0001104659-21-102250 | 10-Q | XBRL Viewer

Document And Entity Information - shares	9 Months Ended
Document And Entity Information - shares	Jun. 30, 2021	Jul. 31, 2021
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	1-10596
Entity Registrant Name	ESCO TECHNOLOGIES INC.
Entity Incorporation, State or Country Code	MO
Entity Tax Identification Number	43-1554045
Entity Address, Address Line One	9900A CLAYTON ROAD
Entity Address, City or Town	ST. LOUIS
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	63124-1186
City Area Code	314
Local Phone Number	213-7200
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	ESE
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		26,061,432
Entity Central Index Key	0000866706
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 181,394	$ 172,665	$ 509,962	$ 524,885
Costs and expenses:
Cost of sales	113,610	107,686	316,785	327,655
Selling, general and administrative expenses	42,882	36,936	122,628	119,023
Amortization of intangible assets	4,864	5,535	14,729	16,565
Interest expense, net	480	1,523	1,453	5,264
Other expenses (income), net	615	(824)	(1,265)	174
Total costs and expenses	162,451	150,856	454,330	468,681
Earnings before income taxes	18,943	21,809	55,632	56,204
Income tax expense	4,034	3,122	12,501	8,931
Earnings from continuing operations			43,131	47,273
Loss from discontinued operations, net of tax expense of $269				(601)
Gain on sale of discontinued operations, net of tax expense of $23,734				76,614
Earnings from discontinued operations				76,013
Net earnings	$ 14,909	$ 18,687	$ 43,131	$ 123,286
Earnings per share:
Basic - Continuing operations			$ 1.66	$ 1.82
Basic - Discontinued operations				2.92
Basic - Net earnings	$ 0.57	$ 0.72	1.66	4.74
Diluted - Continuing operations			1.65	1.81
Diluted - Discontinued operations				2.91
Diluted - Net earnings	$ 0.57	$ 0.72	$ 1.65	$ 4.72

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) $ in Thousands	9 Months Ended
	Jun. 30, 2021 USD ($)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Loss) earnings from discontinued operations, net of tax benefit	$ 269
Gain on sale of discontinued operations, tax expense	$ 23,734

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net earnings	$ 14,909	$ 18,687	$ 43,131	$ 123,286
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	535	2,802	6,000	(160)
Total other comprehensive income (loss), net of tax	535	2,802	6,000	(160)
Comprehensive income	$ 15,444	$ 21,489	$ 49,131	$ 123,126

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Current assets:
Cash and cash equivalents	$ 78,359	$ 52,560
Accounts receivable, net	135,343	144,082
Contract assets	94,768	94,302
Inventories, net	141,113	135,296
Other current assets	21,282	17,053
Total current assets	470,865	443,293
Property, plant and equipment, net of accumulated depreciation of $144,642 and $130,534, respectively	141,967	139,870
Intangible assets, net of accumulated amortization of $143,792 and $129,063, respectively	343,346	346,632
Goodwill	411,732	408,063
Operating lease assets	30,426	21,390
Other assets	10,347	10,938
Total assets	1,408,683	1,370,186
Current liabilities:
Current maturities of long-term debt and short-term borrowings	20,000	22,368
Accounts payable	50,921	50,525
Contract liabilities	105,822	100,551
Accrued salaries	33,132	32,149
Accrued other expenses	43,517	50,436
Total current liabilities	253,392	256,029
Deferred tax liabilities	56,992	60,170
Non-current operating lease liabilities	26,458	16,785
Other liabilities	38,987	38,176
Long-term debt	28,000	40,000
Total liabilities	403,829	411,160
Shareholders' equity:
Preferred stock, par value $.01 per share, authorized 10,000,000 shares
Common stock, par value $.01 per share, authorized 50,000,000 shares, issued 30,665,868 and 30,645,625 shares, respectively	307	306
Additional paid-in capital	296,578	293,682
Retained earnings	812,709	775,829
Accumulated other comprehensive income (loss), net of tax	2,343	(3,657)
Total stockholders' equity before treasury stock	1,111,937	1,066,160
Less treasury stock, at cost: 4,604,741 and 4,607,911 common shares, respectively	(107,083)	(107,134)
Total shareholders' equity	1,004,854	959,026
Total liabilities and shareholders' equity	$ 1,408,683	$ 1,370,186

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
CONSOLIDATED BALANCE SHEETS
Accumulated depreciation	$ 144,642	$ 130,534
Accumulated amortization	$ 143,792	$ 129,063
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	50,000,000	50,000,000
Common stock, shares issued	30,665,868	30,645,625
Treasury stock, shares	4,604,741	4,607,911

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net earnings	$ 43,131	$ 123,286
Earnings from discontinued operations		(76,013)
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	30,259	31,066
Stock compensation expense	5,386	4,184
Changes in assets and liabilities	2,520	(20,926)
Gain on sale of building and land	(1,950)
Pension contributions		(10,000)
Effect of deferred taxes	(3,946)	2,155
Net cash provided by operating activities - continuing operations	75,400	53,752
Net cash used by operating activities - discontinued operations		(14,737)
Net cash provided by operating activities	75,400	39,015
Cash flows from investing activities:
Acquisition of business, net of cash acquired	(6,684)
Proceeds from sale of building and land	1,950
Additions to capitalized software	(6,500)	(6,564)
Capital expenditures	(17,887)	(28,291)
Net cash used by investing activities - continuing operations	(29,121)	(34,855)
Proceeds from sale of discontinued operations		183,812
Capital expenditures - discontinued operations		(1,728)
Net cash provided by investing activities - discontinued operations		182,084
Net cash (used) provided by investing activities	(29,121)	147,229
Cash flows from financing activities:
Proceeds from long-term debt and short-term borrowings	80,000	11,577
Principal payments on long-term debt and short-term borrowings	(94,368)	(145,000)
Dividends paid	(6,251)	(6,240)
Other	(1,672)	(3,127)
Net cash used by financing activities - continuing operations	(22,291)	(142,790)
Net cash used by financing activities - discontinued operations		(2,140)
Net cash used by financing activities	(22,291)	(144,930)
Effect of exchange rate changes on cash and cash equivalents	1,811	1,617
Net (decrease) increase in cash and cash equivalents	25,799	42,931
Cash and cash equivalents, beginning of period	52,560	61,808
Cash and cash equivalents, end of period	78,359	104,739
Supplemental cash flow information:
Interest paid	316	4,669
Income taxes paid (including state and foreign)	$ 21,982	$ 23,435

BASIS OF PRESENTATION

9 Months Ended

Jun. 30, 2021

BASIS OF PRESENTATION

BASIS OF PRESENTATION

1. BASIS OF PRESENTATION

The accompanying consolidated financial statements, in the opinion of management, include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results for the interim periods presented. The consolidated financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all the disclosures required for annual financial statements by accounting principles generally accepted in the United States of America (GAAP). As a result of the pension plan termination referenced in the fourth quarter of 2020, certain prior year amounts have been reclassified to conform with the current year presentation. For further information, refer to the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020.

The Company’s results for the three-month and nine-month periods ended June 30, 2021 are not necessarily indicative of the results for the entire 2021 fiscal year. References to the third quarters of 2021 and 2020 represent the fiscal quarters ended June 30, 2021 and 2020, respectively. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results could differ from those estimates.

EARNINGS PER SHARE (EPS)

9 Months Ended

Jun. 30, 2021

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)

2. EARNINGS PER SHARE (EPS)

Basic EPS is calculated using the weighted average number of common shares outstanding during the period. Diluted EPS is calculated using the weighted average number of common shares outstanding during the period plus shares issuable upon the assumed exercise of dilutive common share options and vesting of unvested restricted share units (restricted shares) by using the treasury stock method. The number of shares used in the calculation of earnings per share for each period presented is as follows (in thousands):


	Three Months		Nine Months
	Ended June 30,		Ended June 30,
	2021	2020	2021	2020
Weighted Average Shares Outstanding — Basic	26,045	26,031	26,040	26,002
Dilutive Options and Restricted Shares	169	103	159	128
Adjusted Shares — Diluted	26,214	26,134	26,199	26,130

SHARE-BASED COMPENSATION

9 Months Ended

Jun. 30, 2021

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION

3. SHARE-BASED COMPENSATION

The Company provides compensation benefits to certain key employees under several share-based plans providing for performance-accelerated restricted shares (restricted shares), and to non-employee directors under a non-employee directors compensation plan.

Performance-Accelerated Restricted Share Awards

Compensation expense related to the restricted share awards was $2.5 million and $4.5 million for the three and nine-month periods ended June 30, 2021, respectively, and $1.0 million and $3.2 million for the corresponding periods in 2020. There were 229,602 non-vested shares outstanding as of June 30, 2021.

Non-Employee Directors Plan

Compensation expense related to the non-employee director grants was $0.3 million and $1.0 million for the three and nine-month periods ended June 30, 2021, respectively, and $0.3 million and $1.0 million for the corresponding periods in 2020.

The total share-based compensation cost that has been recognized in the results of operations and included within selling, general and administrative expenses (SG&A) was $2.8 million and $5.5 million for the three and nine-month periods ended June 30, 2021, respectively, and $1.3 million and $4.2 million for the corresponding periods in 2020. The total income tax benefit recognized in results of operations for share-based compensation arrangements was $0.4 million and $1.1 million for the three

and nine-month periods ended June 30, 2021, respectively, and $0.2 million and $0.9 million for the corresponding periods in 2020. As of June 30, 2021, there was $9.2 million of total unrecognized compensation cost related to share-based compensation arrangements. That cost is expected to be recognized over a remaining weighted-average period of 1.9 years.

INVENTORIES

9 Months Ended

Jun. 30, 2021

INVENTORIES

INVENTORIES

4. INVENTORIES

Inventories, net, from continuing operations consist of the following:


	June 30,		September 30,
(In thousands)	2021		2020
Finished goods	$	28,732	28,471
Work in process		37,874	30,183
Raw materials		74,507	76,642
Total inventories	$	141,113	135,296

GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Jun. 30, 2021

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

5. GOODWILL AND OTHER INTANGIBLE ASSETS

Included on the Company’s Consolidated Balance Sheets at June 30, 2021 and September 30, 2020 are the following intangible assets gross carrying amounts and accumulated amortization from continuing operations:


	June 30,		September 30,
(Dollars in thousands)	2021		2020
Goodwill	$	411,732	408,063

Intangible assets with determinable lives:
Patents
Gross carrying amount	$	2,144	2,092
Less: accumulated amortization		943	858
Net	$	1,201	1,234

Capitalized software
Gross carrying amount	$	91,388	84,888
Less: accumulated amortization		62,111	57,302
Net	$	29,277	27,586

Customer relationships
Gross carrying amount	$	229,385	227,178
Less: accumulated amortization		76,986	67,643
Net	$	152,399	159,535

Other
Gross carrying amount	$	5,358	5,156
Less: accumulated amortization		3,730	3,260
Net	$	1,628	1,896
Intangible assets with indefinite lives:
Trade names	$	158,841	156,381

The changes in the carrying amount of goodwill attributable to each business segment for the nine months ended June 30, 2021 is as follows on a continuing operations basis:


				Aerospace
(Dollars in millions)	USG		Test	& Defense	Total
Balance as of September 30, 2020		271.9	34.1	102.1	408.1
Acquisition activity		—	—	2.2	2.2
Foreign currency translation		1.4	—	—	1.4
Balance as of June 30, 2021	$	273.3	34.1	104.3	411.7

The economic uncertainty, changes in the propensity for the general public to travel by air, and reductions in demand for commercial aircraft as a result of the COVID-19 pandemic have adversely impacted net sales and operating results in certain of the Aerospace and Defense reporting units. There were no impairment charges incurred for the three and nine-month periods ended June 30, 2021, however, the fair value of the Mayday and Westland reporting units, included in the Aerospace and Defense segment, exceeded carrying value by less than 10%. At June 30, 2021, we had $30 million and $18 million of goodwill recorded for Mayday and Westland, respectively.

BUSINESS SEGMENT INFORMATION

9 Months Ended

Jun. 30, 2021

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

6. BUSINESS SEGMENT INFORMATION

The Company is organized based on the products and services that it offers and classifies its continuing business operations in three reportable segments for financial reporting purposes: Aerospace & Defense, Utility Solutions Group (USG), and RF Shielding and Test (Test). The Aerospace & Defense segment’s operations consist of PTI Technologies Inc. (PTI), VACCO Industries (VACCO), Crissair, Inc. (Crissair), Westland Technologies Inc. (Westland), Mayday Manufacturing Co. and its affiliate Hi-Tech Metals, Inc. (collectively referred to as Mayday) and Globe Composite Solutions, LLC (Globe). The companies within this segment primarily design and manufacture specialty filtration, fluid control and naval products, including hydraulic filter elements and fluid control devices used in aerospace and defense applications; unique filter mechanisms used in micro-propulsion devices for satellites and custom designed filters for manned aircraft and submarines; products and systems to reduce vibration and/or acoustic signatures and otherwise reduce or obscure a vessel’s signature, and other communications, sealing, surface control and hydrodynamic related applications to enhance U.S. Navy maritime survivability; precision-tolerance machined components for the aerospace and defense industry; and metal processing services. The USG segment’s operations consist primarily of Doble Engineering Company and Morgan Schaffer Ltd. (together Doble), and NRG Systems, Inc. (NRG). Doble is an industry leader in the development, manufacture and delivery of diagnostic testing solutions that enable electric power grid operators to assess the integrity of high voltage power delivery equipment. NRG designs and manufactures decision support tools for the renewable energy industry, primarily wind and solar. The Test segment’s operations consist primarily of ETS-Lindgren Inc. (ETS-Lindgren). ETS-Lindgren is an industry leader in providing its customers with the ability to identify, measure and contain magnetic, electromagnetic and acoustic energy. ETS-Lindgren also manufactures radio frequency shielding products and components used by manufacturers of medical equipment, communications systems, electronic products, and shielded rooms for high-security data processing and secure communication.

Management evaluates and measures the performance of its reportable segments based on “Net Sales” and “EBIT”, which are detailed in the table below. EBIT is defined as earnings from continuing operations before interest and taxes. The table below is presented on the basis of continuing operations and excludes discontinued operations.


	Three Months			Nine Months
	Ended June 30,			Ended June 30,
(In thousands)	2021		2020	2021	2020
NET SALES
Aerospace & Defense	$	85,576	84,072	234,720	256,707
USG		47,704	42,577	141,799	139,179
Test		48,114	46,016	133,443	128,999
Consolidated totals	$	181,394	172,665	509,962	524,885

EBIT
Aerospace & Defense	$	16,714	17,409	41,980	51,658
USG		8,227	6,156	27,683	20,310
Test		6,751	7,177	17,781	17,483
Corporate (loss)		(12,269)	(7,410)	(30,359)	(27,983)
Consolidated EBIT		19,423	23,332	57,085	61,468
Less: Interest expense		(480)	(1,523)	(1,453)	(5,264)
Earnings before income taxes	$	18,943	21,809	55,632	56,204

Non-GAAP Financial Measures

The financial measure “EBIT” is presented in the above table and elsewhere in this Report. EBIT on a consolidated basis is a non-GAAP financial measure. Management believes that EBIT is useful in assessing the operational profitability of the Company’s business segments because it excludes interest and taxes, which are generally accounted for across the entire Company on a consolidated basis. EBIT is also one of the measures used by management in determining resource allocations within the Company as well as incentive compensation. A reconciliation of EBIT to net earnings from continuing operations is set forth in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations – EBIT.

The Company believes that the presentation of EBIT provides important supplemental information to investors to facilitate comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. However, the Company’s non-GAAP financial measures may not be comparable to other companies’ non-GAAP financial performance measures. Furthermore, the use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
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+ Details

DEBT

9 Months Ended

Jun. 30, 2021

DEBT

DEBT

7. DEBT

The Company’s debt is summarized as follows:


	June 30,		September 30,
(In thousands)	2021		2020
Total borrowings	$	48,000	62,368
Current portion of long-term debt and short-term borrowings		(20,000)	(22,368)
Total long-term debt, less current portion	$	28,000	40,000

The Credit Facility includes a $500 million revolving line of credit as well as provisions allowing for the increase of the credit facility commitment amount by an additional $250 million, if necessary, with the consent of the lenders. The bank syndication supporting the facility is comprised of a diverse group of eight banks led by JP Morgan Chase Bank, N.A., as Administrative Agent. The Credit Facility matures September 27, 2024.

At June 30, 2021, the Company had approximately $444 million available to borrow under the Credit Facility, plus the $250 million increase option, subject to lender approval, in addition to $78.4 million cash on hand. The Company classified $20.0 million as the current portion of long-term debt as of June 30, 2021, as the Company intends to repay this amount within the next twelve months; however, the Company has no contractual obligation to repay such amount during the next twelve months. The letters of credit issued and outstanding under the Credit Facility totaled $8.4 million at June 30, 2021.

Interest on borrowings under the Credit Facility is calculated at a spread over either the London Interbank Offered Rate (LIBOR), the New York Federal Reserve Bank Rate or the prime rate, depending on various factors. The Credit Facility also requires a facility fee ranging from 10 to 25 basis points per annum on the unused portion. The Credit Facility is secured by the unlimited guaranty of the Company’s direct and indirect material U.S. subsidiaries and the pledge of 100% of the equity interests of its direct and indirect material foreign subsidiaries. The financial covenants of the Credit Facility include a leverage ratio and an interest coverage ratio. The weighted average interest rates were 1.16% and 1.33% for the three and nine- month periods ending June 30, 2021, respectively, and 3.24% and 3.22% for the three and nine-month periods ending June 30, 2020. As of June 30, 2021, the Company was in compliance with all covenants.

INCOME TAX EXPENSE

9 Months Ended

Jun. 30, 2021

INCOME TAX EXPENSE

INCOME TAX EXPENSE

8. INCOME TAX EXPENSE

The third quarter 2021 effective income tax rate was 21.3% compared to 14.3% in the third quarter of 2020. The effective income tax rate from continuing operations in the first nine months of 2021 was 22.5% compared to 15.9% in the first nine months of 2020. The income tax expense in the third quarter and first nine months of 2021 was favorably impacted by a tax return to provision true-up to foreign derived intangible income and other 2020 true-ups decreasing the third quarter and year-to-date effective tax rate by 3.9% and 1.2%, respectively.

The income tax expense in the third quarter and first nine months of 2020 was favorably impacted mainly by the following items: 1) an increase in the available 2019 foreign tax credit which was attributable to new information and tax planning strategies reducing the third quarter effective tax rate and year-to-date effective tax rate by 3.3% and 1.3%; and 2) new information and tax planning strategies resulted in an increase in the 2020 foreign tax credit and the catch-up of the benefit which reduced the 2020 third quarter effective tax rate by 2.5%. The year-to-date 2020 effective tax rate was favorably impacted by the release of a valuation allowance of $2.8 million for foreign net operating losses decreasing the year-to-date 2020 effective tax rate by 5.1%.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

SHAREHOLDERS' EQUITY

9 Months Ended

Jun. 30, 2021

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY

9. SHAREHOLDERS’ EQUITY

The change in shareholders’ equity for the first three and nine months of 2021 and 2020 is shown below (in thousands):


	Three Months Ended June 30,		Nine Months Ended June 30,
	2021	2020	2021	2020

Common stock
Beginning balance	306	306	306	306
Stock plans	1	1	1	1
Ending balance	307	307	307	307

Additional paid-in-capital
Beginning balance	295,796	294,787	293,682	292,408
Stock plans	782	(2,156)	2,896	223
Ending balance	296,578	292,631	296,578	292,631

Retained earnings
Beginning balance	799,884	785,184	775,829	684,741
Net earnings common stockholders	14,909	18,687	43,131	123,286
Dividends paid	(2,084)	(2,084)	(6,251)	(6,240)
Ending balance	812,709	801,787	812,709	801,787

Accumulated other comprehensive income (loss)
Beginning balance	1,808	(46,936)	(3,657)	(43,974)
Foreign currency translation	535	2,802	6,000	(160)
Ending balance	2,343	(44,134)	2,343	(44,134)

Treasury stock
Beginning balance	(107,134)	(107,134)	(107,134)	(107,259)
Issued under stock plans	51	—	51	125
Ending balance	(107,083)	(107,134)	(107,083)	(107,134)

Total equity	1,004,854	943,457	1,004,854	943,457

FAIR VALUE MEASUREMENTS

9 Months Ended

Jun. 30, 2021

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

10. FAIR VALUE MEASUREMENTS

The accounting guidance establishes a three-level hierarchy for disclosure of fair value measurements, based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date, as follows:

●

Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

●

Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

●

Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Financial Assets and Liabilities

The Company has estimated the fair value of its financial instruments as of June 30, 2021 and September 30, 2020 using available market information or other appropriate valuation methodologies. The carrying amounts of cash and cash equivalents, receivables, inventories, payables, debt and other current assets and liabilities approximate fair value because of the short maturity of those instruments.

Fair Value of Financial Instruments

The Company’s forward contracts and interest rate swaps are classified within Level 2 of the valuation hierarchy in accordance with FASB Accounting Standards Codification (ASC) 825, as presented below as of June 30, 2021:


(In thousands)	Level 1		Level 2		Level 3	Total
Assets (Liabilities):
Forward contracts	$	—	(27)	$	—	(27)

Valuation was based on third party evidence of similarly priced derivative instruments.

Nonfinancial Assets and Liabilities

The Company’s nonfinancial assets such as property, plant and equipment, and other intangible assets are not measured at fair value on a recurring basis; however they are subject to fair value adjustments in certain circumstances, such as when there is evidence that an impairment may exist. No impairments were recorded during the three and nine-month periods ended June 30, 2021.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

REVENUES

9 Months Ended

Jun. 30, 2021

REVENUES

REVENUES

11. REVENUES

Disaggregation of Revenues

Revenues by customer type, geographic location, and revenue recognition method for the three and nine-month periods ended June 30, 2021 are presented in the tables below as the Company believes it best depicts how the nature, amount, timing and

uncertainty of net sales and cash flows are affected by economic factors. The tables below also include a reconciliation of the disaggregated revenue within each reportable segment on a continuing operations basis.


Three months ended June 30, 2021	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	34,708	$	46,735	$	42,063	$	123,506
U.S. Government		50,868		969		6,051		57,888
Total revenues	$	85,576	$	47,704	$	48,114	$	181,394

Geographic location:
United States	$	75,701	$	32,111	$	27,719	$	135,531
International		9,875		15,593		20,395		45,863
Total revenues	$	85,576	$	47,704	$	48,114	$	181,394

Revenue recognition method:
Point in time	$	37,513	$	35,242	$	9,673	$	82,428
Over time		48,063		12,462		38,441		98,966
Total revenues	$	85,576	$	47,704	$	48,114	$	181,394


Nine months ended June 30, 2021	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	95,712	$	139,149	$	118,089	$	352,950
U.S. Government		139,008		2,650		15,354		157,012
Total revenues	$	234,720	$	141,799	$	133,443	$	509,962

Geographic location:
United States	$	205,527	$	96,601	$	73,950	$	376,078
International		29,193		45,198		59,493		133,884
Total revenues	$	234,720	$	141,799	$	133,443	$	509,962

Revenue recognition method:
Point in time	$	103,492	$	105,173	$	27,789	$	236,454
Over time		131,228		36,626		105,654		273,508
Total revenues	$	234,720	$	141,799	$	133,443	$	509,962

Revenues by customer type, geographic location, and revenue recognition method for the three and nine-month periods ended June 30, 2020 are presented in the tables below.


Three months ended June 30, 2020	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	37,485	$	39,740	$	38,737	$	115,962
U.S. Government		46,587		2,837		7,279		56,703
Total revenues	$	84,072	$	42,577	$	46,016	$	172,665

Geographic location:
United States	$	73,476	$	26,499	$	19,441	$	119,416
International		10,596		16,078		26,575		53,249
Total revenues	$	84,072	$	42,577	$	46,016	$	172,665

Revenue recognition method:
Point in time	$	36,461	$	27,765	$	9,138	$	73,364
Over time		47,611		14,812		36,878		99,301
Total revenues	$	84,072	$	42,577	$	46,016	$	172,665


Nine months ended June 30, 2020	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	130,817	$	135,711	$	107,931	$	374,459
U.S. Government		125,890		3,468		21,068		150,426
Total revenues	$	256,707	$	139,179	$	128,999	$	524,885

Geographic location:
United States	$	219,640	$	90,155	$	69,399	$	379,194
International		37,067		49,024		59,600		145,691
Total revenues	$	256,707	$	139,179	$	128,999	$	524,885

Revenue recognition method:
Point in time	$	118,660	$	100,289	$	26,157	$	245,106
Over time		138,047		38,890		102,842		279,779
Total revenues	$	256,707	$	139,179	$	128,999	$	524,885

Remaining Performance Obligations

Remaining performance obligations, which is the equivalent of backlog, represent the expected transaction price allocated to contracts that the Company expects to recognize as revenue in future periods when the Company performs under the contracts. These remaining obligations include amounts that have been formally appropriated under contracts with the U.S. Government, and exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery, Indefinite Quantity contracts. At June 30, 2021, the Company had $539.0 million in remaining performance obligations of which the Company expects to recognize revenues of approximately 70% in the next twelve months.

Contract assets and contract liabilities

Assets and liabilities related to contracts with customers are reported on a contract-by-contract basis at the end of each reporting period. At June 30, 2021, contract assets and contract liabilities totaled $94.8 million and $105.8 million, respectively. Contract assets and contract liabilities are presented as current in the consolidated balance sheets as it is expected all related transaction activity with customers will be substantially completed within twelve months. During the first nine months of 2021, the Company recognized approximately $75 million in revenues that were included in the contract liabilities balance at September 30, 2020.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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-Section 50
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

LEASES

9 Months Ended

Jun. 30, 2021

LEASES

LEASES

12. LEASES

The Company determines at lease inception whether an arrangement that provides control over the use of an asset is a lease. The Company recognizes at lease commencement a right-of-use (ROU) asset and lease liability based on the present value of the future lease payments over the lease term. The Company has elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less. Certain of the Company’s leases include options to extend the term of the lease for up to 20 years. When it is reasonably certain that the Company will exercise the option, Management includes the impact of the option in the lease term for purposes of determining total future lease payments. As most of the Company’s lease agreements do not explicitly state the discount rate implicit in the lease, Management uses the Company’s incremental borrowing rate on the commencement date to calculate the present value of future payments based on the tenor of each arrangement.

The Company’s leases for real estate commonly include escalating payments. These variable lease payments are included in the calculation of the ROU asset and lease liability. In addition to the present value of the future lease payments, the calculation of the ROU asset also includes any deferred rent, lease pre-payments and initial direct costs of obtaining the lease.

In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar services, which are considered non-lease components for accounting purposes. Non-lease components are excluded from our ROU assets and lease liabilities and expensed as incurred.

The Company’s leases are for office space, manufacturing facilities, and machinery and equipment.

The components of lease costs are shown below:


	Three Months Ended		Three Months Ended
	June 30,		June 30,
(Dollars in thousands)	2021		2020
Finance lease cost
Amortization of right-of-use assets	$	492	$	540
Interest on lease liabilities		306		319
Operating lease cost		1,471		1,474
Total lease costs	$	2,269	$	2,333


	Nine Months		Nine Months
	Ended		Ended
	June 30,		June 30,
(Dollars in thousands)	2021		2020
Finance lease cost
Amortization of right-of-use assets	$	1,477	$	1,622
Interest on lease liabilities		929		970
Operating lease cost		4,347		4,399
Total lease costs	$	6,753	$	6,991

Additional information related to leases are shown below:


	Three Months Ended		Three Months Ended
	June 30,		June 30,
(Dollars in thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,320	$	1,452
Operating cash flows from finance leases		306		319
Financing cash flows from finance leases		428		418
Right-of-use assets obtained in exchange for operating lease liabilities		12,780		53


	Nine Months		Nine Months
	June 30,		June 30,
(Dollars in thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	4,102	$	4,334
Operating cash flows from finance leases		915		655
Financing cash flows from finance leases		1,261		1,145
Right-of-use assets obtained in exchange for operating lease liabilities		12,780		22,072


Weighted-average remaining lease term	June 30, 2021		June 30, 2020
Operating leases	10.31 years		6.64 years
Finance leases	11.86 years		12.76 years
Weighted-average discount rate
Operating leases	3.12	%	3.14	%
Finance leases	4.31	%	4.29	%

The following is a reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets, presented on our Consolidated Balance Sheet on June 30, 2021:


(Dollars in thousands)	Operating		Finance
Years Ending September 30:	Leases		Leases
2021 (excluding the nine months ended June 30, 2021)	$	1,378		739
2022		5,093		3,015
2023		4,324		3,098
2024		3,677		3,181
2025 and thereafter		21,976		28,285
Total minimum lease payments		36,448		38,318
Less: amounts representing interest		5,460		9,320
Present value of net minimum lease payments	$	30,988		28,998
Less: current portion of lease obligations		4,530		1,859
Non-current portion of lease obligations		26,458		27,139

ROU assets	$	30,426		24,689

Operating lease liabilities are included in the Consolidated Balance Sheet in accrued other expenses (current portion) and as a caption on the Consolidated Balance Sheet (long-term portion). Finance lease liabilities are included on the Consolidated Balance Sheet in accrued other expenses (current portion) and other liabilities (long-term portion). Operating lease ROU assets are included as a caption on the Consolidated Balance Sheet and finance lease ROU assets are included in Property, plant and equipment on the Consolidated Balance sheets.

ADJUSTED QUARTERLY FINANCIAL INFORMATION

9 Months Ended

Jun. 30, 2021

ADJUSTED QUARTERLY FINANCIAL INFORMATION

ADJUSTED QUARTERLY FINANCIAL INFORMATION

13. ADJUSTED QUARTERLY FINANCIAL INFORMATION

During the third quarter of 2021, the Company identified immaterial errors in the historical consolidated financial statements of Westland, within the A&D segment, and are being corrected as an immaterial revision of those financial statements. Specifically, the adjustments include $3.5 million related to net sales being overstated, of which $2.4 million related to the fourth quarter of 2020, $0.3 million related to the first quarter of 2021, and $0.8 million related to the second quarter of 2021. In addition, $2.1 million of the total adjustments resulted from inventory being overstated and cost of goods sold being understated, of which $0.9 million related to the fourth quarter of 2020, $0.8 million related to the first quarter of 2021, and $0.4 million related to the second quarter of 2021. The tax impact of correcting these errors was a reduction in tax expense of $0.8 million, $0.2 million, and $0.3 million in the fourth quarter of 2020, first quarter of 2021, and second quarter of 2021, respectively. This correction also resulted in a reclassification in the Consolidated Statements of Cash Flows between line items of net earnings, changes in assets and liabilities, and effect of deferred taxes totaling $3.3 million in the fourth quarter of 2020, $1.1 million in the first quarter of 2021, and $1.2 million in the second quarter of 2021, with no impact to the total net cash provided by operating activities for any period. The fiscal 2021 and 2020 quarterly results have been adjusted to reflect the correction of these adjustments in the proper periods. The table below shows the impact of all adjustments to the respective periods. Management has determined that all of these adjustments are not material to any prior periods or the current fiscal year.


	First Quarter		First Quarter	Second Quarter	Second Quarter
(Dollars in thousands, except per share amounts)	(As Reported)		(As Adjusted)	(As Reported)	(As Adjusted)

2021

Net sales	$	162,949	162,674	166,644	165,894
Cost of sales		98,777	99,622	103,113	103,553
Earnings before income taxes		17,660	16,540	21,339	20,149
Income tax expense		3,974	3,722	5,025	4,745
Net earnings		13,686	12,818	16,314	15,404

Diluted earnings (loss) per share:
Net earnings	$	0.52	0.49	0.62	0.59


	First Quarter		First Quarter	Second Quarter	Second Quarter
	(As Reported)		(As Adjusted)	(As Reported)	(As Adjusted)
Contract assets	$	93,762	91,043	95,002	91,533
Inventories		144,054	142,316	145,342	143,164
Retained earnings	$	790,000	786,563	804,231	799,884


	Fourth Quarter		Fourth Quarter
(Dollars in thousands, except per share amounts)	(As Reported		(As Adjusted)

2020

Net sales	$	208,030	205,586
Cost of sales		129,763	130,656
Loss before income taxes		(16,461)	(19,798)
Income tax expense		5,347	4,579
Net loss		(21,808)	(24,377)

Diluted earnings (loss) per share:
Net loss	$	(0.83)	(0.93)


	Fourth Quarter		Fourth Quarter
(Dollars in thousands, except per share amounts)	(As Reported		(As Adjusted)

September 30, 2020

Contract assets	$	96,746	94,302
Inventories		136,189	135,296
Total current assets		446,630	443,293
Total assets		1,373,523	1,370,186
Total shareholders’ equity		961,595	959,026
Total liabilities and shareholders’ equity		1,373,523	1,370,186

SUBSEQUENT EVENTS

9 Months Ended

Jun. 30, 2021

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

14. SUBSEQUENT EVENTS

On May 20, 2021, the Company announced it had entered into an agreement to acquire I.S.A. Altanova Group S.R.L. (Altanova), a supplier in the field of advanced condition assessment technologies including partial discharge measurement and analysis, as well as test instruments for electrical apparatus. Altanova, which will become part of the USG operating segment, had annual sales of approximately $30 million in 2020. As of June 30, 2021, the Company had 30 million Euros held in an escrow account related to this transaction which will be used to partially fund the acquisition. The transaction was subject to Italian regulatory approval, which was obtained and the transaction closed on July 29, 2021.

On August 9, 2021, the Company announced it had acquired the assets of Phenix Technologies, Inc. (Phenix), a manufacturer of stationary and portable high voltage, high current, high power test systems, components and solutions supporting the electric utility industry. Phenix, which will become part of the USG operating segment, had annual sales of approximately $25 million in 2020.

EARNINGS PER SHARE (EPS) (Tables)

9 Months Ended

Jun. 30, 2021

EARNINGS PER SHARE (EPS)

Schedule of weighted average number of shares used in the calculation of earnings per share


	Three Months		Nine Months
	Ended June 30,		Ended June 30,
	2021	2020	2021	2020
Weighted Average Shares Outstanding — Basic	26,045	26,031	26,040	26,002
Dilutive Options and Restricted Shares	169	103	159	128
Adjusted Shares — Diluted	26,214	26,134	26,199	26,130

INVENTORIES (Tables)

9 Months Ended

Jun. 30, 2021

INVENTORIES

Schedule of inventories


	June 30,		September 30,
(In thousands)	2021		2020
Finished goods	$	28,732	28,471
Work in process		37,874	30,183
Raw materials		74,507	76,642
Total inventories	$	141,113	135,296

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

9 Months Ended

Jun. 30, 2021

GOODWILL AND OTHER INTANGIBLE ASSETS

Schedule of goodwill and intangible assets


	June 30,		September 30,
(Dollars in thousands)	2021		2020
Goodwill	$	411,732	408,063

Intangible assets with determinable lives:
Patents
Gross carrying amount	$	2,144	2,092
Less: accumulated amortization		943	858
Net	$	1,201	1,234

Capitalized software
Gross carrying amount	$	91,388	84,888
Less: accumulated amortization		62,111	57,302
Net	$	29,277	27,586

Customer relationships
Gross carrying amount	$	229,385	227,178
Less: accumulated amortization		76,986	67,643
Net	$	152,399	159,535

Other
Gross carrying amount	$	5,358	5,156
Less: accumulated amortization		3,730	3,260
Net	$	1,628	1,896
Intangible assets with indefinite lives:
Trade names	$	158,841	156,381

Schedule of carrying amount of goodwill attributable to each business segment


				Aerospace
(Dollars in millions)	USG		Test	& Defense	Total
Balance as of September 30, 2020		271.9	34.1	102.1	408.1
Acquisition activity		—	—	2.2	2.2
Foreign currency translation		1.4	—	—	1.4
Balance as of June 30, 2021	$	273.3	34.1	104.3	411.7

BUSINESS SEGMENT INFORMATION (Tables)

9 Months Ended

Jun. 30, 2021

BUSINESS SEGMENT INFORMATION

Schedule of Net Sales and Earnings Before Income Tax


	Three Months			Nine Months
	Ended June 30,			Ended June 30,
(In thousands)	2021		2020	2021	2020
NET SALES
Aerospace & Defense	$	85,576	84,072	234,720	256,707
USG		47,704	42,577	141,799	139,179
Test		48,114	46,016	133,443	128,999
Consolidated totals	$	181,394	172,665	509,962	524,885

EBIT
Aerospace & Defense	$	16,714	17,409	41,980	51,658
USG		8,227	6,156	27,683	20,310
Test		6,751	7,177	17,781	17,483
Corporate (loss)		(12,269)	(7,410)	(30,359)	(27,983)
Consolidated EBIT		19,423	23,332	57,085	61,468
Less: Interest expense		(480)	(1,523)	(1,453)	(5,264)
Earnings before income taxes	$	18,943	21,809	55,632	56,204

DEBT (Tables)

9 Months Ended

Jun. 30, 2021

DEBT

Schedule of debt


	June 30,		September 30,
(In thousands)	2021		2020
Total borrowings	$	48,000	62,368
Current portion of long-term debt and short-term borrowings		(20,000)	(22,368)
Total long-term debt, less current portion	$	28,000	40,000

SHAREHOLDERS' EQUITY (Tables)

9 Months Ended

Jun. 30, 2021

SHAREHOLDERS' EQUITY

Schedule of change in shareholders' equity

The change in shareholders’ equity for the first three and nine months of 2021 and 2020 is shown below (in thousands):


	Three Months Ended June 30,		Nine Months Ended June 30,
	2021	2020	2021	2020

Common stock
Beginning balance	306	306	306	306
Stock plans	1	1	1	1
Ending balance	307	307	307	307

Additional paid-in-capital
Beginning balance	295,796	294,787	293,682	292,408
Stock plans	782	(2,156)	2,896	223
Ending balance	296,578	292,631	296,578	292,631

Retained earnings
Beginning balance	799,884	785,184	775,829	684,741
Net earnings common stockholders	14,909	18,687	43,131	123,286
Dividends paid	(2,084)	(2,084)	(6,251)	(6,240)
Ending balance	812,709	801,787	812,709	801,787

Accumulated other comprehensive income (loss)
Beginning balance	1,808	(46,936)	(3,657)	(43,974)
Foreign currency translation	535	2,802	6,000	(160)
Ending balance	2,343	(44,134)	2,343	(44,134)

Treasury stock
Beginning balance	(107,134)	(107,134)	(107,134)	(107,259)
Issued under stock plans	51	—	51	125
Ending balance	(107,083)	(107,134)	(107,083)	(107,134)

Total equity	1,004,854	943,457	1,004,854	943,457

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Jun. 30, 2021

FAIR VALUE MEASUREMENTS

Schedule of fair value of financial instruments


(In thousands)	Level 1		Level 2		Level 3	Total
Assets (Liabilities):
Forward contracts	$	—	(27)	$	—	(27)

REVENUES (Tables)

9 Months Ended

Jun. 30, 2021

REVENUES

Schedule of disaggregation of revenue by reportable segment


Three months ended June 30, 2021	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	34,708	$	46,735	$	42,063	$	123,506
U.S. Government		50,868		969		6,051		57,888
Total revenues	$	85,576	$	47,704	$	48,114	$	181,394

Geographic location:
United States	$	75,701	$	32,111	$	27,719	$	135,531
International		9,875		15,593		20,395		45,863
Total revenues	$	85,576	$	47,704	$	48,114	$	181,394

Revenue recognition method:
Point in time	$	37,513	$	35,242	$	9,673	$	82,428
Over time		48,063		12,462		38,441		98,966
Total revenues	$	85,576	$	47,704	$	48,114	$	181,394


Nine months ended June 30, 2021	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	95,712	$	139,149	$	118,089	$	352,950
U.S. Government		139,008		2,650		15,354		157,012
Total revenues	$	234,720	$	141,799	$	133,443	$	509,962

Geographic location:
United States	$	205,527	$	96,601	$	73,950	$	376,078
International		29,193		45,198		59,493		133,884
Total revenues	$	234,720	$	141,799	$	133,443	$	509,962

Revenue recognition method:
Point in time	$	103,492	$	105,173	$	27,789	$	236,454
Over time		131,228		36,626		105,654		273,508
Total revenues	$	234,720	$	141,799	$	133,443	$	509,962

Revenues by customer type, geographic location, and revenue recognition method for the three and nine-month periods ended June 30, 2020 are presented in the tables below.


Three months ended June 30, 2020	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	37,485	$	39,740	$	38,737	$	115,962
U.S. Government		46,587		2,837		7,279		56,703
Total revenues	$	84,072	$	42,577	$	46,016	$	172,665

Geographic location:
United States	$	73,476	$	26,499	$	19,441	$	119,416
International		10,596		16,078		26,575		53,249
Total revenues	$	84,072	$	42,577	$	46,016	$	172,665

Revenue recognition method:
Point in time	$	36,461	$	27,765	$	9,138	$	73,364
Over time		47,611		14,812		36,878		99,301
Total revenues	$	84,072	$	42,577	$	46,016	$	172,665


Nine months ended June 30, 2020	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	130,817	$	135,711	$	107,931	$	374,459
U.S. Government		125,890		3,468		21,068		150,426
Total revenues	$	256,707	$	139,179	$	128,999	$	524,885

Geographic location:
United States	$	219,640	$	90,155	$	69,399	$	379,194
International		37,067		49,024		59,600		145,691
Total revenues	$	256,707	$	139,179	$	128,999	$	524,885

Revenue recognition method:
Point in time	$	118,660	$	100,289	$	26,157	$	245,106
Over time		138,047		38,890		102,842		279,779
Total revenues	$	256,707	$	139,179	$	128,999	$	524,885

LEASES (Tables)

9 Months Ended

Jun. 30, 2021

LEASES

Schedule of components of lease costs


	Three Months Ended		Three Months Ended
	June 30,		June 30,
(Dollars in thousands)	2021		2020
Finance lease cost
Amortization of right-of-use assets	$	492	$	540
Interest on lease liabilities		306		319
Operating lease cost		1,471		1,474
Total lease costs	$	2,269	$	2,333


	Nine Months		Nine Months
	Ended		Ended
	June 30,		June 30,
(Dollars in thousands)	2021		2020
Finance lease cost
Amortization of right-of-use assets	$	1,477	$	1,622
Interest on lease liabilities		929		970
Operating lease cost		4,347		4,399
Total lease costs	$	6,753	$	6,991

Schedule of additional information related to leases


	Three Months Ended		Three Months Ended
	June 30,		June 30,
(Dollars in thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,320	$	1,452
Operating cash flows from finance leases		306		319
Financing cash flows from finance leases		428		418
Right-of-use assets obtained in exchange for operating lease liabilities		12,780		53


	Nine Months		Nine Months
	June 30,		June 30,
(Dollars in thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	4,102	$	4,334
Operating cash flows from finance leases		915		655
Financing cash flows from finance leases		1,261		1,145
Right-of-use assets obtained in exchange for operating lease liabilities		12,780		22,072


Weighted-average remaining lease term	June 30, 2021		June 30, 2020
Operating leases	10.31 years		6.64 years
Finance leases	11.86 years		12.76 years
Weighted-average discount rate
Operating leases	3.12	%	3.14	%
Finance leases	4.31	%	4.29	%

Schedule of reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets


(Dollars in thousands)	Operating		Finance
Years Ending September 30:	Leases		Leases
2021 (excluding the nine months ended June 30, 2021)	$	1,378		739
2022		5,093		3,015
2023		4,324		3,098
2024		3,677		3,181
2025 and thereafter		21,976		28,285
Total minimum lease payments		36,448		38,318
Less: amounts representing interest		5,460		9,320
Present value of net minimum lease payments	$	30,988		28,998
Less: current portion of lease obligations		4,530		1,859
Non-current portion of lease obligations		26,458		27,139

ROU assets	$	30,426		24,689

ADJUSTED QUARTERLY FINANCIAL INFORMATION (Tables)

9 Months Ended

Jun. 30, 2021

ADJUSTED QUARTERLY FINANCIAL INFORMATION

Schedule of Adjusted Quarterly Financial Information


	First Quarter		First Quarter	Second Quarter	Second Quarter
(Dollars in thousands, except per share amounts)	(As Reported)		(As Adjusted)	(As Reported)	(As Adjusted)

2021

Net sales	$	162,949	162,674	166,644	165,894
Cost of sales		98,777	99,622	103,113	103,553
Earnings before income taxes		17,660	16,540	21,339	20,149
Income tax expense		3,974	3,722	5,025	4,745
Net earnings		13,686	12,818	16,314	15,404

Diluted earnings (loss) per share:
Net earnings	$	0.52	0.49	0.62	0.59


	First Quarter		First Quarter	Second Quarter	Second Quarter
	(As Reported)		(As Adjusted)	(As Reported)	(As Adjusted)
Contract assets	$	93,762	91,043	95,002	91,533
Inventories		144,054	142,316	145,342	143,164
Retained earnings	$	790,000	786,563	804,231	799,884


	Fourth Quarter		Fourth Quarter
(Dollars in thousands, except per share amounts)	(As Reported		(As Adjusted)

2020

Net sales	$	208,030	205,586
Cost of sales		129,763	130,656
Loss before income taxes		(16,461)	(19,798)
Income tax expense		5,347	4,579
Net loss		(21,808)	(24,377)

Diluted earnings (loss) per share:
Net loss	$	(0.83)	(0.93)


	Fourth Quarter		Fourth Quarter
(Dollars in thousands, except per share amounts)	(As Reported		(As Adjusted)

September 30, 2020

Contract assets	$	96,746	94,302
Inventories		136,189	135,296
Total current assets		446,630	443,293
Total assets		1,373,523	1,370,186
Total shareholders’ equity		961,595	959,026
Total liabilities and shareholders’ equity		1,373,523	1,370,186

EARNINGS PER SHARE (EPS) (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
EARNINGS PER SHARE (EPS)
Weighted Average Shares Outstanding - Basic	26,045	26,031	26,040	26,002
Dilutive Options and Restricted Shares	169	103	159	128
Adjusted Shares - Diluted	26,214	26,134	26,199	26,130

SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Selling, general and administrative expenses
SHARE-BASED COMPENSATION
Total share-based compensation cost	$ 2.8	$ 1.3	$ 5.5	$ 4.2
Performance-Accelerated Restricted Share Awards
SHARE-BASED COMPENSATION
Pretax compensation expense	$ 2.5	1.0	$ 4.5	3.2
Non-vested shares	229,602		229,602
Non-Employee Directors Plan
SHARE-BASED COMPENSATION
Pretax compensation expense	$ 0.3	0.3	$ 1.0	1.0
Total income tax benefit recognized	0.4	$ 0.2	1.1	$ 0.9
Total unrecognized compensation cost related to share-based compensation arrangements	$ 9.2		$ 9.2
Remaining weighted-average period for recognition of total unrecognized compensation cost			1 year 10 months 24 days

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
INVENTORIES
Finished goods	$ 28,732	$ 28,471
Work in process	37,874	30,183
Raw materials	74,507	76,642
Total inventories	$ 141,113	$ 135,296

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill	$ 411,732	$ 408,063
Less: accumulated amortization	143,792	129,063
Patents
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	2,144	2,092
Less: accumulated amortization	943	858
Net	1,201	1,234
Capitalized software
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	91,388	84,888
Less: accumulated amortization	62,111	57,302
Net	29,277	27,586
Customer relationships
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	229,385	227,178
Less: accumulated amortization	76,986	67,643
Net	152,399	159,535
Other
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	5,358	5,156
Less: accumulated amortization	3,730	3,260
Net	1,628	1,896
Trade names
GOODWILL AND OTHER INTANGIBLE ASSETS
Trade names	$ 158,841	$ 156,381

GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in carrying amount of goodwill (Details) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2021 USD ($)	Jun. 30, 2021 USD ($)
Changes in goodwill
Goodwill, Beginning Balance		$ 408,063
Acquisition activity		2,200
Foreign currency translation		1,400
Goodwill, Ending Balance	$ 411,732	411,732
Impairment	$ 0	$ 0
Fair value exceeded carrying value percentage	10.00%	10.00%
USG
Changes in goodwill
Goodwill, Beginning Balance		$ 271,900
Foreign currency translation		1,400
Goodwill, Ending Balance	$ 273,300	273,300
Test
Changes in goodwill
Goodwill, Beginning Balance		34,100
Goodwill, Ending Balance	34,100	34,100
Aerospace & Defense
Changes in goodwill
Goodwill, Beginning Balance		102,100
Acquisition activity		2,200
Goodwill, Ending Balance	104,300	104,300
Mayday
Changes in goodwill
Goodwill, Gross	30,000	30,000
Westland
Changes in goodwill
Goodwill, Gross	$ 18,000	$ 18,000

BUSINESS SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		9 Months Ended
BUSINESS SEGMENT INFORMATION (Details) $ in Thousands	Jun. 30, 2021 USD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) segment	Jun. 30, 2020 USD ($)
BUSINESS SEGMENT INFORMATION
NET SALES	$ 181,394	$ 172,665	$ 509,962	$ 524,885
Consolidated EBIT	19,423	23,332	57,085	61,468
Less: Interest expense	(480)	(1,523)	(1,453)	(5,264)
Earnings before income taxes	18,943	21,809	$ 55,632	56,204
Number of reportable segments \| segment			3
Aerospace & Defense
BUSINESS SEGMENT INFORMATION
NET SALES	85,576	84,072	$ 234,720	256,707
Consolidated EBIT	16,714	17,409	41,980	51,658
USG
BUSINESS SEGMENT INFORMATION
NET SALES	47,704	42,577	141,799	139,179
Consolidated EBIT	8,227	6,156	27,683	20,310
Test
BUSINESS SEGMENT INFORMATION
NET SALES	48,114	46,016	133,443	128,999
Consolidated EBIT	6,751	7,177	17,781	17,483
Corporate (loss)
BUSINESS SEGMENT INFORMATION
Consolidated EBIT	$ (12,269)	$ (7,410)	$ (30,359)	$ (27,983)

DEBT (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
DEBT
Total borrowings	$ 48,000	$ 62,368
Current portion of long-term debt and short-term borrowings	(20,000)	(22,368)
Total long-term debt, less current portion	$ 28,000	$ 40,000

DEBT - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2020
DEBT
Available to borrow under the credit facility	$ 444,000		$ 444,000
Cash on hand	78,359		78,359		$ 52,560
Letters of Credit Outstanding, Amount	$ 8,400		$ 8,400
Equity interests in direct and indirect material foreign subsidiaries, pledged as collateral (as a percent)	100.00%		100.00%
Weighted average interest rates	1.16%	3.24%	1.33%	3.22%
Long-term Debt, Current Maturities	$ 20,000		$ 20,000
Revolving Credit Facility
DEBT
Line of Credit Facility, Amount Outstanding	500,000		500,000
Line of Credit Facility, Commitment Fee Amount			250,000
Maximum
DEBT
Incremental term loan	$ 250,000		$ 250,000

INCOME TAX EXPENSE (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
INCOME TAX EXPENSE (Details) - USD ($) $ in Millions	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2019
INCOME TAX EXPENSE
Effective income tax rate	21.30%	14.30%		22.50%	15.90%
Increase (decrease) in valuation allowance (as a percent)					5.10%
Reduction in valuation allowance for excess foreign tax credits		$ 2.8
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Percent			3.30%			1.30%
Effective Income Tax Rate Reconciliation, Deduction, Percent		2.50%
Effective Income Tax Rate Reconciliation, Research Tax Credit And Adjustments For Prior Years' Tax Return To Provision True-Ups, Percent		3.90%			1.20%

SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Changes in shareholder's equity
Beginning Balance		$ 943,457		$ 959,026
Net earnings	$ 14,909		$ 18,687	43,131	$ 123,286
Ending Balance	1,004,854	959,026	943,457	1,004,854	943,457
Common Stock
Changes in shareholder's equity
Beginning Balance	306	307	306	306	306
Stock plans	1		1	1	1
Ending Balance	307	306	307	307	307
Additional paid-in-capital
Changes in shareholder's equity
Beginning Balance	295,796	292,631	294,787	293,682	292,408
Stock plans	782		(2,156)	2,896	223
Ending Balance	296,578	293,682	292,631	296,578	292,631
Retained Earnings
Changes in shareholder's equity
Beginning Balance	799,884	801,787	785,184	775,829	684,741
Net earnings	14,909		18,687	43,131	123,286
Dividends paid	(2,084)		(2,084)	(6,251)	(6,240)
Ending Balance	812,709	775,829	801,787	812,709	801,787
Accumulated other comprehensive income (loss)
Changes in shareholder's equity
Beginning Balance	1,808	(44,134)	(46,936)	(3,657)	(43,974)
Foreign currency translation	535		2,802	6,000	(160)
Ending Balance	2,343	(3,657)	(44,134)	2,343	(44,134)
Treasury Stock
Changes in shareholder's equity
Beginning Balance	(107,134)	(107,134)	(107,134)	(107,134)	(107,259)
Issued under stock plans	51			51	125
Ending Balance	$ (107,083)	$ (107,134)	$ (107,134)	$ (107,083)	$ (107,134)

FAIR VALUE MEASUREMENTS (Details) - Forward contracts $ in Thousands	Jun. 30, 2021 USD ($)
DERIVATIVE FINANCIAL INSTRUMENTS
Fair Value of Financial Instruments	$ (27)
Level 2
DERIVATIVE FINANCIAL INSTRUMENTS
Fair Value of Financial Instruments	$ (27)

REVENUES - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of revenues
Net sales	$ 181,394	$ 172,665	$ 509,962	$ 524,885
Point in time
Disaggregation of revenues
Net sales	82,428	73,364	236,454	245,106
Over time
Disaggregation of revenues
Net sales	98,966	99,301	273,508	279,779
United States
Disaggregation of revenues
Net sales	135,531	119,416	376,078	379,194
International
Disaggregation of revenues
Net sales	45,863	53,249	133,884	145,691
Commercial
Disaggregation of revenues
Net sales	123,506	115,962	352,950	374,459
U.S. Government
Disaggregation of revenues
Net sales	57,888	56,703	157,012	150,426
Aerospace & Defense
Disaggregation of revenues
Net sales	85,576	84,072	234,720	256,707
Aerospace & Defense \| Point in time
Disaggregation of revenues
Net sales	37,513	36,461	103,492	118,660
Aerospace & Defense \| Over time
Disaggregation of revenues
Net sales	48,063	47,611	131,228	138,047
Aerospace & Defense \| United States
Disaggregation of revenues
Net sales	75,701	73,476	205,527	219,640
Aerospace & Defense \| International
Disaggregation of revenues
Net sales	9,875	10,596	29,193	37,067
Aerospace & Defense \| Commercial
Disaggregation of revenues
Net sales	34,708	37,485	95,712	130,817
Aerospace & Defense \| U.S. Government
Disaggregation of revenues
Net sales	50,868	46,587	139,008	125,890
USG
Disaggregation of revenues
Net sales	47,704	42,577	141,799	139,179
USG \| Point in time
Disaggregation of revenues
Net sales	35,242	27,765	105,173	100,289
USG \| Over time
Disaggregation of revenues
Net sales	12,462	14,812	36,626	38,890
USG \| United States
Disaggregation of revenues
Net sales	32,111	26,499	96,601	90,155
USG \| International
Disaggregation of revenues
Net sales	15,593	16,078	45,198	49,024
USG \| Commercial
Disaggregation of revenues
Net sales	46,735	39,740	139,149	135,711
USG \| U.S. Government
Disaggregation of revenues
Net sales	969	2,837	2,650	3,468
Test
Disaggregation of revenues
Net sales	48,114	46,016	133,443	128,999
Test \| Point in time
Disaggregation of revenues
Net sales	9,673	9,138	27,789	26,157
Test \| Over time
Disaggregation of revenues
Net sales	38,441	36,878	105,654	102,842
Test \| United States
Disaggregation of revenues
Net sales	27,719	19,441	73,950	69,399
Test \| International
Disaggregation of revenues
Net sales	20,395	26,575	59,493	59,600
Test \| Commercial
Disaggregation of revenues
Net sales	42,063	38,737	118,089	107,931
Test \| U.S. Government
Disaggregation of revenues
Net sales	$ 6,051	$ 7,279	$ 15,354	$ 21,068

REVENUES - Remaining Performance Obligations (Details) $ in Millions	Jun. 30, 2021 USD ($)
Remaining Performance Obligations
Revenue, Remaining Performance Obligation, Amount	$ 539.0
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Remaining Performance Obligations
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months

REVENUES - Contract assets and liabilities (Details) $ in Millions	9 Months Ended
	Jun. 30, 2021 USD ($)
REVENUES
Contract with Customer, Asset, Net	$ 94.8
Contract with Customer, Liability	105.8
Contract with Customer, Liability, Revenue Recognized	$ 75.0

LEASES - Components of lease costs (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Leases
Option to extend			true
Finance lease cost
Amortization of right-of-use assets	$ 492	$ 540	$ 1,477	$ 1,622
Interest on lease liabilities	306	319	929	970
Operating lease cost	1,471	1,474	4,347	4,399
Total lease costs	$ 2,269	$ 2,333	$ 6,753	$ 6,991
Maximum
Leases
Lease term	20 years		20 years

LEASES - Additional information related to leases (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 1,320	$ 1,452	$ 4,102	$ 4,334
Operating cash flows from finance leases	306	319	915	655
Financing cash flows from finance leases	428	418	1,261	1,145
Right-of-use assets obtained in exchange for operating lease liabilities	$ 12,780	$ 53	$ 12,780	$ 22,072
Weighted-average remaining lease term
Operating leases	10 years 3 months 21 days	6 years 7 months 20 days	10 years 3 months 21 days	6 years 7 months 20 days
Finance leases	11 years 10 months 9 days	12 years 9 months 3 days	11 years 10 months 9 days	12 years 9 months 3 days
Weighted-average discount rate
Operating leases	3.12%	3.14%	3.12%	3.14%
Finance leases	4.31%	4.29%	4.31%	4.29%

LEASES - Reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Sep. 30, 2020
Operating leases
2021 (excluding the six months ended March 31, 2021)	$ 1,378
2022	5,093
2023	4,324
2024	3,677
2025 and thereafter	21,976
Total minimum lease payments	36,448
Less: amounts representing interest	5,460
Present value of net minimum lease payments	30,988
Less: current portion of lease obligations	4,530
Non-current portion of lease obligations	26,458	$ 16,785
ROU assets	30,426	$ 21,390
Finance leases
2021 (excluding the six months ended March 31, 2021)	739
2022	3,015
2023	3,098
2024	3,181
2025 and thereafter	28,285
Total minimum lease payments	38,318
Less: amounts representing interest	9,320
Present value of net minimum lease payments	28,998
Less: current portion of lease obligations	1,859
Non-current portion of lease obligations	27,139
ROU assets	$ 24,689
Location of operating lease liabilities included on Consolidated Balance Sheets	us-gaap:OtherAccruedLiabilitiesCurrent us-gaap:OtherLiabilitiesNoncurrent
Location of finance lease liabilities included on Consolidated Balance Sheets	us-gaap:OtherAccruedLiabilitiesCurrent us-gaap:OtherLiabilitiesNoncurrent
Location of operating lease ROU assets included on Consolidated Balance Sheets	ROU assets
Location of finance lease ROU assets included on Consolidated Balance Sheets	us-gaap:PropertyPlantAndEquipmentNet

ADJUSTED QUARTERLY FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended					9 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Net sales	$ 181,394				$ 172,665	$ 509,962	$ 524,885
Cost of sales	113,610				107,686	316,785	327,655
Earnings before income taxes	18,943				21,809	55,632	56,204
Income tax expense	4,034				3,122	12,501	8,931
Net earnings	$ 14,909				$ 18,687	$ 43,131	$ 123,286
Diluted earnings (loss) per share:
Diluted - Net earnings	$ 0.57				$ 0.72	$ 1.65	$ 4.72
Contract assets	$ 94,768			$ 94,302		$ 94,768
Inventories	141,113			135,296		141,113
Total current assets	470,865			443,293		470,865
Total assets	1,408,683			1,370,186		1,408,683
Retained earnings	812,709			775,829		812,709
Total shareholders' equity	1,004,854			959,026	$ 943,457	1,004,854	$ 943,457
Total liabilities and shareholders' equity	$ 1,408,683			1,370,186		$ 1,408,683
As Reported
Net sales		$ 166,644	$ 162,949	208,030
Cost of sales		103,113	98,777	129,763
Earnings before income taxes		21,339	17,660	(16,461)
Income tax expense		5,025	3,974	5,347
Net earnings		$ 16,314	$ 13,686	$ (21,808)
Diluted earnings (loss) per share:
Diluted - Net earnings		$ 0.62	$ 0.52	$ (0.83)
Contract assets		$ 95,002	$ 93,762	$ 96,746
Inventories		145,342	144,054	136,189
Total current assets				446,630
Total assets				1,373,523
Retained earnings		804,231	790,000
Total shareholders' equity				961,595
Total liabilities and shareholders' equity				1,373,523
AS Adjusted
Net sales		165,894	162,674	205,586
Cost of sales		103,553	99,622	130,656
Earnings before income taxes		20,149	16,540	(19,798)
Income tax expense		4,745	3,722	4,579
Net earnings		$ 15,404	$ 12,818	$ (24,377)
Diluted earnings (loss) per share:
Diluted - Net earnings		$ 0.59	$ 0.49	$ (0.93)
Contract assets		$ 91,533	$ 91,043	$ 94,302
Inventories		143,164	142,316	135,296
Total current assets				443,293
Total assets				1,370,186
Retained earnings		$ 799,884	$ 786,563
Total shareholders' equity				959,026
Total liabilities and shareholders' equity				$ 1,370,186

ADJUSTED QUARTERLY FINANCIAL INFORMATION - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended				9 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2021
ADJUSTED QUARTERLY FINANCIAL INFORMATION
Adjustment of inventory and cost of goods sold	$ 2.1	$ 0.4	$ 0.8	$ 0.9
Reduction of tax expenses		0.3	0.2	0.8
Total adjustments of revenue		0.8	0.3	2.4	$ 3.5
Net earnings, Changes in assets and liabilities and Effect of deferred taxes totaling		$ 1.2	$ 1.1	$ 3.3

SUBSEQUENT EVENTS (Details) - USG € in Millions, $ in Millions	12 Months Ended
	Sep. 30, 2020 USD ($)	Jun. 30, 2021 EUR (€)
Phenix
SUBSEQUENT EVENT
Projected annual sales	$ 25
Altanova
SUBSEQUENT EVENT
Projected annual sales	$ 30
Amount held in escrow account \| €		€ 30