0001410578-22-000098 | 10-Q | XBRL Viewer

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 177,010	$ 162,674
Costs and expenses:
Cost of sales	108,305	99,622
Selling, general and administrative expenses	46,635	41,000
Amortization of intangible assets	6,467	4,948
Interest expense, net	733	541
Other expenses, net	33	23
Total costs and expenses	162,173	146,134
Earnings before income taxes	14,837	16,540
Income tax expense	3,313	3,722
Net earnings	$ 11,524	$ 12,818
Earnings per share:
Basic - Net earnings	$ 0.44	$ 0.49
Diluted - Net earnings	$ 0.44	$ 0.49

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net earnings	$ 11,524	$ 12,818
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(2,500)	5,349
Total other comprehensive income (loss), net of tax	(2,500)	5,349
Comprehensive income	$ 9,024	$ 18,167

- 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

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
Current assets:
Cash and cash equivalents	$ 55,715	$ 56,232
Accounts receivable, net of allowance for doubtful accounts of $3,588 and $3,445, respectively	135,874	146,341
Contract assets, net	100,863	93,771
Inventories, net	165,021	147,148
Other current assets	27,329	22,662
Total current assets	484,802	466,154
Property, plant and equipment:
Property, plant and equipment, net of accumulated depreciation of $150,818 and $147,551, respectively	155,712	154,265
Intangible assets, net of accumulated amortization of $156,359 and $149,892, respectively	411,679	409,250
Goodwill	509,268	504,853
Operating lease assets	31,117	31,846
Other assets	11,638	10,977
Total assets	1,604,216	1,577,345
Current liabilities:
Current maturities of long-term debt and short-term borrowings	20,000	20,000
Accounts payable	63,651	56,669
Contract liabilities, net	111,596	108,814
Accrued salaries	29,691	39,768
Accrued other expenses	40,936	52,513
Total current liabilities	265,874	277,764
Deferred tax liabilities	80,962	73,560
Non-current operating lease liabilities	26,709	28,032
Other liabilities	37,394	44,293
Long-term debt	178,000	134,000
Total liabilities	588,939	557,649
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 30,705,913 and 30,666,173 shares, respectively	307	307
Additional paid-in capital	296,277	297,644
Retained earnings	840,434	830,989
Accumulated other comprehensive loss, net of tax	(4,661)	(2,161)
Total stockholders' equity before treasury stock	1,132,357	1,126,779
Less treasury stock, at cost: 4,720,417 and 4,604,741 common shares, respectively	(117,080)	(107,083)
Total shareholders' equity	1,015,277	1,019,696
Total liabilities and shareholders' equity	$ 1,604,216	$ 1,577,345

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
CONSOLIDATED BALANCE SHEETS
Allowance for Doubtful Accounts Receivable, Current	$ 3,588	$ 3,445
Less accumulated depreciation and amortization	150,818	147,551
Accumulated amortization	$ 156,359	$ 149,892
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	30,705,913	30,666,173
Treasury stock, shares	4,720,417	4,604,741

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net earnings	$ 11,524	$ 12,818
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	12,172	10,012
Stock compensation expense	1,685	1,368
Changes in assets and liabilities	(30,837)	1,132
Effect of deferred taxes	7,402	(538)
Net cash provided by operating activities	1,946	24,792
Cash flows from investing activities:
Acquisition of business, net of cash acquired	(15,592)	(6,508)
Additions to capitalized software	(1,958)	(1,554)
Capital expenditures	(14,133)	(5,973)
Net cash used by investing activities	(31,683)	(14,035)
Cash flows from financing activities:
Proceeds from long-term debt and short-term borrowings	74,000	30,000
Principal payments on long-term debt and short-term borrowings	(30,000)	(36,525)
Dividends paid	(2,079)	(2,084)
Purchases of common stock into treasury	(9,997)
Other	(2,737)
Net cash provided (used) by financing activities	29,187	(8,609)
Effect of exchange rate changes on cash and cash equivalents	33	2,654
Cash and cash equivalents, beginning of period	56,232	52,560
Cash and cash equivalents, end of period	55,715	57,362
Net (decrease) increase in cash and cash equivalents	(517)	4,802
Supplemental cash flow information:
Interest paid	388	179
Income taxes paid (including state and foreign)	$ 195	$ 4,336

BASIS OF PRESENTATION

3 Months Ended

Dec. 31, 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).

The Company’s results for the three-month period ended December 31, 2021 are not necessarily indicative of the results for the entire 2022 fiscal year. References to the first quarters of 2022 and 2021 represent the fiscal quarters ended December 31, 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)

3 Months Ended

Dec. 31, 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 performance-accelerated restricted shares (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
	Ended December 31,
	2021	2020
Weighted Average Shares Outstanding — Basic	26,060	26,038
Dilutive Restricted Shares	82	144
Adjusted Shares — Diluted	26,142	26,182

ACQUISITION

3 Months Ended

Dec. 31, 2021

ACQUISITION

ACQUISITION

3. ACQUISITION

On November 4, 2021, the Company acquired Networks Electronic Company, LLC (NEco) for a purchase price of approximately $15.2 million, net of cash acquired. NEco, based in Chatsworth, California, provides miniature electro-explosive devices utilized in mission-critical defense and aerospace applications. Since the date of acquisition, the operating results for the NEco business have been included as part of PTI in the A&D segment. The acquisition date fair value of the assets acquired and liabilities assumed primarily were as follows: approximately $0.6 million of accounts receivable, $1.5 million of inventory, $0.2 million of property, plant and equipment, $0.7 million of accounts payable and accrued expenses, $8.1 million of identifiable intangible assets, mainly consisting of customer relationships totaling $6.3 million. The acquired goodwill of $5.7 million related to excess value associated with opportunities to expand the services and products that the Company can offer to its customers. The Company anticipates that the goodwill will be deductible for tax purposes.

SHARE-BASED COMPENSATION

3 Months Ended

Dec. 31, 2021

Share-Based Compensation

Share-Based Compensation

4. SHARE-BASED COMPENSATION

The Company provides compensation benefits to certain key employees under several share-based plans providing for performance-accelerated and/or time-vested restricted stock unit awards, and to non-employee directors under a separate compensation plan for non-employee directors.

Performance-Accelerated Restricted Stock Unit (PARS) Awards and Time-Vested Restricted Stock Unit (RSU) Awards

Compensation expense related to the PARS/RSU awards was $1.4 million and $1.1 million for the three-month periods ended December 31, 2021 and 2020, respectively. There were 208,354 non-vested shares outstanding as of December 31, 2021.

Non-Employee Directors Plan

Compensation expense related to the non-employee director grants was $0.3 million and $0.3 million for the three-month periods ended December 31, 2021 and 2020, respectively.

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 $1.7 million and $1.4 million for the three-month periods ended December 31, 2021 and 2020, respectively. The total income tax benefit recognized in results of operations for share-based compensation arrangements was $0.4 million and $0.3 million for the three-month periods ended December 31, 2021 and 2020, respectively. As of December 31, 2021, there was $12.2 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 2.4 years.

INVENTORIES

3 Months Ended

Dec. 31, 2021

INVENTORIES

INVENTORIES

5. INVENTORIES

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


	December 31,		September 30,
(In thousands)	2021		2021
Finished goods	$	34,629	32,998
Work in process		42,485	34,201
Raw materials		87,907	79,949
Total inventories, net	$	165,021	147,148

GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Dec. 31, 2021

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

6.	GOODWILL AND OTHER INTANGIBLE ASSETS

Included on the Company’s Consolidated Balance Sheets at December 31, 2021 and September 30, 2021 are the following intangible assets gross carrying amounts and accumulated amortization from continuing operations:


	December 31,		September 30,
(Dollars in thousands)	2021		2021
Goodwill	$	509,268	504,853

Intangible assets with determinable lives:
Patents
Gross carrying amount	$	2,170	2,131
Less: accumulated amortization		1,000	972
Net	$	1,170	1,159

Capitalized software
Gross carrying amount	$	95,629	93,671
Less: accumulated amortization		65,366	63,740
Net	$	30,263	29,931

Customer relationships
Gross carrying amount	$	293,819	288,530
Less: accumulated amortization		84,893	80,882
Net	$	208,926	207,648

Other
Gross carrying amount	$	14,663	13,080
Less: accumulated amortization		5,100	4,301
Net	$	9,563	8,779
Intangible assets with indefinite lives:
Trade names	$	161,757	161,733

The changes in the carrying amount of goodwill attributable to each business segment for the three months ended December 31, 2021 is as follows:


					Aerospace
(Dollars in millions)	USG		Test		& Defense	Total
Balance as of September 30, 2021	$	366.5		34.1	104.3	504.9
Acquisition activity and adjustments		0.2		—	5.7	5.9
Foreign currency translation		(1.5)		—	—	(1.5)
Balance as of December 31, 2021	$	365.2		34.1	110.0	509.3

BUSINESS SEGMENT INFORMATION

3 Months Ended

Dec. 31, 2021

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION

7. BUSINESS SEGMENT INFORMATION

The Company is organized based on the products and services that it offers and classifies its business operations in three reportable segments for financial reporting purposes: Aerospace & Defense (A&D), Utility Solutions Group (USG) and RF Shielding and Test (Test). The A&D segment’s operations consist of PTI Technologies Inc. (PTI), VACCO Industries (VACCO), Crissair, Inc. (Crissair), Mayday Manufacturing Co. (Mayday), Westland Technologies, Inc. (Westland) 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, 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 related subsidiaries including Morgan Schaffer and Altanova (collectively, Doble), and NRG Systems, Inc. (NRG). Doble is an industry leader in the development, manufacture and delivery of diagnostic testing and data management solutions that enable electric power grid operators to assess the integrity of high voltage power delivery equipment. It combines three core elements for customers – diagnostic test and condition monitoring instruments, expert consulting, and testing services – and provides access to its large reserve of related empirical knowledge. NRG is a global market leader in the design and manufacture of decision support tools for the renewable energy industry, primarily wind and solar.

The Test segment’s operations consist primarily of ETS-Lindgren Inc. and related subsidiaries (ETS-Lindgren). ETS-Lindgren is an industry leader in designing and manufacturing products which provide 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
	Ended December 31,
(In thousands)	2021		2020
NET SALES
Aerospace & Defense	$	70,244	66,616
USG		63,485	54,540
Test		43,281	41,518
Consolidated totals	$	177,010	162,674

EBIT
Aerospace & Defense	$	9,955	8,260
USG		13,391	12,731
Test		3,965	5,342
Corporate (loss)		(11,741)	(9,252)
Consolidated EBIT		15,570	17,081
Less: Interest expense		(733)	(541)
Earnings before income taxes	$	14,837	16,540

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.

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+ Details

DEBT

3 Months Ended

Dec. 31, 2021

DEBT

DEBT

8. DEBT

The Company’s debt is summarized as follows:


	December 31,		September 30,
(In thousands)	2021		2021
Total borrowings	$	198,000	154,000
Current portion of long-term debt		(20,000)	(20,000)
Total long-term debt, less current portion	$	178,000	134,000

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 December 31, 2021, the Company had approximately $291 million available to borrow under the Credit Facility, plus the $250 million increase option, in addition to $55.7 million cash on hand. The Company classified $20 million as the current portion of long-term debt as of December 31, 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 $10.7 million at December 31, 2021.

Interest on borrowings under the Credit Facility is calculated at a spread over either the New York Federal Reserve Bank Rate, the prime rate, or the London Interbank Offered Rate (LIBOR), 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 1.17% and 1.45% for the three-month periods ending December 31, 2021 and 2020, respectively. As of December 31, 2021, the Company was in compliance with all covenants.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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+ Details

INCOME TAX EXPENSE

3 Months Ended

Dec. 31, 2021

INCOME TAX EXPENSE

INCOME TAX EXPENSE

9. INCOME TAX EXPENSE

The first quarter 2022 effective income tax rate was 22.3% compared to 22.5% in the first quarter of 2021. Income tax expense in the first quarter of 2022 was favorably impacted by excess tax benefit related to the vesting of share based compensation, decreasing the effective tax rate for the quarter by 1.7%.

- 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.

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+ Details

SHAREHOLDERS' EQUITY

3 Months Ended

Dec. 31, 2021

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY

10. SHAREHOLDERS’ EQUITY

The change in shareholders’ equity for the first three months ended December 31, 2021 and 2020 is shown below (in thousands):


	Three Months Ended December 31,
	2021		2020

Common stock
Beginning balance	$	307	306
Stock plans		—	—
Ending balance		307	306

Additional paid-in-capital
Beginning balance		297,644	293,682
Stock plans		(1,367)	1,053
Ending balance		296,277	294,735

Retained earnings
Beginning balance		830,989	775,829
Net earnings common stockholders		11,524	12,818
Dividends paid		(2,079)	(2,084)
Ending balance		840,434	786,563

Accumulated other comprehensive income (loss)
Beginning balance		(2,161)	(3,657)
Foreign currency translation		(2,500)	5,349
Ending balance		(4,661)	1,692

Treasury stock
Beginning balance		(107,083)	(107,134)
Share repurchases		(9,997)	—
Ending balance		(117,080)	(107,134)

Total equity	$	1,015,277	976,162

- Definition

The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.

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+ Details

FAIR VALUE MEASUREMENTS

3 Months Ended

Dec. 31, 2021

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

11. 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 December 31, 2021 and September 30, 2021 using available market information or other appropriate valuation methodologies. The carrying amounts of cash and cash equivalents, receivables, inventories, payables, 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, and are immaterial.

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-month period ended December 31, 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

3 Months Ended

Dec. 31, 2021

REVENUES

REVENUES

12. REVENUES

Disaggregation of Revenues

Revenues by customer type, geographic location, and revenue recognition method for the three-month period ended December 31, 2021 are presented in the table below as the Company deems it best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors. The table below also includes a reconciliation of the disaggregated revenue within each reportable segment.


	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	28,075	$	62,842	$	41,037	$	131,954
U.S. Government		42,169		643		2,244		45,056
Total revenues	$	70,244	$	63,485	$	43,281	$	177,010

Geographic location:
United States	$	60,687	$	38,741	$	22,975	$	122,403
International		9,557		24,744		20,306		54,607
Total revenues	$	70,244	$	63,485	$	43,281	$	177,010

Revenue recognition method:
Point in time	$	28,558	$	50,835	$	12,821	$	92,214
Over time		41,686		12,650		30,460		84,796
Total revenues	$	70,244	$	63,485	$	43,281	$	177,010

Revenues by customer type, geographic location, and revenue recognition method for the three-month period ended December 31, 2020 are presented in the table below:


	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	27,604	$	53,864	$	36,722	$	118,190
U.S. Government		39,012		676		4,796		44,484
Total revenues	$	66,616	$	54,540	$	41,518	$	162,674

Geographic location:
United States	$	57,538	$	37,045	$	23,266	$	117,849
International		9,078		17,495		18,252		44,825
Total revenues	$	66,616	$	54,540	$	41,518	$	162,674

Revenue recognition method:
Point in time	$	26,946	$	42,367	$	8,868	$	78,181
Over time		39,670		12,173		32,650		84,493
Total revenues	$	66,616	$	54,540	$	41,518	$	162,674

Revenue Recognition

Payment terms with our customers vary by the type and location of the customer and the products or services offered. Arrangements with customers that include payment terms extending beyond one year are not significant. The transaction price for these contracts reflects our estimate of returns and discounts, which are based on historical, current and forecasted information to determine the expected amount to which we will be entitled in exchange for transferring the promised goods or services to the customer. The realization of variable consideration occurs within a short period of time from product delivery; therefore, the time value of money effect is not significant. We primarily provide standard warranty programs for products in our commercial businesses for periods that typically range from one to two years. These assurance-type programs typically cannot be purchased separately and do not meet the criteria to be considered a performance obligation. Under the typical payment terms of our long term fixed price contracts, the customer pays us either performance-based or progress payments. Performance-based payments represent interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments are interim payments of costs incurred as the work progresses.

For our overtime revenue recognized using the output method of costs incurred, contract cost is estimated utilizing current contract specifications and expected engineering requirements. Contract costs typically are incurred over a period of several months to one or more years, and the estimation of these costs requires judgment. Our cost estimation process is based on the professional knowledge and experience of engineers and program managers along with finance professionals. We review and update our projections of costs quarterly or more frequently when circumstances significantly change. In addition, in the USG segment, we recognize revenue as a series of distinct services based on each day of providing services (straight-line over the contract term) for certain of our USG segment contracts. Under the typical payment terms of our service contracts, the customer pays us in advance of when services are performed. In addition, in the Test segment, we use milestones to measure progress for our Test segment contracts because it best depicts the transfer of control to the customer that occurs as we incur costs on our contracts.

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 December 31, 2021, the Company had $639.4 million in remaining performance obligations of which the Company expects to recognize revenues of approximately 77% in the next twelve months.

Contract assets and liabilities

Assets and liabilities related to contracts with customers are reported on a contract-by-contract basis at the end of each reporting period. Because of the timing difference of revenue recognition and customer billing, these contracts will often result in revenue recognized in excess of billings and billings in excess of costs incurred. At December 31, 2021, contract assets and liabilities totaled $100.9 million and $111.6 million, respectively. During the first quarter of 2022, the Company recognized approximately $29 million in revenues that were included in the contract liabilities balance at September 30, 2021. The increase in net contract assets in the first quarter of 2022 was due to revenue being recognized for performance completed during the period that exceeded customer billings. Other factors that impacted the change in net contract liabilities were immaterial. At October 1, 2020, contract assets and liabilities totaled $94.3 million and $100.6 million, respectively.

- 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
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123351226&loc=SL49130554-203045

+ Details

LEASES

3 Months Ended

Dec. 31, 2021

LEASES

LEASES

13. 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 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
	December 31,		December 31,
(Dollars in thousands)	2021		2020
Finance lease cost
Amortization of right-of-use assets	$	607		492
Interest on lease liabilities		302		313
Operating lease cost		1,561		1,452
Total lease costs	$	2,470		2,257

Additional information related to leases are shown below:


	Three Months Ended			Three Months Ended
	December 31,			December 31,
(Dollars in thousands)	2021			2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,503			1,425
Operating cash flows from finance leases		248			313
Financing cash flows from finance leases		301			417
Right-of-use assets obtained in exchange for lease liabilities
Operating leases	$	901			—
Weighted-average remaining lease term
Operating leases		9.9	years		5.9	years
Finance leases		12.7	years		12.3	years
Weighted-average discount rate
Operating leases		3.12	%		3.10	%
Finance leases		4.58	%		4.30	%

The following is a reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets, presented on the Consolidated Balance Sheet on December 31, 2021:


(Dollars in thousands)	Operating		Finance
Years Ending September 30:	Leases		Leases
2022 (excluding the three months ended December 31, 2021)	$	4,313	1,599
2023		5,094	2,189
2024		4,136	2,248
2025		3,640	2,304
2026 and thereafter		19,246	21,649
Total minimum lease payments		36,429	29,989
Less: amounts representing interest		5,374	7,915
Present value of net minimum lease payments	$	31,055	22,074
Less: current portion of lease obligations		4,346	1,250
Non-current portion of lease obligations	$	26,709	20,824

ROU assets	$	31,117	18,523

Operating lease liabilities are included on 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 sheet.

ADJUSTED QUARTERLY FINANCIAL INFORMATION

3 Months Ended

Dec. 31, 2021

ADJUSTED QUARTERLY FINANCIAL INFORMATION

ADJUSTED QUARTERLY FINANCIAL INFORMATION

14. ADJUSTED QUARTERLY FINANCIAL INFORMATION

During 2021, the Company identified immaterial errors in the historical consolidated financial statements of Westland, within the A&D segment, that are being corrected as an immaterial revision of those financial statements. Specifically, the adjustments include net sales being overstated by $0.3 million in the first quarter of 2021, along with inventory being overstated and cost of goods sold being understated by $0.8 million in the first quarter of 2021. The tax impact of correcting these errors was a reduction in tax expense of $0.2 million in the first quarter of 2021. The table below shows the impact of these adjustments to the first quarter of 2021. Management has determined that these adjustments are not material to the prior year period.


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

2021

Net sales	$	162,949	162,674
Cost of sales		98,777	99,622
Earnings before income taxes		17,660	16,540
Income tax expense		3,974	3,722
Net earnings		13,686	12,818

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

EARNINGS PER SHARE (EPS) (Tables)

3 Months Ended

Dec. 31, 2021

EARNINGS PER SHARE (EPS)

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


	Three Months
	Ended December 31,
	2021	2020
Weighted Average Shares Outstanding — Basic	26,060	26,038
Dilutive Restricted Shares	82	144
Adjusted Shares — Diluted	26,142	26,182

INVENTORIES (Tables)

3 Months Ended

Dec. 31, 2021

INVENTORIES

Schedule of inventories


	December 31,		September 30,
(In thousands)	2021		2021
Finished goods	$	34,629	32,998
Work in process		42,485	34,201
Raw materials		87,907	79,949
Total inventories, net	$	165,021	147,148

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

3 Months Ended

Dec. 31, 2021

GOODWILL AND OTHER INTANGIBLE ASSETS

Schedule of goodwill and intangible assets


	December 31,		September 30,
(Dollars in thousands)	2021		2021
Goodwill	$	509,268	504,853

Intangible assets with determinable lives:
Patents
Gross carrying amount	$	2,170	2,131
Less: accumulated amortization		1,000	972
Net	$	1,170	1,159

Capitalized software
Gross carrying amount	$	95,629	93,671
Less: accumulated amortization		65,366	63,740
Net	$	30,263	29,931

Customer relationships
Gross carrying amount	$	293,819	288,530
Less: accumulated amortization		84,893	80,882
Net	$	208,926	207,648

Other
Gross carrying amount	$	14,663	13,080
Less: accumulated amortization		5,100	4,301
Net	$	9,563	8,779
Intangible assets with indefinite lives:
Trade names	$	161,757	161,733

Schedule of carrying amount of goodwill attributable to each business segment


					Aerospace
(Dollars in millions)	USG		Test		& Defense	Total
Balance as of September 30, 2021	$	366.5		34.1	104.3	504.9
Acquisition activity and adjustments		0.2		—	5.7	5.9
Foreign currency translation		(1.5)		—	—	(1.5)
Balance as of December 31, 2021	$	365.2		34.1	110.0	509.3

BUSINESS SEGMENT INFORMATION (Tables)

3 Months Ended

Dec. 31, 2021

BUSINESS SEGMENT INFORMATION

Schedule of Net Sales and Earnings Before Income Tax


	Three Months
	Ended December 31,
(In thousands)	2021		2020
NET SALES
Aerospace & Defense	$	70,244	66,616
USG		63,485	54,540
Test		43,281	41,518
Consolidated totals	$	177,010	162,674

EBIT
Aerospace & Defense	$	9,955	8,260
USG		13,391	12,731
Test		3,965	5,342
Corporate (loss)		(11,741)	(9,252)
Consolidated EBIT		15,570	17,081
Less: Interest expense		(733)	(541)
Earnings before income taxes	$	14,837	16,540

DEBT (Tables)

3 Months Ended

Dec. 31, 2021

DEBT

Schedule of debt


	December 31,		September 30,
(In thousands)	2021		2021
Total borrowings	$	198,000	154,000
Current portion of long-term debt		(20,000)	(20,000)
Total long-term debt, less current portion	$	178,000	134,000

SHAREHOLDERS' EQUITY (Tables)

3 Months Ended

Dec. 31, 2021

SHAREHOLDERS' EQUITY

Schedule of change in shareholders' equity

The change in shareholders’ equity for the first three months ended December 31, 2021 and 2020 is shown below (in thousands):


	Three Months Ended December 31,
	2021		2020

Common stock
Beginning balance	$	307	306
Stock plans		—	—
Ending balance		307	306

Additional paid-in-capital
Beginning balance		297,644	293,682
Stock plans		(1,367)	1,053
Ending balance		296,277	294,735

Retained earnings
Beginning balance		830,989	775,829
Net earnings common stockholders		11,524	12,818
Dividends paid		(2,079)	(2,084)
Ending balance		840,434	786,563

Accumulated other comprehensive income (loss)
Beginning balance		(2,161)	(3,657)
Foreign currency translation		(2,500)	5,349
Ending balance		(4,661)	1,692

Treasury stock
Beginning balance		(107,083)	(107,134)
Share repurchases		(9,997)	—
Ending balance		(117,080)	(107,134)

Total equity	$	1,015,277	976,162

REVENUES (Tables)

3 Months Ended

Dec. 31, 2021

REVENUES

Schedule of disaggregation of revenue by reportable segment


	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	28,075	$	62,842	$	41,037	$	131,954
U.S. Government		42,169		643		2,244		45,056
Total revenues	$	70,244	$	63,485	$	43,281	$	177,010

Geographic location:
United States	$	60,687	$	38,741	$	22,975	$	122,403
International		9,557		24,744		20,306		54,607
Total revenues	$	70,244	$	63,485	$	43,281	$	177,010

Revenue recognition method:
Point in time	$	28,558	$	50,835	$	12,821	$	92,214
Over time		41,686		12,650		30,460		84,796
Total revenues	$	70,244	$	63,485	$	43,281	$	177,010

Revenues by customer type, geographic location, and revenue recognition method for the three-month period ended December 31, 2020 are presented in the table below:


	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	27,604	$	53,864	$	36,722	$	118,190
U.S. Government		39,012		676		4,796		44,484
Total revenues	$	66,616	$	54,540	$	41,518	$	162,674

Geographic location:
United States	$	57,538	$	37,045	$	23,266	$	117,849
International		9,078		17,495		18,252		44,825
Total revenues	$	66,616	$	54,540	$	41,518	$	162,674

Revenue recognition method:
Point in time	$	26,946	$	42,367	$	8,868	$	78,181
Over time		39,670		12,173		32,650		84,493
Total revenues	$	66,616	$	54,540	$	41,518	$	162,674

Revenue Recognition

LEASES (Tables)

3 Months Ended

Dec. 31, 2021

LEASES

Schedule of components of lease costs


	Three Months Ended		Three Months Ended
	December 31,		December 31,
(Dollars in thousands)	2021		2020
Finance lease cost
Amortization of right-of-use assets	$	607		492
Interest on lease liabilities		302		313
Operating lease cost		1,561		1,452
Total lease costs	$	2,470		2,257

Schedule of additional information related to leases


	Three Months Ended			Three Months Ended
	December 31,			December 31,
(Dollars in thousands)	2021			2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,503			1,425
Operating cash flows from finance leases		248			313
Financing cash flows from finance leases		301			417
Right-of-use assets obtained in exchange for lease liabilities
Operating leases	$	901			—
Weighted-average remaining lease term
Operating leases		9.9	years		5.9	years
Finance leases		12.7	years		12.3	years
Weighted-average discount rate
Operating leases		3.12	%		3.10	%
Finance leases		4.58	%		4.30	%

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
2022 (excluding the three months ended December 31, 2021)	$	4,313	1,599
2023		5,094	2,189
2024		4,136	2,248
2025		3,640	2,304
2026 and thereafter		19,246	21,649
Total minimum lease payments		36,429	29,989
Less: amounts representing interest		5,374	7,915
Present value of net minimum lease payments	$	31,055	22,074
Less: current portion of lease obligations		4,346	1,250
Non-current portion of lease obligations	$	26,709	20,824

ROU assets	$	31,117	18,523

ADJUSTED QUARTERLY FINANCIAL INFORMATION (Tables)

3 Months Ended

Dec. 31, 2021

ADJUSTED QUARTERLY FINANCIAL INFORMATION

Schedule of Adjusted Quarterly Financial Information


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

2021

Net sales	$	162,949	162,674
Cost of sales		98,777	99,622
Earnings before income taxes		17,660	16,540
Income tax expense		3,974	3,722
Net earnings		13,686	12,818

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

EARNINGS PER SHARE (EPS) (Details) - shares shares in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
EARNINGS PER SHARE (EPS)
Weighted Average Shares Outstanding - Basic	26,060	26,038
Dilutive Options and Restricted Shares	82	144
Shares - Diluted	26,142	26,182

ACQUISITION (Details) - USD ($) $ in Thousands		3 Months Ended
ACQUISITION (Details) - USD ($) $ in Thousands	Nov. 04, 2021	Dec. 31, 2021	Dec. 31, 2020	Sep. 30, 2021
Business Acquisition [Line Items]
Payments to acquire businesses net of cash acquired		$ 15,592	$ 6,508
Goodwill		$ 509,268		$ 504,853
Networks Electronic Company, LLC
Business Acquisition [Line Items]
Payments to acquire businesses net of cash acquired	$ 15,200
Goodwill	5,700
Business combination contingent consideration liability	8,100
Business combination recognized identifiable assets acquired and liabilities assumed, property, plant and equipment	200
Business combination recognized identifiable assets acquired and liabilities assumed current assets receivables	600
Business combination recognized identifiable assets acquired and liabilities assumed inventory	1,500
Business combination recognized identifiable assets acquired and liabilities assumed current liabilities accounts payable	700
Business combination recognized identifiable assets acquired and liabilities assumed indefinite-lived intangible assets	$ 6,300

SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions	3 Months Ended
SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Selling, general and administrative expenses
SHARE-BASED COMPENSATION
Total share-based compensation cost	$ 1.7	$ 1.4
Performance-Accelerated Restricted Share Awards
SHARE-BASED COMPENSATION
Pretax compensation expense	$ 1.4	1.1
Non-vested shares	208,354
Compensation Plan for Non-Employee Directors
SHARE-BASED COMPENSATION
Pretax compensation expense	$ 0.3	0.3
Total income tax benefit recognized	0.4	$ 0.3
Total unrecognized compensation cost related to share-based compensation arrangements	$ 12.2
Remaining weighted-average period for recognition of total unrecognized compensation cost	2 years 4 months 24 days

INVENTORIES (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
INVENTORIES
Finished goods	$ 34,629	$ 32,998
Work in process	42,485	34,201
Raw materials	87,907	79,949
Total inventories, net	$ 165,021	$ 147,148

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill	$ 509,268	$ 504,853
Less: accumulated amortization	156,359	149,892
Patents
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	2,170	2,131
Less: accumulated amortization	1,000	972
Net	1,170	1,159
Capitalized software
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	95,629	93,671
Less: accumulated amortization	65,366	63,740
Net	30,263	29,931
Customer relationships
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	293,819	288,530
Less: accumulated amortization	84,893	80,882
Net	208,926	207,648
Other
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	14,663	13,080
Less: accumulated amortization	5,100	4,301
Net	9,563	8,779
Trade names
GOODWILL AND OTHER INTANGIBLE ASSETS
Trade names	$ 161,757	$ 161,733

GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in carrying amount of goodwill (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2021 USD ($)
Changes in goodwill
Goodwill, Beginning Balance	$ 504,853
Acquisition activity and adjustments	5,900
Foreign currency translation and other	(1,500)
Goodwill, Ending Balance	509,268
USG
Changes in goodwill
Goodwill, Beginning Balance	366,500
Acquisition activity and adjustments	200
Foreign currency translation and other	(1,500)
Goodwill, Ending Balance	365,200
Test
Changes in goodwill
Goodwill, Beginning Balance	34,100
Goodwill, Ending Balance	34,100
A&D
Changes in goodwill
Goodwill, Beginning Balance	104,300
Acquisition activity and adjustments	5,700
Goodwill, Ending Balance	$ 110,000

BUSINESS SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended
BUSINESS SEGMENT INFORMATION (Details) $ in Thousands	Dec. 31, 2021 USD ($) segment	Dec. 31, 2020 USD ($)
BUSINESS SEGMENT INFORMATION
NET SALES	$ 177,010	$ 162,674
Consolidated EBIT	15,570	17,081
Less: Interest expense	(733)	(541)
Total income before income taxes	$ 14,837	16,540
Number of reportable segments \| segment	3
A&D
BUSINESS SEGMENT INFORMATION
NET SALES	$ 70,244	66,616
Consolidated EBIT	9,955	8,260
USG
BUSINESS SEGMENT INFORMATION
NET SALES	63,485	54,540
Consolidated EBIT	13,391	12,731
Test
BUSINESS SEGMENT INFORMATION
NET SALES	43,281	41,518
Consolidated EBIT	3,965	5,342
Reconciliation to consolidated totals (Corporate) [Member]
BUSINESS SEGMENT INFORMATION
Consolidated EBIT	$ (11,741)	$ (9,252)

DEBT (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021
DEBT
Total borrowings	$ 198,000	$ 154,000
Current portion of long-term debt	(20,000)	(20,000)
Total long-term debt, less current portion	$ 178,000	$ 134,000

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

DEBT - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Sep. 30, 2021
DEBT
Available to borrow under the credit facility	$ 291,000
Cash on hand	55,715		$ 56,232
Letters of Credit Outstanding, Amount	$ 10,700
Debt instrument interest rate	1.17%	1.45%
Equity interests in direct and indirect material foreign subsidiaries, pledged as collateral (as a percent)	100.00%
Long-term Debt, Current Maturities	$ 20,000
Revolving Credit Facility
DEBT
Line of Credit Facility, Amount Outstanding	500,000
Line of Credit Facility, Commitment Fee Amount	250,000
Maximum
DEBT
Incremental term loan	$ 250,000

INCOME TAX EXPENSE (Details)	3 Months Ended
INCOME TAX EXPENSE (Details)	Dec. 31, 2021	Dec. 31, 2020
INCOME TAX EXPENSE
Effective income tax rate	22.30%	22.50%
Decreasing the effective tax rate	1.70%

SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands	3 Months Ended
SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Changes in shareholder's equity
Beginning Balance	$ 1,019,696
Net earnings	11,524	$ 12,818
Ending Balance	1,015,277	976,162
Common Stock
Changes in shareholder's equity
Beginning Balance	307	306
Ending Balance	307	306
Additional Paid-In Capital
Changes in shareholder's equity
Beginning Balance	297,644	293,682
Stock plans	(1,367)	1,053
Ending Balance	296,277	294,735
Retained Earnings
Changes in shareholder's equity
Beginning Balance	830,989	775,829
Net earnings	11,524	12,818
Dividends paid	(2,079)	(2,084)
Ending Balance	840,434	786,563
Accumulated Other Comprehensive Income (Loss)
Changes in shareholder's equity
Beginning Balance	(2,161)	(3,657)
Foreign currency translation	(2,500)	5,349
Ending Balance	(4,661)	1,692
Treasury Stock
Changes in shareholder's equity
Beginning Balance	(107,083)	(107,134)
Issued under stock plans	(9,997)
Ending Balance	$ (117,080)	$ (107,134)

REVENUES - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	$ 177,010	$ 162,674
Point in time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	92,214	78,181
Over time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	84,796	84,493
United States [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	122,403	117,849
International
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	54,607	44,825
Commercial
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	131,954	118,190
Government [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	45,056	44,484
A&D
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	70,244	66,616
A&D \| Point in time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	28,558	26,946
A&D \| Over time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	41,686	39,670
A&D \| United States [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	60,687	57,538
A&D \| International
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	9,557	9,078
A&D \| Commercial
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	28,075	27,604
A&D \| Government [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	42,169	39,012
USG
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	63,485	54,540
USG \| Point in time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	50,835	42,367
USG \| Over time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	12,650	12,173
USG \| United States [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	38,741	37,045
USG \| International
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	24,744	17,495
USG \| Commercial
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	62,842	53,864
USG \| Government [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	643	676
Test
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	43,281	41,518
Test \| Point in time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	12,821	8,868
Test \| Over time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	30,460	32,650
Test \| United States [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	22,975	23,266
Test \| International
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	20,306	18,252
Test \| Commercial
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	41,037	36,722
Test \| Government [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	$ 2,244	$ 4,796

REVENUES - Remaining Performance Obligations (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2021	Oct. 31, 2020
Remaining Performance Obligations
Remaining performance obligations amount	$ 639.4
Revenue Recognized	29.0
Contract assets	100.9
Contract liabilities	$ 111.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01
Remaining Performance Obligations
Contract assets		$ 94.3
Contract liabilities		$ 100.6
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01
Remaining Performance Obligations
Percentage of remaining performance obligation expected to be recognized	77.00%
Revenue remaining performance obligation expected timing of satisfaction, Period	12 months

LEASES - Components of lease costs (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Leases
Option to extend	true
Finance lease cost
Amortization of right-of-use assets	$ 607	$ 492
Interest on lease liabilities	302	313
Operating lease cost	1,561	1,452
Total lease costs	$ 2,470	$ 2,257
Maximum
Leases
Lease term	20 years

LEASES - Additional information related to leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 1,503	$ 1,425
Operating cash flows from finance leases	248	313
Financing cash flows from finance leases	301	$ 417
Right-of-use assets obtained in exchange for lease liabilities Operating leases	$ 901
Weighted-average remaining lease term
Operating leases	9 years 10 months 24 days	5 years 10 months 24 days
Finance leases	12 years 8 months 12 days	12 years 3 months 18 days
Weighted-average discount rate
Operating leases	3.12%	3.10%
Finance leases	4.58%	4.30%

LEASES - Reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Sep. 30, 2021	Jun. 30, 2021	Dec. 31, 2020
Operating leases
2022 (excluding the three months ended December 31, 2021)	$ 4,313
2023	5,094
2024	4,136
2025	3,640
2026 and thereafter	19,246
Total minimum lease payments	36,429
Less: amounts representing interest	5,374
Present value of net minimum lease payments	31,055
Less: current portion of lease obligations	4,346
Non-current portion of lease obligations	26,709	$ 28,032
ROU assets	$ 31,117	$ 31,846
Finance leases
2022 (excluding the three months ended December 31, 2021)				$ 1,599
2023				2,189
2024				2,248
2025				2,304
2026 and thereafter				21,649
Total minimum lease payments				29,989
Less: amounts representing interest				7,915
Present value of net minimum lease payments				22,074
Less: current portion of lease obligations				1,250
Non-current portion of lease obligations				20,824
ROU assets				$ 18,523
Location of operating lease liabilities included on Consolidated Balance Sheets			Accrued other expenses, Other liabilities
Finance Lease, Liability, Statement of Financial Position [Extensible List]			Other Accrued Liabilities, Current, Other Liabilities, Noncurrent
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
	Dec. 31, 2021	Dec. 31, 2020	Sep. 30, 2021
Revenue from contract with customer excluding assessed tax	$ 177,010	$ 162,674
Cost of sales	108,305	99,622
Earnings before income taxes	14,837	16,540
Income tax expense	3,313	3,722
Net earnings	$ 11,524	$ 12,818
Diluted earnings (loss) per share:
Diluted - Net earnings	$ 0.44	$ 0.49
Contract assets, net	$ 100,863		$ 93,771
Inventories	165,021		147,148
Total current assets	484,802		466,154
Total assets	1,604,216		1,577,345
Retained earnings	840,434		830,989
Total shareholders' equity	1,015,277	$ 976,162	1,019,696
Total liabilities and shareholders' equity	$ 1,604,216		$ 1,577,345
As Reported
Revenue from contract with customer excluding assessed tax		162,949
Cost of sales		98,777
Earnings before income taxes		17,660
Income tax expense		3,974
Net earnings		$ 13,686
Diluted earnings (loss) per share:
Diluted - Net earnings		$ 0.52
AS Adjusted
Revenue from contract with customer excluding assessed tax		$ 162,674
Cost of sales		99,622
Earnings before income taxes		16,540
Income tax expense		3,722
Net earnings		$ 12,818
Diluted earnings (loss) per share:
Diluted - Net earnings		$ 0.49

ADJUSTED QUARTERLY FINANCIAL INFORMATION - Additional Information (Details) - A&D Segment $ in Millions	3 Months Ended
	Dec. 31, 2021 USD ($)
Pretax adjustments	$ 0.3
Adjustment of inventory and cost of goods sold	0.8
Reduction of tax expenses	$ 0.2