operations consist of
manufacturing facilities located in France, Germany and the United Kingdom and include sales and service operations located in Singapore and China. For further information regarding foreign operations, see Note 16 to the Consolidated Financial
Statements contained in the Annual Report to Shareholders for the fiscal year ended October 27, 2006. The Annual Report is included as Exhibit 13 to this report.

Government Contracts and Subcontracts

As a contractor and subcontractor to the U.S. government (primarily the U.S.
Department of Defense), we are subject to various laws and regulations that are more restrictive than those applicable to private sector contractors. Approximately 12% of our sales were made directly to the U.S. government in fiscal 2006. In
addition, we estimate that our subcontracting activities to



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contractors for the U.S. government accounted for approximately 12% of sales during fiscal 2006. Therefore, we estimate that approximately 24% of our sales
during the fiscal year were subject to U.S. government contracting regulations. Such contracts may be subject to termination, reduction or modification in the event of changes in government requirements, reductions in federal spending, and other
factors.

Historically, our U.S. government contracts and subcontracts have been predominately fixed-price contracts. Generally, fixed-price contracts
offer higher margins than cost-plus contracts in return for accepting the risk that increased or unexpected costs may reduce anticipated profits or cause us to sustain losses on the contracts. The accuracy and appropriateness of certain costs and
expenses used to substantiate our direct and indirect costs for the U.S. government under both cost-plus and fixed-price contracts are subject to extensive regulation and audit by the Defense Contract Audit Agency, an arm of the U.S. Department of
Defense. The contracts and subcontracts to which we are a party are also subject to profit and cost controls and standard provisions for termination at the convenience of the U.S. government. Upon termination, other than for our default, we will
normally be entitled to reimbursement for allowable costs and to an allowance for profit. To date, none of our significant fixed-price contracts have been terminated.

Patents and Licenses

Although we hold a number of patents and licenses, we do not believe that our operations are
dependent on our patents and licenses. In general, we rely on technical superiority, continual product improvement, exclusive product features, superior lead-time, on-time delivery performance, quality and customer relationships to maintain
competitive advantage.

Seasonality

The timing of our
revenues is impacted by the purchasing patterns of our customers and as a result we do not generate revenues evenly throughout the year. Moreover, our first fiscal quarter, November through January, includes significant holiday vacation periods in
both Europe and North America. This leads to decreased order and shipment activity; consequently, first quarter results are typically weaker than other quarters and not necessarily indicative of our performance in subsequent quarters.

Sources and Availability of Raw Materials and Components

Due to our
diversification, the sources and availability of certain raw materials and components are not as critical as they would be for manufacturers of a single product line. However, certain components, supplies and raw materials for our operations are
purchased from single sources. In such instances, we strive to develop alternative sources and design modifications to minimize the effect of business interruptions.

Environmental Matters

We are subject to federal, state, local and foreign laws, regulations and ordinances that
(i) govern activities or operations that may have adverse environmental effects, such as discharges to air and water, as well as handling and disposal practices for solid and hazardous waste, and (ii) impose liability for the costs of
cleaning up, and certain damages resulting from, sites or past spills, disposals or other releases of hazardous substances.



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On August 29, 2002, our subsidiary, Armtec, acquired the radar countermeasures chaff and infrared decoy flare
operations of the Electronic Warfare Passive Expendables Division of BAE Systems North America. At the time of our asset acquisition from BAE Systems, certain environmental remedial activities were required under a Part B Permit issued to the
infrared decoy flare facility by the Arkansas Department of Environmental Quality under the Federal Resource Conservation and Recovery Act. The Part B Permit was transferred to Armtec, along with the remedial obligations. Under the terms of the
asset purchase agreement, BAE Systems agreed to complete all remedial obligations at the infrared decoy flare facility and to indemnify us for all environmental liabilities to a maximum amount of $25.0 million. In addition, in connection with
our acquisition of Wallop Defence Systems Limited, we and the seller agreed that some environmental remedial activities may need to be carried out, and these activities are currently ongoing. Under the terms of the Stock Purchase Agreement, a
portion of the costs of any environmental remedial activities will be reimbursed by the seller if the cost is incurred within five years of the consummation of the acquisition.

At various times we have been identified as a potentially responsible party pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (CERCLA), and analogous state environmental
laws, for the clean up of contamination resulting from past disposals of hazardous wastes at certain sites to which we, among others, sent wastes in the past. CERCLA requires potentially responsible persons to pay for cleanup of sites from which
there has been a release or threatened release of hazardous substances. Courts have interpreted CERCLA to impose strict, joint and several liability on all persons liable for cleanup costs. As a practical matter, however, at sites where there are
multiple potentially responsible persons, the costs of cleanup typically are allocated among the parties according to a volumetric or other standard.

We
have accrued liabilities for environmental remediation costs expected to be incurred by our operating facilities. Environmental exposures are provided for at the time they are known to exist or are considered reasonably probable and estimable. No
provision has been recorded for environmental remediation costs that could result from changes in laws or other circumstances we have not currently contemplated.

Employees

For our continuing operations, we had approximately 8,150 employees at October 27, 2006, of which 4,970 were based in
the United States, 2,750 in Europe, 310 in Mexico and 120 in Asia. Approximately 20% of the U.S.-based employees were represented by a labor union. Our European operations are subject to national trade union agreements and to local regulations
governing employment.

(d) Financial Information About Foreign and Domestic Operations and Export Sales.

See risk factor below entitled Political and economic instability in foreign countries and markets may have a material adverse impact on our operating
results under Item 1A of this report and Note 16 to the Consolidated Financial Statements contained in the Annual Report to Shareholders for the fiscal year ended October 27, 2006. The Annual Report is included as
Exhibit 13 to this report.

(e) Available Information of the Registrant.

You can access financial and other information on our website, www.esterline.com. We make available through our website, free of charge, copies of our annual report on Form 10-K, quarterly



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reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or
Section 15(d) of the Securities Exchange Act of 1934, as amended, as soon as reasonably practicable after filing such material electronically or otherwise furnishing it to the Securities and Exchange Commission. Our Corporate Governance
Guidelines and charters for our board committees are available on our website, www.esterline.com/governance/default.stm and our Code of Business Conduct and Ethics, which includes a code of ethics applicable to our accounting and financial
employees, including our Chief Executive Officer and Chief Financial Officer, is available on our website at www.esterline.com/governance/ethics.stm. Each of these documents is also available in print (at no charge) to any shareholder upon
request. Our website and the information contained therein or connected thereto are not incorporated by reference into this Form 10-K.



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Executive Officers of the Registrant

The names and ages of all executive officers of the Company and the positions and offices held by such persons as of December 29, 2006 are as follows:



|                       |  |                                                 |  |    
|---------------------- |  | ----------------------------------------------- |  | ---
|Name                   |  | Position with the Company                       |  | Age
|Robert W. Cremin       |  | Chairman, President and Chief Executive Officer |  | 66 
|Robert D. George       |  | Vice President, Chief Financial Officer,        |  | 50 
|                       |  | Secretary and Treasurer                         |  |    
|Marcia J. M. Greenberg |  | Vice President, Human Resources                 |  | 54 
|Frank E. Houston       |  | Group Vice President                            |  | 55 
|Larry A. Kring         |  | Senior Group Vice President                     |  | 66 
|Stephen R. Larson      |  | Vice President, Strategy & Technology           |  | 62 
|Richard J. Wood        |  | Group Vice President                            |  | 53 

Mr. Cremin has been Chairman since January 2001. In addition, he has served as Chief Executive Officer
and President since January 1999 and September 1997, respectively. Mr. Cremin has an M.B.A. from the Harvard Business School and a B.S. degree in Metallurgical Engineering from Polytechnic Institute of Brooklyn. He has been a director
of the Company since 1998.

Mr. George has been Vice President, Chief Financial Officer, Secretary and Treasurer since July 1999 and Treasurer
and Controller from June 1997 until July 1999. Mr. George has an M.B.A. from the Fuqua School of Business at Duke University and a B.A. degree in Economics from Drew University.

Ms. Greenberg has been Vice President, Human Resources since March 1993. Ms. Greenberg has a J.D. degree from Northwestern University School of Law and a
B.A. degree in Political Science from Portland State University.

Mr. Houston has been Group Vice President since March 2005. Previously, he was
President of Korry Electronics Co., part of Esterlines Avionics & Controls segment, since October 2002. From March 2000 to October 2002, he served as President of Advanced Input Devices, Inc., also part of Esterlines
Avionics & Controls segment. Mr. Houston has an M.B.A. from the University of Washington and a B.A. degree in Political Science from Seattle Pacific University.

Mr. Kring has been Senior Group Vice President since February 2005. Previously, he was Group Vice President from August 1993. Mr. Kring has an M.B.A. from California State University at Northridge and a
B.S. degree in Aeronautical Engineering from Purdue University.

Mr. Larson has been Vice President, Strategy & Technology since
January 2000. Previously, he was Group Vice President from April 1991 through December 1999. Mr. Larson has an M.B.A. from the University of Chicago and a B.S. degree in Electrical Engineering from Northwestern University.

Mr. Wood has been Group Vice President since February 2005. In addition, he is the President of Esterlines Sensors Group, which is included in
the Sensors & Systems business segment, since July 2003. From March 2000 to July 2003, he served as Managing Director (Chief Executive Officer) of Weston Aerospace, a manufacturer of high-end sensors for large thrust jet engines acquired by
Esterline in June 2003. Mr. Wood has a B.Sc. degree in Engineering Science from the University of Durham in England and is a Fellow of the Royal Aeronautical Society.



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Forward-Looking Statements

This annual report on Form 10-K includes forward-looking statements. These statements may be identified by the use of forward-looking terminology such as anticipate, believe, continue,
could, estimate, expect, intend, may, might, plan, potential, predict, should or will or the negative thereof or
other variations thereon or comparable terminology. In particular, statements about our expectations, beliefs, plans, objectives, assumptions or future events or performance contained in this report under the headings Risks Relating to Our
Business, Managements Discussion and Analysis of Financial Condition and Results of Operations and Business are forward-looking statements.

We have based these forward-looking statements on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates and projections are reasonable, such
forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors, including those discussed in this report under the headings Risks
Relating to Our Business and Our Industry, Managements Discussion and Analysis of Financial Condition and Results of Operations and Business may cause our actual results, performance or achievements to differ
materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Some of the key factors that could cause actual results to differ from our expectations are:



| |  |  | A significant downturn in the aerospace industry;
| | - |  | -------------------------------------------------

| |  |  | A significant reduction in defense spending;
| | - |  | --------------------------------------------

| |  |  | A decrease in demand for our products as a result of competition, technological innovation or otherwise;
| | - |  | --------------------------------------------------------------------------------------------------------

| |  |  | Our inability to integrate acquired operations or complete acquisitions; and
| | - |  | ----------------------------------------------------------------------------

| |  |  | Loss of a significant customer or defense program.
| | - |  | --------------------------------------------------

Given these risks and
uncertainties, you are cautioned not to place undue reliance on such forward-looking statements. The forward-looking statements included or incorporated by reference into this report are made only as of the date hereof. We do not undertake and
specifically decline any obligation to update any such statements or to publicly announce the results of any revisions to any such statements to reflect future events or developments.

Item 1A. Risk Factors



|                                                |  | 
|----------------------------------------------- |  | 
|Risks Relating to Our Business and Our Industry |  | 

Implementing our acquisition strategy involves risks, and our failure to successfully implement this strategy
could have a material adverse effect on our business.

One of our key strategies is to grow our business by selectively pursuing acquisitions. Since
1996 we have completed over 30 acquisitions, and we are continuing to actively pursue additional acquisition opportunities, some of which may be material to our business and financial performance. Although we have been successful with this strategy
in the past, we may not be able to grow our business in the future through acquisitions for a number of reasons, including:



| |  |  | Encountering difficulties identifying and executing acquisitions;
| | - |  | -----------------------------------------------------------------

| |  |  | Increased competition for targets, which may increase acquisition costs;
| | - |  | ------------------------------------------------------------------------



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| |  |  | Consolidation in our industry reducing the number of acquisition targets;
| | - |  | -------------------------------------------------------------------------

| |  |  | Acquisition financing not being available on acceptable terms or at all; and
| | - |  | ----------------------------------------------------------------------------

| |  |  | Competition laws and regulations preventing us from making certain acquisitions.
| | - |  | --------------------------------------------------------------------------------

In addition, there are potential risks associated with growing our business through acquisitions, including the failure to successfully integrate and realize the expected benefits of an acquisition. For example, with any past or future
acquisition, there is the possibility that:



| |  |  | The business culture of the acquired business may not match well with our culture;
| | - |  | ----------------------------------------------------------------------------------

| |  |  | Technological and product synergies, economies of scale and cost reductions may not occur as expected;
| | - |  | ------------------------------------------------------------------------------------------------------

| |  |  | Management may be distracted from overseeing existing operations by the need to integrate acquired businesses;
| | - |  | --------------------------------------------------------------------------------------------------------------

| |  |  | We may acquire or assume unexpected liabilities;
| | - |  | ------------------------------------------------

| |  |  | Unforeseen difficulties may arise in integrating operations and systems;
| | - |  | ------------------------------------------------------------------------

| |  |  | We may fail to retain and assimilate employees of the acquired business;
| | - |  | ------------------------------------------------------------------------

| |  |  | We may experience problems in retaining customers and integrating customer bases; and
| | - |  | -------------------------------------------------------------------------------------

| |  |  | Problems may arise in entering new markets in which we may have little or no experience.
| | - |  | ----------------------------------------------------------------------------------------

Failure to continue implementing our acquisition strategy, including successfully integrating acquired businesses, could have a material adverse effect on our business, financial condition and results of operations.

Our future financial results could be adversely impacted by asset impairment charges.

Under Statement of Financial Accounting Standards No. 142, Goodwill and Other Intangible Assets (Statement No. 142), we are required to test both
acquired goodwill and other indefinite-lived intangible assets for impairment on an annual basis based upon a fair value approach, rather than amortizing them over time. We have chosen to perform our annual impairment reviews of goodwill and other
indefinite-lived intangible assets during the fourth quarter of each fiscal year. We also are required to test goodwill for impairment between annual tests if events occur or circumstances change that would more likely than not reduce our enterprise
fair value below its book value. These events or circumstances could include a significant change in the business climate, including a significant sustained decline in an entitys market value, legal factors, operating performance indicators,
competition, sale or disposition of a significant portion of the business, or other factors. If the fair market value is less than the book value of goodwill, we could be required to record an impairment charge. The valuation of reporting units
requires judgment in estimating future cash flows, discount rates and estimated product life cycles. In making these judgments, we evaluate the financial health of the business, including such factors as industry performance, changes in technology
and operating cash flows. As we have grown through acquisitions, we have accumulated $366.2 million of goodwill, and have $29.3 million of indefinite-lived intangible assets, out of total assets of $1.3 billion at
October 27, 2006. As a result, the amount of any annual or interim impairment could be significant and could have a material adverse effect on our reported financial results for the period in which the charge is taken. We also may be
required to record an earnings charge or incur unanticipated expenses if, due to a change in strategy or other reason, we determined the value of other assets has been impaired.

We performed our impairment review for fiscal 2006 as of July 29, 2006, and our Step One analysis indicated that no impairment of goodwill exists on any of the Companys reporting units. We



13



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account for the impairment of long-lived assets to be held and used in accordance with Financial Accounting Standards No. 144, Accounting for the
Impairment or Disposal of Long-lived Assets (Statement No. 144). Statement No. 144 requires that a long-lived asset to be disposed of be reported at the lower of its carrying amount or fair value less cost to sell. An asset (other
than goodwill and indefinite-lived intangible assets) is considered impaired when estimated future cash flows are less than the carrying amount of the asset. In the event the carrying amount of such asset is not deemed recoverable, the asset is
adjusted to its estimated fair value. Fair value is generally determined based upon estimated discounted future cash flows. As we have grown through acquisitions, we have accumulated $212.3 million of intangible assets. As a result, the amount
of any annual or interim impairment could be significant and could have a material adverse effect on our reported financial results for the period in which the charge is taken.

The loss of a significant customer or defense program could have a material adverse effect on our operating results.

Some of our operations are dependent on a relatively small number of customers and defense programs, which change from time to time. Significant customers in fiscal 2006 included the U.S. Department of Defense, The Boeing Company, General
Dynamics, Flame, Rolls Royce, Honeywell, Lockheed Martin and Smiths Industries. There can be no assurance that our current significant customers will continue to buy our products at current levels. The loss of a significant customer or the
cancellation of orders related to a sole-source defense program could have a material adverse effect on our operating results if we were unable to replace the related sales.

Our operating results are subject to fluctuations that may cause our revenues to decline.

Our business is
susceptible to seasonality and economic cycles, and as a result, our operating results have fluctuated widely in the past and are likely to continue to do so. Our revenue tends to fluctuate based on a number of factors, including domestic and
foreign economic conditions and developments affecting the specific industries and customers we serve. For example, the events of September 11, 2001 and the downturn in commercial aviation, due to, among other things, the conflict in Iraq,
impacted our operations. It is possible that in the future our operating results in a particular quarter or quarters will not meet the expectations of securities analysts or investors, causing the market price of our common stock or senior
subordinated notes to decline. We believe that quarter-to-quarter comparisons of our operating results are not a good indication of our future performance and should not be relied upon to predict our future performance.

Political and economic instability in foreign countries and markets may have a material adverse effect on our operating results.

Foreign sales were approximately 45% of our total sales in fiscal 2006, and we have manufacturing facilities in a number of foreign countries. A substantial portion of
our Sensors & Systems operations are based in the U.K. and France. Doing business in foreign countries is subject to numerous risks, including political and economic instability, restrictive trade policies of foreign governments, economic
conditions in local markets, health concerns, inconsistent product regulation or unexpected changes in regulatory and other legal requirements by foreign agencies or governments, the imposition of product tariffs and the burdens of complying with a
wide variety of international and U.S. export laws and differing regulatory requirements. Our future sales of cockpit control displays to the Chinese market may be precluded by the proposed Bureau of Industry and Securitys (BIS) catch-all
rule, currently scheduled for implementation in fiscal 2007. We expect the effect of this



14



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regulation, if implemented, to be immaterial to our consolidated results of operations in future periods, but the loss of income from this market opportunity
may have a measurable effect on the results of operations of our Avionics & Controls segment. To the extent that foreign sales are transacted in a foreign currency, we are subject to the risk of losses due to foreign currency fluctuations.
In addition, we have substantial assets denominated in foreign currencies, primarily the U.K. pound and euro, that are not offset by liabilities denominated in those foreign currencies. These net foreign currency investments are subject to material
changes in the event of fluctuations in foreign currencies against the U.S. dollar.

Among other things, we are subject to the Foreign Corrupt Practices
Act, or FCPA, which generally prohibits U.S. companies and their intermediaries from bribing foreign officials for the purpose of obtaining or keeping business or otherwise obtaining favorable treatment. In particular, we may be held liable for
actions taken by our strategic or local partners even though our partners are not subject to the FCPA. Any determination that we have violated the FCPA could result in sanctions that could have a material adverse effect on our business, financial
condition and results of operations.



15



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We may not be able to compete effectively.

Our products and services are affected by varying degrees of competition. We compete with other companies and divisions and units of larger companies in most markets we serve, many of which have greater sales volumes
or financial, technological or marketing resources than we do. Our principal competitors include: Eaton, ECE, Gables Engineering, Otto Controls, Ultra Electronics, and Telephonics in our Avionics & Controls segment; Ametek, Meggitt,
Deutsch, Tyco, MPC Products and Goodrich in our Sensors & Systems segment; and Kmass, ULVA, Doncasters, Astec, Hitemp, Meggitt (including Dunlop Standard Aerospace Group), Adel Wiggins, RE Darling and Parker in our Advanced Materials
segment. The principal competitive factors in the commercial markets in which we participate are product performance, service and price. Maintaining product performance requires expenditures in research and development that lead to product
improvement and new product introduction. Companies with more substantial financial resources may have a better ability to make such expenditures. We cannot assure that we will be able to continue to successfully compete in our markets, which could
adversely affect our business, financial condition and results of operations.

Our backlog is subject to modification or termination, which may reduce
our sales in future periods.

We currently have a backlog of orders based on our contracts with customers. Under many of our contracts, our customers
may unilaterally modify or terminate their orders at any time. In addition, the maximum contract value specified under a government contract awarded to us is not necessarily indicative of the sales that we will realize under that contract. For
example, we are a sole-source prime contractor for many different military programs with the U.S. Department of Defense. We depend heavily on the government contracts underlying these programs. Over its lifetime, a program may be implemented by the
award of many different individual contracts and subcontracts. The funding of government programs is subject to congressional appropriation.

Changes in
defense procurement models may make it more difficult for us to successfully bid on projects as a prime contractor and limit sole-source opportunities available to us.

In recent years, the trend in combat system design and development appears to be evolving towards the technological integration of various battlefield components, including combat vehicles, command and control network
communications, advanced technology artillery systems and robotics. If the U.S. military procurement approach continues to require this kind of overall battlefield combat system integration, we expect to be subject to increased competition from
aerospace and defense companies who have significantly greater resources than we do. This trend could create a role for a prime contractor with broader capabilities that would be responsible for integrating various battlefield component systems and
potentially eliminating or reducing the role of sole-source providers or prime contractors of component weapon systems.

The amount of debt we have
outstanding, as well as any debt we may incur in the future, could have an adverse effect on our operational and financial flexibility.

As of
October 27, 2006, we had $295.9 million of debt outstanding, of which $282.3 million is long-term debt. Our primary credit agreement as of October 27, 2006 includes a $100.0 million term loan facility, which may be
drawn in U.S. dollars, U.K. pounds or euros. In addition, up to $25.0 million of our $100.0 million credit facility and up to $50.0 million in letters of credit may be drawn in U.K. pounds or euros in addition to U.S. dollars. On
February 10, 2006, the Company borrowed U.K.



16



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£57.0 million, or approximately $100.0 million, under the term loan facility. The Company used the proceeds from the loan as working capital
for its U.K. operations and to repay a portion of our outstanding borrowings under the revolving credit facility. Our primary U.S. dollar credit facility as of October 27, 2006 totaled $100.0 million and is made available through a group
of banks. The credit agreement is secured by substantially all of the Companys assets and interest is based on standard inter-bank offering rates. In addition, we have unsecured foreign currency credit facilities that have been extended by
foreign banks for up to $19.6 million. Available credit under the above credit facilities was $111.0 million at October 27, 2006, when reduced by outstanding foreign bank borrowings of $8.1 million and letters of credit of
$0.6 million.

The indenture governing our outstanding senior subordinated notes in an aggregate principal amount of $175.0 million and other
debt agreements limit, but do not prohibit, us from incurring additional debt in the future. Our level of debt could have significant consequences to our business, including the following:



| |  |  | Depending on interest rates and debt maturities, a substantial portion of our cash flow from operations could be dedicated to paying principal and interest on our debt, thereby
reducing funds available for our acquisition strategy, capital expenditures or other purposes;
| | - |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | A significant amount of debt could make us more vulnerable to changes in economic conditions or increases in prevailing interest rates;
| | - |  | ---------------------------------------------------------------------------------------------------------------------------------------

| |  |  | Our ability to obtain additional financing for acquisitions, capital expenditures or for other purposes could be impaired;
| | - |  | --------------------------------------------------------------------------------------------------------------------------

| |  |  | The increase in the amount of debt we have outstanding increases the risk of non-compliance with some of the covenants in our debt agreements which require us to maintain specified
financial ratios; and
| | - |  | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

| |  |  | We may be more leveraged than some of our competitors, which may result in a competitive disadvantage.
| | - |  | ------------------------------------------------------------------------------------------------------

If we were unable to protect our intellectual property rights adequately, the value of our products could be diminished.

Our success is dependent in part on obtaining, maintaining and enforcing our proprietary rights and our ability to avoid infringing on the proprietary rights of others. While we take precautionary steps to protect our technological
advantages and intellectual property and rely in part on patent, trademark, trade secret and copyright laws, we cannot assure that the precautionary steps we have taken will completely protect our intellectual property rights. Because patent
applications in the United States are maintained in secrecy until either the patent application is published or a patent is issued, we may not be aware of third-party patents, patent applications and other intellectual property relevant to our
products that may block our use of our intellectual property or may be used in third-party products that compete with our products and processes. In the event a competitor successfully challenges our products, processes, patents or licenses or
claims that we have infringed upon their intellectual property, we could incur substantial litigation costs defending against such claims, be required to pay royalties, license fees or other damages or be barred from using the intellectual property
at issue, any of which could have a material adverse effect on our business, operating results and financial condition.

In addition to our patent rights,
we also rely on unpatented technology, trade secrets and confidential information. Others may independently develop substantially equivalent information and techniques or otherwise gain access to or disclose our technology. We may not be able to
protect our rights in unpatented technology, trade secrets and confidential information effectively. We require each of our



17



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employees and consultants to execute a confidentiality agreement at the commencement of an employment or consulting relationship with us. However, these
agreements may not provide effective protection of our information or, in the event of unauthorized use or disclosure, they may not provide adequate remedies.

We may lose money or generate less than expected profits on our fixed-price contracts.

Our customers set demanding specifications for
product performance, reliability and cost. Some of our government contracts and subcontracts provide for a predetermined, fixed price for the products we make regardless of the costs we incur. Therefore, we must absorb cost overruns, notwithstanding
the difficulty of estimating all of the costs we will incur in performing these contracts and in projecting the ultimate level of sales that we may achieve. Our failure to anticipate technical problems, estimate costs accurately, integrate technical
processes effectively or control costs during performance of a fixed-price contract may reduce the profitability of a fixed-price contract or cause a loss. While we believe that we have recorded adequate provisions in our financial statements for
losses on our fixed-price contract as required under GAAP, we cannot assure that our contract loss provisions will be adequate to cover all actual future losses. Therefore, we may incur losses on fixed-price contracts that we had expected to be
profitable, or such contracts may be less profitable than expected.

We depend on the continued contributions of our executive officers and other key
management, each of whom would be difficult to replace.

Our future success depends to a significant degree upon the continued contributions of our
senior management and our ability to attract and retain other highly qualified management personnel. We face competition for management from other companies and organizations. Therefore, we may not be able to retain our existing management personnel
or fill new management positions or vacancies created by expansion or turnover at our existing compensation levels. Although we have entered into change of control agreements with some members of senior management, we do not have employment
contracts with our key executives, nor have we purchased key-person insurance on the lives of any of our key officers or management personnel to reduce the impact to our company that the loss of any of them would cause. Specifically, the
loss of any of our executive officers would disrupt our operations and divert the time and attention of our remaining officers. Additionally, failure to attract and retain highly qualified management personnel would damage our business prospects.

A downturn in the aircraft market could adversely affect our business.

The aircraft industry is cyclical in nature and affected by many factors beyond our control. For example, the aircraft market was affected by the conflict in Iraq and the events of September 11, 2001, resulting
in bankruptcy filings, restructurings and downsizing by the major commercial and regional airline carriers. This prolonged downturn had an adverse effect on our business, financial condition and operating results.

The principal markets for manufacturers of commercial aircraft are the commercial and regional airlines, which are adversely affected by a number of factors, including
fuel and labor costs, intense price competition, outbreak of infectious disease and terrorist attacks, as well as economic cycles, all of which can be unpredictable and are outside our control. Commercial aircraft production may increase or decrease
in response to changes in customer demand caused by general economic conditions and the perceived safety and ease of airline travel.



18



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The military aircraft industry is dependent upon the level of equipment expenditures by the armed forces of countries
throughout the world, and especially those of the United States. Although the events of September 11, 2001 and the conflict in Iraq have increased the level of equipment expenditures by the U.S. Armed Forces, this level of spending may not be
sustainable in light of record deficits being incurred by the U.S. In addition, in the past this industry has been adversely affected by a number of factors, including the reduction in military spending since the end of the Cold War. Decreases in
military spending could depress demand for military aircraft.

Any decrease in demand for new aircraft or use of existing aircraft will likely result in a
decrease in demand of our products and services, and correspondingly, our revenues, thereby adversely affecting our business, financial condition and results of operations.

The market for our products may be affected by our ability to adapt to technological change.

The rapid change of
technology is a key feature of all of the markets in which our businesses operate. To succeed in the future, we will need to design, develop, manufacture, assemble, test, market, and support new products and enhancements to our existing products in
a timely and cost-effective manner. Historically, our technology has been developed through internal research and development expenditures, as well as customer-sponsored research and development programs. There is no guarantee that we will continue
to maintain, or benefit from, comparable levels of research and development in the future. In addition, our competitors may develop technologies and products that are more effective than those we develop or that render our technology and products
obsolete or noncompetitive. Furthermore, our products could become unmarketable if new industry standards emerge. We cannot assure that our existing products will not require significant modifications in the future to remain competitive or that new
products we introduce will be accepted by our customers, nor can we assure that we will successfully identify new opportunities and continue to have the needed financial resources to develop new products in a timely or cost-effective manner.

Our business is subject to government contracting regulations, and our failure to comply with such laws and regulations could harm our operating
results and prospects.

We estimate that approximately 24% of our sales in fiscal 2006 were attributable to contracts in which we were either the prime
contractor to, or a subcontractor to a prime contractor to, the U.S. government. As a contractor and subcontractor to the U.S. government, we must comply with laws and regulations relating to the formation, administration and performance of federal
government contracts that affect how we do business with our clients and may impose added costs on our business. For example, these regulations and laws include provisions that contracts we have been awarded are subject to:



| |  |  | Protest or challenge by unsuccessful bidders; and
| | - |  | -------------------------------------------------

| |  |  | Unilateral termination, reduction or modification in the event of changes in government requirements.
| | - |  | -----------------------------------------------------------------------------------------------------

The accuracy and appropriateness of certain costs and expenses used to substantiate our direct and indirect costs for the U.S. government under both cost-plus and fixed-price contracts are subject to extensive
regulation and audit by the Defense Contract Audit Agency, an arm of the U.S. Department of Defense. Responding to governmental audits, inquiries or investigations may involve significant expense and divert management attention. Our failure to
comply with these or other laws and regulations could result in contract termination, suspension or debarment from contracting with the



19



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federal government, civil fines and damages, and criminal prosecution and penalties, any of which could have a material adverse effect on our operating
results.

A significant portion of our business depends on U.S. government contracts, which contracts are often subject to competitive bidding, and a
failure to compete effectively or accurately anticipate the success of future projects could adversely affect our business.

We obtain many of our U.S.
government contracts through a competitive bidding process that subjects us to risks associated with:



| |  |  | The frequent need to bid on programs in advance of the completion of their design, which may result in unforeseen technological difficulties and/or cost overruns;
| | - |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The substantial time and effort, including design, development and marketing activities, required to prepare bids and proposals for contracts that may not be awarded to us; and
| | - |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| |  |  | The design complexity and rapid rate of technological advancement of defense-related products.
| | - |  | ----------------------------------------------------------------------------------------------

In addition, in order to win the award of developmental programs, we must be able to align our research and development and product offerings with the governments changing concepts of national defense and
defense systems. The governments termination of, or failure to fully fund, one or more of the contracts for our programs would have a negative impact on our operating results and financial condition. Furthermore, we serve as a subcontractor on
several military programs that, in large part, involve the same risks as prime contracts.

Overall, we rely on key contracts with U.S. government entities
for a significant portion of our sales and business. A substantial reduction in these contracts would materially adversely affect our operating results and financial position.

The airline industry is heavily regulated and if we fail to comply with applicable requirements, our results of operations could suffer.

Governmental agencies throughout the world, including the U.S. Federal Aviation Administration, or the FAA, prescribe standards and qualification requirements for aircraft components, including virtually all
commercial airline and general aviation products, as well as regulations regarding the repair and overhaul of aircraft engines. Specific regulations vary from country to country, although compliance with FAA requirements generally satisfies
regulatory requirements in other countries. We include, with the replacement parts that we sell to our customers, documentation certifying that each part complies with applicable regulatory requirements and meets applicable standards of
airworthiness established by the FAA or the equivalent regulatory agencies in other countries. In order to sell our products, we and the products we manufacture must also be certified by our individual OEM customers. If any of the material
authorizations or approvals qualifying us to supply our products is revoked or suspended, then the sale of the subject product would be prohibited by law, which would have an adverse effect on our business, financial condition and results of
operations.

From time to time, the FAA or equivalent regulatory agencies in other countries propose new regulations or changes to existing regulations,
which are usually more stringent than existing regulations. If these proposed regulations are adopted and enacted, we may incur significant additional costs to achieve compliance, which could have a material adverse effect on our business, financial
condition and results of operations.



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Future asbestos claims could harm our business.

We are subject to potential liabilities relating to certain products we manufactured containing asbestos. To date, our insurance has covered claims against us relating to those products. Commencing
November 1, 2003, insurance coverage for asbestos claims has been unavailable. However, we continue to have some insurance coverage for exposure to asbestos contained in our products prior to that date.

We continue to manufacture for one customer a product that contains asbestos. We have an agreement with the customer for indemnification for certain losses we may incur
as a result of asbestos claims relating to that product, but we cannot assure that this indemnification agreement will fully protect us from losses arising from asbestos claims.

To the extent we are not insured or indemnified for losses from asbestos claims relating to our products, asbestos claims could adversely affect our operating results and our financial condition.

Environmental laws and regulations may subject us to significant liability.

Our business and our facilities are subject to a number of federal, state, local and foreign laws, regulations and ordinances governing, among other things, the use, manufacture, storage, handling and disposal of hazardous materials and
certain waste products. Among these environmental laws are rules by which a current or previous owner or operator of land may be liable for the costs of investigation, removal or remediation of hazardous materials at such property. In addition,
these laws typically impose liability regardless of whether the owner or operator knew of, or was responsible for, the presence of any hazardous materials. Persons who arrange for the disposal or treatment of hazardous materials may be liable for
the costs of investigation, removal or remediation of such substances at the disposal or treatment site, regardless of whether the affected site is owned or operated by them.

Because we own and operate a number of facilities that use, manufacture, store, handle or arrange for the disposal of various hazardous materials, we may incur costs for investigation, removal and remediation, as well
as capital costs, associated with compliance with environmental laws. At the time of the acquisition of Wallop Defence Systems Limited, we and the seller agreed that some environmental remedial activities may need to be carried out and these
activities are currently on-going. Under the terms of the Stock Purchase Agreement, a portion of the costs of any environmental remedial activities will be reimbursed by the seller if the cost is incurred within five years of the consummation of the
acquisition. Additionally, at the time of our asset acquisition of the Electronic Warfare Passive Expendables Division of BAE Systems North America, certain environmental remedial activities were required under a Part B Permit issued to the
infrared decoy flare facility by the Arkansas Department of Environmental Quality under the Federal Resource Conservation and Recovery Act. The Part B Permit was transferred to our subsidiary, Armtec, along with the remedial obligations. Under
the terms of the asset purchase agreement, BAE Systems agreed to complete all remedial obligations at the infrared decoy flare facility and to indemnify us for all environmental liabilities related to that facility to a maximum amount of
$25.0 million. Although environmental costs have not been material in the past, we cannot assure that these matters, or any similar liabilities that arise in the future, will not exceed our resources, nor can we completely eliminate the risk of
accidental contamination or injury from these materials.



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We may be required to defend lawsuits or pay damages in connection with the alleged or actual harm caused by our
products.

We face an inherent business risk of exposure to product liability claims in the event that the use of our products is alleged to have
resulted in harm to others or to property. For example, our operations expose us to potential liabilities for personal injury or death as a result of the failure of an aircraft component that has been designed, manufactured or serviced by us. We may
incur significant liability if product liability lawsuits against us are successful. While we believe our current general liability and product liability insurance is adequate to protect us from future product liability claims, we cannot assure that
coverage will be adequate to cover all claims that may arise. Additionally, we may not be able to maintain insurance coverage in the future at an acceptable cost. Any liability not covered by insurance or for which third-party indemnification is not
available could have a material adverse effect on our business, financial condition and results of operations.



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Item 2. Properties

The following table summarizes our properties that are greater than 100,000 square feet or relate to principal operations, including identification of the business segment, as of October 27, 2006:



|                  |  |                           |  |                     |  |                          |  |               |  
|----------------- |  | ------------------------- |  | ------------------- |  | ------------------------ |  | ------------- | -
|Location          |  | Type of Facility          |  | Business Segment    |  | ApproximateSquareFootage |  | OwnedorLeased |  
|Brea, CA          |  | Office, Plant & Warehouse |  | Advanced Materials  |  | 429,000                  |  | Owned         |  
|Seattle, WA       |  | Office & Plant            |  | Avionics & Controls |  | 200,000                  |  | Leased        |  
|Stillington, U.K. |  | Office & Plant            |  | Advanced Materials  |  | 186,000                  |  | Owned         |  
|East Camden, AR   |  | Office & Plant            |  | Advanced Materials  |  | 175,000                  |  | Leased        |  
|Coachella, CA     |  | Office & Plant            |  | Advanced Materials  |  | 112,000                  |  | Owned         |  
|Buena Park, CA    |  | Office & Plant            |  | Sensors & Systems   |  | 110,000                  |  | Owned         | *
|Bourges, France   |  | Office & Plant            |  | Sensors & Systems   |  | 109,000                  |  | Leased        |  
|Farnborough, U.K. |  | Office & Plant            |  | Sensors & Systems   |  | 108,000                  |  | Leased        |  
|Milan, TN         |  | Office & Plant            |  | Advanced Materials  |  | 100,000                  |  | Leased        |  
|Sylmar, CA        |  | Office & Plant            |  | Avionics & Controls |  | 96,000                   |  | Leased        |  
|Valencia, CA      |  | Office & Plant            |  | Advanced Materials  |  | 88,000                   |  | Owned         |  
|Coeur dAlene, ID |  | Office & Plant            |  | Avionics & Controls |  | 88,000                   |  | Leased        |  
|Hampshire, U.K.   |  | Office & Plant            |  | Advanced Materials  |  | 82,000                   |  | Owned         |  
|Gloucester, U.K.  |  | Office & Plant            |  | Advanced Materials  |  | 59,000                   |  | Leased        |  



|* | The building is located on a parcel of land covering 16.1 acres that is leased by the Company.
|- | ----------------------------------------------------------------------------------------------

In total, we own approximately 1,400,000 square feet and lease approximately 1,400,000 square feet of manufacturing facilities and properties.

Item 3. Legal Proceedings

From time to time we are involved in legal proceedings arising in the ordinary
course of our business. We believe we have adequately reserved for these liabilities and that there is no litigation pending that could have a material adverse effect on our results of operations and financial condition.

Item 4. Submission of Matters to a Vote of Security Holders

No matter was submitted to a vote of security holders during the fourth quarter of the fiscal year ended October 27, 2006.



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PART II

Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of              Equity Securities

We hereby incorporate by reference the following information that appears in our Annual Report to Shareholders for the fiscal year ended October 27, 2006:



| | (a) | The high and low market sales prices of our common stock for each quarterly period during fiscal years 2006 and 2005, respectively, is set forth under the section entitled
Market Price of Esterline Common Stock of the Annual Report to Shareholders for the fiscal year ended October 27, 2006. The Annual Report is included as Exhibit 13 to this report.
| | --- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | Restrictions on the ability to pay future cash dividends is set forth in Note 11 to the Consolidated Financial Statements contained in the Annual Report to Shareholders for the
fiscal year ended October 27, 2006. The Annual Report is included as Exhibit 13 to this report.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

No cash dividends were paid
during fiscal years 2006 and 2005. We are restricted from paying dividends under our current debt instruments and do not anticipate paying any dividends in the foreseeable future.

On January 3, 2007, there were 507 holders of record of our common stock.

The principal market for our Common
Stock is the New York Stock Exchange.

Item 6. Selected Financial Data

We hereby incorporate by reference the information set forth under the section entitled, Selected Financial Data of the Annual Report to Shareholders for the fiscal year ended October 27, 2006.
The Annual Report is included as Exhibit 13 to this report.

Item 7. Managements Discussion and Analysis of Financial Condition and
Results of Operations

We hereby incorporate by reference the information set forth under the section entitled Managements Discussion and
Analysis of Financial Condition and Results of Continuing Operations of the Annual Report to Shareholders for the fiscal year ended October 27, 2006. The Annual Report is included as Exhibit 13 to this report.

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

We hereby incorporate by reference the information set forth under the section Disclosures About Market Risk of the Annual Report to Shareholders for the fiscal year ended October 27, 2006. The
Annual Report is included as Exhibit 13 to this report.

Item 8. Financial Statements and Supplementary Data

The report of Ernst & Young LLP, Independent Registered Public Accounting Firm, and the consolidated financial statements are included in the Annual Report to
Shareholders for the fiscal year ended October 27, 2006 and are hereby incorporated by reference. Quarterly results of



24



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operations are reported in Note 17 of the Companys Annual Report to Shareholders for the fiscal year ended October 27, 2006 and are
hereby incorporated by reference. The Annual Report is included as Exhibit 13 to this report.

Item 9. Changes in and Disagreements with
Accountants on Accounting and Financial Disclosure

None.

Item 9A. Controls and Procedures



|                                   |  | 
|---------------------------------- |  | 
|Disclosure Controls and Procedures |  | 

Our principal executive and financial officers evaluated our disclosure controls and procedures (as defined in
Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of October 27, 2006. Based upon that evaluation, they concluded as of October 27, 2006, that our disclosure controls and procedures were effective to ensure that
information we are required to disclose in the reports that we file under the Exchange Act is recorded, processed, summarized and reported within time periods specified in Securities and Exchange Commission rules and forms. In addition, our
principal executive and financial officers concluded as of October 27, 2006 that our disclosure controls and procedures are also effective to ensure that information required to be disclosed in reports that we file or submit under the Exchange
Act is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, to allow timely decisions regarding required disclosure.



|                                                                 |  | 
|---------------------------------------------------------------- |  | 
|Managements Report on Internal Control Over Financial Reporting |  | 

We hereby incorporate by reference the information set forth under Managements Report on Internal
Control Over Financial Reporting that appears on page 87 of our Annual Report to Shareholders for the fiscal year ended October 27, 2006. The Annual Report is included as Exhibit 13 to this report.



|                                                     |  | 
|---------------------------------------------------- |  | 
|Changes in Internal Control Over Financial Reporting |  | 

During the three months ended October 27, 2006, there were no changes in our internal control over
financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Item 9B. Other Information

None.



25



---

PART III

Item 10. Directors and Executive Officers of the Registrant

We hereby incorporate by reference the information set forth under
Election of Directors, Section 16(a) Beneficial Ownership Reporting Compliance, Code of Ethics, Other Information as to Directors  Board and Board Committees, and Other Information as
to Directors  Director Nominations and Qualifications in the definitive form of the Companys Proxy Statement, relating to its Annual Meeting of Shareholders to be held on March 7, 2007.

Information regarding our executive officers required by this item appears in Item 1 of this report under Executive Officers of the Registrant.

Item 11. Executive Compensation

We hereby
incorporate by reference the information set forth under Other Information as to Directors  Director Compensation and Executive Compensation, in the definitive form of the Companys Proxy Statement, relating to its
Annual Meeting of Shareholders to be held on March 7, 2007.

Item 12. Security Ownership of Certain Beneficial Owners and Management
and Related Stockholder                Matters

The following table gives
information about the shares of Common Stock that may be issued upon the exercise of options, warrants and rights under the Amended and Restated 1987 Stock Option Plan, the Non-Employee Directors Stock Compensation Plan, the Amended and
Restated 1997 Stock Option Plan, the 2002 Employee Stock Purchase Plan and the 2004 Equity Incentive Plan, the only equity compensation plans of the Company in effect as of the end of the Companys last fiscal year.



|                                                           |  |                                                                                         |  |                                                                          |  |                                                                                                                                            
|---------------------------------------------------------- |  | --------------------------------------------------------------------------------------- |  | ------------------------------------------------------------------------ |  | -------------------------------------------------------------------------------------------------------------------------------------------
|                                                           |  | Equity Compensation Plan Information                                                   
|Plan Category                                              |  | Number of securitiesto be issued uponexerciseof outstanding options,warrants and
rights |  | Weighted-averageexercise price ofoutstanding options,warrants and rights |  | Number of securitiesremaining available forfuture issuance
underequity compensation plans(excluding securitiesreflected in the firstcolumn)
|Equity compensation plans approved by security holders     |  | 1,469,000                                                                               |  | $25.80                                                                   |  | 1,363,427(1)(2)                                                                                                                            
|Equity compensation plans not approved by security holders |  |                                                                                        |  |                                                                         |  |                                                                                                                                           
|                                                           |  |                                                                                         |  |                                                                          |  |                                                                                                                                            
|Total                                                      |  | 1,469,000                                                                               |  | $25.80                                                                   |  | 1,363,427                                                                                                                                  



26



---

|(1) | Of these shares, 1,117,950 shares are available for issuance under the 2004 Equity Incentive Plan, 202,295 shares are available for purchase under the 2002 Employee Stock
Purchase Plan, and 43,182 shares are available for grant under the Non-Employee Directors Stock Compensation Plan, as of the end of the Companys last completed fiscal year.
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|(2) | Pursuant to the Non-Employee Directors Stock Compensation Plan effective beginning fiscal 2007, each of the Companys non-employee directors will receive an automatic
grant of shares of Common Stock not subject to any restriction within 45 days of each annual shareholders meeting with an aggregate market value of $60,000 based on the closing price of the Common Stock on that date.
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

We hereby incorporate by reference the information set forth under Security Ownership of Certain Beneficial Owners and Management and Equity
Compensation Plan Information in the definitive form of the Companys Proxy Statement, relating to its Annual Meeting of Shareholders to be held on March 7, 2007.

Item 13. Certain Relationships and Related Transactions

None.

Item 14. Independent Registered Public Accounting Firm Fees and Services

We hereby incorporate by reference the information set forth under Independent Registered Public Accounting Firms Fees in the definitive form of the Companys Proxy Statement relating to the
2007 Annual Meeting of Shareholders to be held on March 7, 2007.



27



---

PART IV

Item 15. Exhibits, Financial Statement Schedules, and Reports on Form 8-K

(a)(1) Financial Statements.

The following consolidated financial statements, together with the report of Ernst & Young LLP, Independent Registered Public Accounting Firm, dated
December 18, 2006, appearing in the Companys Annual Report to Shareholders for the fiscal year ended October 27, 2006.



|                                                                         |  |                       
|------------------------------------------------------------------------ |  | ----------------------
|                                                                         |  | Annual ReportReference
|                                                                         | 
|Consolidated Statement of Operations  Fiscal years 2006, 2005, and 2004 |  | *                     
|                                                                         | 
|Consolidated Balance Sheet  October 27, 2006 and October 28, 2005       |  | *                     
|                                                                         | 
|Consolidated Statement of Cash Flows  Fiscal years 2006, 2005, and 2004 |  | *                     
|                                                                         | 
|Consolidated Statement of Shareholders Equity and Comprehensive         |  |                       
|Income  Fiscal years 2006, 2005, and 2004                               |  | *                     
|                                                                         | 
|Notes to Consolidated Financial Statements  October 27, 2006            |  | *                     
|                                                                         | 
|Report of Ernst & Young LLP, Independent Registered Public               |  |                       
|Accounting Firm                                                          |  | *                     

*   Incorporated by reference to the Annual Report to Shareholders for the fiscal year ended
October 27, 2006. The Annual Report is included as Exhibit 13 to this report.

Refer also to Part II, Item 8  Financial
Statements and Supplementary Data for additional information.



(a)(2) Financial
Statement Schedules.

The following consolidated financial statement schedule of the Company is included as follows:

Schedule II  Valuation and Qualifying Accounts, see page 36.

All other schedules for which provision is made in the applicable accounting regulations of the Securities and Exchange Commission are not required under the related instructions or are inapplicable and therefore have been omitted.



(a)(3) Exhibits.

See Exhibit Index on pages 31-35.



28



---

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



ESTERLINE TECHNOLOGIES CORPORATION(Registrant)By

/s/ Robert D. GeorgeRobert D. GeorgeVice President,Chief Financial Officer,Secretary and Treasurer(Principal Financial Officer)


Dated: January 8, 2007

Pursuant to the requirements of the Securities Exchange Act of 1934, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.



|                                        |  |                                                                                                |  |                     
|--------------------------------------- |  | ---------------------------------------------------------------------------------------------- |  | --------------------
|/s/ Robert W. Cremin (Robert W. Cremin) |  | Chairman, President and Chief Executive
Officer (Principal Executive Officer)                  |  | January 8, 2007 Date
|                                        |  |                                                                                               
|/s/ Robert D. George (Robert D. George) |  | Vice President, Chief Financial Officer, Secretary and Treasurer (Principal Financial Officer) |  | January 8, 2007 Date
|                                        |  |                                                                                               
|/s/ Gary J. Posner (Gary J. Posner)     |  | Corporate Controller and Chief Accounting
Officer (Principal Accounting Officer)               |  | January 8, 2007 Date
|                                        |  |                                                                                               
|/s/ Lewis E. Burns (Lewis E. Burns)     |  | Director                                                                                       |  | January 8, 2007 Date
|                                        |  |                                                                                               
|/s/ John F. Clearman (John F.
Clearman) |  | Director                                                                                       |  | January 8, 2007 Date



29



---

|                                                      |  |          |  |                     
|----------------------------------------------------- |  | -------- |  | --------------------
|/s/ Robert S. Cline (Robert S. Cline)                 |  | Director |  | January 8, 2007 Date
|                                                      |  |         
|/s/ Anthony P. Franceschini (Anthony P.
Franceschini) |  | Director |  | January 8, 2007 Date
|                                                      |  |         
|/s/ Paul V. Haack (Paul V.
Haack)                     |  | Director |  | January 8, 2007 Date
|                                                      |  |         
|/s/ Charles R. Larson (Charles R. Larson)             |  | Director |  | January 8, 2007 Date
|                                                      |  |         
|/s/ Jerry D. Leitman (Jerry D. Leitman)               |  | Director |  | January 8, 2007 Date
|                                                      |  |         
|/s/ James L. Pierce (James L. Pierce)                 |  | Director |  | January 8, 2007 Date



30



---

|              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Exhibit Index                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|              | 
|2.1           |  | Share Purchase Agreement among Cobham plc, Esterline Acquisition Limited and Esterline Technologies Corporation dated March 8, 2006.                                                                                                                                                                                                                                                                                                                                                                                                                                          
|              | 
|3.1           |  | Restated Certificate of Incorporation, dated June 6, 2002. (Incorporated by reference to Exhibit 3.1 to the Companys Quarterly Report on Form 10-Q for the quarter ended
April 26, 2002 [Commission File Number 1-6357].)                                                                                                                                                                                                                                                                                                                                                    
|              | 
|3.2           |  | By-laws of the Company, as amended and restated September 8, 2005. (Incorporated by reference to Exhibit 3.2 to the Companys Current Report on Form 8-K dated
September 9, 2005 [Commission File Number 1-6357].)                                                                                                                                                                                                                                                                                                                                                            
|              | 
|4.1           |  | Rights Agreement dated as of December 11, 2002, between Esterline Technologies Corporation and Mellon Investor Services LLC, as Rights Agent, which includes as Exhibit A the Form
of Certificate of Designation of Series B Serial Preferred Stock, as Exhibit B the Form of Rights of Certificate and as Exhibit C the Summary of Rights to Purchase Preferred Shares. (Incorporated by reference to Exhibit 4.1 to the
Companys Registration Statement on Form 8-A, as amended, filed on December 12, 2002 [Commission File Number 1-6357].)                              
|              | 
|4.2           |  | Indenture relating to Esterline Technologies Corporations 7.75% Senior Subordinated Notes due 2013, dated as of June 11, 2003. (Incorporated by reference to Exhibit 4.1 to
the Companys Quarterly Report on Form 10-Q for the quarter ended August 1, 2003 [Commission File Number 1-6357].)                                                                                                                                                                                                                                                                               
|              | 
|4.3           |  | Form of Exchange Note. (Incorporated by reference to Exhibit 4.3 to the Companys Form S-4, as amended, filed on September 30, 2003 [Commission File
Number 333-109325].)                                                                                                                                                                                                                                                                                                                                                                                                     
|              | 
|10.2          |  | Amendment No. 4 Credit Agreement, dated as of February 10, 2006, among Esterline Technologies Corporation, the financial institutions referred to therein and Wachovia Bank,
National Association, as Administrative Agent. (Incorporated by reference to Exhibit 10.2 to the Companys Current Report on Form 8-K dated February 10, 2006 [Commission File Number 1-6357].)                                                                                                                                                                                                  
|              | 
|10.4          |  | Industrial Lease dated July 17, 1984, between 901 Dexter Associates and Korry Electronics Co., First Amendment to Lease dated May 10, 1985, Second Amendment to Lease dated
June 20, 1986, Third Amendment to Lease dated September 1, 1987, and Notification of Option Exercise dated January 7, 1991, relating to the manufacturing facility of Korry Electronics at 901 Dexter Avenue N., Seattle,
Washington. (Incorporated by reference to Exhibit 10.4 to the Companys Annual Report on Form 10-K for the year ended October 28, 2005 [Commission File Number 1-6357].)
|              | 
|10.4a         |  | Fourth Amendment dated July 27, 1994, to Industrial Lease dated July 17, 1984 between Houg Family Partnership, as successor to 901 Dexter Associates, and Korry Electronics
Co. (Incorporated by reference to Exhibit 10.4a to the Companys Annual Report on Form 10-K for the year ended October 28, 2005 [Commission File Number 1-6357].)                                                                                                                                                                                                                                 



31



---

|              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
|------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Exhibit Index                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
|              | 
|10.5          |  | Industrial Lease dated July 17, 1984, between 801 Dexter Associates and Korry Electronics Co., First Amendment to Lease dated May 10, 1985, Second Amendment to Lease dated
June 20, 1986, Third Amendment to Lease dated September 1, 1987, and Notification of Option Exercise dated January 7, 1991, relating to the manufacturing facility of Korry Electronics at 801 Dexter Avenue N., Seattle,
Washington. (Incorporated by reference to Exhibit 10.5 to the Companys Annual Report on Form 10-K for the year ended October 28, 2005 [Commission File Number 1-6357].)
|              | 
|10.5a         |  | Fourth Amendment dated March 28, 1994, to Industrial Lease dated July 17, 1984, between Michael Maloney and the Bancroft & Maloney general partnership, as successor to 801 Dexter
Associates, and Korry Electronics Co. (Incorporated by reference to the Companys Annual Report on Form 10-K for the year ended October 28, 2005 [Commission File Number 1-6357].)                                                                                                                                                                                                         
|              | 
|10.10*        |  | Compensation of Directors. (Incorporated by reference to Other Information as to Directors  Compensation of Directors in the definitive form of the Companys Proxy
Statement, relating to its 2007 Annual Meeting of Shareholders to be held on March 7, 2007, and to be filed with the Securities and Exchange Commission and the New York Stock Exchange.)                                                                                                                                                                                                              
|              | 
|10.13*        |  | Amended and Restated 1987 Stock Option Plan. (Incorporated by reference to Exhibit 10 to the Companys Registration Statement on Form S-8 [Commission File Number 33-52851] filed
March 28, 1994.)                                                                                                                                                                                                                                                                                                                                                                            
|              | 
|10.15*        |  | Esterline Technologies Corporation Supplemental Retirement Income Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|              | 
|10.16k*       |  | Esterline Technologies Corporation Long-Term Incentive Plan. (Incorporated by reference to Exhibit 10.16k to the Companys Quarterly Report on Form 10-Q for the quarter ended
July 29, 2005 [Commission File Number 1-6357].)                                                                                                                                                                                                                                                                                                                                                
|              | 
|10.19*        |  | Executive Officer Termination Protection Agreement. (Incorporated by reference to Exhibit 10.19 to the Companys Annual Report on Form 10-K for the year ended October 28,
2005 [Commission File Number 1-6357].)                                                                                                                                                                                                                                                                                                                                                             
|              | 
|10.19b*       |  | Offer Letter from Esterline Technologies Corporation to Richard Wood dated February 2, 2005. (Incorporated by reference to Exhibit 10.19b to the Companys Quarterly Report on
Form 10-Q for the quarter ended January 28, 2005 [Commission File Number 1-6357].)                                                                                                                                                                                                                                                                                                             
|              | 
|10.19c*       |  | Severance Protection Agreement between Richard Wood and Esterline Technologies Corporation, dated February 23, 2005. (Incorporated by reference to Exhibit 10.19c to the Companys
Quarterly Report on Form 10-Q for the quarter ended January 28, 2005 [Commission File Number 1-6357].)                                                                                                                                                                                                                                                                                     
|              | 
|10.19d*       |  | Executive Officer Compensation. (Incorporated by reference to Executive Compensation in the definitive form of the Companys Proxy Statement, relating to its 2007 Annual Meeting
of Shareholders to be held on March 7, 2007, and to be filed with the Securities and Exchange Commission and the New York Stock Exchange.)                                                                                                                                                                                                                                                



32



---

|              |  |                                                                                                                                                                                                                                                                                                                                                                                                                                                      
|------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Exhibit Index                                                                                                                                                                                                                                                                                                                                                                                                                                        
|              | 
|10.19e*       |  | Offer Letter from Esterline Technologies Corporation to Frank Houston dated March 4, 2005. (Incorporated by reference to Exhibit 10.19e to the Companys Current Report on
Form 8-K dated March 29, 2005 [Commission File Number 1-6357].)                                                                                                                                                                                                           
|              | 
|10.21*        |  | Esterline Technologies Corporation Fiscal Year 2006 Annual Incentive Compensation Plan. (Incorporated by reference to Exhibit 10.21 to the Companys Annual Report on Form 10-K for
the year ended October 28, 2005 [Commission File Number 1-6357].)                                                                                                                                                                                                
|              | 
|10.22         |  | Real Property Lease and Sublease, dated June 28, 1996, between 810 Dexter L.L.C. and Korry Electronics Co. (Incorporated by reference to Exhibit 10.22 to the Companys Annual
Report on Form 10-K for the year ended October 28, 2005 [Commission File Number 1-6357].)                                                                                                                                                                             
|              | 
|10.24*        |  | Esterline Technologies Corporation Amended and Restated 1997 Stock Option Plan. (Incorporated by reference to Exhibit 99.1 to the Companys Registration Statement on Form S-8
[Commission File Number 333-103846] filed March 14, 2003.)                                                                                                                                                                                                            
|              | 
|10.25         |  | Property lease between Slibail Immobilier and Norbail Immobilier and Auxitrol S.A., dated April 29, 1997, relating to the manufacturing facility of Auxitrol at 5, allée
Charles Pathé, 18941 Bourges Cedex 9, France, effective on the construction completed date (December 5, 1997). (Incorporated by reference to Exhibit 10.25 to the Companys Annual Report on Form 10-K for the year
ended October 28, 2005 [Commission File Number 1-6357].)
|              | 
|10.26         |  | Industrial and build-to-suit purchase and sale agreement between The Newhall Land and Farming Company, Esterline Technologies Corporation and TA Mfg. Co., dated February 13, 1997
including Amendments, relating to premises located at 28065 West Franklin Parkway, Valencia, CA. (Incorporated by reference to Exhibit 10.26 to the Companys Annual Report on Form 10-K for the year ended October 28, 2005 [Commission
File Number 1-6357].)    
|              | 
|10.31         |  | Lease Agreement, dated as of February 27, 1998, between Glacier Partners and Advanced Input Devices, Inc., Lease Amendment #1, dated February 27, 1998. (Incorporated by
reference to Exhibit 10.31 to the Companys Annual Report on Form 10-K for the year ended October 27, 2000 [Commission File Number 1-6357].)                                                                                                                                
|              | 
|10.33*        |  | Esterline Technologies Corporation 2002 Employee Stock Purchase Plan. (Incorporated by reference to Exhibit 99.2 to the Companys Registration Statement on Form S-8 [Commission
File Number 333-135025] filed June 14, 2006.)                                                                                                                                                                                                                       



33



---

|              |  |                                                                                                                                                                                                                                                                                                                                                                                                                     
|------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Exhibit Index                                                                                                                                                                                                                                                                                                                                                                                                       
|              | 
|10.34         |  | Lease Agreement, dated as of August 6, 2003, by and between the Prudential Insurance Company of America and Mason Electric Co., relating to premises located at Sylmar, California.
(Incorporated by reference to Exhibit 10.34 to the Companys Annual Report on Form 10-K for the year ended October 31, 2003 [Commission File Number 1-6357].)                                                                   
|              | 
|10.35         |  | Occupation Lease of Buildings known as Phases 3 and 4 on the Solartron Site at Victoria Road, Farnborough, Hampshire between J Sainsbury Developments Limited and Weston Aerospace Limited,
dated July 21, 2000. (Incorporated by reference to Exhibit 10.35 to the Companys Annual Report on Form 10-K for the year ended October 31, 2003 [Commission File Number 1-6357].)                                      
|              | 
|10.36*        |  | Esterline Technologies Corporation 2004 Equity Incentive Plan. (Incorporated by reference to Exhibit 99.1 to the Companys Registration Statement on Form S-8 [Commission File
Number 333-135025] filed June 14, 2006.)                                                                                                                                                                                             
|              | 
|10.36a*       |  | Form of Stock Option Agreement. (Incorporated by reference to Exhibit 10.36a to the Companys Quarterly Report on Form 10-Q for the quarter ended January 28, 2005 [Commission
File Number 1-6357].)                                                                                                                                                                                                                
|              | 
|10.37         |  | Lease Agreement dated as of March 19, 1969, as amended, between Leach Corporation and Gin Gor Ju, Trustee of Ju Family Trust, relating to premises located in Orange County.
(Incorporated by reference to Exhibit 10.37 to the Companys Annual Report on Form 10-K for the year ended October 29, 2004 [Commission File Number 1-6357].)                                                                          
|              | 
|10.38         |  | Lease Agreement, dated November 29, 2005 between Lordbay Investments Limited, Darchem Engineering Limited and Darchem Holdings Limited relating to premises located at Units 4 and 5
Eastbrook Road, London Borough of Gloucestershire Gloucester. (Incorporated by reference to Exhibit 10.38 to the Companys Quarterly Report on Form 10-Q for the quarter ended April 28, 2006 [Commission File
Number 1-6357].)
|              | 
|10.40*        |  | Esterline Technologies Corporation Amended and Restated Non-Employee Directors Stock Compensation Plan. (Incorporated by reference to Exhibit 10.40 to the Companys Quarterly
Report on Form 10-Q for the quarter ended January 28, 2005 [Commission File Number 1-6357].)                                                                                                                                        
|              | 
|10.41         |  | Amendment No. 1 dated as of November 23, 2005 to Lease Agreement dated as of March 1, 1994 between Highland Industrial Park, Inc. and Armtec Countermeasures Company. (Incorporated
by reference to Exhibit 10.41 to the Companys Quarterly Report on Form 10-Q for the quarter ended April 28, 2006 [Commission File Number 1-6357].)                                                                             
|              | 
|10.42*        |  | Esterline Technologies Corporation Fiscal Year 2007 Annual Incentive Compensation Plan.                                                                                                                                                                                                                                                                                                                             
|              | 
|10.43*        |  | Esterline Technologies Supplemental Executive Retirement and Deferred Compensation Plan.                                                                                                                                                                                                                                                                                                                            



34



---

|              |  |                                                                                                                                                                         
|------------- |  | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|ExhibitNumber |  | Exhibit Index                                                                                                                                                           
|              | 
|10.44         |  | Lease Agreement dated November 4, 2002, between American Ordnance LLC and FR Countermeasures, relating to premises located at 25A Ledbetter Gate Road, Milan,
Tennessee.
|              | 
|11            |  | Schedule setting forth computation of earnings per share for the five fiscal years ended October 27, 2006.                                                              
|              | 
|12.1          |  | Statement of Computation of Ratio of Earnings to Fixed Charges.                                                                                                         
|              | 
|13            |  | Portions of the Annual Report to Shareholders for the fiscal year ended October 27, 2006, incorporated by reference herein.                                             
|              | 
|21            |  | List of subsidiaries.                                                                                                                                                   
|              | 
|23            |  | Consent of Independent Registered Public Accounting Firm.                                                                                                               
|              | 
|31.1          |  | Certification of Chief Executive Officer.                                                                                                                               
|              | 
|31.2          |  | Certification of Chief Financial Officer.                                                                                                                               
|              | 
|32.1          |  | Certification (of Robert W. Cremin) pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                           
|              | 
|32.2          |  | Certification (of Robert D. George) pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.                           

---

|* | Indicates management contract or compensatory plan or arrangement.
|- | ------------------------------------------------------------------



35



---

ESTERLINE TECHNOLOGIES CORPORATION AND SUBSIDIARIES

SCHEDULE II  VALUATION AND QUALIFYING ACCOUNTS

(In Thousands)



|                                        |  |   |       |                                 |   |                             |  |            |      |    |                           |   |       |  | 
|--------------------------------------- |  | - | ----- | ------------------------------- | - | --------------------------- |  | ---------- | ---- | -- | ------------------------- | - | ----- |  | 
|Description                             |  |   |       | Balance atBeginning     of Year |   | Charged toCostsand Expenses |  | Deductions |      |    | Balance atEnd     of Year
|                                        |  |   |       |                                
|Reserve for DoubtfulAccounts Receivable |  |   |       |                                 |   |                             |  |            |      |    |                           |   |      
|                                        |  |   |       |                                
|Fiscal Years                            |  |   |       |                                 |   |                             |  |            |      |    |                           |   |      
|                                        |  |   |       |                                
|2006                                    |  | $ | 4,462 |                                 | $ | 597                         |  | $          | (721 | )1 |                           | $ | 4,338
|                                        |  |   |       |                                 |   |                             |  |            |      |    |                           |   |       |  | 
|                                        |  |   |       |                                
|2005                                    |  | $ | 3,687 |                                 | $ | 1,511                       |  | $          | (736 | )1 |                           | $ | 4,462
|                                        |  |   |       |                                 |   |                             |  |            |      |    |                           |   |       |  | 
|                                        |  |   |       |                                
|2004                                    |  | $ | 2,669 |                                 | $ | 1,294                       |  | $          | (276 | )1 |                           | $ | 3,687
|                                        |  |   |       |                                 |   |                             |  |            |      |    |                           |   |       |  | 



|1 | Uncollectible accounts written off, net of recoveries.
|- | ------------------------------------------------------



36