0001410578-22-001243 | 10-Q | XBRL Viewer

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Mar. 31, 2022	Apr. 30, 2022
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
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		25,850,916
Entity Central Index Key	0000866706
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 204,928	$ 165,894	$ 381,938	$ 328,568
Costs and expenses:
Cost of sales	128,375	103,553	236,680	203,175
Selling, general and administrative expenses	47,959	38,746	94,594	79,746
Amortization of intangible assets	6,510	4,917	12,977	9,865
Interest expense, net	1,020	432	1,753	973
Other income, net	(604)	(1,903)	(571)	(1,880)
Total costs and expenses	183,260	145,745	345,433	291,879
Earnings before income taxes	21,668	20,149	36,505	36,689
Income tax expense	5,085	4,745	8,398	8,467
Net earnings	$ 16,583	$ 15,404	$ 28,107	$ 28,222
Earnings per share:
Basic - Net earnings	$ 0.64	$ 0.59	$ 1.08	$ 1.08
Diluted - Net earnings	$ 0.64	$ 0.59	$ 1.08	$ 1.08

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net earnings	$ 16,583	$ 15,404	$ 28,107	$ 28,222
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(2,811)	116	(5,311)	5,465
Total other comprehensive income (loss), net of tax	(2,811)	116	(5,311)	5,465
Comprehensive income	$ 13,772	$ 15,520	$ 22,796	$ 33,687

- 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	Mar. 31, 2022	Sep. 30, 2021
Current assets:
Cash and cash equivalents	$ 54,324	$ 56,232
Accounts receivable, net of allowance for doubtful accounts of $3,403 and $3,445, respectively	140,497	146,341
Contract assets	111,453	93,771
Inventories, net	175,152	147,148
Other current assets	31,972	22,662
Total current assets	513,398	466,154
Property, plant and equipment, net of accumulated depreciation of $156,237 and $147,551, respectively	156,963	154,265
Intangible assets, net of accumulated amortization of $162,869 and $149,892, respectively	407,203	409,250
Goodwill	508,406	504,853
Operating lease assets	30,139	31,846
Other assets	9,677	10,977
Total assets	1,625,786	1,577,345
Current liabilities:
Current maturities of long-term debt and short-term borrowings	20,000	20,000
Accounts payable	71,811	56,669
Contract liabilities	108,629	106,045
Accrued salaries	30,150	39,768
Accrued other expenses	47,205	52,513
Total current liabilities	277,795	274,995
Deferred tax liabilities	82,187	73,560
Non-current operating lease liabilities	26,302	28,032
Other liabilities	42,329	47,062
Long-term debt	176,000	134,000
Total liabilities	604,613	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	298,353	297,644
Retained earnings	854,946	830,989
Accumulated other comprehensive loss, net of tax	(7,472)	(2,161)
Total stockholders' equity before treasury stock	1,146,134	1,126,779
Less treasury stock, at cost: 4,826,545 and 4,604,741 common shares, respectively	(124,961)	(107,083)
Total shareholders' equity	1,021,173	1,019,696
Total liabilities and shareholders' equity	$ 1,625,786	$ 1,577,345

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Sep. 30, 2021
CONSOLIDATED BALANCE SHEETS
Allowance for Doubtful Accounts Receivable, Current	$ 3,403	$ 3,445
Less accumulated depreciation and amortization	156,237	147,551
Accumulated amortization	$ 162,869	$ 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	4,826,545	4,604,741

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net earnings	$ 28,107	$ 28,222
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	24,292	20,115
Stock compensation expense	3,428	2,745
Changes in assets and liabilities	(41,451)	9,179
Gain on sale of building and land		(1,950)
Effect of deferred taxes	8,627	(989)
Net cash provided by operating activities	23,003	57,322
Cash flows from investing activities:
Acquisition of business, net of cash acquired	(15,592)	(6,684)
Proceeds from sale of building and land		1,950
Additions to capitalized software	(4,727)	(3,973)
Capital expenditures	(20,715)	(13,153)
Net cash used by investing activities	(41,034)	(21,860)
Cash flows from financing activities:
Proceeds from long-term debt and short-term borrowings	88,000	34,000
Principal payments on long-term debt and short-term borrowings	(46,000)	(74,368)
Purchases of common stock into treasury	(17,878)
Dividends paid	(4,150)	(4,167)
Other	(2,719)
Net cash provided (used) by financing activities	17,253	(44,535)
Effect of exchange rate changes on cash and cash equivalents	(1,130)	2,166
Net decrease in cash and cash equivalents	(1,908)	(6,907)
Cash and cash equivalents, beginning of period	56,232	52,560
Cash and cash equivalents, end of period	54,324	45,653
Supplemental cash flow information:
Interest paid	1,002	281
Income taxes paid (including state and foreign)	$ 1,558	$ 14,047

BASIS OF PRESENTATION

6 Months Ended

Mar. 31, 2022

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 March 31, 2022 are not necessarily indicative of the results for the entire 2022 fiscal year. References to the second quarters of 2022 and 2021 represent the fiscal quarters ended March 31, 2022 and 2021, 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. Certain prior period deferred revenue amounts have been reclassified to noncurrent to conform with the current year presentation.

EARNINGS PER SHARE (EPS)

6 Months Ended

Mar. 31, 2022

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		Six Months
	Ended March 31,		Ended March 31,
	2022	2021	2022	2021
Weighted Average Shares Outstanding — Basic	25,953	26,038	26,008	26,038
Dilutive Restricted Shares	92	163	90	154
Adjusted Shares — Diluted	26,045	26,201	26,098	26,192

ACQUISITION

6 Months Ended

Mar. 31, 2022

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

6 Months Ended

Mar. 31, 2022

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 non-employee directors compensation plan.

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

Compensation expense related to the PARS/RSU awards was $1.5 million and $2.8 million for the three and six-month periods ended March 31, 2022, respectively, and $1.1 million and $2.1 million for the corresponding periods in 2021. As of March 31, 2022, there were 210,119 unvested stock units outstanding.

Non-Employee Directors Plan

Compensation expense related to the non-employee director grants was $0.3 million and $0.6 million for the three and six-month periods ended March 31, 2022, respectively, and $0.3 million and $0.6 million for the corresponding periods in 2021.

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 $3.4 million for the three and six-month periods ended March 31, 2022, respectively, and $1.4 million and $2.7 million for the corresponding periods in 2021. The total income tax benefit recognized in results of operations for share-based compensation arrangements was $0.3 million and $0.5 million for the three and six-month periods ended March 31, 2022, respectively, and $0.3 million and $0.7 million for the corresponding periods in 2021. As of March 31, 2022, there was $10.9 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

6 Months Ended

Mar. 31, 2022

INVENTORIES

INVENTORIES

5. INVENTORIES

Inventories, net, consist of the following:


	March 31,		September 30,
(In thousands)	2022		2021
Finished goods	$	37,434	32,998
Work in process		46,447	34,201
Raw materials		91,271	79,949
Total inventories, net	$	175,152	147,148

GOODWILL AND OTHER INTANGIBLE ASSETS

6 Months Ended

Mar. 31, 2022

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 March 31, 2022 and September 30, 2021 are the following intangible assets gross carrying amounts and accumulated amortization:


	March 31,		September 30,
(Dollars in thousands)	2022		2021
Goodwill	$	508,406	504,853

Intangible assets with determinable lives:
Patents
Gross carrying amount	$	2,208	2,131
Less: accumulated amortization		1,029	972
Net	$	1,178	1,159

Capitalized software
Gross carrying amount	$	98,398	93,671
Less: accumulated amortization		67,013	63,740
Net	$	31,385	29,931

Customer relationships
Gross carrying amount	$	292,887	288,530
Less: accumulated amortization		88,933	80,882
Net	$	203,954	207,648

Other
Gross carrying amount	$	14,567	13,080
Less: accumulated amortization		5,897	4,301
Net	$	8,670	8,779
Intangible assets with indefinite lives:
Trade names	$	162,016	161,733

The changes in the carrying amount of goodwill attributable to each business segment for the six months ended March 31, 2022 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		0.3		—	5.7	6.0
Foreign currency translation		(2.5)		—	—	(2.5)
Balance as of March 31, 2022	$	364.3		34.1	110.0	508.4

BUSINESS SEGMENT INFORMATION

6 Months Ended

Mar. 31, 2022

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 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. (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, 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 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 before interest and taxes.


	Three Months			Six Months
	Ended March 31,			Ended March 31,
(In thousands)	2022		2021	2022	2021
NET SALES
Aerospace & Defense	$	84,821	82,528	155,065	149,144
USG		64,191	39,555	127,676	94,095
Test		55,916	43,811	99,197	85,329
Consolidated totals	$	204,928	165,894	381,938	328,568

EBIT
Aerospace & Defense	$	14,349	17,006	24,304	25,266
USG		11,314	6,725	24,705	19,456
Test		8,494	5,688	12,459	11,030
Corporate (loss)		(11,469)	(8,838)	(23,210)	(18,090)
Consolidated EBIT		22,688	20,581	38,258	37,662
Less: Interest expense		(1,020)	(432)	(1,753)	(973)
Earnings before income taxes	$	21,668	20,149	36,505	36,689

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 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

6 Months Ended

Mar. 31, 2022

DEBT

DEBT

8. DEBT

The Company’s debt is summarized as follows:


	March 31,		September 30,
(In thousands)	2022		2021
Total borrowings	$	196,000	154,000
Current portion of long-term debt		(20,000)	(20,000)
Total long-term debt, less current portion	$	176,000	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 March 31, 2022, the Company had approximately $296 million available to borrow under the Credit Facility, plus the $250 million increase option, subject to lender approval, in addition to $54.3 million cash on hand. The Company classified $20 million as the current portion of long-term debt as of March 31, 2022, 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 $8.1 million at March 31, 2022.

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 1.29% and 1.23% for the three and six-month periods ending March 31, 2022, respectively, and 1.27% and 1.40% for the three and six-month periods ending March 31, 2021. As of March 31, 2022, 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

6 Months Ended

Mar. 31, 2022

INCOME TAX EXPENSE

INCOME TAX EXPENSE

9. INCOME TAX EXPENSE

The second quarter 2022 effective income tax rate was 23.5% compared to 23.5% in the second quarter of 2021. The effective income tax rate in the first six months of 2022 was 23.0% compared to 23.1% for the first six months of 2021. There were no significant or unusual items impacting the 2022 second quarter or year-to-date effective tax rate.

- 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

6 Months Ended

Mar. 31, 2022

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY

10. SHAREHOLDERS’ EQUITY

The change in shareholders’ equity for the first three and six months of 2022 and 2021 is shown below (in thousands):


	Three Months Ended March 31,			Six Months Ended March 31,
	2022		2021	2022	2021

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

Additional paid-in-capital
Beginning balance		296,277	294,735	297,644	293,682
Stock plans		2,076	1,061	709	2,114
Ending balance		298,353	295,796	298,353	295,796

Retained earnings
Beginning balance		840,434	786,563	830,989	775,829
Net earnings common stockholders		16,583	15,404	28,107	28,222
Dividends paid		(2,071)	(2,083)	(4,150)	(4,167)
Ending balance		854,946	799,884	854,946	799,884

Accumulated other comprehensive income (loss)
Beginning balance		(4,661)	1,692	(2,161)	(3,657)
Foreign currency translation		(2,811)	116	(5,311)	5,465
Ending balance		(7,472)	1,808	(7,472)	1,808

Treasury stock
Beginning balance		(117,080)	(107,134)	(107,083)	(107,134)
Issued under stock plans		(7,881)	—	(17,878)	—
Ending balance		(124,961)	(107,134)	(124,961)	(107,134)

Total equity		1,021,173	990,660	1,021,173	990,660

- 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

6 Months Ended

Mar. 31, 2022

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 March 31, 2022 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 and six-month periods ended March 31, 2022.

- 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

6 Months Ended

Mar. 31, 2022

REVENUES

REVENUES

12. REVENUES

Disaggregation of Revenues

Revenues by customer type, geographic location, and revenue recognition method for the three and six-month periods ended March 31, 2022 are presented in the tables 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 tables below also include a reconciliation of the disaggregated revenue within each reportable segment.


Three months ended March 31, 2022	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	33,562	$	63,379	$	51,903	$	148,844
U.S. Government		51,259		812		4,013		56,084
Total revenues	$	84,821	$	64,191	$	55,916	$	204,928

Geographic location:
United States	$	72,621	$	41,458	$	31,071	$	145,150
International		12,200		22,733		24,845		59,778
Total revenues	$	84,821	$	64,191	$	55,916	$	204,928

Revenue recognition method:
Point in time	$	35,666	$	51,202	$	14,838	$	101,706
Over time		49,155		12,989		41,078		103,222
Total revenues	$	84,821	$	64,191	$	55,916	$	204,928


Six months ended March 31, 2022	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	61,489	$	126,221	$	92,941	$	280,651
U.S. Government		93,576		1,455		6,256		101,287
Total revenues	$	155,065	$	127,676	$	99,197	$	381,938

Geographic location:
United States	$	133,313	$	80,199	$	54,047	$	267,559
International		21,752		47,477		45,150		114,379
Total revenues	$	155,065	$	127,676	$	99,197	$	381,938

Revenue recognition method:
Point in time	$	64,223	$	102,037	$	27,660	$	193,920
Over time		90,842		25,639		71,537		188,018
Total revenues	$	155,065	$	127,676	$	99,197	$	381,938

Revenues by customer type, geographic location, and revenue recognition method for the three and six-month periods ended March 31, 2021 are presented in the tables below.


Three months ended March 31, 2021	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	33,223	$	38,549	$	39,305	$	111,077
U.S. Government		49,305		1,006		4,506		54,817
Total revenues	$	82,528	$	39,555	$	43,811	$	165,894

Geographic location:
United States	$	72,287	$	27,445	$	22,965	$	122,697
International		10,241		12,110		20,846		43,197
Total revenues	$	82,528	$	39,555	$	43,811	$	165,894

Revenue recognition method:
Point in time	$	37,127	$	27,563	$	9,248	$	73,938
Over time		45,401		11,992		34,563		91,956
Total revenues	$	82,528	$	39,555	$	43,811	$	165,894


Six months ended March 31, 2021	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	61,089	$	92,414	$	76,027	$	229,530
U.S. Government		88,055		1,681		9,302		99,038
Total revenues	$	149,144	$	94,095	$	85,329	$	328,568

Geographic location:
United States	$	129,824	$	64,490	$	46,231	$	240,545
International		19,320		29,605		39,098		88,023
Total revenues	$	149,144	$	94,095	$	85,329	$	328,568

Revenue recognition method:
Point in time	$	64,000	$	69,931	$	18,116	$	152,047
Over time		85,144		24,164		67,213		176,521
Total revenues	$	149,144	$	94,095	$	85,329	$	328,568

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 March 31, 2022, the Company had $670.9 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 March 31, 2022, contract assets and liabilities totaled

$111.5 million and $113.0 million, respectively. During the first six months of 2022, the Company recognized approximately $51 million in revenues that were included in the contract liabilities balance at September 30, 2021. The increase in net contract assets in the first six months 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

6 Months Ended

Mar. 31, 2022

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 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
	March 31,		March 31,
(Dollars in thousands)	2022		2021
Finance lease cost
Amortization of right-of-use assets	$	607	$	492
Interest on lease liabilities		291		311
Operating lease cost		1,578		1,424
Total lease costs	$	2,476	$	2,227


	Six Months		Six Months
	Ended		Ended
	March 31,		March 31,
(Dollars in thousands)	2022		2021
Finance lease cost
Amortization of right-of-use assets	$	1,214	$	985
Interest on lease liabilities		593		623
Operating lease cost		3,131		2,877
Total lease costs	$	4,938	$	4,485

Additional information related to leases are shown below:


	Three Months Ended		Three Months Ended
	March 31,		March 31,
(Dollars in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,512	$	1,375
Operating cash flows from finance leases		245		311
Financing cash flows from finance leases		304		419
Right-of-use assets obtained in exchange for operating lease liabilities		346		—


	Six Months Ended		Six Months Ended
	March 31,		March 31,
(Dollars in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	3,008	$	2,800
Operating cash flows from finance leases		492		623
Financing cash flows from finance leases		605		838
Right-of-use assets obtained in exchange for operating lease liabilities		1,247		—


	March 31, 2022		March 31, 2021
Weighted-average remaining lease term
Operating leases	9.9	years	5.8	years
Finance leases	12.5	years	12.2	years
Weighted-average discount rate
Operating leases	3.12	%	3.11	%
Finance leases	4.58	%	4.31	%

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 March 31, 2022:


(Dollars in thousands)	Operating		Finance
Years Ending September 30:	Leases		Leases
2022 (excluding the six months ended March 31, 2022)	$	2,843	1,100
2023		5,244	2,256
2024		4,198	2,315
2025		3,639	2,370
2026 and thereafter		20,161	21,431
Total minimum lease payments		36,085	29,472
Less: amounts representing interest		5,145	7,670
Present value of net minimum lease payments	$	30,940	21,802
Less: current portion of lease obligations		4,638	1,277
Non-current portion of lease obligations		26,302	20,525

ROU assets	$	30,139	18,129

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

6 Months Ended

Mar. 31, 2022

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 $0.8 million in the second quarter of 2021, along with inventory being overstated and cost of goods sold being understated by $0.4 million in the second quarter of 2021. The tax impact of correcting these errors was a reduction in tax expense of $0.3 million in the second quarter of 2021. The table below shows the impact of these adjustments to the second quarter of 2021. Management has determined that these adjustments are not material to the prior year period.


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

2021

Net sales	$	166,644	165,894
Cost of sales		103,113	103,553
Earnings before income taxes		21,339	20,149
Income tax expense		5,025	4,745
Net earnings		16,314	15,404

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

EARNINGS PER SHARE (EPS) (Tables)

6 Months Ended

Mar. 31, 2022

EARNINGS PER SHARE (EPS)

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


	Three Months		Six Months
	Ended March 31,		Ended March 31,
	2022	2021	2022	2021
Weighted Average Shares Outstanding — Basic	25,953	26,038	26,008	26,038
Dilutive Restricted Shares	92	163	90	154
Adjusted Shares — Diluted	26,045	26,201	26,098	26,192

INVENTORIES (Tables)

6 Months Ended

Mar. 31, 2022

INVENTORIES

Schedule of inventories


	March 31,		September 30,
(In thousands)	2022		2021
Finished goods	$	37,434	32,998
Work in process		46,447	34,201
Raw materials		91,271	79,949
Total inventories, net	$	175,152	147,148

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

6 Months Ended

Mar. 31, 2022

GOODWILL AND OTHER INTANGIBLE ASSETS

Schedule of goodwill and intangible assets


	March 31,		September 30,
(Dollars in thousands)	2022		2021
Goodwill	$	508,406	504,853

Intangible assets with determinable lives:
Patents
Gross carrying amount	$	2,208	2,131
Less: accumulated amortization		1,029	972
Net	$	1,178	1,159

Capitalized software
Gross carrying amount	$	98,398	93,671
Less: accumulated amortization		67,013	63,740
Net	$	31,385	29,931

Customer relationships
Gross carrying amount	$	292,887	288,530
Less: accumulated amortization		88,933	80,882
Net	$	203,954	207,648

Other
Gross carrying amount	$	14,567	13,080
Less: accumulated amortization		5,897	4,301
Net	$	8,670	8,779
Intangible assets with indefinite lives:
Trade names	$	162,016	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		0.3		—	5.7	6.0
Foreign currency translation		(2.5)		—	—	(2.5)
Balance as of March 31, 2022	$	364.3		34.1	110.0	508.4

BUSINESS SEGMENT INFORMATION (Tables)

6 Months Ended

Mar. 31, 2022

BUSINESS SEGMENT INFORMATION

Schedule of Net Sales and Earnings Before Income Tax


	Three Months			Six Months
	Ended March 31,			Ended March 31,
(In thousands)	2022		2021	2022	2021
NET SALES
Aerospace & Defense	$	84,821	82,528	155,065	149,144
USG		64,191	39,555	127,676	94,095
Test		55,916	43,811	99,197	85,329
Consolidated totals	$	204,928	165,894	381,938	328,568

EBIT
Aerospace & Defense	$	14,349	17,006	24,304	25,266
USG		11,314	6,725	24,705	19,456
Test		8,494	5,688	12,459	11,030
Corporate (loss)		(11,469)	(8,838)	(23,210)	(18,090)
Consolidated EBIT		22,688	20,581	38,258	37,662
Less: Interest expense		(1,020)	(432)	(1,753)	(973)
Earnings before income taxes	$	21,668	20,149	36,505	36,689

DEBT (Tables)

6 Months Ended

Mar. 31, 2022

DEBT

Schedule of debt


	March 31,		September 30,
(In thousands)	2022		2021
Total borrowings	$	196,000	154,000
Current portion of long-term debt		(20,000)	(20,000)
Total long-term debt, less current portion	$	176,000	134,000

SHAREHOLDERS' EQUITY (Tables)

6 Months Ended

Mar. 31, 2022

SHAREHOLDERS' EQUITY

Schedule of change in shareholders' equity

The change in shareholders’ equity for the first three and six months of 2022 and 2021 is shown below (in thousands):


	Three Months Ended March 31,			Six Months Ended March 31,
	2022		2021	2022	2021

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

Additional paid-in-capital
Beginning balance		296,277	294,735	297,644	293,682
Stock plans		2,076	1,061	709	2,114
Ending balance		298,353	295,796	298,353	295,796

Retained earnings
Beginning balance		840,434	786,563	830,989	775,829
Net earnings common stockholders		16,583	15,404	28,107	28,222
Dividends paid		(2,071)	(2,083)	(4,150)	(4,167)
Ending balance		854,946	799,884	854,946	799,884

Accumulated other comprehensive income (loss)
Beginning balance		(4,661)	1,692	(2,161)	(3,657)
Foreign currency translation		(2,811)	116	(5,311)	5,465
Ending balance		(7,472)	1,808	(7,472)	1,808

Treasury stock
Beginning balance		(117,080)	(107,134)	(107,083)	(107,134)
Issued under stock plans		(7,881)	—	(17,878)	—
Ending balance		(124,961)	(107,134)	(124,961)	(107,134)

Total equity		1,021,173	990,660	1,021,173	990,660

REVENUES (Tables)

6 Months Ended

Mar. 31, 2022

REVENUES

Schedule of disaggregation of revenue by reportable segment


Three months ended March 31, 2022	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	33,562	$	63,379	$	51,903	$	148,844
U.S. Government		51,259		812		4,013		56,084
Total revenues	$	84,821	$	64,191	$	55,916	$	204,928

Geographic location:
United States	$	72,621	$	41,458	$	31,071	$	145,150
International		12,200		22,733		24,845		59,778
Total revenues	$	84,821	$	64,191	$	55,916	$	204,928

Revenue recognition method:
Point in time	$	35,666	$	51,202	$	14,838	$	101,706
Over time		49,155		12,989		41,078		103,222
Total revenues	$	84,821	$	64,191	$	55,916	$	204,928


Six months ended March 31, 2022	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	61,489	$	126,221	$	92,941	$	280,651
U.S. Government		93,576		1,455		6,256		101,287
Total revenues	$	155,065	$	127,676	$	99,197	$	381,938

Geographic location:
United States	$	133,313	$	80,199	$	54,047	$	267,559
International		21,752		47,477		45,150		114,379
Total revenues	$	155,065	$	127,676	$	99,197	$	381,938

Revenue recognition method:
Point in time	$	64,223	$	102,037	$	27,660	$	193,920
Over time		90,842		25,639		71,537		188,018
Total revenues	$	155,065	$	127,676	$	99,197	$	381,938

Revenues by customer type, geographic location, and revenue recognition method for the three and six-month periods ended March 31, 2021 are presented in the tables below.


Three months ended March 31, 2021	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	33,223	$	38,549	$	39,305	$	111,077
U.S. Government		49,305		1,006		4,506		54,817
Total revenues	$	82,528	$	39,555	$	43,811	$	165,894

Geographic location:
United States	$	72,287	$	27,445	$	22,965	$	122,697
International		10,241		12,110		20,846		43,197
Total revenues	$	82,528	$	39,555	$	43,811	$	165,894

Revenue recognition method:
Point in time	$	37,127	$	27,563	$	9,248	$	73,938
Over time		45,401		11,992		34,563		91,956
Total revenues	$	82,528	$	39,555	$	43,811	$	165,894


Six months ended March 31, 2021	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	61,089	$	92,414	$	76,027	$	229,530
U.S. Government		88,055		1,681		9,302		99,038
Total revenues	$	149,144	$	94,095	$	85,329	$	328,568

Geographic location:
United States	$	129,824	$	64,490	$	46,231	$	240,545
International		19,320		29,605		39,098		88,023
Total revenues	$	149,144	$	94,095	$	85,329	$	328,568

Revenue recognition method:
Point in time	$	64,000	$	69,931	$	18,116	$	152,047
Over time		85,144		24,164		67,213		176,521
Total revenues	$	149,144	$	94,095	$	85,329	$	328,568

LEASES (Tables)

6 Months Ended

Mar. 31, 2022

LEASES

Schedule of components of lease costs


	Three Months Ended		Three Months Ended
	March 31,		March 31,
(Dollars in thousands)	2022		2021
Finance lease cost
Amortization of right-of-use assets	$	607	$	492
Interest on lease liabilities		291		311
Operating lease cost		1,578		1,424
Total lease costs	$	2,476	$	2,227


	Six Months		Six Months
	Ended		Ended
	March 31,		March 31,
(Dollars in thousands)	2022		2021
Finance lease cost
Amortization of right-of-use assets	$	1,214	$	985
Interest on lease liabilities		593		623
Operating lease cost		3,131		2,877
Total lease costs	$	4,938	$	4,485

Schedule of additional information related to leases


	Three Months Ended		Three Months Ended
	March 31,		March 31,
(Dollars in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	1,512	$	1,375
Operating cash flows from finance leases		245		311
Financing cash flows from finance leases		304		419
Right-of-use assets obtained in exchange for operating lease liabilities		346		—


	Six Months Ended		Six Months Ended
	March 31,		March 31,
(Dollars in thousands)	2022		2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	3,008	$	2,800
Operating cash flows from finance leases		492		623
Financing cash flows from finance leases		605		838
Right-of-use assets obtained in exchange for operating lease liabilities		1,247		—


	March 31, 2022		March 31, 2021
Weighted-average remaining lease term
Operating leases	9.9	years	5.8	years
Finance leases	12.5	years	12.2	years
Weighted-average discount rate
Operating leases	3.12	%	3.11	%
Finance leases	4.58	%	4.31	%

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 six months ended March 31, 2022)	$	2,843	1,100
2023		5,244	2,256
2024		4,198	2,315
2025		3,639	2,370
2026 and thereafter		20,161	21,431
Total minimum lease payments		36,085	29,472
Less: amounts representing interest		5,145	7,670
Present value of net minimum lease payments	$	30,940	21,802
Less: current portion of lease obligations		4,638	1,277
Non-current portion of lease obligations		26,302	20,525

ROU assets	$	30,139	18,129

ADJUSTED QUARTERLY FINANCIAL INFORMATION (Tables)

6 Months Ended

Mar. 31, 2022

ADJUSTED QUARTERLY FINANCIAL INFORMATION

Schedule of Adjusted Quarterly Financial Information


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

2021

Net sales	$	166,644	165,894
Cost of sales		103,113	103,553
Earnings before income taxes		21,339	20,149
Income tax expense		5,025	4,745
Net earnings		16,314	15,404

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

EARNINGS PER SHARE (EPS) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
EARNINGS PER SHARE (EPS)
Weighted Average Shares Outstanding - Basic	25,953	26,038	26,008	26,038
Dilutive Restricted Shares	92	163	90	154
Adjusted Shares - Diluted	26,045	26,201	26,098	26,192

ACQUISITION (Details) - USD ($) $ in Thousands		6 Months Ended
ACQUISITION (Details) - USD ($) $ in Thousands	Nov. 04, 2021	Mar. 31, 2022	Mar. 31, 2021	Sep. 30, 2021
Business Acquisition [Line Items]
Payments to acquire businesses net of cash acquired		$ 15,592	$ 6,684
Goodwill		$ 508,406		$ 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 recognized identifiable assets acquired and liabilities assumed intangible assets other than goodwill	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
Networks Electronic Company, LLC \| Customer relationships
Business Acquisition [Line Items]
Business combination recognized identifiable assets acquired and liabilities assumed finite-lived intangibles	$ 6,300

SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
SHARE-BASED COMPENSATION
Total unrecognized compensation cost related to share-based compensation arrangements	$ 10.9		$ 10.9
Selling, general and administrative expenses
SHARE-BASED COMPENSATION
Total share-based compensation cost	1.7	$ 1.4	3.4	$ 2.7
Performance-Accelerated Restricted Share Awards
SHARE-BASED COMPENSATION
Pretax compensation expense	$ 1.5	1.1	$ 2.8	2.1
Non-vested shares	210,119		210,119
Compensation Plan for Non-Employee Directors
SHARE-BASED COMPENSATION
Vesting period			1 year 10 months 24 days
Pretax compensation expense	$ 0.3	0.3	$ 0.6	0.6
Total income tax benefit recognized	$ 0.3	$ 0.3	$ 0.5	$ 0.7

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Sep. 30, 2021
INVENTORIES
Finished goods	$ 37,434	$ 32,998
Work in process	46,447	34,201
Raw materials	91,271	79,949
Total inventories, net	$ 175,152	$ 147,148

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Sep. 30, 2021
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill	$ 508,406	$ 504,853
Less: accumulated amortization	162,869	149,892
Patents
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	2,208	2,131
Less: accumulated amortization	1,029	972
Net	1,178	1,159
Capitalized software
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	98,398	93,671
Less: accumulated amortization	67,013	63,740
Net	31,385	29,931
Customer relationships
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	292,887	288,530
Less: accumulated amortization	88,933	80,882
Net	203,954	207,648
Other
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	14,567	13,080
Less: accumulated amortization	5,897	4,301
Net	8,670	8,779
Trade names
GOODWILL AND OTHER INTANGIBLE ASSETS
Trade names	$ 162,016	$ 161,733

GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in carrying amount of goodwill (Details) $ in Thousands	6 Months Ended
	Mar. 31, 2022 USD ($)
Changes in goodwill
Balance as of September 30, 2021	$ 504,853
Acquisition activity and adjustments	6,000
Foreign currency translation	(2,500)
Balance as of March 31, 2022	508,406
USG
Changes in goodwill
Balance as of September 30, 2021	366,500
Acquisition activity and adjustments	300
Foreign currency translation	(2,500)
Balance as of March 31, 2022	364,300
Test
Changes in goodwill
Balance as of September 30, 2021	34,100
Balance as of March 31, 2022	34,100
A&D
Changes in goodwill
Balance as of September 30, 2021	104,300
Acquisition activity and adjustments	5,700
Balance as of March 31, 2022	$ 110,000

BUSINESS SEGMENT INFORMATION (Details) $ in Thousands	3 Months Ended		6 Months Ended
BUSINESS SEGMENT INFORMATION (Details) $ in Thousands	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)	Mar. 31, 2022 USD ($) segment	Mar. 31, 2021 USD ($)
BUSINESS SEGMENT INFORMATION
NET SALES	$ 204,928	$ 165,894	$ 381,938	$ 328,568
Consolidated EBIT	22,688	20,581	38,258	37,662
Less: Interest expense	(1,020)	(432)	(1,753)	(973)
Earnings before income taxes	21,668	20,149	$ 36,505	36,689
Number of reportable segments \| segment			3
A&D
BUSINESS SEGMENT INFORMATION
NET SALES	84,821	82,528	$ 155,065	149,144
Consolidated EBIT	14,349	17,006	24,304	25,266
USG
BUSINESS SEGMENT INFORMATION
NET SALES	64,191	39,555	127,676	94,095
Consolidated EBIT	11,314	6,725	24,705	19,456
Test
BUSINESS SEGMENT INFORMATION
NET SALES	55,916	43,811	99,197	85,329
Consolidated EBIT	8,494	5,688	12,459	11,030
Reconciliation to consolidated totals (Corporate) [Member]
BUSINESS SEGMENT INFORMATION
Consolidated EBIT	$ (11,469)	$ (8,838)	$ (23,210)	$ (18,090)

DEBT (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Sep. 30, 2021
DEBT
Total borrowings	$ 196,000	$ 154,000
Current portion of long-term debt	(20,000)	(20,000)
Total long-term debt, less current portion	$ 176,000	$ 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		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021	Sep. 30, 2021
DEBT
Available to borrow under the credit facility	$ 296,000		$ 296,000
Cash on hand	54,324		54,324		$ 56,232
Letters of Credit Outstanding, Amount	$ 8,100		$ 8,100
Debt instrument interest rate	1.29%		1.23%
Equity interests in direct and indirect material foreign subsidiaries, pledged as collateral (as a percent)	100.00%		100.00%
Long-term Debt, Current Maturities	$ 20,000		$ 20,000
Revolving Credit Facility
DEBT
Line of Credit Facility, Amount Outstanding	500,000		500,000
Debt instrument interest rate		1.27%		1.40%
Line of Credit Facility, Commitment Fee Amount			250,000
Maximum
DEBT
Incremental term loan	$ 250,000		$ 250,000

INCOME TAX EXPENSE (Details)	3 Months Ended		6 Months Ended
INCOME TAX EXPENSE (Details)	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
INCOME TAX EXPENSE
Effective income tax rate	23.50%	23.50%	23.00%	23.10%

SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Changes in shareholder's equity
Beginning Balance			$ 1,019,696
Net earnings	$ 16,583	$ 15,404	28,107	$ 28,222
Ending Balance	1,021,173	990,660	1,021,173	990,660
Common Stock
Changes in shareholder's equity
Beginning Balance	307	306	307	306
Ending Balance	307	306	307	306
Additional Paid-In Capital
Changes in shareholder's equity
Beginning Balance	296,277	294,735	297,644	293,682
Stock plans	2,076	1,061	709	2,114
Ending Balance	298,353	295,796	298,353	295,796
Retained Earnings
Changes in shareholder's equity
Beginning Balance	840,434	786,563	830,989	775,829
Net earnings	16,583	15,404	28,107	28,222
Dividends paid	(2,071)	(2,083)	(4,150)	(4,167)
Ending Balance	854,946	799,884	854,946	799,884
Accumulated Other Comprehensive Income (Loss)
Changes in shareholder's equity
Beginning Balance	(4,661)	1,692	(2,161)	(3,657)
Foreign currency translation	(2,811)	116	(5,311)	5,465
Ending Balance	(7,472)	1,808	(7,472)	1,808
Treasury Stock
Changes in shareholder's equity
Beginning Balance	(117,080)	(107,134)	(107,083)	(107,134)
Issued under stock plans	(7,881)		(17,878)
Ending Balance	$ (124,961)	$ (107,134)	$ (124,961)	$ (107,134)

FAIR VALUE MEASUREMENTS (Details) $ in Thousands	Mar. 31, 2022 USD ($)
FAIR VALUE MEASUREMENTS
Fair Value of Financial Instruments	$ 0

REVENUES - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	$ 204,928	$ 165,894	$ 381,938	$ 328,568
Point in time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	101,706	73,938	193,920	152,047
Over time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	103,222	91,956	188,018	176,521
United States [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	145,150	122,697	267,559	240,545
International
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	59,778	43,197	114,379	88,023
Commercial
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	148,844	111,077	280,651	229,530
Government [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	56,084	54,817	101,287	99,038
A&D
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	84,821	82,528	155,065	149,144
A&D \| Point in time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	35,666	37,127	64,223	64,000
A&D \| Over time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	49,155	45,401	90,842	85,144
A&D \| United States [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	72,621	72,287	133,313	129,824
A&D \| International
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	12,200	10,241	21,752	19,320
A&D \| Commercial
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	33,562	33,223	61,489	61,089
A&D \| Government [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	51,259	49,305	93,576	88,055
USG
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	64,191	39,555	127,676	94,095
USG \| Point in time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	51,202	27,563	102,037	69,931
USG \| Over time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	12,989	11,992	25,639	24,164
USG \| United States [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	41,458	27,445	80,199	64,490
USG \| International
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	22,733	12,110	47,477	29,605
USG \| Commercial
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	63,379	38,549	126,221	92,414
USG \| Government [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	812	1,006	1,455	1,681
Test
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	55,916	43,811	99,197	85,329
Test \| Point in time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	14,838	9,248	27,660	18,116
Test \| Over time
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	41,078	34,563	71,537	67,213
Test \| United States [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	31,071	22,965	54,047	46,231
Test \| International
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	24,845	20,846	45,150	39,098
Test \| Commercial
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	51,903	39,305	92,941	76,027
Test \| Government [Member]
Disaggregation of revenues
Revenue from contract with customer excluding assessed tax	$ 4,013	$ 4,506	$ 6,256	$ 9,302

REVENUES - Remaining Performance Obligations (Details) - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2022	Oct. 01, 2020
Remaining Performance Obligations
Remaining performance obligations amount	$ 670.9
Revenue Recognized	51.0
Contract assets	111.5
Contract liabilities	$ 113.0
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		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Leases
Option to extend			true
Finance lease cost
Amortization of right-of-use assets	$ 607	$ 492	$ 1,214	$ 985
Interest on lease liabilities	291	311	593	623
Operating lease cost	1,578	1,424	3,131	2,877
Total lease costs	$ 2,476	$ 2,227	$ 4,938	$ 4,485
Maximum
Leases
Lease term	20 years		20 years

LEASES - Additional information related to leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 1,512	$ 1,375	$ 3,008	$ 2,800
Operating cash flows from finance leases	245	311	492	623
Financing cash flows from finance leases	304	$ 419	605	$ 838
Right-of-use assets obtained in exchange for operating lease liabilities	$ 346		$ 1,247
Weighted-average remaining lease term
Operating leases	9 years 10 months 24 days	5 years 9 months 18 days	9 years 10 months 24 days	5 years 9 months 18 days
Finance leases	12 years 6 months	12 years 2 months 12 days	12 years 6 months	12 years 2 months 12 days
Weighted-average discount rate
Operating leases	3.12%	3.11%	3.12%	3.11%
Finance leases	4.58%	4.31%	4.58%	4.31%

LEASES - Reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Sep. 30, 2021
Operating leases
2022 (excluding the six months ended March 31, 2022)	$ 2,843
2023	5,244
2024	4,198
2025	3,639
2026 and thereafter	20,161
Total minimum lease payments	36,085
Less: amounts representing interest	5,145
Present value of net minimum lease payments	30,940
Less: current portion of lease obligations	4,638
Non-current portion of lease obligations	26,302	$ 28,032
ROU assets	30,139	$ 31,846
Finance leases
2022 (excluding the six months ended March 31, 2022)	1,100
2023	2,256
2024	2,315
2025	2,370
2026 and thereafter	21,431
Total minimum lease payments	29,472
Less: amounts representing interest	7,670
Present value of net minimum lease payments	21,802
Less: current portion of lease obligations	1,277
Non-current portion of lease obligations	20,525
ROU assets	$ 18,129
Location of operating lease liabilities included on Consolidated Balance Sheets	Accrued other expenses, Other liabilities
Location of finance lease liabilities included on Consolidated Balance Sheets	Accrued other expenses, Other liabilities
Location of operating lease ROU assets included on Consolidated Balance Sheets	ROU assets
Location of finance lease ROU assets included on Consolidated Balance Sheets	Property, Plant and Equipment, Net

ADJUSTED QUARTERLY FINANCIAL INFORMATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Mar. 31, 2022	Mar. 31, 2021
Net sales	$ 204,928	$ 165,894	$ 381,938	$ 328,568
Cost of sales	128,375	103,553	236,680	203,175
Earnings before income taxes	21,668	20,149	36,505	36,689
Income tax expense	5,085	4,745	8,398	8,467
Net earnings	$ 16,583	$ 15,404	$ 28,107	$ 28,222
Diluted earnings (loss) per share:
Diluted - Net earnings	$ 0.64	$ 0.59	$ 1.08	$ 1.08
As Reported
Net sales		$ 166,644
Cost of sales		103,113
Earnings before income taxes		21,339
Income tax expense		5,025
Net earnings		$ 16,314
Diluted earnings (loss) per share:
Diluted - Net earnings		$ 0.62
AS Adjusted
Net sales		$ 165,894
Cost of sales		103,553
Earnings before income taxes		20,149
Income tax expense		4,745
Net earnings		$ 15,404
Diluted earnings (loss) per share:
Diluted - Net earnings		$ 0.59

- Definition

The aggregate cost of goods produced and sold and services rendered during the reporting period.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.2)
-URI http://asc.fasb.org/extlink&oid=123367319&loc=SL114868664-224227

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(i))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

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

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Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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ADJUSTED QUARTERLY FINANCIAL INFORMATION - Additional Information (Details) - A&D Segment $ in Millions	3 Months Ended
	Mar. 31, 2021 USD ($)
Pretax adjustments	$ 0.8
Adjustment of inventory and cost of goods sold	0.4
Reduction of tax expenses	$ 0.3