Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Nov. 28, 2014 | Mar. 31, 2014 | |
Document and Entity Information | ' | ' | ' |
Entity Registrant Name | 'Wesco Aircraft Holdings, Inc | ' | ' |
Entity Central Index Key | '0001378718 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Sep-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $1,459,542,153 |
Entity Common Stock, Shares Outstanding | ' | 97,355,250 | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $104,775 | $78,716 |
Accounts receivable, net of allowance for doubtful accounts of $5,332 at September 30, 2014 and $4,464 at September 30, 2013 | 301,668 | 155,944 |
Inventories, net | 754,400 | 630,264 |
Prepaid expenses and other current assets | 11,701 | 12,195 |
Income taxes receivable | 16,314 | 16,119 |
Deferred income taxes | 49,188 | 39,671 |
Total current assets | 1,238,046 | 932,909 |
Property and equipment, net | 49,264 | 26,794 |
Deferred financing costs, net | 15,602 | 8,741 |
Goodwill | 861,575 | 562,493 |
Intangible assets, net | 234,945 | 99,641 |
Deferred income taxes | 272 | ' |
Other assets | 12,570 | 574 |
Total assets | 2,412,274 | 1,631,152 |
Current liabilities | ' | ' |
Accounts payable | 159,608 | 98,934 |
Accrued expenses and other current liabilities | 31,596 | 21,047 |
Income taxes payable | 5,884 | 2,953 |
Long-term debt-current portion | 23,437 | ' |
Capital lease obligations-current portion | 1,578 | 1,184 |
Total current liabilities | 222,103 | 124,118 |
Long-term debt | 1,079,219 | 568,000 |
Capital lease obligations | 2,606 | 1,414 |
Deferred income taxes | 113,218 | 72,184 |
Other Liabilities | 2,838 | ' |
Total liabilities | 1,419,984 | 765,716 |
Commitments and contingencies | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock, $0.001 par value per share: 50,000,000 shares authorized; no shares issued and outstanding | ' | ' |
Common stock, class A, $0.001 par value per share, authorized - 950,000,000 at year end 2014 and 2013; issued - 97,010,286 and 94,776,683 shares at year end 2014 and 2013; outstanding - 96,384,061 and 94,150,458 shares at year end 2014 and 2013, respectively. | 97 | 95 |
Additional paid-in capital | 413,019 | 387,636 |
Accumulated other comprehensive loss | -10,822 | -10,189 |
Retained earnings | 598,448 | 496,346 |
Less treasury stock, at cost, 626,225 shares as of September 30, 2014 and September 30, 2013 | -8,452 | -8,452 |
Total stockholders' equity | 992,290 | 865,436 |
Total liabilities and stockholders' equity | $2,412,274 | $1,631,152 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
In Thousands, except Share data, unless otherwise specified | ||||
Consolidated Balance Sheets | ' | ' | ' | ' |
Accounts receivable, allowance for doubtful accounts (in dollars) | $5,332 | $4,464 | $4,067 | $4,257 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 | ' | ' |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 | ' | ' |
Preferred stock, shares issued | 0 | 0 | ' | ' |
Preferred stock, shares outstanding | 0 | 0 | ' | ' |
Common stock, par value (in dollars per share) | $0.00 | $0.00 | ' | ' |
Common stock, shares authorized | 950,000,000 | 950,000,000 | ' | ' |
Common stock, shares issued | 94,776,683 | 94,776,683 | ' | ' |
Common stock, shares outstanding | 96,384,061 | 94,150,458 | ' | ' |
Treasury stock, shares | 626,225 | 626,225 | ' | ' |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings and Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Consolidated Statements of Earnings and Comprehensive Income | ' | ' | ' |
Net sales | $1,355,877 | $901,608 | $776,206 |
Cost of sales | 937,446 | 579,309 | 492,636 |
Gross profit | 418,431 | 322,299 | 283,570 |
Selling, general and administrative expenses | 234,497 | 141,497 | 124,738 |
Operating earnings | 183,934 | 180,802 | 158,832 |
Interest expense, net | -29,225 | -25,178 | -24,646 |
Other income (expense), net | 2,199 | 2,003 | -524 |
Income before provision for income taxes | 156,908 | 157,627 | 133,662 |
Provision for income taxes | 54,806 | 52,815 | 41,487 |
Net income | 102,102 | 104,812 | 92,175 |
Other comprehensive income (loss), net | -633 | -4,459 | 2,242 |
Comprehensive income | $101,469 | $100,353 | $94,417 |
Net income per share: | ' | ' | ' |
Basic (in dollars per share) | $1.06 | $1.12 | $1 |
Diluted (in dollars per share) | $1.05 | $1.09 | $0.96 |
Weighted average shares outstanding: | ' | ' | ' |
Basic (in shares) | 95,951 | 93,285 | 92,058 |
Diluted (in shares) | 97,606 | 95,844 | 95,712 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (USD $) | 3 Months Ended | 12 Months Ended | ||||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Total stockholders' equity | $992,290 | $865,436 | $992,290 | $865,436 | $753,367 | $628,471 |
Common Stock, Shares, Issued | 94,776,683 | 94,776,683 | 94,776,683 | 94,776,683 | ' | ' |
Issuance of common stock from stock options exercised | ' | ' | 9,643 | 9,895 | 7,377 | ' |
Purchase of Treasury Stock | ' | ' | ' | -8,452 | ' | ' |
Issuance of common stock related to the vesting of restricted stock units | ' | ' | ' | ' | 5 | ' |
Excess tax benefit related to restricted stock units and stock options exercised | ' | ' | 10,235 | 6,879 | 21,471 | ' |
Stock-based compensation | ' | ' | 5,507 | 3,394 | 1,626 | ' |
Net income | 24,647 | 29,972 | 102,102 | 104,812 | 92,175 | ' |
Other comprehensive income | ' | ' | -633 | -4,459 | 2,242 | ' |
Common Stock [Member] | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Total stockholders' equity | 97 | 95 | 97 | 95 | 93 | 86 |
Common Stock, Shares, Issued | 97,638,000 | 95,404,000 | 97,638,000 | 95,404,000 | 93,088,000 | 85,717,000 |
Issuance of common stock from stock options exercised | ' | ' | 2 | 2 | 2 | ' |
Issuance of common stock from stock options exercised (in shares) | ' | ' | 2,069,000 | 2,133,000 | 1,729,000 | ' |
Issuance of common stock related to the vesting of restricted stock units | ' | ' | ' | ' | 5 | ' |
Issuance of common stock related to the vesting of restricted stock units (in shares) | ' | ' | ' | ' | 5,604,000 | ' |
Stock-based compensation | ' | ' | ' | ' | 0 | ' |
Stock-based compensation (in shares) | ' | ' | ' | ' | 38,000 | ' |
Issuance of Common Stock, net of forfeitures (in shares) | ' | ' | 165,000 | 183,000 | ' | ' |
Additional Paid In Capital [Member] | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Total stockholders' equity | 413,019 | 387,636 | 413,019 | 387,636 | 367,470 | 336,998 |
Issuance of common stock from stock options exercised | ' | ' | 9,641 | 9,893 | 7,375 | ' |
Excess tax benefit related to restricted stock units and stock options exercised | ' | ' | 10,235 | 6,879 | 21,471 | ' |
Stock-based compensation | ' | ' | 5,507 | 3,394 | 1,626 | ' |
Accumulated Other Comprehensive Income [Member] | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Total stockholders' equity | -10,822 | -10,189 | -10,822 | -10,189 | -5,730 | -7,972 |
Other comprehensive income | ' | ' | -633 | -4,459 | 2,242 | ' |
Treasury Stock [Member] | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Total stockholders' equity | -8,452 | -8,452 | -8,452 | -8,452 | ' | ' |
Purchase of Treasury Stock | ' | ' | ' | -8,452 | ' | ' |
Stock-based compensation | ' | ' | ' | ' | 0 | ' |
Retained Earnings [Member] | ' | ' | ' | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity | ' | ' | ' | ' | ' | ' |
Total stockholders' equity | 598,448 | 496,346 | 598,448 | 496,346 | 391,534 | 299,359 |
Net income | ' | ' | $102,102 | $104,812 | $92,175 | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash flows from operating activities | ' | ' | ' |
Net income | $102,102 | $104,812 | $92,175 |
Adjustments to reconcile net income to net cash provided by operating activities | ' | ' | ' |
Amortization of intangible assets | 12,636 | 6,599 | 4,427 |
Depreciation | 8,766 | 4,781 | 5,536 |
Amortization of deferred financing costs | 3,300 | 7,788 | 2,803 |
Bad debt and sales return reserve | 965 | 411 | -218 |
Non-cash foreign currency exchange | -5,437 | -321 | 436 |
Non-cash stock-based compensation | 5,507 | 3,394 | 1,626 |
Excess tax benefit related to stock options exercised | -10,235 | -6,879 | -21,476 |
Change in fair value of derivative | ' | ' | -1,703 |
Income from equity investment | -141 | ' | ' |
Deferred income tax provision | 8,273 | 9,941 | 20,616 |
Changes in assets and liabilities | ' | ' | ' |
Accounts receivable | -38,545 | -26,972 | -21,802 |
Inventories | -55,002 | -72,563 | -32,344 |
Income taxes receivable | 19,003 | 35,952 | -18,022 |
Prepaid expenses and other assets | 5,799 | -3,335 | -2,431 |
Accounts payable | 3,099 | 19,330 | 21,836 |
Accrued expenses and other liabilities | -8,830 | 1,071 | 1,833 |
Income taxes payable | 2,481 | 820 | 946 |
Gain (loss) on fixed asset disposal | -52 | ' | 331 |
Net cash provided by operating activities | 53,689 | 84,829 | 54,569 |
Cash flows from investing activities | ' | ' | ' |
Purchases of property and equipment | -10,517 | -7,882 | -4,528 |
Acquisition of business, net of cash acquired | -560,986 | ' | -131,894 |
Net cash used in investing activities | -571,503 | -7,882 | -136,422 |
Cash flows from financing activities | ' | ' | ' |
Proceeds from issuance of long-term debt | 565,000 | 625,000 | 95,000 |
Repayment of long-term debt | -30,344 | -683,000 | -25,000 |
Financing Fees | -10,161 | -7,274 | ' |
Repayment of capital lease obligations | -1,338 | -1,146 | -1,984 |
Excess tax benefit related to stock options exercised | 10,235 | 6,879 | 21,476 |
Proceeds from exercise of stock options | 9,643 | 9,895 | 7,377 |
Purchase of treasury stock | ' | -8,452 | ' |
Net cash provided by (used in) financing activities | 543,035 | -58,098 | 96,869 |
Effect of foreign currency exchange rates on cash and cash equivalents | 838 | -989 | 315 |
Net increase in cash and cash equivalents | 26,059 | 17,860 | 15,331 |
Cash and cash equivalents, beginning of period | 78,716 | 60,856 | 45,525 |
Cash and cash equivalents, end of period | $104,775 | $78,716 | $60,856 |
Organization_and_Business
Organization and Business | 12 Months Ended |
Sep. 30, 2014 | |
Organization and Business | ' |
Organization and Business | ' |
Note 1. Organization and Business | |
Wesco Aircraft Holdings, Inc. (the "Company") is a distributor and provider of comprehensive supply chain management services to the global aerospace industry. The Company's services range from traditional distribution to the management of supplier relationships, quality assurance, kitting, just-in-time, or JIT delivery, and point-of-use inventory management. | |
In addition to the central stocking facilities, the Company uses a network of forward-stocking locations to service its customers in a JIT and or ad hoc manner. There are over 20 stocking locations around the world with concentrations in North America and Europe. In addition to product fulfillment, the Company also provides comprehensive supply chain management services for selected customers. These services include procurement and just-in-time inventory management and delivery services. | |
On February 28, 2014, 100% of the outstanding stock of Haas Group, Inc. was acquired by the Company. In accordance with the Accounting Standards Codification ("ASC") 805, Business Combinations, the acquired assets and liabilities assumed have been recorded at fair value for the interests acquired. | |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||
Note 2. Summary of Significant Accounting Policies | ||||||||||||||
Principles of Consolidation | ||||||||||||||
The accompanying consolidated financial statements include the accounts of Wesco Aircraft Hardware, Wesco Aircraft Europe, Flintbrook Limited, Wesco Aircraft Germany GmbH, Wesco Aircraft France SAS, Wesco Aircraft Israel Limited, Wesco Aircraft Italy SRL, Wesco Aircraft Hardware India Pvt., Limited, Wesco Aircraft Trading Shanghai Co., Limited, Interfast Europe Limited, Interfast USA Inc., Interfast USA Holdings Inc and Haas Group, Inc. All intercompany accounts and transactions have been eliminated. When the Company does not have a controlling interest in an entity, but exerts significant influence over the entity, the Company applies the equity method of accounting. The Company holds a 45% ownership interest in Haas FineChem (Shanghai) Company Ltd. and a 49% ownership interest in AVIC Haas Chemical, both located in China. Both of these entities are accounted for using the equity method of accounting. | ||||||||||||||
Use of Estimates in Preparation of Financial Statements | ||||||||||||||
The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to, receivable valuations and allowance for sales returns, inventory valuations of excess and obsolete inventories, the useful lives of long-lived assets including property, equipment and intangible assets, annual goodwill impairment assessment, stock-based compensation, income taxes and contingencies. Actual results could differ from such estimates. | ||||||||||||||
Cash and Cash Equivalents | ||||||||||||||
The Company considers all highly liquid investments with original maturities from date of purchase by the Company of three months or less to be cash equivalents. | ||||||||||||||
Accounts Receivable | ||||||||||||||
Accounts receivable consist of amounts owed to the Company by customers. The Company performs periodic credit evaluations of the financial condition of its customers, monitors collections and payments from customers, and generally does not require collateral. Accounts receivable are generally due within 30 to 60 days. The Company provides for the possible inability to collect accounts receivable by recording an allowance for doubtful accounts. The Company reserves for an account when it is considered to be uncollectible. The Company estimates its allowance for doubtful accounts based on historical experience, aging of accounts receivable and information regarding the creditworthiness of its customers. To date, losses have been within the range of management's expectations. If the estimated allowance for doubtful accounts subsequently proves to be insufficient, additional allowances may be required. | ||||||||||||||
The Company's allowance for doubtful accounts activity consists of the following: | ||||||||||||||
Balance at | Charges to | Write-offs | Balance at | |||||||||||
Beginning of | Cost and | End of Period | ||||||||||||
Period | Expenses | |||||||||||||
Allowance for doubtful accounts at September 30, 2012 | 4,257 | — | (190 | ) | 4,067 | |||||||||
Allowance for doubtful accounts at September 30, 2013 | 4,067 | 714 | (317 | ) | 4,464 | |||||||||
Allowance for doubtful accounts at September 30, 2014 | 4,464 | 1,159 | (291 | ) | 5,332 | |||||||||
Inventories | ||||||||||||||
The Company's inventory is comprised solely of finished goods. Inventories are stated at the lower of cost or market. The method by which amounts are removed from inventory are weighted average cost for all inventory, except for chemical parts for which FIFO is used. In-bound freight-related costs of $1,440 and $0 as of September 30, 2014 and September 30, 2013 are included as part of the cost of inventory held for resale. The Company records provisions, as appropriate, to write-down excess and obsolete inventory to estimated net realizable value. The process for evaluating excess and obsolete inventory often requires the Company to make subjective judgments and estimates concerning future sales levels, quantities and prices at which such inventories will be able to be sold in the normal course of business. This process is described in Note 5 below. | ||||||||||||||
Property and Equipment | ||||||||||||||
Property and equipment are stated at cost, less accumulated amortization and depreciation, computed using the straight-line method over the estimated useful life of each asset. Leasehold improvements are amortized over the lesser of the remaining lease term or the estimated useful life of the assets. Expenditures for repair and maintenance costs are expensed as incurred, and expenditures for major renewals and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the accounts and any gain or loss is reflected in the Company's consolidated statements of operations. The useful lives for depreciable assets are as follows: | ||||||||||||||
Buildings and improvements | 5 - 40 years | |||||||||||||
Machinery and equipment | 5 - 9 years | |||||||||||||
Furniture and fixtures | 7 years | |||||||||||||
Vehicles | 5 years | |||||||||||||
Computer hardware and software | 3 - 5 years | |||||||||||||
Impairment of Long Lived Assets | ||||||||||||||
The Company assesses potential impairments of its long-lived assets in accordance with the provisions of ASC 360, Property, Plant, and Equipment. An impairment review is performed whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Factors considered by the Company include, but are not limited to: significant underperformance relative to expected historical or projected future operating results; significant changes in the manner of use of the acquired assets or the strategy for the overall business; and significant negative industry or economic trends. The Company has determined that its asset group for impairment testing is comprised of the assets and liabilities of each of its reporting units, which consists of Wesco North America, Wesco Rest of World, Haas North America and Haas Rest of World, as this is the lowest level of identifiable cash flows. The Company has identified customer relationships as the primary asset because it is the principal asset from which the reporting units derive their cash flow generating capacity and has the longest remaining useful life. The recoverability is assessed by comparing the carrying value of the asset group to the undiscounted cash flows expected to be generated by these assets. Impairment losses are measured as the amount by which the carrying values of the primary assets exceed their fair values. To date, the Company has not recognized an impairment charge related to the write-down of long-lived assets. | ||||||||||||||
Deferred Financing Costs | ||||||||||||||
Deferred financing costs are amortized using the effective interest method over the term of the related credit arrangement; such amortization is included in interest expense in the consolidated statement of comprehensive income. Amortization of deferred financing costs was $3,300, $7,788 and $2,803, respectively, for the years ended September 30, 2014, 2013 and 2012. As of September 30, 2014 and 2013, the remaining unamortized deferred financing costs are $15,602 and $8,741, respectively. | ||||||||||||||
Goodwill and Indefinite-Lived Intangible Assets | ||||||||||||||
Goodwill represents the excess of the consideration paid over the fair value of the net assets acquired in a business combination. In accordance with the provisions of ASC 350, Intangibles—Goodwill and Other, goodwill and indefinite-lived intangible assets acquired in a business combination are not amortized, but instead tested for impairment at least annually or more frequently should an event occur or circumstances indicate that the carrying amount may be impaired. Such events or circumstances may be a significant change in business climate, economic and industry trends, legal factors, negative operating performance indicators, significant competition, changes in strategy, or disposition of a reporting unit or a portion thereof. Goodwill and indefinite lived intangibles impairment testing is performed at the reporting unit level on July 1 of each year. | ||||||||||||||
Step 0 allows an entity the option to first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount. Such qualitative factors may include the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant entity-specific events. If the entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform the two-step quantitative impairment test which is used to identify potential goodwill impairments and to measure the amount of goodwill impairment losses to be recognized, if any; otherwise, no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. | ||||||||||||||
The first step identifies potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. For periods prior to the Haas acquisition, our reporting units are consistent with our operating segments. As part of the Haas acquisition, we added two reporting units, however, our operating segments remain the same. The estimates of fair value of a reporting unit are determined based on a discounted cash flow analysis and market earnings multiples. A discounted cash flow analysis requires us to make various judgmental assumptions, including assumptions about future cash flows, growth rates and discount rates. The assumptions about future cash flows and growth rates are based on the forecast and long-term business plans of each reporting unit. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units. If the fair value exceeds its carrying amount, goodwill is not considered impaired and the second step of the test is unnecessary. If the carrying amount of a reporting unit's goodwill exceeds its fair value, the second step measures the impairment loss, if any. | ||||||||||||||
The second step compares the implied fair value of goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The company only performed step 0 in fiscal 2013 and 2014. | ||||||||||||||
Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. Changes in these estimates and assumptions could materially affect the determination of fair value and/or goodwill impairment for each reporting unit. | ||||||||||||||
The Company tests its indefinite-lived intangible asset, consisting of a trademark, for impairment on July 1 each year, or whenever events or circumstances indicate that it is more likely than not that its carrying value exceed its fair values. Fair value is estimated as the discounted value of future revenues using a royalty rate that a third party would pay for use of the asset. Variation in the royalty rate used could impact the estimate of fair value. If the carrying amount of an asset exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess. | ||||||||||||||
The Company reviewed the carrying value of our reporting units and indefinite-lived intangible assets by comparing such amount to its fair value and determined that the carrying amount did not exceed its respective fair value. During the years ended September 30, 2014, 2013 and 2012, the fair value of our reporting units was in excess of the reporting units' carrying values. Additionally, the fair value of our indefinite-lived intangible assets was in excess of its carrying value. Accordingly, management believes there are no impairments as of September 30, 2014 related to either goodwill or the indefinite-lived intangible asset. | ||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
The Company's financial instruments includes cash and cash equivalents, accounts receivable and payable, accrued and other current liabilities and line of credit, which approximate fair value because of their short-term maturities. The fair value of the long-term debt instruments are determined using current applicable rates for similar instruments as of the balance sheet date (Level 2 measurement as described in Note 10. "Fair Value of Financial Instruments"). The carrying amounts and fair value of the debt instruments as of September 30, 2014 were as follows: | ||||||||||||||
Carrying Value | Fair Value | |||||||||||||
$625,000 term loan A | $ | 550,781 | $ | 550,781 | ||||||||||
$525,000 term loan B | $ | 511,875 | $ | 511,875 | ||||||||||
$200,000 revolving line of credit | $ | 40,000 | $ | 40,000 | ||||||||||
Comprehensive Income | ||||||||||||||
ASC 220, Comprehensive Income, establishes guidelines for the reporting and display of comprehensive income and its components in financial statements. Comprehensive income generally represents all changes in stockholders' equity, except those resulting from investments by or distributions to stockholders. The Company's comprehensive income consists of foreign currency translation adjustments. | ||||||||||||||
Revenue Recognition | ||||||||||||||
The Company recognizes product and service revenue when (i) persuasive evidence of an arrangement exists, (ii) title transfers to the customer, (iii) the sales price charged is fixed or determinable and (iv) collection is reasonably assured. In instances where title does not pass to the customer upon shipment, the Company recognizes revenue upon delivery or customer acceptance, depending on the terms of the sales contract. | ||||||||||||||
In connection with the sales of its products, the Company often provides certain supply chain management services to its JIT customers. These services include the timely replenishment of products at the customer site, while also minimizing the customer's on-hand inventory. These services are provided by the Company contemporaneously with the delivery of the product, and as such, once the product is delivered, the Company does not have a post-delivery obligation to provide services to the customer. Accordingly, the price of such services is generally included in the price of the products delivered to the customer, and revenue is recognized upon delivery of the product, at which point the Company has satisfied its obligations to the customer. The Company does not account for these services as a separate element, as the services do not have stand-alone value and cannot be separated from the product element of the arrangement. Additionally, the Company does not present service revenues apart from product revenues, as the service fee revenues represent less than 10% of the Company's consolidated net sales. | ||||||||||||||
The Company reports revenue on a gross or net basis based on management's assessment of whether the Company acts as a principal or agent in the transaction and in accordance with the guidance of ASC 605-45-45, Revenue Recognition-Principal Agent Considerations, in the Company's presentation of sales and costs of revenue. If the Company is the principal in the transaction and has the risks and rewards of ownership, the transactions are recorded as gross in the consolidated statements of earnings. If the Company does not act as a principal in the transaction, the transactions are recorded on a net basis in the consolidated statement of comprehensive income. The majority of the Company's revenue is recorded on a gross basis with the exception of certain gas, energy and chemical manager service contracts that are recorded as net revenue. | ||||||||||||||
The Company also enters into sales rebates and profit sharing arrangements. Such customer incentives are accounted for as a reduction to gross sales and recorded based upon estimates at the time products are sold. These estimates are based upon historical experience for similar programs and products. The Company reviews such rebates and profit sharing arrangements on an ongoing basis and accruals are adjusted, if necessary, as additional information becomes available. | ||||||||||||||
Management provides allowances for credits and returns based on historic experience and adjusts such allowances as considered necessary. To date, such provisions have been within the range of management's expectations and the allowance established. Sales tax collected from customers is excluded from net sales in the accompanying consolidated statements of income. | ||||||||||||||
In connection with the Company's JIT supply chain management programs, the Company at times assumes customer inventory on a consignment basis. This consigned inventory remains the property of the customer but is managed and distributed by the Company. The Company earns a fixed fee per unit on each shipment of the consigned inventory; such amounts represent less than 1% of consolidated revenues. | ||||||||||||||
Shipping and Handling Costs | ||||||||||||||
The Company records revenue for shipping and handling billed to its customers. Shipping and handling revenues were approximately $6,951, $1,304 and $765 for the years ended September 30, 2014, 2013 and 2012, respectively. | ||||||||||||||
Shipping and handling costs are primarily included in cost of sales. Total shipping and handling costs were approximately $24,801, $8,330 and $6,202 for the years ended September 30, 2014, 2013 and 2012, respectively. | ||||||||||||||
Income Taxes | ||||||||||||||
The Company accounts for income taxes in accordance with ASC 740, Income Taxes. ASC 740 requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is established, when necessary, to reduce net deferred tax assets to the amount expected to be realized. The Company's foreign subsidiaries are taxed in local jurisdictions at local statutory rates. | ||||||||||||||
Concentration of Credit Risk and Significant Vendors | ||||||||||||||
The Company maintains its cash and cash equivalents in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk from cash and cash equivalents. | ||||||||||||||
The Company purchases its products on credit terms from vendors located throughout North America and Europe. For the years ended September 30, 2014, 2013 and 2012, the Company made approximately 15%, 20% and 21%, respectively, of its purchases from Precision Castparts Corporation and the amounts payable to this vendor were approximately 6%, 14% and 13% of accounts payable at September 30, 2014, 2013 and 2012, respectively. Additionally, for the years ended September 30, 2014, 2013 and 2012, the Company made approximately 15%, 19% and 23%, respectively, of its purchases from Alcoa Fastening Systems and the amounts payable to this vendor were approximately 10%, 14% and 15% of amounts payable at September 30, 2014, 2013 and 2012, respectively. The majority of the products the Company sells are available through multiple channels and, therefore, this reduces the risk related to any vendor relationship. | ||||||||||||||
For the years ending September 30, 2014, 2013 and 2012, the Company derived approximately 8%, 4% and 9%, respectively, of its recorded sales from The Boeing Company and the accounts receivable balance associated with this customer was approximately 2%, 7% and 3% at September 30, 2014, 2013 and 2012, respectively. | ||||||||||||||
Foreign Currency Translation | ||||||||||||||
The financial statements of the foreign subsidiaries are translated into U.S. Dollars in accordance with ASC 830, Foreign Currency Matters. The financial statements of foreign subsidiaries and affiliates where the local currency is the functional currency are translated into U.S. Dollars using exchange rates in effect at each year-end for assets and liabilities and average exchange rates during the period for results of operations. The adjustment resulting from translating the financial statements of such foreign subsidiaries is reflected as a separate component of stockholders' equity. Foreign currency transaction gains and losses are reported as other income (expense), net in the consolidated statement of income. For the years ended September 30, 2014, 2013 and 2012, foreign currency transaction gains (losses) were approximately $1,555, $1,748 and $(277), respectively. | ||||||||||||||
Stock-Based Compensation | ||||||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation. ASC 718 requires all stock-based awards to employees and directors to be recognized as stock-based compensation expense based upon their fair values on the date of grant. In March 2005, the Securities and Exchange Commission ("SEC") issued Staff Accounting Bulletin ("SAB") No. 107, Share-Based Payment, which provides guidance regarding the interaction of ASC 718 and certain SEC rules and regulations. The Company has applied the provisions of SAB No. 107 in its adoption of ASC 718. | ||||||||||||||
ASC 718 requires companies to estimate the fair value of stock-based payment awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as an expense during the requisite service periods. The Company has estimated the fair value for each option award as of the date of grant using the Black-Scholes option pricing model. The Black-Scholes model considers, among other factors, the expected life of the award and the expected volatility of the Company's stock price. The Company recognizes the stock-based compensation expense over the requisite service period (generally a vesting term of 3 years) using the graded vesting method for performance condition awards and the straight line method for service condition only awards, which is generally a vesting term of 3 years. Stock options typically have a contractual term of 10 years. The stock options granted had an exercise price equal to the closing stock price of the Company's common stock on the grant date. Compensation expense for restricted stock units and awards are based on the market price of the shares underlying the awards on the grant date. Compensation expense for performance based awards reflects the estimated probability that the performance condition will be met. | ||||||||||||||
Net Income Per Share | ||||||||||||||
Basic net income per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income per share includes the dilutive effect of both outstanding stock options and restricted shares, calculated using the treasury stock method. Assumed proceeds from the in-the-money options include the tax benefits, net of shortfalls, calculated under the "as-if" method as prescribed by ASC 718. | ||||||||||||||
September 30 | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(In thousands, except | ||||||||||||||
per share data) | ||||||||||||||
Net income | $ | 102,102 | $ | 104,812 | $ | 92,175 | ||||||||
Basic weighted average shares outstanding | 95,951 | 93,285 | 92,058 | |||||||||||
Dilutive effect of stock options and restricted shares | 1,655 | 2,559 | 3,654 | |||||||||||
Dilutive weighted average shares outstanding | 97,606 | 95,844 | 95,712 | |||||||||||
Basic net income per share | $ | 1.06 | $ | 1.12 | $ | 1.00 | ||||||||
Diluted net income per share | $ | 1.05 | $ | 1.09 | $ | 0.96 | ||||||||
Shares of common stock equivalents of 510,800, zero and 273,315 for fiscal 2014, 2013 and 2012, respectively, were excluded from the diluted calculation due to their anti-dilutive effect. | ||||||||||||||
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 12 Months Ended |
Sep. 30, 2014 | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | ' |
Note 3. Recent Accounting Pronouncements | |
In July 2013, the FASB issued ASU 2013-11, Income Taxes (Topic 740): Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which addresses the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, similar tax loss, or tax credit carryforward exists. This guidance requires the netting of unrecognized tax benefits against a deferred tax asset for a loss or other carryforward that would apply in settlement of the uncertain tax positions. ASU 2013-11 became effective during the first quarter of fiscal 2014 and did not have a material impact on the Company's consolidated financial statements. | |
In April 2014, the FASB issued ASU 2014-08, Presentation of Financial Statements and Property, Plant, and Equipment, which addresses revised guidance on reporting discontinued operations. This revised guidance defines a discontinued operation as a disposal of a component or a group of components of an entity that represents a strategic shift that has (or will have) a major effect on the entity's operations and financial results. ASU 2014-08 also requires additional disclosures for discontinued operations and new disclosures for individually material disposal transactions that do not meet the definition of a discontinued operation. ASU 2014-08 is effective for fiscal years beginning on or after December 15, 2014 and interim periods within those years, with earlier adoption permitted. The Company does not anticipate the adoption of ASU 2014-08 to have a significant impact on the Company's consolidated financial statements. | |
In May 2014, the FASB issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)."ASU No. 2014-09 provides comprehensive guidance on the recognition of revenue from customers arising from the transfer of goods and services. The ASU also provides guidance on accounting for certain contract costs, and requires new disclosures. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently evaluating the effect of the adoption of ASU 2014-09 on its consolidated financial statements and the implementation approach to be used | |
In June 2014, the FASB issued ASU 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments when the Terms of an Award Provide that a Performance Target Could Be Achieved After the Requisite Service Period (ASU 2014-12). This ASU requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. ASU 2014-12 is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Entities may apply ASU 2014-12 either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this ASU as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. The Company currently is evaluating the impact of the adoption of ASU 2014-12 on its financial statements and disclosures. | |
In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern (ASU 2014-15), which amends ASC Subtopic 205-40 to provide guidance about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related disclosures. Specifically, the amendments (1) provide a definition of the term "substantial doubt," (2) require an evaluation every reporting period, (3) provide principles for considering the mitigating effect of management's plans, (4) require certain disclosures when substantial doubt is alleviated as a result of consideration of management's plans, (5) require an express statement and other disclosures when substantial doubt is not alleviated, and (6) require an assessment for a period of one year after the date that financial statements are issued. ASU 2014-15 is effective for fiscal years ending after December 15, 2016, and for annual periods and interim periods thereafter. | |
Acquisitions
Acquisitions | 12 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Acquisitions | ' | ||||||||||
Acquisitions | ' | ||||||||||
Note 4. Acquisitions | |||||||||||
2014 Acquisition | |||||||||||
On February 28, 2014 through its wholly owned subsidiary, Flyer Acquisition Corp, the Company acquired 100% of the outstanding shares of Haas Group Inc. ("Haas"), for a purchase price of $560,200. | |||||||||||
The acquisition of Haas was financed through a combination of a new $525,000 term loan B facility, cash on hand and drawings under our revolving line of credit. As a result of the acquisition, Haas became a wholly-owned subsidiary of the Company. The Company incurred transaction related costs of $6,700, and such costs were expensed as incurred. | |||||||||||
Haas is a provider of chemical supply chain management services to the commercial aerospace, airline, military, energy, and other markets, helping its customers reduce costs and comply with increasingly complex regulatory requirements for chemical usage. The acquisition of Haas expands the Company's existing customer base and active stock-keeping units, while also providing the Company with opportunities to increase sales by leveraging and cross-selling into Wesco's and Haas' respective customer bases. In addition, we believe the addition of Haas' proprietary information technology system (tcmIS), which interfaces directly with customer and supplier enterprise resource planning systems, and its experienced senior management team, will benefit Wesco going forward. | |||||||||||
The goodwill related to the Haas acquisition represents the value paid for assembled workforce, its international geographic presence and synergies expected to arise after the acquisition. None of the goodwill resulting from the Haas acquisition is deductible for income tax purposes. The goodwill is allocated based on each reporting units results to the North America and the Rest of World segments. | |||||||||||
The Company finalized the purchase price allocation during the fourth quarter of 2014. The preliminary fair values of assets acquired and liabilities assumed on the acquisition date and the final allocations were as follows (in thousands): | |||||||||||
Preliminary | Final | Adjustment | |||||||||
Current assets | $ | 195,351 | $ | 191,232 | $ | (4,119 | ) | ||||
Property and equipment | 20,121 | 19,306 | (815 | ) | |||||||
Other assets | 13,061 | 11,061 | (2,000 | ) | |||||||
Trademarks | 15,200 | 16,100 | 900 | ||||||||
Customer relationships | 77,400 | 97,400 | 20,000 | ||||||||
Technology | 32,400 | 34,400 | 2,000 | ||||||||
Goodwill | 316,311 | 299,039 | (17,272 | ) | |||||||
Total assets acquired | $ | 669,844 | $ | 668,538 | $ | (1,306 | ) | ||||
Total liabilities assumed | (109,644 | ) | (108,338 | ) | 1,306 | ||||||
Purchase price, net of liabilities assumed | $ | 560,200 | $ | 560,200 | $ | — | |||||
The excess purchase price over the fair value of the net identifiable assets acquired was recorded as goodwill. The fair value assigned to the identifiable intangible assets acquired was based on an income approach method using assumptions and estimates derived by Company management. It was determined that the Haas trademark has a 15-year useful life, customer relationships have a 15-year estimated useful life and Haas' technology has a 10-year estimated useful life. Factors considered in the determination of its useful lives include customer attrition rates, technology life cycles, and patent and trademark laws. | |||||||||||
The results of Haas since the acquisition have been included in the consolidated financial statements and are included in the North America and Rest of World segments based on actual results of the reporting units. | |||||||||||
Haas consolidated net sales and net earnings included in the financial statements since the acquisition date were $356,154 and $2,850, respectively. | |||||||||||
Pro Forma Consolidated Results | |||||||||||
The following pro forma information presents the financial results as if the acquisition of Haas had occurred on October 1, 2013 (in thousands, except per share data). The pro forma results do not include any anticipated cost synergies, costs or other effects of the planned integration of the acquisition. Accordingly, such pro forma amounts are not necessarily indicative of the results that actually would have occurred had the acquisitions been completed on the dates indicated, nor are they indicative of the future operating results of the Company. We did not have any material, nonrecurring pro forma adjustments directly attributable to the business combination in the reported pro-forma net sales and earnings. | |||||||||||
Year ended September 30, | |||||||||||
2014 | 2013 | ||||||||||
Pro forma net sales | $ | 1,591,538 | $ | 1,462,164 | |||||||
Pro forma net income attributable to Wesco Aircraft Holdings, Inc. | $ | 102,652 | $ | 109,781 | |||||||
Pro forma net income per common share amounts: | |||||||||||
Basic net income attributable to Wesco Aircraft Holdings, Inc. | $ | 1.07 | $ | 1.18 | |||||||
Diluted net income attributable to Wesco Aircraft Holdings, Inc. | $ | 1.05 | $ | 1.15 | |||||||
2012 Acquisition | |||||||||||
On July 3, 2012, the Company acquired substantially all of the assets of Interfast, Inc., an Ontario corporation ("Interfast"). Interfast was a Toronto-based value-added distributor of specialty fasteners, fastening systems and production installation tooling for the aerospace, electronics and general industrial markets. The acquisition of Interfast provided the Company stronger relationships with strategic customers, a greater presence with commercial MRO (maintenance, repair and overhaul) providers and an entry into the high-end industrial fastener market. | |||||||||||
The aggregate purchase price of the acquisition amounted to $131,894 which was funded by $95,000 in borrowings under the $150,000 revolving facility and $36,894 in cash. The Company incurred transaction related costs of $2,857; such costs were expensed as incurred. | |||||||||||
The total purchase price has been allocated to the assets acquired and liabilities assumed based on their respective fair values at the acquisition date in accordance with the acquisition method of accounting. The results of operations of Interfast have been included in the consolidated financial statements from the date of acquisition. The excess purchase price over the net assets acquired has been allocated to goodwill. | |||||||||||
The estimated fair values of assets acquired and liabilities assumed on the acquisition date were as follows: | |||||||||||
Current assets | $ | 55,130 | |||||||||
Property and equipment | 1,094 | ||||||||||
Identifiable intangible assets | |||||||||||
Trademarks | 1,087 | ||||||||||
Customer relationships | 19,423 | ||||||||||
Non-compete agreements | 455 | ||||||||||
Backlog | 3,161 | ||||||||||
Goodwill | 58,471 | ||||||||||
Total assets acquired | 138,821 | ||||||||||
Total liabilities assumed | (6,927 | ) | |||||||||
Purchase price, net of liabilities assumed | $ | 131,894 | |||||||||
The fair value assigned to the identifiable intangible assets acquired was based on an income approach method using assumptions and estimates derived by Company management. It was determined the customer relationships have a 15-year estimated useful life, the Interfast trademark has a 10-year useful life, the Interfast backlog has a 2-year useful life and the Interfast non-compete agreement has a useful life of 3 years. Factors considered in the determination of its useful lives include Interfast's performance over its forty six year history, its relative size as compared to its competitors and its ability to provide product that is difficult to source. | |||||||||||
The goodwill related to the Interfast acquisition represents the value paid for assembled workforce, its international geographic presence in eastern Canada, and synergies expected to arise after the Interfast Acquisition. The results of the acquisition have been included in the consolidated financial statements from the date of closing and are included within the North American Segment. The acquisition was not considered material, as a result no pro forma information has been provided. | |||||||||||
Excess_and_Obsolescence_Reserv
Excess and Obsolescence Reserve Policy | 12 Months Ended |
Sep. 30, 2014 | |
Excess and Obsolescence Reserve Policy | ' |
Excess and Obsolescence Reserve Policy | ' |
Note 5. Excess and Obsolescence Reserve Policy | |
The Company performs a monthly inventory analysis and records excess and obsolescence expense after weighing a number of factors, including historical sell-through rates, current selling and buying patterns, forecasted future sales, program delays or cancellations, inventory quantities and aging, shelf-life expirations, damage to products, rights we have with certain manufacturers to exchange unsold products for new products and open customer orders. These factors are described in greater detail below. For the Company's chemical products, no reserve is recorded for items where the customer is responsible for any excess and obsolete product. | |
As of September 30, 2014 and 2013, the Company's excess and obsolete reserve was approximately $143,736 and $121,129, respectively. Of these amounts, approximately $17,700 and $8,710 was recorded during the year ended September 30, 2014 and 2013, respectively. The Company believes that these amounts appropriately reflect the risk of excess and obsolete inventory inherent in its business. The excess and obsolescence reserve includes both excess and slow-moving inventory which typically includes inventory held by the Company after strategic purchases are made to take advantage of favorable pricing terms, speculative purchases based on current market trends or purchases timed to take supplier lead times into account, which may result in us maintaining excess and slow-moving quantities of inventories. | |
Excess and Slow-Moving Inventory | |
In conducting a monthly reserve analysis with respect to excess and slow-moving inventory, the Company considers a variety of factors, including historical sell-through rates, current selling and buying patterns, inventory quantities and aging, shelf-life expirations, damage to products, rights the Company has with certain manufacturers to exchange unsold products for new products and open customer orders. Furthermore, although the Company's customers are not required to purchase a specific quantity of inventory, the Company is able to forecast future sales with a fair degree of precision by monitoring and tracking customers' production cycles, which forecasting is taken into account when conducting the reserve analysis. The Company further notes that it is required to make commitments to purchase inventory based on manufacturer lead times, which may be up to two years. In addition, the Company may be entitled to obtain price breaks or discounts based on the quantity of inventory committed to purchase. | |
Given the length of manufacturers' lead times, the Company's desire to obtain advantageous inventory pricing, the impact of macro and micro economic conditions and variability within specific customer programs, inventory quantities may increase at a rate higher than the Company originally anticipated, which can impact the amount of excess and slow-moving inventory the Company holds. | |
A majority of the products the Company sells can be sold across multiple aircraft platforms and the lifespan of the products the Company sells along with the design of the aircrafts that utilize those products is typically not subject to a high degree of obsolescence. Accordingly, since 2006 the Company has only scrapped $17,283 of its inventory. However, the Company's chemical inventory becomes obsolete when it has aged past its shelf-life, cannot be recertified and is no longer usable or able to be sold, or the inventory has been damaged on-site or in-transit. In such instances, a full reserve is taken against such inventory. In certain cases, as determined by the applicable contract, the customer is responsible for excess or obsolete chemical product, and in such instances, no reserve is recorded for the applicable product. Furthermore, the Company does take program delays and cancellations into account when conducting the reserve analysis. | |
Based on the Company's current analysis of these factors, in particular historical sales data, cycle times of programs, the multiple platforms on which individual products can be sold and customer buying patterns, the Company maintains an unreserved slow-moving inventory of $22,398, which it believes based on historical and anticipated sell through rates will be sold over the next three years, and accordingly, has not recorded a reserve for those amounts. However, in the future, the Company may determine that it is necessary to reserve for a portion of this $22,398 of inventory. | |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2014 | |
Related Party Transactions | ' |
Related Party Transactions | ' |
Note 6. Related Party Transactions | |
The Company entered into a management agreement with The Carlyle Group to provide certain financial, strategic advisory and consultancy services. Under this management agreement, the Company is obligated to pay The Carlyle Group, or a designee thereof, an annual management fee of $1,000 plus fees and expenses associated with company-related meetings. The Company incurred expense of approximately $1,077, $1,053 and $1,079 and for the years ended September 30, 2014, 2013 and 2012, respectively, related to this management agreement. These amounts were paid to The Carlyle Group during the years ended September 30, 2014, 2013 and 2012. | |
The Company leases several office and warehouse facilities under operating lease agreements from entities controlled by the Company's chief executive officer ("CEO"). Rent expense on these facilities was approximately $1,826, $1,754 and $1,750 for the years ended September 30, 2014, 2013 and 2012, respectively (see Note 14). | |
Property_and_Equipment_net
Property and Equipment, net | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property and Equipment, net | ' | |||||||
Property and Equipment, net | ' | |||||||
Note 7. Property and Equipment, net | ||||||||
Property and equipment, net, consist of the following: | ||||||||
2014 | 2013 | |||||||
Land, buildings and improvements | $ | 25,817 | $ | 15,468 | ||||
Machinery and equipment | 16,133 | 12,872 | ||||||
Furniture and fixtures | 5,002 | 3,064 | ||||||
Vehicles | 951 | 871 | ||||||
Computer hardware and software | 26,688 | 18,749 | ||||||
Construction in progress | 4,347 | 3,492 | ||||||
78,938 | 54,516 | |||||||
Less: accumulated depreciation | (29,674 | ) | (27,722 | ) | ||||
Property and equipment, net | $ | 49,264 | $ | 26,794 | ||||
At September 30, 2014, 2013 and 2012, property and equipment included assets of approximately $6,845, $9,345 and $6,422, respectively, acquired under capital lease arrangements. Accumulated amortization of assets acquired under capital leases was approximately $2,713, $6,700 and $5,680 as of September 30, 2014, 2013 and 2012, respectively. | ||||||||
Depreciation and amortization expense for property and equipment was approximately $8,766, $4,781 and $5,536 during the years ended September 30, 2014, 2013 and 2012, respectively (including amortization expense of approximately $1,427, $1,020 and $2,114 on assets acquired under capital leases for 2014, 2013 and 2012, respectively). | ||||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets, net | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Goodwill and Intangible Assets, net | ' | |||||||||||||
Goodwill and Intangible Assets, net | ' | |||||||||||||
Note 8. Goodwill and Intangible Assets, net | ||||||||||||||
A reconciliation of the Company's goodwill balance is as follows: | ||||||||||||||
September 30, | September 30, | |||||||||||||
2014 | 2013 | |||||||||||||
Beginning balance | $ | 562,493 | $ | 563,896 | ||||||||||
Foreign currency translation | 43 | (1,403 | ) | |||||||||||
Haas acquisition | 299,039 | — | ||||||||||||
Ending balance | $ | 861,575 | $ | 562,493 | ||||||||||
As of September 30, 2014 and 2013, the gross amounts and accumulated amortization of intangible assets is as follows: | ||||||||||||||
2014 | 2013 | |||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||
Customer relationships (12 to 20 year life) | $ | 181,687 | $ | (33,401 | ) | $ | 84,237 | $ | (24,842 | ) | ||||
Trademarks (5 years to indefinite life) | 56,524 | (2,372 | ) | 40,425 | (1,637 | ) | ||||||||
Backlog (2 year life) | 4,327 | (4,327 | ) | 4,327 | (3,136 | ) | ||||||||
Non-compete agreements (3 to 4 year life) | 1,457 | (1,343 | ) | 1,457 | (1,190 | ) | ||||||||
Technology (10 year life) | 34,400 | (2,007 | ) | — | — | |||||||||
Total intangible assets | $ | 278,395 | $ | (43,450 | ) | $ | 130,446 | $ | (30,805 | ) | ||||
The Company has not incurred any goodwill impairment losses since inception. See Note 18 for goodwill by segment. | ||||||||||||||
Estimated future intangible amortization expense at September 30, 2014 is as follows: | ||||||||||||||
2015 | $ | 15,993 | ||||||||||||
2016 | 15,878 | |||||||||||||
2017 | 15,878 | |||||||||||||
2018 | 15,878 | |||||||||||||
2019 | 15,878 | |||||||||||||
Thereafter | 117,608 | |||||||||||||
$ | 197,113 | |||||||||||||
Amortization expense included in the accompanying statements of operations for the years ended September 30, 2014, 2013 and 2012 was $12,636, $6,599 and $4,427, respectively. In addition to its amortizing intangibles, the Company assigned an indefinite life to the Wesco Aircraft trademark. As of September 30, 2014 and 2013, the trademark had a carrying value of $37,832. | ||||||||||||||
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accrued Expenses and Other Current Liabilities | ' | |||||||
Accrued Expenses and Other Current Liabilities | ' | |||||||
Note 9. Accrued Expenses and Other Current Liabilities | ||||||||
Accrued expenses and other current liabilities consist of the following: | ||||||||
2014 | 2013 | |||||||
Accrued compensation and related expenses | $ | 13,894 | $ | 14,606 | ||||
Accrual for commissions | 930 | 447 | ||||||
Accrued professional fees | 1,417 | 596 | ||||||
Accrued customer rebates | 2,874 | 1,743 | ||||||
Accrued taxes (property, sales and use) | 3,345 | 1,467 | ||||||
Accrued interest | 1,434 | 588 | ||||||
Accrual for undermarket contracts | 3,232 | — | ||||||
Accrued profit sharing | 600 | 791 | ||||||
Accrued freight and duty | 867 | — | ||||||
Other accruals | 3,003 | 809 | ||||||
Accrued expenses and other current liabilities | $ | 31,596 | $ | 21,047 | ||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 12 Months Ended | ||
Sep. 30, 2014 | |||
Fair Value of Financial Instruments | ' | ||
Fair Value of Financial Instruments | ' | ||
Note 10. Fair Value of Financial Instruments | |||
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To determine fair value, the Company primarily utilizes reported market transactions and discounted cash flow analyses. The Company uses a three tier fair value hierarchy that maximizes the use of observable inputs and minimizes the use of unobservable inputs. Observable inputs are inputs that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from sources independent of the reporting entity. Unobservable inputs are inputs that reflect the reporting entity's own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The fair value hierarchy prioritizes the inputs to valuation techniques into three broad levels whereby the highest priority is given to Level 1 inputs and the lowest to Level 3 inputs. The three broad categories are: | |||
Level 1: | Quoted prices in active markets for identical assets or liabilities. | ||
Level 2: | Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. | ||
Level 3: | Unobservable inputs for the asset or liability. | ||
The Company makes use of observable market-based inputs to calculate fair value, in which case the measurements are classified within Level 2. If quoted or observable market prices are not available, fair value is based upon internally developed models that use, where possible, current market-based parameters such as interest rates, yield curves and currency rates. These measurements are classified within Level 3. | |||
Fair value measurements are classified according to the lowest level input or value-driver that is significant to the valuation. A measurement may therefore be classified within Level 3 even though there may be significant inputs that are readily observable. | |||
The guidance on fair value measurements expanded the definition of fair value to include the consideration of nonperformance risk. Nonperformance risk refers to the risk that an obligation (either by a counterparty or us) will not be fulfilled. For financial assets traded in an active market (Level 1), the nonperformance risk is included in the market price. For certain other financial assets and liabilities (Level 2 and 3), the Company's fair value calculations have been adjusted accordingly. | |||
Where available, the Company utilizes quoted market prices or observable inputs rather than unobservable inputs to determine fair value. | |||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Long-Term Debt | ' | |||||||
Long-Term Debt | ' | |||||||
Note 11. Long-Term Debt | ||||||||
Long-term debt consists of the following at: | ||||||||
September 30, | September 30, | |||||||
2014 | 2013 | |||||||
(In thousands) | (In thousands) | |||||||
$625,000 term loan, bearing interest based on the ABR (defined as Prime Rate plus an applicable margin rate ranging from 0.75% - 1.50%), or Eurodollar (defined as London Inter-Bank Offer Rate ("LIBOR") rates plus an applicable margin rate ranging from 1.75% - 2.50%). The applicable margin rates are indexed to the Company's Consolidated Total Leverage Ratio (as such ratio is defined in the senior secured credit facilities) and adjusted each reporting period based on operating results. The term loan is payable quarterly equal to 1.25% the first year, escalating to 2.50% by the fifth year, of the principal amount of $625,000, with the balance due on the maturity date of December 7, 2017. The applicable interest rate was 2.66% at September 30, 2014. | 550,781 | 568,000 | ||||||
$525,000 term loan B, with a margin of 2.50% per annum for Eurocurrency loans (subject to a minimum Eurocurrency rate floor of 0.75% per annum) or 1.50% per annum for ABR loans (subject to a minimum ABR floor of 1.75% per annum). The term loan is payable quarterly, commencing on June 30, 2014, in equal installments of 0.25% of the principal amount of $525,000, with the balance due on the maturity date of February 28, 2021. The applicable interest rate was 3.25% at September 30, 2014. | 511,875 | |||||||
— | ||||||||
$200,000 revolving line of credit, bearing interest based on the ABR (defined as Prime Rate plus an applicable margin rate ranging from 0.75% - 1.50%), or Eurodollar (defined as London Inter-Bank Offer Rate ("LIBOR") rates plus an applicable margin rate ranging from 1.75% - 2.50%). The applicable margin rates are indexed to the Company's Consolidated Leverage Ratio (as such ratio is defined in the senior secured credit facilities) and adjusted each reporting period based on operating results. The revolving facility is due on December 7, 2017. The applicable interest rate was 2.66% at September 30, 2014. | 40,000 | |||||||
— | ||||||||
Less: current portion | (23,437 | |||||||
) | — | |||||||
Long-term debt | $ | 1,079,219 | $ | 568,000 | ||||
Aggregate maturities of long-term debt as of September 30, 2014 are as follows: | ||||||||
Years Ended September 30, | ||||||||
2015 | $ | 23,437 | ||||||
2016 | 46,875 | |||||||
2017 | 63,844 | |||||||
2018 | 467,125 | |||||||
2019 & thereafter | 501,375 | |||||||
$ | 1,102,656 | |||||||
In addition, on February 28, 2014, the Company entered into the first amendment to the existing senior secured credit facilities, which amendment modified the existing senior secured credit facilities to provide an additional senior secured term loan B facility in the aggregate principal amount of $525,000, which together with the existing senior secured credit facilities we refer to as the senior secured credit facilities, to finance, in part, the acquisition of Haas. The term loan B facility will mature on February 28, 2021. | ||||||||
Under the terms and definitions of the senior secured credit facilities as of September 30, 2014, the Company's Consolidated Total Leverage Ratio (as such ratio is defined in the senior secured credit facilities) cannot exceed 5.25 (with step-downs on such ratio during future periods) and its Consolidated Net Interest Coverage Ratio (as such ratio is defined in the senior secured credit facilities) cannot be less than 2.25. The senior secured credit facilities also contain customary negative covenants, including restrictions on our and our restricted subsidiaries' ability to merge and consolidate with other companies, incur indebtedness, grant liens or security interests on assets, make acquisitions, loans, advances or investments, pay dividends, sell or otherwise transfer assets, optionally prepay or modify terms of any junior indebtedness or enter into transactions with affiliates. The Company was in compliance with these covenants as of September 30, 2014. As of September 30, 2014, our Consolidated Total Leverage Ratio was 4.14 and our Consolidated Net Interest Coverage Ratio was 7.05. Borrowings under the senior secured credit facilities are guaranteed by the Company and all of its direct and indirect, wholly-owned, domestic restricted subsidiaries (subject to certain exceptions) and secured by a first lien on substantially all of the Company's assets and the assets of its guarantor subsidiaries, including capital stock of subsidiaries (in each case, subject to certain exceptions). | ||||||||
As of September 30, 2014, the Company has made voluntary prepayments totaling approximately $19,531 on the $625,000 term loan A and $10,500 on the $525,000 term loan B that have been applied to future required quarterly payments. | ||||||||
The Company's subsidiary, Wesco Aircraft Europe, Ltd, has available a £7,000 ($11,367 based on the September 30, 2014 exchange rate) line of credit that automatically renews annually on October 1. The line of credit bears interest based on the base rate plus an applicable margin of 1.65%. The net outstanding borrowing under this line of credit was £0 as of September 30, 2014. | ||||||||
As a result of the refinancing of its senior secured credit facility in the first quarter of fiscal 2013, the Company recorded a loss on extinguishment of debt in the amount of $4,960. The loss on extinguishment was recorded as a component of Interest Expense, net in the consolidated statements of earnings and comprehensive income during the three months ended December 31, 2012. These costs are being amortized over the term of the debt using the effective interest rate method. The total deferred financing costs capitalized at the close of the transaction on December 7, 2012 totaled approximately $11,168. | ||||||||
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||
Note 12. Income Taxes | ||||||||||||||||||||
Income before provision for income taxes for the years ended September 30, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
U.S. income | $ | 112,841 | $ | 115,194 | $ | 110,120 | ||||||||||||||
Foreign income | 44,067 | 42,433 | 23,542 | |||||||||||||||||
Total | $ | 156,908 | $ | 157,627 | $ | 133,662 | ||||||||||||||
The components of the Company's income tax provision for the years ended September 30, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Current provision | ||||||||||||||||||||
Federal | $ | 32,204 | $ | 29,366 | $ | 14,007 | ||||||||||||||
State and local | 1,920 | 3,943 | 1,355 | |||||||||||||||||
Foreign | 9,625 | 9,566 | 5,744 | |||||||||||||||||
Subtotal | 43,749 | 42,875 | 21,106 | |||||||||||||||||
Deferred provision (benefit) | ||||||||||||||||||||
Federal | 9,756 | 8,901 | 18,867 | |||||||||||||||||
State and local | 1,497 | 1,022 | 1,719 | |||||||||||||||||
Foreign | (196 | ) | 17 | (205 | ) | |||||||||||||||
Subtotal | 11,057 | 9,940 | 20,381 | |||||||||||||||||
Provision for income taxes | $ | 54,806 | $ | 52,815 | $ | 41,487 | ||||||||||||||
The tax benefits associated with the exercise of employee stock options and vesting of restricted stock units were recognized in the current year tax return which were in excess of the previously recorded value at the time of grant. During fiscal year 2014, $10,235 of tax benefit has been credited to additional paid in capital. | ||||||||||||||||||||
A reconciliation of the Company's provision (benefit) for income taxes to the U.S. federal statutory rate is as follows for the years ended September 30, 2014, 2013 and 2012: | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Provision for income taxes at statutory rate | $ | 54,917 | 35 | % | $ | 55,169 | 35 | % | $ | 46,782 | 35 | % | ||||||||
State taxes, net of tax benefit | 2,221 | 1.42 | 3,228 | 2.05 | 2,100 | 1.57 | ||||||||||||||
Deemed foreign dividends | 7,091 | 4.52 | 5,358 | 3.4 | 1,838 | 1.38 | ||||||||||||||
Nondeductible items | 1,114 | 0.71 | (48 | ) | (0.03 | ) | (498 | ) | (0.38 | ) | ||||||||||
Other | 1,825 | 1.16 | (2,060 | ) | (1.31 | ) | (407 | ) | (0.30 | ) | ||||||||||
IRC Section 199 and 41 | (649 | ) | (0.41 | ) | (610 | ) | (0.39 | ) | (3,550 | ) | (2.66 | ) | ||||||||
Foreign income not taxed at the Federal rate | (5,707 | ) | (3.64 | ) | (4,910 | ) | (3.11 | ) | (2,699 | ) | (2.02 | ) | ||||||||
Foreign tax credit | (5,329 | ) | (3.40 | ) | (3,312 | ) | (2.10 | ) | (2,079 | ) | (1.55 | ) | ||||||||
Release of tax contingencies | (677 | ) | (0.43 | ) | — | — | — | — | ||||||||||||
Actual provision for income taxes | $ | 54,806 | 34.93 | % | $ | 52,815 | 33.51 | % | $ | 41,487 | 31.04 | % | ||||||||
The increase in our effective tax rate resulted primarily from an increase in certain expenses related to the Haas acquisition which are not tax deductible. | ||||||||||||||||||||
For the years ended September 30, 2014 and 2013, the components of deferred income tax assets (liabilities) were as follows: | ||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Current deferred tax assets/(liabilities) | ||||||||||||||||||||
Inventories | $ | 44,688 | $ | 34,537 | ||||||||||||||||
Reserves and other accruals | 3,188 | 2,811 | ||||||||||||||||||
Net operating losses and tax credits | 1 | 0 | ||||||||||||||||||
Compensation accruals | 1,927 | 2,292 | ||||||||||||||||||
Other | (616 | ) | 31 | |||||||||||||||||
Total current deferred tax assets/(liabilities) | 49,188 | 39,671 | ||||||||||||||||||
Non-current deferred tax assets/(liabilities) | ||||||||||||||||||||
Property and equipment | (4,926 | ) | (2,107 | ) | ||||||||||||||||
Goodwill and intangible assets | (116,804 | ) | (73,268 | ) | ||||||||||||||||
Stock options | 2,018 | 3,062 | ||||||||||||||||||
Deferred financing costs | 51 | 129 | ||||||||||||||||||
Net operating losses and tax credits | 11,138 | — | ||||||||||||||||||
Others | 507 | — | ||||||||||||||||||
Total non-current deferred tax assets/(liabilities) | (108,016 | ) | (72,184 | ) | ||||||||||||||||
Valuation allowance | (4,930 | ) | — | |||||||||||||||||
Net deferred tax assets/(liabilities) | $ | (63,758 | ) | $ | (32,513 | ) | ||||||||||||||
As of September 30, 2014, the Company had state and foreign net operating loss carryforwards of $2,839 and $10,013 respectively, which will begin to expire in 2017. As of September 30, 2014, the Company had U.S. foreign tax credit carryforwards of $8,277 which will begin to expire in fiscal 2023. | ||||||||||||||||||||
Sections 382 and 383 of the Internal Revenue Code of 1986, as amended, impose substantial restrictions on the utilization of net operating losses and other tax attributes in the event of a cumulative ownership change of a corporation of more than 50% over a three-year period. The Company does not believe that there are any limitations on net operating losses or other tax attributes as a result of the Haas acquisition. | ||||||||||||||||||||
The Company is subject to U.S. federal income tax as well as income taxes in various state and foreign jurisdictions. The earliest tax year still subject to examination by a significant taxing jurisdiction is September 30, 2010. | ||||||||||||||||||||
The undistributed earnings of the Company's foreign subsidiaries, which amount to $128,232, are considered to be indefinitely reinvested and no provision for federal or state and local taxes or foreign withholding taxes has been provided on such earnings. The taxes associated with the undistributed earnings would be between $10,000 and $15,000. | ||||||||||||||||||||
As of September 30, 2014, the Company recognizes interest and penalties accrued related to unrecognized tax benefits in income tax expense. The Company determines whether it is more likely than not that a tax position will be sustained upon examination. If a tax position meets the more-likely-than-not recognition threshold it is then measured to determine the amount of benefit to recognize in the financial statements. The tax position is measured as the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. The Company classifies gross interest and penalties and unrecognized tax benefits that are not expected to result in payment or receipt of cash within one year as non-current liabilities in the Consolidated Balance Sheets. As of September 30, 2014, and as a result of the Haas acquisition, the total amount of gross unrecognized tax benefits including penalties and interest was $2,299, of which $2,299, if recognized, would affect the Company's effective tax rate. It is reasonably possible that within the next twelve months approximately $1,100 may be recognized as a result of the lapsing of the statute of limitation. | ||||||||||||||||||||
The unrecognized tax benefits, which excludes interest and penalties, for the years ended September 30, 2014, 2013 and 2012 are as follows: | ||||||||||||||||||||
2014 | ||||||||||||||||||||
Beginning balance | $ | — | ||||||||||||||||||
Increases related to tax positions taken during a prior year | 2,491 | |||||||||||||||||||
Decreases related to tax positions taken during a prior year | (590 | ) | ||||||||||||||||||
Increases related to tax positions taken during the current year | — | |||||||||||||||||||
Decreases related to expiration of statute of limitations | — | |||||||||||||||||||
Ending balance | $ | 1,901 | ||||||||||||||||||
The Company determines whether it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets depends upon the generation of future taxable income during the periods in which temporary differences become deductible or includible in taxable income. The Company considers projected future taxable income and tax planning strategies in its assessment. Based upon the level of historical income and projections for future taxable income, the Company believes it is more likely than not that the Company will not realize the benefits of the temporary differences related to certain Haas foreign tax credits and Haas foreign net operating losses. Therefore, a valuation allowance has been recorded through purchase accounting against these deferred tax assets. | ||||||||||||||||||||
Beginning | Valuation | Ending | ||||||||||||||||||
balance | allowance | balance | ||||||||||||||||||
recorded | ||||||||||||||||||||
during | ||||||||||||||||||||
the period | ||||||||||||||||||||
Valuation allowance for deferred tax assets: | ||||||||||||||||||||
Year ended September 30, 2014 | $ | 0 | $ | 4,930 | $ | 4,930 | ||||||||||||||
StockBased_and_Other_Compensat
Stock-Based and Other Compensation Arrangements | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Stock-Based and Other Compensation Arrangements | ' | |||||||||||||
Stock-Based and Other Compensation Arrangements | ' | |||||||||||||
Note 13. Stock-Based and Other Compensation Arrangements | ||||||||||||||
The Company's Amended and Restated Equity Incentive Plan (the "Prior Plan"), which was originally adopted in 2006 and the Company's 2011 Equity Incentive Award Plan (the "2011 Plan" and together with the Prior Plan, the "Plans"), which was adopted in connection with its initial public offering, provide or provided for the issuance of stock options, restricted stock awards, stock option rights and restricted stock units to certain employees and directors of the Company. These awards are subject to call rights by the Company upon the occurrence of certain events, including employee separation. Awards that are called by the Company are valued at fair market value, as determined by the Company's Board of Directors. Following the adoption of the Company's 2011 Plan, no new awards were granted under the Prior Plan. There are 5,850,000 shares authorized for issuance under the 2011 Plan. As of September 30, 2014, there were 4,000,819 shares remaining available for issuance under the 2011 Plan. | ||||||||||||||
Stock Options | ||||||||||||||
The Company's stock options are eligible to vest over 3 years in three equal annual installments, subject to continued employment on each vesting date. Vested options are exercisable at any time until the earlier of a change in control or 10 years from the date of the option grant. Certain vesting restrictions may apply in the year of change of control. The stock options granted have an exercise price equal to the closing stock price of the Company's common stock on the grant date. | ||||||||||||||
Continuous Employment Conditions | ||||||||||||||
At September 30, 2014, the Company has outstanding 549,266 unvested time-based stock options under the Plans, which will vest on the basis of continuous employment with the Company. Most of the time-based options vest ratably during the period of service. In case of a liquidity event, all the time-vesting options shall become fully vested and exercisable prior to the effective date of the first liquidity event. A liquidity event includes a sale, transfer or disposition of the equity securities of the Company held by all of the principal stockholders such that following such a transaction the total number of equity shares held by all of the principal stockholders is less than 30% of the total number of shares held at the effective date of acquisition of the Company, or a sale, transfer or other disposition of substantially all of the assets of the Company. | ||||||||||||||
The following table sets forth the summary of options activity under the Plans: | ||||||||||||||
Outstanding Options | ||||||||||||||
Number | Weighted | Weighted | Aggregate | |||||||||||
of Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value(1) | ||||||||||||
Price | Contractual | |||||||||||||
Life | ||||||||||||||
(in years) | ||||||||||||||
September 30, 2012 | 5,928,935 | $ | 5.32 | 4.9 | $ | 50,006,187 | ||||||||
Granted | 687,338 | $ | 13.49 | |||||||||||
Exercised | (2,133,334 | ) | $ | 4.63 | ||||||||||
Forfeited options | (244,913 | ) | $ | 14.66 | ||||||||||
September 30, 2013 | 4,238,026 | $ | 6.46 | 4.6 | $ | 61,338,566 | ||||||||
Granted | 558,300 | $ | 20.87 | |||||||||||
Exercised | (2,069,055 | ) | $ | 4.66 | ||||||||||
Forfeited options | (89,015 | ) | $ | 17.52 | ||||||||||
September 30, 2014 | 2,638,256 | $ | 10.54 | 5.8 | $ | 19,589,147 | ||||||||
-1 | Aggregate intrinsic value is calculated on the difference between our closing stock price at year end and the exercise price, multiplied by the number of in-the-money options and represents the pre-tax amount that would have been received by the option holders, had they all exercised all their options on the fiscal year end date. | |||||||||||||
The total intrinsic value of options exercised during fiscal 2014 and 2013 was $34,593 and $25,519, respectively. For the years ended September 30, 2014, 2013 and 2012, the Company recorded $2,946, $1,713 and $716, respectively, of stock-based compensation expense related to these options that is included within selling, general and administrative expenses. At September 30, 2014, the unrecognized stock-based compensation related to these options was approximately $4,445 and is expected to be recognized over a weighted-average period of two years. As of September 30, 2014, there are 2,088,988 options that are exercisable. Cash received from the exercise of stock options by the Company during the years ended September 30, 2014, 2013 and 2012 was approximately $9,643, $9,893 and $7,375, respectively. | ||||||||||||||
Restricted Stock Units and Restricted Stock | ||||||||||||||
In fiscal 2014, the Company granted 178,800 shares of restricted common stock to employees. These shares are eligible to vest over 3 years in three equal annual installments, subject to continued employment on each vesting date. During the years ended September 30, 2014, 2013 and 2012, the Company granted 26,874, 44,286 and 37,740, respectively, of restricted common shares to its directors. For the years ended September 30, 2014, 2013 and 2012, the Company recorded $2,561, $1,681 and $910, respectively, of stock-based compensation expense related to restricted stock that is included within selling, general and administrative expenses. The restricted stock units do not contain any redemption provisions that are not within the Company's control. Accordingly, these equity awards have been classified within stockholders' equity. At September 30, 2014, the unrecognized stock-based compensation related to restricted stock awards was approximately $3,007 and is expected to be recognized over a weighted-average period of two years. | ||||||||||||||
Restricted share activity during fiscal 2014 was as follows: | ||||||||||||||
Shares | Weighted | |||||||||||||
Average | ||||||||||||||
Fair Value | ||||||||||||||
Outstanding at start of year | 156,631 | $ | 13.65 | |||||||||||
Granted(1) | 205,674 | $ | 20.88 | |||||||||||
Vested | (156,829 | ) | $ | 17.38 | ||||||||||
Forfeited | (40,073 | ) | $ | 17.47 | ||||||||||
Outstanding at end of year | 165,403 | $ | 18.18 | |||||||||||
-1 | Under the terms of their respective restricted stock award agreements, holders of restricted stock have the same voting rights as common stock shareholders, such rights exist even if the shares of restricted stock have not vested. | |||||||||||||
Fair value of our restricted shares is based on our closing stock price on the date of grant. The fair value of shares that were vested during fiscal 2014, 2013 and 2012 was $2,807, $1,764 and $23,417, respectively. The fair value of shares that were granted during fiscal 2014, 2013 and 2012 was $4,294, $3,426 and $412, respectively. The weighted average fair value at the grant date for restricted shares issued during fiscal 2014, 2013 and 2012 was $20.88, $13.52 and $10.93, respectively. Tax benefits realized from tax deductions associated with option exercises and restricted share activity for 2014, 2013 and 2012 totaled $10,235, $6,879 and $21,476, respectively. | ||||||||||||||
Stock-Based Compensation | ||||||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718. The Company currently uses the Black-Scholes option pricing model to determine the fair value of the stock options. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Company's stock price as well as assumptions regarding complex and subjective variables. These variables include the expected stock price volatility over the term of the awards, risk-free interest rate and expected dividends. | ||||||||||||||
The Company estimated expected volatility based on historical data of comparable public companies. The expected term, which represents the period of time that options granted are expected to be outstanding, is estimated based on guidelines provided in SAB No. 110 and represents the average of the vesting tranches and contractual terms. The risk-free rate assumed in valuing the options is based on the U.S. Treasury rate in effect at the time of grant for the expected term of the option. The Company does not anticipate paying any cash dividends in the foreseeable future and, therefore, used an expected dividend yield of zero in the option pricing model. Compensation expense is recognized only for those options expected to vest with forfeitures estimated based on the Company's historical experience and future expectations. Stock-based compensation awards are amortized on a straight line basis over a 3 year period. | ||||||||||||||
The weighted average assumptions used to value the option grants are as follows: | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected life (in years) | 6.00 | 5.97 | — | |||||||||||
Volatility | 45.00 | % | 46.50 | % | — | |||||||||
Risk free interest rate | 1.72 | % | 1.04 | % | — | |||||||||
Dividend yield | — | — | — | |||||||||||
The Company did not have any options granted during 2012. The weighted average fair value per option at the grant date for options issued during fiscal 2014 and 2013 was $9.36 and $6.08, respectively. | ||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Commitments and Contingencies | ' | ||||||||||
Commitments and Contingencies | ' | ||||||||||
Note 14. Commitments and Contingencies | |||||||||||
Operating Leases | |||||||||||
The Company leases office and warehouse facilities (certain of which are from related parties) and warehouse equipment under various non-cancelable operating leases that expire at various dates through February 29, 2024. Certain leases contain escalation clauses based on the Consumer Price Index. The Company is also committed under the terms of certain of these operating lease agreements to pay property taxes, insurance, utilities and maintenance costs. | |||||||||||
Future minimum rental payments under operating leases as of September 30, 2014 are as follows: | |||||||||||
Third | Related | Total | |||||||||
Party | Party | ||||||||||
Years Ended September 30, | |||||||||||
2015 | $ | 8,479 | $ | 1,775 | $ | 10,254 | |||||
2016 | 6,299 | 1,775 | 8,074 | ||||||||
2017 | 5,163 | 1,775 | 6,938 | ||||||||
2018 | 3,653 | 2,177 | 5,830 | ||||||||
2019 | 2,952 | 2,177 | 5,129 | ||||||||
Thereafter | 5,474 | 2,169 | 7,643 | ||||||||
$ | 32,020 | $ | 11,848 | $ | 43,868 | ||||||
Total rent expense for the years ended September 30, 2014, 2013 and 2012 was $6,648, $4,654 and $4,218, respectively. | |||||||||||
Capital Lease Commitments | |||||||||||
The Company leases certain equipment under capital lease agreements that require minimum monthly payments that expire at various dates through December, 2019. The gross amount of these leases at September 30, 2014 and September 30, 2013 are $4,857 and $2,694, respectively. | |||||||||||
Future minimum lease payments as of September 30, 2014 are as follows: | |||||||||||
2015 | $ | 1,705 | |||||||||
2016 | 1,013 | ||||||||||
2017 | 730 | ||||||||||
2018 | 557 | ||||||||||
2019 | 430 | ||||||||||
Thereafter | 422 | ||||||||||
4,857 | |||||||||||
Less: Interest | (673 | ) | |||||||||
Total | $ | 4,184 | |||||||||
Litigation | |||||||||||
The Company is involved in various legal matters that arise in the normal course of its business. Management, after consulting with outside legal counsel, believes that the ultimate outcome of such matters will not have a material adverse effect on the Company's financial position, results of operations or cash flows. There can be no assurance, however, that such actions will not be material or adversely affect the Company's business, financial position and results of operations or cash flows. | |||||||||||
Employee_Benefit_Plan
Employee Benefit Plan | 12 Months Ended |
Sep. 30, 2014 | |
Employee Benefit Plan | ' |
Employee Benefit Plan | ' |
Note 15. Employee Benefit Plan | |
The Company maintains a 401(k) defined contribution plan and a retirement saving plan for the benefit of its eligible employees. All full-time employees who have completed at least six months of service and are at least 21 years of age are eligible to participate in the plans. Eligible employees may elect to contribute up to 60% of their eligible compensation. Contributions by the Company were $1,580, $945 and $858 during the years ending September 30, 2014, 2013 and 2012, respectively. | |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Supplemental Cash Flow Information | ' | ||||||||||
Supplemental Cash Flow Information | ' | ||||||||||
Note 16. Supplemental Cash Flow Information | |||||||||||
Year Ended September 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Cash payments for: | |||||||||||
Interest paid | $ | 24,440 | $ | 16,343 | $ | 21,006 | |||||
Income taxes paid | $ | 24,457 | $ | 5,977 | $ | 37,428 | |||||
Schedule of non-cash investing and financing activities: | |||||||||||
Property and equipment acquired pursuant to capital leases | $ | 1,528 | $ | 2,923 | $ | 116 | |||||
Property and equipment disposed of pursuant to termination of capital leases | $ | (5,414 | ) | $ | — | $ | (154 | ) | |||
Quarterly_Financial_Data_unaud
Quarterly Financial Data (unaudited) | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Quarterly Financial Data (unaudited) | ' | |||||||||||||
Quarterly Financial Data (unaudited) | ' | |||||||||||||
Note 17. Quarterly Financial Data (unaudited) | ||||||||||||||
Summarized unaudited quarterly financial data for quarters ended December 31, 2012 through September 30, 2014 is as follows: | ||||||||||||||
Quarter Ended: | September 30, | June 30, | March 31, | December 31, | ||||||||||
2014 | 2014 | 2014 | 2013 | |||||||||||
Net sales | $ | 408,167 | $ | 395,628 | $ | 327,360 | $ | 224,722 | ||||||
Gross profit | 119,749 | 121,535 | 99,089 | 78,058 | ||||||||||
Net income | 24,647 | 28,772 | 24,312 | 24,370 | ||||||||||
Basic net income per share(1) | $ | 0.25 | $ | 0.30 | $ | 0.25 | $ | 0.26 | ||||||
Diluted net income per share(1) | $ | 0.25 | $ | 0.29 | $ | 0.25 | $ | 0.25 | ||||||
Quarter Ended: | September 30, | June 30, | March 31, | December 31, | ||||||||||
2013 | 2013 | 2013 | 2012 | |||||||||||
Net sales | $ | 234,339 | $ | 230,236 | $ | 225,862 | $ | 211,170 | ||||||
Gross profit | 85,000 | 81,891 | 81,308 | 74,100 | ||||||||||
Net income | 29,972 | 27,026 | 29,388 | 18,426 | ||||||||||
Basic net income per share(1) | $ | 0.32 | $ | 0.29 | $ | 0.32 | $ | 0.20 | ||||||
Diluted net income per share(1) | $ | 0.31 | $ | 0.28 | $ | 0.31 | $ | 0.19 | ||||||
-1 | Net income per share calculations for each quarter are based on the weighted average diluted shares outstanding for that quarter and may not total to the full year amount. | |||||||||||||
Segment_Reporting
Segment Reporting | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||
Note 18. Segment Reporting | ||||||||||||||||||||
The Company is organized based on geographic location. The Company's reportable segments are North America and Rest of World. | ||||||||||||||||||||
The Company evaluates segment performance based on segment operating earnings or loss. Each segment reports its results of operations and makes requests for capital expenditures and acquisition funding to the Company's chief operating decision-maker ("CODM"). The Company's CEO serves as CODM. | ||||||||||||||||||||
The following table presents net sales and other financial information by business segment (in thousands): | ||||||||||||||||||||
Year Ended September 30, 2014 | ||||||||||||||||||||
North | Rest of | Consolidated | ||||||||||||||||||
America | World | |||||||||||||||||||
Net sales | $ | 1,030,511 | $ | 325,366 | $ | 1,355,877 | ||||||||||||||
Operating earnings | 145,357 | 38,577 | 183,934 | |||||||||||||||||
Interest expense, net | (25,836 | ) | (3,389 | ) | (29,225 | ) | ||||||||||||||
Provision for income taxes | 47,459 | 7,347 | 54,806 | |||||||||||||||||
Total assets | 2,093,384 | 406,988 | 2,412,274 | |||||||||||||||||
Goodwill | 779,395 | 82,180 | 861,575 | |||||||||||||||||
Capital expenditures | 9,763 | 754 | 10,517 | |||||||||||||||||
Depreciation and amortization | 18,317 | 3,085 | 21,402 | |||||||||||||||||
Changes in the goodwill balance in 2014 are related to the Haas acquisition, of which 223,681 and 75,358 relate to the North America and Rest of World segments respectively. | ||||||||||||||||||||
Year Ended September 30, 2013 | ||||||||||||||||||||
North | Rest of | Consolidated | ||||||||||||||||||
America | World | |||||||||||||||||||
Net sales | $ | 713,725 | $ | 187,883 | $ | 901,608 | ||||||||||||||
Operating earnings | 150,587 | 30,215 | 180,802 | |||||||||||||||||
Interest expense, net | (25,355 | ) | 177 | (25,178 | ) | |||||||||||||||
Provision for income taxes | 45,102 | 7,713 | 52,815 | |||||||||||||||||
Total assets | 1,463,598 | 167,554 | 1,631,152 | |||||||||||||||||
Goodwill | 555,714 | 6,779 | 562,493 | |||||||||||||||||
Capital expenditures | 7,220 | 662 | 7,882 | |||||||||||||||||
Depreciation and amortization | 10,425 | 955 | 11,380 | |||||||||||||||||
Year Ended September 30, 2012 | ||||||||||||||||||||
North | Rest of | Consolidated | ||||||||||||||||||
America | World | |||||||||||||||||||
Net sales | $ | 628,842 | $ | 147,364 | $ | 776,206 | ||||||||||||||
Income from operations | 138,391 | 20,441 | 158,832 | |||||||||||||||||
Interest expense, net | (22,756 | ) | (1,890 | ) | (24,646 | ) | ||||||||||||||
Provision for income taxes | 38,052 | 3,435 | 41,487 | |||||||||||||||||
Total assets | 1,402,409 | 135,007 | 1,537,416 | |||||||||||||||||
Goodwill | 557,105 | 6,791 | 563,896 | |||||||||||||||||
Capital expenditures | 4,037 | 491 | 4,528 | |||||||||||||||||
Depreciation and amortization | 9,101 | 862 | 9,963 | |||||||||||||||||
Geographic Information | ||||||||||||||||||||
The Company operated principally in three geographic areas, North America, Europe and emerging markets, such as Asia, Pacific Rim and the Middle East. | ||||||||||||||||||||
Net sales by geographic area, for the fiscal years ended September 30, 2014, 2013, and 2012, were as follows: | ||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Sales | % of | Sales | % of | Sales | % of | |||||||||||||||
Sales | Sales | Sales | ||||||||||||||||||
United States of America | $ | 950,058 | 70.1 | % | $ | 628,220 | 69.7 | % | $ | 590,367 | 76.1 | % | ||||||||
Canada | 46,610 | 3.4 | % | 73,409 | 8.1 | % | 28,538 | 3.7 | % | |||||||||||
United Kingdom | 180,535 | 13.3 | % | 134,943 | 15.0 | % | 116,809 | 15.0 | % | |||||||||||
Other European countries | 121,589 | 9.0 | % | 52,927 | 5.9 | % | 31,087 | 4.0 | % | |||||||||||
Asia, Pacific Rim, Middle East and other | 57,085 | 4.2 | % | 12,109 | 1.3 | % | 9,405 | 1.2 | % | |||||||||||
Total | $ | 1,355,877 | 100.0 | % | $ | 901,608 | 100.0 | % | $ | 776,206 | 100.0 | % | ||||||||
The Company determines the geographic area based on the origin of the sale. | ||||||||||||||||||||
Long-lived assets by geographic area, for the years ended September 30, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
North America | $ | 46,433 | $ | 25,048 | $ | 19,104 | ||||||||||||||
Europe | 2,470 | 1,746 | 1,665 | |||||||||||||||||
Asia, Pacific Rim, Middle East and other | 361 | — | — | |||||||||||||||||
$ | 49,264 | $ | 26,794 | $ | 20,769 | |||||||||||||||
Product and Services Information | ||||||||||||||||||||
Net sales by product categories, for the years ended September 30, 2014, 2013 and 2012 were as follows: | ||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Sales | % of | Sales | % of | Sales | % of | |||||||||||||||
Sales | Sales | Sales | ||||||||||||||||||
Hardware | $ | 837,615 | 61.8 | % | $ | 744,741 | 82.6 | % | $ | 632,283 | 81.5 | % | ||||||||
Chemicals(1) | 356,154 | 26.3 | % | — | — | — | — | |||||||||||||
Electronic components | 109,616 | 8.1 | % | 104,383 | 11.6 | % | 90,311 | 11.6 | % | |||||||||||
Bearings | 31,729 | 2.3 | % | 32,218 | 3.6 | % | 26,462 | 3.4 | % | |||||||||||
Machined parts and other | 20,763 | 1.5 | % | 20,266 | 2.2 | % | 27,150 | 3.5 | % | |||||||||||
$ | 1,355,877 | 100.0 | % | $ | 901,608 | 100.0 | % | $ | 776,206 | 100.0 | % | |||||||||
-1 | The Company did not sell inventory classified as "Chemicals" prior to the acquisition of Haas in 2014. | |||||||||||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||
Principles of Consolidation | ' | |||||||||||||
Principles of Consolidation | ||||||||||||||
The accompanying consolidated financial statements include the accounts of Wesco Aircraft Hardware, Wesco Aircraft Europe, Flintbrook Limited, Wesco Aircraft Germany GmbH, Wesco Aircraft France SAS, Wesco Aircraft Israel Limited, Wesco Aircraft Italy SRL, Wesco Aircraft Hardware India Pvt., Limited, Wesco Aircraft Trading Shanghai Co., Limited, Interfast Europe Limited, Interfast USA Inc., Interfast USA Holdings Inc and Haas Group, Inc. All intercompany accounts and transactions have been eliminated. When the Company does not have a controlling interest in an entity, but exerts significant influence over the entity, the Company applies the equity method of accounting. The Company holds a 45% ownership interest in Haas FineChem (Shanghai) Company Ltd. and a 49% ownership interest in AVIC Haas Chemical, both located in China. Both of these entities are accounted for using the equity method of accounting. | ||||||||||||||
Use of Estimates in Preparation of Financial Statements | ' | |||||||||||||
Use of Estimates in Preparation of Financial Statements | ||||||||||||||
The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Estimates are used for, but not limited to, receivable valuations and allowance for sales returns, inventory valuations of excess and obsolete inventories, the useful lives of long-lived assets including property, equipment and intangible assets, annual goodwill impairment assessment, stock-based compensation, income taxes and contingencies. Actual results could differ from such estimates. | ||||||||||||||
Cash and Cash Equivalents | ' | |||||||||||||
Cash and Cash Equivalents | ||||||||||||||
The Company considers all highly liquid investments with original maturities from date of purchase by the Company of three months or less to be cash equivalents. | ||||||||||||||
Accounts Receivable | ' | |||||||||||||
Accounts Receivable | ||||||||||||||
Accounts receivable consist of amounts owed to the Company by customers. The Company performs periodic credit evaluations of the financial condition of its customers, monitors collections and payments from customers, and generally does not require collateral. Accounts receivable are generally due within 30 to 60 days. The Company provides for the possible inability to collect accounts receivable by recording an allowance for doubtful accounts. The Company reserves for an account when it is considered to be uncollectible. The Company estimates its allowance for doubtful accounts based on historical experience, aging of accounts receivable and information regarding the creditworthiness of its customers. To date, losses have been within the range of management's expectations. If the estimated allowance for doubtful accounts subsequently proves to be insufficient, additional allowances may be required. | ||||||||||||||
The Company's allowance for doubtful accounts activity consists of the following: | ||||||||||||||
Balance at | Charges to | Write-offs | Balance at | |||||||||||
Beginning of | Cost and | End of Period | ||||||||||||
Period | Expenses | |||||||||||||
Allowance for doubtful accounts at September 30, 2012 | 4,257 | — | (190 | ) | 4,067 | |||||||||
Allowance for doubtful accounts at September 30, 2013 | 4,067 | 714 | (317 | ) | 4,464 | |||||||||
Allowance for doubtful accounts at September 30, 2014 | 4,464 | 1,159 | (291 | ) | 5,332 | |||||||||
Inventories | ' | |||||||||||||
Inventories | ||||||||||||||
The Company's inventory is comprised solely of finished goods. Inventories are stated at the lower of cost or market. The method by which amounts are removed from inventory are weighted average cost for all inventory, except for chemical parts for which FIFO is used. In-bound freight-related costs of $1,440 and $0 as of September 30, 2014 and September 30, 2013 are included as part of the cost of inventory held for resale. The Company records provisions, as appropriate, to write-down excess and obsolete inventory to estimated net realizable value. The process for evaluating excess and obsolete inventory often requires the Company to make subjective judgments and estimates concerning future sales levels, quantities and prices at which such inventories will be able to be sold in the normal course of business. This process is described in Note 5 below. | ||||||||||||||
Property and Equipment | ' | |||||||||||||
Property and Equipment | ||||||||||||||
Property and equipment are stated at cost, less accumulated amortization and depreciation, computed using the straight-line method over the estimated useful life of each asset. Leasehold improvements are amortized over the lesser of the remaining lease term or the estimated useful life of the assets. Expenditures for repair and maintenance costs are expensed as incurred, and expenditures for major renewals and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and accumulated depreciation and amortization are removed from the accounts and any gain or loss is reflected in the Company's consolidated statements of operations. The useful lives for depreciable assets are as follows: | ||||||||||||||
Buildings and improvements | 5 - 40 years | |||||||||||||
Machinery and equipment | 5 - 9 years | |||||||||||||
Furniture and fixtures | 7 years | |||||||||||||
Vehicles | 5 years | |||||||||||||
Computer hardware and software | 3 - 5 years | |||||||||||||
Impairment of Long Lived Assets | ' | |||||||||||||
Impairment of Long Lived Assets | ||||||||||||||
The Company assesses potential impairments of its long-lived assets in accordance with the provisions of ASC 360, Property, Plant, and Equipment. An impairment review is performed whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Factors considered by the Company include, but are not limited to: significant underperformance relative to expected historical or projected future operating results; significant changes in the manner of use of the acquired assets or the strategy for the overall business; and significant negative industry or economic trends. The Company has determined that its asset group for impairment testing is comprised of the assets and liabilities of each of its reporting units, which consists of Wesco North America, Wesco Rest of World, Haas North America and Haas Rest of World, as this is the lowest level of identifiable cash flows. The Company has identified customer relationships as the primary asset because it is the principal asset from which the reporting units derive their cash flow generating capacity and has the longest remaining useful life. The recoverability is assessed by comparing the carrying value of the asset group to the undiscounted cash flows expected to be generated by these assets. Impairment losses are measured as the amount by which the carrying values of the primary assets exceed their fair values. To date, the Company has not recognized an impairment charge related to the write-down of long-lived assets. | ||||||||||||||
Deferred Financing Costs | ' | |||||||||||||
Deferred Financing Costs | ||||||||||||||
Deferred financing costs are amortized using the effective interest method over the term of the related credit arrangement; such amortization is included in interest expense in the consolidated statement of comprehensive income. Amortization of deferred financing costs was $3,300, $7,788 and $2,803, respectively, for the years ended September 30, 2014, 2013 and 2012. As of September 30, 2014 and 2013, the remaining unamortized deferred financing costs are $15,602 and $8,741, respectively. | ||||||||||||||
Goodwill and Indefinite-Lived Intangible Assets | ' | |||||||||||||
Goodwill and Indefinite-Lived Intangible Assets | ||||||||||||||
Goodwill represents the excess of the consideration paid over the fair value of the net assets acquired in a business combination. In accordance with the provisions of ASC 350, Intangibles—Goodwill and Other, goodwill and indefinite-lived intangible assets acquired in a business combination are not amortized, but instead tested for impairment at least annually or more frequently should an event occur or circumstances indicate that the carrying amount may be impaired. Such events or circumstances may be a significant change in business climate, economic and industry trends, legal factors, negative operating performance indicators, significant competition, changes in strategy, or disposition of a reporting unit or a portion thereof. Goodwill and indefinite lived intangibles impairment testing is performed at the reporting unit level on July 1 of each year. | ||||||||||||||
Step 0 allows an entity the option to first assess qualitative factors to determine whether it is more likely than not (that is, a likelihood of more than 50 percent) that the fair value of a reporting unit is less than its carrying amount. Such qualitative factors may include the following: macroeconomic conditions; industry and market considerations; cost factors; overall financial performance; and other relevant entity-specific events. If the entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform the two-step quantitative impairment test which is used to identify potential goodwill impairments and to measure the amount of goodwill impairment losses to be recognized, if any; otherwise, no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the two-step quantitative impairment test. | ||||||||||||||
The first step identifies potential impairment by comparing the fair value of a reporting unit with its carrying amount, including goodwill. For periods prior to the Haas acquisition, our reporting units are consistent with our operating segments. As part of the Haas acquisition, we added two reporting units, however, our operating segments remain the same. The estimates of fair value of a reporting unit are determined based on a discounted cash flow analysis and market earnings multiples. A discounted cash flow analysis requires us to make various judgmental assumptions, including assumptions about future cash flows, growth rates and discount rates. The assumptions about future cash flows and growth rates are based on the forecast and long-term business plans of each reporting unit. Discount rate assumptions are based on an assessment of the risk inherent in the future cash flows of the respective reporting units. If the fair value exceeds its carrying amount, goodwill is not considered impaired and the second step of the test is unnecessary. If the carrying amount of a reporting unit's goodwill exceeds its fair value, the second step measures the impairment loss, if any. | ||||||||||||||
The second step compares the implied fair value of goodwill with the carrying amount of that goodwill. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. If the carrying amount of goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The company only performed step 0 in fiscal 2013 and 2014. | ||||||||||||||
Application of the goodwill impairment test requires judgment, including the identification of reporting units, assignment of assets and liabilities to reporting units, assignment of goodwill to reporting units, and determination of the fair value of each reporting unit. Changes in these estimates and assumptions could materially affect the determination of fair value and/or goodwill impairment for each reporting unit. | ||||||||||||||
The Company tests its indefinite-lived intangible asset, consisting of a trademark, for impairment on July 1 each year, or whenever events or circumstances indicate that it is more likely than not that its carrying value exceed its fair values. Fair value is estimated as the discounted value of future revenues using a royalty rate that a third party would pay for use of the asset. Variation in the royalty rate used could impact the estimate of fair value. If the carrying amount of an asset exceeds its implied fair value, an impairment loss is recognized in an amount equal to that excess. | ||||||||||||||
The Company reviewed the carrying value of our reporting units and indefinite-lived intangible assets by comparing such amount to its fair value and determined that the carrying amount did not exceed its respective fair value. During the years ended September 30, 2014, 2013 and 2012, the fair value of our reporting units was in excess of the reporting units' carrying values. Additionally, the fair value of our indefinite-lived intangible assets was in excess of its carrying value. Accordingly, management believes there are no impairments as of September 30, 2014 related to either goodwill or the indefinite-lived intangible asset. | ||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||
Fair Value of Financial Instruments | ||||||||||||||
The Company's financial instruments includes cash and cash equivalents, accounts receivable and payable, accrued and other current liabilities and line of credit, which approximate fair value because of their short-term maturities. The fair value of the long-term debt instruments are determined using current applicable rates for similar instruments as of the balance sheet date (Level 2 measurement as described in Note 10. "Fair Value of Financial Instruments"). The carrying amounts and fair value of the debt instruments as of September 30, 2014 were as follows: | ||||||||||||||
Carrying Value | Fair Value | |||||||||||||
$625,000 term loan A | $ | 550,781 | $ | 550,781 | ||||||||||
$525,000 term loan B | $ | 511,875 | $ | 511,875 | ||||||||||
$200,000 revolving line of credit | $ | 40,000 | $ | 40,000 | ||||||||||
Comprehensive Income | ' | |||||||||||||
Comprehensive Income | ||||||||||||||
ASC 220, Comprehensive Income, establishes guidelines for the reporting and display of comprehensive income and its components in financial statements. Comprehensive income generally represents all changes in stockholders' equity, except those resulting from investments by or distributions to stockholders. The Company's comprehensive income consists of foreign currency translation adjustments. | ||||||||||||||
Revenue Recognition | ' | |||||||||||||
Revenue Recognition | ||||||||||||||
The Company recognizes product and service revenue when (i) persuasive evidence of an arrangement exists, (ii) title transfers to the customer, (iii) the sales price charged is fixed or determinable and (iv) collection is reasonably assured. In instances where title does not pass to the customer upon shipment, the Company recognizes revenue upon delivery or customer acceptance, depending on the terms of the sales contract. | ||||||||||||||
In connection with the sales of its products, the Company often provides certain supply chain management services to its JIT customers. These services include the timely replenishment of products at the customer site, while also minimizing the customer's on-hand inventory. These services are provided by the Company contemporaneously with the delivery of the product, and as such, once the product is delivered, the Company does not have a post-delivery obligation to provide services to the customer. Accordingly, the price of such services is generally included in the price of the products delivered to the customer, and revenue is recognized upon delivery of the product, at which point the Company has satisfied its obligations to the customer. The Company does not account for these services as a separate element, as the services do not have stand-alone value and cannot be separated from the product element of the arrangement. Additionally, the Company does not present service revenues apart from product revenues, as the service fee revenues represent less than 10% of the Company's consolidated net sales. | ||||||||||||||
The Company reports revenue on a gross or net basis based on management's assessment of whether the Company acts as a principal or agent in the transaction and in accordance with the guidance of ASC 605-45-45, Revenue Recognition-Principal Agent Considerations, in the Company's presentation of sales and costs of revenue. If the Company is the principal in the transaction and has the risks and rewards of ownership, the transactions are recorded as gross in the consolidated statements of earnings. If the Company does not act as a principal in the transaction, the transactions are recorded on a net basis in the consolidated statement of comprehensive income. The majority of the Company's revenue is recorded on a gross basis with the exception of certain gas, energy and chemical manager service contracts that are recorded as net revenue. | ||||||||||||||
The Company also enters into sales rebates and profit sharing arrangements. Such customer incentives are accounted for as a reduction to gross sales and recorded based upon estimates at the time products are sold. These estimates are based upon historical experience for similar programs and products. The Company reviews such rebates and profit sharing arrangements on an ongoing basis and accruals are adjusted, if necessary, as additional information becomes available. | ||||||||||||||
Management provides allowances for credits and returns based on historic experience and adjusts such allowances as considered necessary. To date, such provisions have been within the range of management's expectations and the allowance established. Sales tax collected from customers is excluded from net sales in the accompanying consolidated statements of income. | ||||||||||||||
In connection with the Company's JIT supply chain management programs, the Company at times assumes customer inventory on a consignment basis. This consigned inventory remains the property of the customer but is managed and distributed by the Company. The Company earns a fixed fee per unit on each shipment of the consigned inventory; such amounts represent less than 1% of consolidated revenues. | ||||||||||||||
Shipping and Handling Costs | ' | |||||||||||||
Shipping and Handling Costs | ||||||||||||||
The Company records revenue for shipping and handling billed to its customers. Shipping and handling revenues were approximately $6,951, $1,304 and $765 for the years ended September 30, 2014, 2013 and 2012, respectively. | ||||||||||||||
Shipping and handling costs are primarily included in cost of sales. Total shipping and handling costs were approximately $24,801, $8,330 and $6,202 for the years ended September 30, 2014, 2013 and 2012, respectively. | ||||||||||||||
Income Taxes | ' | |||||||||||||
Income Taxes | ||||||||||||||
The Company accounts for income taxes in accordance with ASC 740, Income Taxes. ASC 740 requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which these temporary differences are expected to be recovered or settled. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. A valuation allowance is established, when necessary, to reduce net deferred tax assets to the amount expected to be realized. The Company's foreign subsidiaries are taxed in local jurisdictions at local statutory rates. | ||||||||||||||
Concentration of Credit Risk and Significant Vendors | ' | |||||||||||||
Concentration of Credit Risk and Significant Vendors | ||||||||||||||
The Company maintains its cash and cash equivalents in bank deposit accounts which, at times, may exceed federally insured limits. The Company has not experienced any losses in such accounts and does not believe it is exposed to any significant credit risk from cash and cash equivalents. | ||||||||||||||
The Company purchases its products on credit terms from vendors located throughout North America and Europe. For the years ended September 30, 2014, 2013 and 2012, the Company made approximately 15%, 20% and 21%, respectively, of its purchases from Precision Castparts Corporation and the amounts payable to this vendor were approximately 6%, 14% and 13% of accounts payable at September 30, 2014, 2013 and 2012, respectively. Additionally, for the years ended September 30, 2014, 2013 and 2012, the Company made approximately 15%, 19% and 23%, respectively, of its purchases from Alcoa Fastening Systems and the amounts payable to this vendor were approximately 10%, 14% and 15% of amounts payable at September 30, 2014, 2013 and 2012, respectively. The majority of the products the Company sells are available through multiple channels and, therefore, this reduces the risk related to any vendor relationship. | ||||||||||||||
For the years ending September 30, 2014, 2013 and 2012, the Company derived approximately 8%, 4% and 9%, respectively, of its recorded sales from The Boeing Company and the accounts receivable balance associated with this customer was approximately 2%, 7% and 3% at September 30, 2014, 2013 and 2012, respectively. | ||||||||||||||
Foreign Currency Translation | ' | |||||||||||||
Foreign Currency Translation | ||||||||||||||
The financial statements of the foreign subsidiaries are translated into U.S. Dollars in accordance with ASC 830, Foreign Currency Matters. The financial statements of foreign subsidiaries and affiliates where the local currency is the functional currency are translated into U.S. Dollars using exchange rates in effect at each year-end for assets and liabilities and average exchange rates during the period for results of operations. The adjustment resulting from translating the financial statements of such foreign subsidiaries is reflected as a separate component of stockholders' equity. Foreign currency transaction gains and losses are reported as other income (expense), net in the consolidated statement of income. For the years ended September 30, 2014, 2013 and 2012, foreign currency transaction gains (losses) were approximately $1,555, $1,748 and $(277), respectively. | ||||||||||||||
Stock-Based Compensation | ' | |||||||||||||
Stock-Based Compensation | ||||||||||||||
The Company accounts for stock-based compensation in accordance with ASC 718, Compensation—Stock Compensation. ASC 718 requires all stock-based awards to employees and directors to be recognized as stock-based compensation expense based upon their fair values on the date of grant. In March 2005, the Securities and Exchange Commission ("SEC") issued Staff Accounting Bulletin ("SAB") No. 107, Share-Based Payment, which provides guidance regarding the interaction of ASC 718 and certain SEC rules and regulations. The Company has applied the provisions of SAB No. 107 in its adoption of ASC 718. | ||||||||||||||
ASC 718 requires companies to estimate the fair value of stock-based payment awards on the date of grant. The value of the portion of the award that is ultimately expected to vest is recognized as an expense during the requisite service periods. The Company has estimated the fair value for each option award as of the date of grant using the Black-Scholes option pricing model. The Black-Scholes model considers, among other factors, the expected life of the award and the expected volatility of the Company's stock price. The Company recognizes the stock-based compensation expense over the requisite service period (generally a vesting term of 3 years) using the graded vesting method for performance condition awards and the straight line method for service condition only awards, which is generally a vesting term of 3 years. Stock options typically have a contractual term of 10 years. The stock options granted had an exercise price equal to the closing stock price of the Company's common stock on the grant date. Compensation expense for restricted stock units and awards are based on the market price of the shares underlying the awards on the grant date. Compensation expense for performance based awards reflects the estimated probability that the performance condition will be met. | ||||||||||||||
Net Income Per Share | ' | |||||||||||||
Net Income Per Share | ||||||||||||||
Basic net income per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted net income per share includes the dilutive effect of both outstanding stock options and restricted shares, calculated using the treasury stock method. Assumed proceeds from the in-the-money options include the tax benefits, net of shortfalls, calculated under the "as-if" method as prescribed by ASC 718. | ||||||||||||||
September 30 | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(In thousands, except | ||||||||||||||
per share data) | ||||||||||||||
Net income | $ | 102,102 | $ | 104,812 | $ | 92,175 | ||||||||
Basic weighted average shares outstanding | 95,951 | 93,285 | 92,058 | |||||||||||
Dilutive effect of stock options and restricted shares | 1,655 | 2,559 | 3,654 | |||||||||||
Dilutive weighted average shares outstanding | 97,606 | 95,844 | 95,712 | |||||||||||
Basic net income per share | $ | 1.06 | $ | 1.12 | $ | 1.00 | ||||||||
Diluted net income per share | $ | 1.05 | $ | 1.09 | $ | 0.96 | ||||||||
Shares of common stock equivalents of 510,800, zero and 273,315 for fiscal 2014, 2013 and 2012, respectively, were excluded from the diluted calculation due to their anti-dilutive effect. | ||||||||||||||
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||
Schedule of the Company's allowance for doubtful accounts activity | ' | |||||||||||||
Balance at | Charges to | Write-offs | Balance at | |||||||||||
Beginning of | Cost and | End of Period | ||||||||||||
Period | Expenses | |||||||||||||
Allowance for doubtful accounts at September 30, 2012 | 4,257 | — | (190 | ) | 4,067 | |||||||||
Allowance for doubtful accounts at September 30, 2013 | 4,067 | 714 | (317 | ) | 4,464 | |||||||||
Allowance for doubtful accounts at September 30, 2014 | 4,464 | 1,159 | (291 | ) | 5,332 | |||||||||
Schedule of useful lives and lease terms for depreciable assets | ' | |||||||||||||
Buildings and improvements | 5 - 40 years | |||||||||||||
Machinery and equipment | 5 - 9 years | |||||||||||||
Furniture and fixtures | 7 years | |||||||||||||
Vehicles | 5 years | |||||||||||||
Computer hardware and software | 3 - 5 years | |||||||||||||
Schedule of carrying amounts and fair value of the debt instruments | ' | |||||||||||||
The carrying amounts and fair value of the debt instruments as of September 30, 2014 were as follows: | ||||||||||||||
Carrying Value | Fair Value | |||||||||||||
$625,000 term loan A | $ | 550,781 | $ | 550,781 | ||||||||||
$525,000 term loan B | $ | 511,875 | $ | 511,875 | ||||||||||
$200,000 revolving line of credit | $ | 40,000 | $ | 40,000 | ||||||||||
Schedule of net income per share | ' | |||||||||||||
September 30 | ||||||||||||||
2014 | 2013 | 2012 | ||||||||||||
(In thousands, except | ||||||||||||||
per share data) | ||||||||||||||
Net income | $ | 102,102 | $ | 104,812 | $ | 92,175 | ||||||||
Basic weighted average shares outstanding | 95,951 | 93,285 | 92,058 | |||||||||||
Dilutive effect of stock options and restricted shares | 1,655 | 2,559 | 3,654 | |||||||||||
Dilutive weighted average shares outstanding | 97,606 | 95,844 | 95,712 | |||||||||||
Basic net income per share | $ | 1.06 | $ | 1.12 | $ | 1.00 | ||||||||
Diluted net income per share | $ | 1.05 | $ | 1.09 | $ | 0.96 | ||||||||
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Acquisitions | ' | ||||||||||
Schedule of final allocations of assets acquired and liabilities assumed | ' | ||||||||||
The preliminary fair values of assets acquired and liabilities assumed on the acquisition date and the final allocations were as follows (in thousands): | |||||||||||
Preliminary | Final | Adjustment | |||||||||
Current assets | $ | 195,351 | $ | 191,232 | $ | (4,119 | ) | ||||
Property and equipment | 20,121 | 19,306 | (815 | ) | |||||||
Other assets | 13,061 | 11,061 | (2,000 | ) | |||||||
Trademarks | 15,200 | 16,100 | 900 | ||||||||
Customer relationships | 77,400 | 97,400 | 20,000 | ||||||||
Technology | 32,400 | 34,400 | 2,000 | ||||||||
Goodwill | 316,311 | 299,039 | (17,272 | ) | |||||||
Total assets acquired | $ | 669,844 | $ | 668,538 | $ | (1,306 | ) | ||||
Total liabilities assumed | (109,644 | ) | (108,338 | ) | 1,306 | ||||||
Purchase price, net of liabilities assumed | $ | 560,200 | $ | 560,200 | $ | — | |||||
Schedule of pro forma financial results of acquisition | ' | ||||||||||
Year ended September 30, | |||||||||||
2014 | 2013 | ||||||||||
Pro forma net sales | $ | 1,591,538 | $ | 1,462,164 | |||||||
Pro forma net income attributable to Wesco Aircraft Holdings, Inc. | $ | 102,652 | $ | 109,781 | |||||||
Pro forma net income per common share amounts: | |||||||||||
Basic net income attributable to Wesco Aircraft Holdings, Inc. | $ | 1.07 | $ | 1.18 | |||||||
Diluted net income attributable to Wesco Aircraft Holdings, Inc. | $ | 1.05 | $ | 1.15 | |||||||
Schedule of estimated fair values of assets acquired and liabilities assumed | ' | ||||||||||
Current assets | $ | 55,130 | |||||||||
Property and equipment | 1,094 | ||||||||||
Identifiable intangible assets | |||||||||||
Trademarks | 1,087 | ||||||||||
Customer relationships | 19,423 | ||||||||||
Non-compete agreements | 455 | ||||||||||
Backlog | 3,161 | ||||||||||
Goodwill | 58,471 | ||||||||||
Total assets acquired | 138,821 | ||||||||||
Total liabilities assumed | (6,927 | ) | |||||||||
Purchase price, net of liabilities assumed | $ | 131,894 | |||||||||
Property_and_Equipment_net_Tab
Property and Equipment, net (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Property and Equipment, net | ' | |||||||
Schedule of property and equipment, net | ' | |||||||
2014 | 2013 | |||||||
Land, buildings and improvements | $ | 25,817 | $ | 15,468 | ||||
Machinery and equipment | 16,133 | 12,872 | ||||||
Furniture and fixtures | 5,002 | 3,064 | ||||||
Vehicles | 951 | 871 | ||||||
Computer hardware and software | 26,688 | 18,749 | ||||||
Construction in progress | 4,347 | 3,492 | ||||||
78,938 | 54,516 | |||||||
Less: accumulated depreciation | (29,674 | ) | (27,722 | ) | ||||
Property and equipment, net | $ | 49,264 | $ | 26,794 | ||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets, net (Tables) | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Goodwill and Intangible Assets, net | ' | |||||||||||||
Schedule of goodwill | ' | |||||||||||||
September 30, | September 30, | |||||||||||||
2014 | 2013 | |||||||||||||
Beginning balance | $ | 562,493 | $ | 563,896 | ||||||||||
Foreign currency translation | 43 | (1,403 | ) | |||||||||||
Haas acquisition | 299,039 | — | ||||||||||||
Ending balance | $ | 861,575 | $ | 562,493 | ||||||||||
Schedule of gross amounts and accumulated amortization of intangible assets | ' | |||||||||||||
2014 | 2013 | |||||||||||||
Gross | Accumulated | Gross | Accumulated | |||||||||||
Amount | Amortization | Amount | Amortization | |||||||||||
Customer relationships (12 to 20 year life) | $ | 181,687 | $ | (33,401 | ) | $ | 84,237 | $ | (24,842 | ) | ||||
Trademarks (5 years to indefinite life) | 56,524 | (2,372 | ) | 40,425 | (1,637 | ) | ||||||||
Backlog (2 year life) | 4,327 | (4,327 | ) | 4,327 | (3,136 | ) | ||||||||
Non-compete agreements (3 to 4 year life) | 1,457 | (1,343 | ) | 1,457 | (1,190 | ) | ||||||||
Technology (10 year life) | 34,400 | (2,007 | ) | — | — | |||||||||
Total intangible assets | $ | 278,395 | $ | (43,450 | ) | $ | 130,446 | $ | (30,805 | ) | ||||
Schedule of estimated future amortization expense | ' | |||||||||||||
Estimated future intangible amortization expense at September 30, 2014 is as follows: | ||||||||||||||
2015 | $ | 15,993 | ||||||||||||
2016 | 15,878 | |||||||||||||
2017 | 15,878 | |||||||||||||
2018 | 15,878 | |||||||||||||
2019 | 15,878 | |||||||||||||
Thereafter | 117,608 | |||||||||||||
$ | 197,113 | |||||||||||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Accrued Expenses and Other Current Liabilities | ' | |||||||
Schedule of accrued expenses and other current liabilities | ' | |||||||
2014 | 2013 | |||||||
Accrued compensation and related expenses | $ | 13,894 | $ | 14,606 | ||||
Accrual for commissions | 930 | 447 | ||||||
Accrued professional fees | 1,417 | 596 | ||||||
Accrued customer rebates | 2,874 | 1,743 | ||||||
Accrued taxes (property, sales and use) | 3,345 | 1,467 | ||||||
Accrued interest | 1,434 | 588 | ||||||
Accrual for undermarket contracts | 3,232 | — | ||||||
Accrued profit sharing | 600 | 791 | ||||||
Accrued freight and duty | 867 | — | ||||||
Other accruals | 3,003 | 809 | ||||||
Accrued expenses and other current liabilities | $ | 31,596 | $ | 21,047 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Long-Term Debt | ' | |||||||
Schedule of debt | ' | |||||||
September 30, | September 30, | |||||||
2014 | 2013 | |||||||
(In thousands) | (In thousands) | |||||||
$625,000 term loan, bearing interest based on the ABR (defined as Prime Rate plus an applicable margin rate ranging from 0.75% - 1.50%), or Eurodollar (defined as London Inter-Bank Offer Rate ("LIBOR") rates plus an applicable margin rate ranging from 1.75% - 2.50%). The applicable margin rates are indexed to the Company's Consolidated Total Leverage Ratio (as such ratio is defined in the senior secured credit facilities) and adjusted each reporting period based on operating results. The term loan is payable quarterly equal to 1.25% the first year, escalating to 2.50% by the fifth year, of the principal amount of $625,000, with the balance due on the maturity date of December 7, 2017. The applicable interest rate was 2.66% at September 30, 2014. | 550,781 | 568,000 | ||||||
$525,000 term loan B, with a margin of 2.50% per annum for Eurocurrency loans (subject to a minimum Eurocurrency rate floor of 0.75% per annum) or 1.50% per annum for ABR loans (subject to a minimum ABR floor of 1.75% per annum). The term loan is payable quarterly, commencing on June 30, 2014, in equal installments of 0.25% of the principal amount of $525,000, with the balance due on the maturity date of February 28, 2021. The applicable interest rate was 3.25% at September 30, 2014. | 511,875 | |||||||
— | ||||||||
$200,000 revolving line of credit, bearing interest based on the ABR (defined as Prime Rate plus an applicable margin rate ranging from 0.75% - 1.50%), or Eurodollar (defined as London Inter-Bank Offer Rate ("LIBOR") rates plus an applicable margin rate ranging from 1.75% - 2.50%). The applicable margin rates are indexed to the Company's Consolidated Leverage Ratio (as such ratio is defined in the senior secured credit facilities) and adjusted each reporting period based on operating results. The revolving facility is due on December 7, 2017. The applicable interest rate was 2.66% at September 30, 2014. | 40,000 | |||||||
— | ||||||||
Less: current portion | (23,437 | |||||||
) | — | |||||||
Long-term debt | $ | 1,079,219 | $ | 568,000 | ||||
Schedule of aggregate maturities of long-term debt | ' | |||||||
Aggregate maturities of long-term debt as of September 30, 2014 are as follows: | ||||||||
Years Ended September 30, | ||||||||
2015 | $ | 23,437 | ||||||
2016 | 46,875 | |||||||
2017 | 63,844 | |||||||
2018 | 467,125 | |||||||
2019 & thereafter | 501,375 | |||||||
$ | 1,102,656 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||
Schedule of income before provision for income taxes | ' | |||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
U.S. income | $ | 112,841 | $ | 115,194 | $ | 110,120 | ||||||||||||||
Foreign income | 44,067 | 42,433 | 23,542 | |||||||||||||||||
Total | $ | 156,908 | $ | 157,627 | $ | 133,662 | ||||||||||||||
Schedule of components of the Company's income tax provision | ' | |||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Current provision | ||||||||||||||||||||
Federal | $ | 32,204 | $ | 29,366 | $ | 14,007 | ||||||||||||||
State and local | 1,920 | 3,943 | 1,355 | |||||||||||||||||
Foreign | 9,625 | 9,566 | 5,744 | |||||||||||||||||
Subtotal | 43,749 | 42,875 | 21,106 | |||||||||||||||||
Deferred provision (benefit) | ||||||||||||||||||||
Federal | 9,756 | 8,901 | 18,867 | |||||||||||||||||
State and local | 1,497 | 1,022 | 1,719 | |||||||||||||||||
Foreign | (196 | ) | 17 | (205 | ) | |||||||||||||||
Subtotal | 11,057 | 9,940 | 20,381 | |||||||||||||||||
Provision for income taxes | $ | 54,806 | $ | 52,815 | $ | 41,487 | ||||||||||||||
Schedule of reconciliation of the Company's provision (benefit) for income taxes to the U.S. federal statutory rate | ' | |||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Provision for income taxes at statutory rate | $ | 54,917 | 35 | % | $ | 55,169 | 35 | % | $ | 46,782 | 35 | % | ||||||||
State taxes, net of tax benefit | 2,221 | 1.42 | 3,228 | 2.05 | 2,100 | 1.57 | ||||||||||||||
Deemed foreign dividends | 7,091 | 4.52 | 5,358 | 3.4 | 1,838 | 1.38 | ||||||||||||||
Nondeductible items | 1,114 | 0.71 | (48 | ) | (0.03 | ) | (498 | ) | (0.38 | ) | ||||||||||
Other | 1,825 | 1.16 | (2,060 | ) | (1.31 | ) | (407 | ) | (0.30 | ) | ||||||||||
IRC Section 199 and 41 | (649 | ) | (0.41 | ) | (610 | ) | (0.39 | ) | (3,550 | ) | (2.66 | ) | ||||||||
Foreign income not taxed at the Federal rate | (5,707 | ) | (3.64 | ) | (4,910 | ) | (3.11 | ) | (2,699 | ) | (2.02 | ) | ||||||||
Foreign tax credit | (5,329 | ) | (3.40 | ) | (3,312 | ) | (2.10 | ) | (2,079 | ) | (1.55 | ) | ||||||||
Release of tax contingencies | (677 | ) | (0.43 | ) | — | — | — | — | ||||||||||||
Actual provision for income taxes | $ | 54,806 | 34.93 | % | $ | 52,815 | 33.51 | % | $ | 41,487 | 31.04 | % | ||||||||
Schedule of components deferred income tax assets (liabilities) | ' | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Current deferred tax assets/(liabilities) | ||||||||||||||||||||
Inventories | $ | 44,688 | $ | 34,537 | ||||||||||||||||
Reserves and other accruals | 3,188 | 2,811 | ||||||||||||||||||
Net operating losses and tax credits | 1 | 0 | ||||||||||||||||||
Compensation accruals | 1,927 | 2,292 | ||||||||||||||||||
Other | (616 | ) | 31 | |||||||||||||||||
Total current deferred tax assets/(liabilities) | 49,188 | 39,671 | ||||||||||||||||||
Non-current deferred tax assets/(liabilities) | ||||||||||||||||||||
Property and equipment | (4,926 | ) | (2,107 | ) | ||||||||||||||||
Goodwill and intangible assets | (116,804 | ) | (73,268 | ) | ||||||||||||||||
Stock options | 2,018 | 3,062 | ||||||||||||||||||
Deferred financing costs | 51 | 129 | ||||||||||||||||||
Net operating losses and tax credits | 11,138 | — | ||||||||||||||||||
Others | 507 | — | ||||||||||||||||||
Total non-current deferred tax assets/(liabilities) | (108,016 | ) | (72,184 | ) | ||||||||||||||||
Valuation allowance | (4,930 | ) | — | |||||||||||||||||
Net deferred tax assets/(liabilities) | $ | (63,758 | ) | $ | (32,513 | ) | ||||||||||||||
Schedule of unrecognized tax benefits | ' | |||||||||||||||||||
2014 | ||||||||||||||||||||
Beginning balance | $ | — | ||||||||||||||||||
Increases related to tax positions taken during a prior year | 2,491 | |||||||||||||||||||
Decreases related to tax positions taken during a prior year | (590 | ) | ||||||||||||||||||
Increases related to tax positions taken during the current year | — | |||||||||||||||||||
Decreases related to expiration of statute of limitations | — | |||||||||||||||||||
Ending balance | $ | 1,901 | ||||||||||||||||||
Schedule of valuation allowance | ' | |||||||||||||||||||
Beginning | Valuation | Ending | ||||||||||||||||||
balance | allowance | balance | ||||||||||||||||||
recorded | ||||||||||||||||||||
during | ||||||||||||||||||||
the period | ||||||||||||||||||||
Valuation allowance for deferred tax assets: | ||||||||||||||||||||
Year ended September 30, 2014 | $ | 0 | $ | 4,930 | $ | 4,930 | ||||||||||||||
StockBased_and_Other_Compensat1
Stock-Based and Other Compensation Arrangements (Tables) | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Stock-Based and Other Compensation Arrangements | ' | |||||||||||||
Summary of options activity | ' | |||||||||||||
Outstanding Options | ||||||||||||||
Number | Weighted | Weighted | Aggregate | |||||||||||
of Shares | Average | Average | Intrinsic | |||||||||||
Exercise | Remaining | Value(1) | ||||||||||||
Price | Contractual | |||||||||||||
Life | ||||||||||||||
(in years) | ||||||||||||||
September 30, 2012 | 5,928,935 | $ | 5.32 | 4.9 | $ | 50,006,187 | ||||||||
Granted | 687,338 | $ | 13.49 | |||||||||||
Exercised | (2,133,334 | ) | $ | 4.63 | ||||||||||
Forfeited options | (244,913 | ) | $ | 14.66 | ||||||||||
September 30, 2013 | 4,238,026 | $ | 6.46 | 4.6 | $ | 61,338,566 | ||||||||
Granted | 558,300 | $ | 20.87 | |||||||||||
Exercised | (2,069,055 | ) | $ | 4.66 | ||||||||||
Forfeited options | (89,015 | ) | $ | 17.52 | ||||||||||
September 30, 2014 | 2,638,256 | $ | 10.54 | 5.8 | $ | 19,589,147 | ||||||||
-1 | Aggregate intrinsic value is calculated on the difference between our closing stock price at year end and the exercise price, multiplied by the number of in-the-money options and represents the pre-tax amount that would have been received by the option holders, had they all exercised all their options on the fiscal year end date. | |||||||||||||
Schedule of restricted share activity | ' | |||||||||||||
Restricted share activity during fiscal 2014 was as follows: | ||||||||||||||
Shares | Weighted | |||||||||||||
Average | ||||||||||||||
Fair Value | ||||||||||||||
Outstanding at start of year | 156,631 | $ | 13.65 | |||||||||||
Granted(1) | 205,674 | $ | 20.88 | |||||||||||
Vested | (156,829 | ) | $ | 17.38 | ||||||||||
Forfeited | (40,073 | ) | $ | 17.47 | ||||||||||
Outstanding at end of year | 165,403 | $ | 18.18 | |||||||||||
-1 | Under the terms of their respective restricted stock award agreements, holders of restricted stock have the same voting rights as common stock shareholders, such rights exist even if the shares of restricted stock have not vested. | |||||||||||||
Schedule of weighted average assumptions | ' | |||||||||||||
2014 | 2013 | 2012 | ||||||||||||
Expected life (in years) | 6.00 | 5.97 | — | |||||||||||
Volatility | 45.00 | % | 46.50 | % | — | |||||||||
Risk free interest rate | 1.72 | % | 1.04 | % | — | |||||||||
Dividend yield | — | — | — | |||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Commitments and Contingencies | ' | ||||||||||
Schedule of future minimum rental payments under operating leases | ' | ||||||||||
Third | Related | Total | |||||||||
Party | Party | ||||||||||
Years Ended September 30, | |||||||||||
2015 | $ | 8,479 | $ | 1,775 | $ | 10,254 | |||||
2016 | 6,299 | 1,775 | 8,074 | ||||||||
2017 | 5,163 | 1,775 | 6,938 | ||||||||
2018 | 3,653 | 2,177 | 5,830 | ||||||||
2019 | 2,952 | 2,177 | 5,129 | ||||||||
Thereafter | 5,474 | 2,169 | 7,643 | ||||||||
$ | 32,020 | $ | 11,848 | $ | 43,868 | ||||||
Schedule of future minimum rental payments under capital leases | ' | ||||||||||
Future minimum lease payments as of September 30, 2014 are as follows: | |||||||||||
2015 | $ | 1,705 | |||||||||
2016 | 1,013 | ||||||||||
2017 | 730 | ||||||||||
2018 | 557 | ||||||||||
2019 | 430 | ||||||||||
Thereafter | 422 | ||||||||||
4,857 | |||||||||||
Less: Interest | (673 | ) | |||||||||
Total | $ | 4,184 | |||||||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 12 Months Ended | ||||||||||
Sep. 30, 2014 | |||||||||||
Supplemental Cash Flow Information | ' | ||||||||||
Schedule of supplemental cash flow information | ' | ||||||||||
Year Ended September 30, | |||||||||||
2014 | 2013 | 2012 | |||||||||
Cash payments for: | |||||||||||
Interest paid | $ | 24,440 | $ | 16,343 | $ | 21,006 | |||||
Income taxes paid | $ | 24,457 | $ | 5,977 | $ | 37,428 | |||||
Schedule of non-cash investing and financing activities: | |||||||||||
Property and equipment acquired pursuant to capital leases | $ | 1,528 | $ | 2,923 | $ | 116 | |||||
Property and equipment disposed of pursuant to termination of capital leases | $ | (5,414 | ) | $ | — | $ | (154 | ) | |||
Quarterly_Financial_Data_unaud1
Quarterly Financial Data (unaudited) (Tables) | 12 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Quarterly Financial Data (unaudited) | ' | |||||||||||||
Summary of unaudited quarterly financial data | ' | |||||||||||||
Summarized unaudited quarterly financial data for quarters ended December 31, 2012 through September 30, 2014 is as follows: | ||||||||||||||
Quarter Ended: | September 30, | June 30, | March 31, | December 31, | ||||||||||
2014 | 2014 | 2014 | 2013 | |||||||||||
Net sales | $ | 408,167 | $ | 395,628 | $ | 327,360 | $ | 224,722 | ||||||
Gross profit | 119,749 | 121,535 | 99,089 | 78,058 | ||||||||||
Net income | 24,647 | 28,772 | 24,312 | 24,370 | ||||||||||
Basic net income per share(1) | $ | 0.25 | $ | 0.30 | $ | 0.25 | $ | 0.26 | ||||||
Diluted net income per share(1) | $ | 0.25 | $ | 0.29 | $ | 0.25 | $ | 0.25 | ||||||
Quarter Ended: | September 30, | June 30, | March 31, | December 31, | ||||||||||
2013 | 2013 | 2013 | 2012 | |||||||||||
Net sales | $ | 234,339 | $ | 230,236 | $ | 225,862 | $ | 211,170 | ||||||
Gross profit | 85,000 | 81,891 | 81,308 | 74,100 | ||||||||||
Net income | 29,972 | 27,026 | 29,388 | 18,426 | ||||||||||
Basic net income per share(1) | $ | 0.32 | $ | 0.29 | $ | 0.32 | $ | 0.20 | ||||||
Diluted net income per share(1) | $ | 0.31 | $ | 0.28 | $ | 0.31 | $ | 0.19 | ||||||
-1 | Net income per share calculations for each quarter are based on the weighted average diluted shares outstanding for that quarter and may not total to the full year amount. | |||||||||||||
Segment_Reporting_Tables
Segment Reporting (Tables) | 12 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Segment Reporting | ' | |||||||||||||||||||
Schedule of net sales and other financial information by business segment | ' | |||||||||||||||||||
The following table presents net sales and other financial information by business segment (in thousands): | ||||||||||||||||||||
Year Ended September 30, 2014 | ||||||||||||||||||||
North | Rest of | Consolidated | ||||||||||||||||||
America | World | |||||||||||||||||||
Net sales | $ | 1,030,511 | $ | 325,366 | $ | 1,355,877 | ||||||||||||||
Operating earnings | 145,357 | 38,577 | 183,934 | |||||||||||||||||
Interest expense, net | (25,836 | ) | (3,389 | ) | (29,225 | ) | ||||||||||||||
Provision for income taxes | 47,459 | 7,347 | 54,806 | |||||||||||||||||
Total assets | 2,093,384 | 406,988 | 2,412,274 | |||||||||||||||||
Goodwill | 779,395 | 82,180 | 861,575 | |||||||||||||||||
Capital expenditures | 9,763 | 754 | 10,517 | |||||||||||||||||
Depreciation and amortization | 18,317 | 3,085 | 21,402 | |||||||||||||||||
Year Ended September 30, 2013 | ||||||||||||||||||||
North | Rest of | Consolidated | ||||||||||||||||||
America | World | |||||||||||||||||||
Net sales | $ | 713,725 | $ | 187,883 | $ | 901,608 | ||||||||||||||
Operating earnings | 150,587 | 30,215 | 180,802 | |||||||||||||||||
Interest expense, net | (25,355 | ) | 177 | (25,178 | ) | |||||||||||||||
Provision for income taxes | 45,102 | 7,713 | 52,815 | |||||||||||||||||
Total assets | 1,463,598 | 167,554 | 1,631,152 | |||||||||||||||||
Goodwill | 555,714 | 6,779 | 562,493 | |||||||||||||||||
Capital expenditures | 7,220 | 662 | 7,882 | |||||||||||||||||
Depreciation and amortization | 10,425 | 955 | 11,380 | |||||||||||||||||
Year Ended September 30, 2012 | ||||||||||||||||||||
North | Rest of | Consolidated | ||||||||||||||||||
America | World | |||||||||||||||||||
Net sales | $ | 628,842 | $ | 147,364 | $ | 776,206 | ||||||||||||||
Income from operations | 138,391 | 20,441 | 158,832 | |||||||||||||||||
Interest expense, net | (22,756 | ) | (1,890 | ) | (24,646 | ) | ||||||||||||||
Provision for income taxes | 38,052 | 3,435 | 41,487 | |||||||||||||||||
Total assets | 1,402,409 | 135,007 | 1,537,416 | |||||||||||||||||
Goodwill | 557,105 | 6,791 | 563,896 | |||||||||||||||||
Capital expenditures | 4,037 | 491 | 4,528 | |||||||||||||||||
Depreciation and amortization | 9,101 | 862 | 9,963 | |||||||||||||||||
Schedule of net sales by geographical area | ' | |||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Sales | % of | Sales | % of | Sales | % of | |||||||||||||||
Sales | Sales | Sales | ||||||||||||||||||
United States of America | $ | 950,058 | 70.1 | % | $ | 628,220 | 69.7 | % | $ | 590,367 | 76.1 | % | ||||||||
Canada | 46,610 | 3.4 | % | 73,409 | 8.1 | % | 28,538 | 3.7 | % | |||||||||||
United Kingdom | 180,535 | 13.3 | % | 134,943 | 15.0 | % | 116,809 | 15.0 | % | |||||||||||
Other European countries | 121,589 | 9.0 | % | 52,927 | 5.9 | % | 31,087 | 4.0 | % | |||||||||||
Asia, Pacific Rim, Middle East and other | 57,085 | 4.2 | % | 12,109 | 1.3 | % | 9,405 | 1.2 | % | |||||||||||
Total | $ | 1,355,877 | 100.0 | % | $ | 901,608 | 100.0 | % | $ | 776,206 | 100.0 | % | ||||||||
Schedule of long-lived assets by geographic area | ' | |||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
North America | $ | 46,433 | $ | 25,048 | $ | 19,104 | ||||||||||||||
Europe | 2,470 | 1,746 | 1,665 | |||||||||||||||||
Asia, Pacific Rim, Middle East and other | 361 | — | — | |||||||||||||||||
$ | 49,264 | $ | 26,794 | $ | 20,769 | |||||||||||||||
Schedule of net sales by product categories | ' | |||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||
Sales | % of | Sales | % of | Sales | % of | |||||||||||||||
Sales | Sales | Sales | ||||||||||||||||||
Hardware | $ | 837,615 | 61.8 | % | $ | 744,741 | 82.6 | % | $ | 632,283 | 81.5 | % | ||||||||
Chemicals(1) | 356,154 | 26.3 | % | — | — | — | — | |||||||||||||
Electronic components | 109,616 | 8.1 | % | 104,383 | 11.6 | % | 90,311 | 11.6 | % | |||||||||||
Bearings | 31,729 | 2.3 | % | 32,218 | 3.6 | % | 26,462 | 3.4 | % | |||||||||||
Machined parts and other | 20,763 | 1.5 | % | 20,266 | 2.2 | % | 27,150 | 3.5 | % | |||||||||||
$ | 1,355,877 | 100.0 | % | $ | 901,608 | 100.0 | % | $ | 776,206 | 100.0 | % | |||||||||
-1 | The Company did not sell inventory classified as "Chemicals" prior to the acquisition of Haas in 2014. | |||||||||||||||||||
Organization_and_Business_Deta
Organization and Business (Details) | 12 Months Ended | |
Sep. 30, 2014 | Feb. 28, 2014 | |
item | ||
Organization and Business | ' | ' |
Minimum stocking locations | 20 | ' |
Percentage of outstanding stock acquired | ' | 100.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Allowance for doubtful accounts activity | ' | ' | ' |
Changes to Cost and Expenses | $1,159 | $714 | ' |
Write-offs | ($291) | ($317) | ($190) |
Minimum [Member] | ' | ' | ' |
Principles of Consolidation | ' | ' | ' |
Accounts receivable dating | '30 days | ' | ' |
Maximum [Member] | ' | ' | ' |
Principles of Consolidation | ' | ' | ' |
Accounts receivable dating | '60 days | ' | ' |
Haas FineChem [Member] | ' | ' | ' |
Principles of Consolidation | ' | ' | ' |
Equity method investment, ownership percentage | 45.00% | ' | ' |
AVIC Haas Chemical [Member] | ' | ' | ' |
Principles of Consolidation | ' | ' | ' |
Equity method investment, ownership percentage | 49.00% | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Inventories | ' | ' | ' |
Freight related costs | $1,440 | $0 | ' |
Deferred Financing Costs | ' | ' | ' |
Amortization of deferred financing costs | 3,300 | 7,788 | 2,803 |
Remaining unamortized deferred financing costs | $15,602 | $8,741 | ' |
Building And Building Improvements [Member] | Minimum [Member] | ' | ' | ' |
Property and equipment | ' | ' | ' |
Useful lives and lease terms for depreciable assets | '5 years | ' | ' |
Building And Building Improvements [Member] | Maximum [Member] | ' | ' | ' |
Property and equipment | ' | ' | ' |
Useful lives and lease terms for depreciable assets | '40 years | ' | ' |
Machinery And Equipment [Member] | Minimum [Member] | ' | ' | ' |
Property and equipment | ' | ' | ' |
Useful lives and lease terms for depreciable assets | '5 years | ' | ' |
Machinery And Equipment [Member] | Maximum [Member] | ' | ' | ' |
Property and equipment | ' | ' | ' |
Useful lives and lease terms for depreciable assets | '9 years | ' | ' |
Furniture And Fixtures [Member] | ' | ' | ' |
Property and equipment | ' | ' | ' |
Useful lives and lease terms for depreciable assets | '7 years | ' | ' |
Vehicles [Member] | ' | ' | ' |
Property and equipment | ' | ' | ' |
Useful lives and lease terms for depreciable assets | '5 years | ' | ' |
Computer Equipment Software And Software Development Costs [Member] | Minimum [Member] | ' | ' | ' |
Property and equipment | ' | ' | ' |
Useful lives and lease terms for depreciable assets | '3 years | ' | ' |
Computer Equipment Software And Software Development Costs [Member] | Maximum [Member] | ' | ' | ' |
Property and equipment | ' | ' | ' |
Useful lives and lease terms for depreciable assets | '5 years | ' | ' |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Details 3) (USD $) | Sep. 30, 2014 |
Term Loan Due December2017 [Member] | ' |
Fair value of financial instruments | ' |
Long-term debt, face amount | $625,000,000 |
Term Loan Due February2021 [Member] | ' |
Fair value of financial instruments | ' |
Long-term debt, face amount | 525,000,000 |
Revolving Credit Facility [Member] | ' |
Fair value of financial instruments | ' |
Long-term debt, face amount | 200,000,000 |
Carrying Reported Amount Fair Value Disclosure [Member] | Term Loan Due December2017 [Member] | Fair Value Inputs Level2 [Member] | ' |
Fair value of financial instruments | ' |
Long-term debt | 550,781,000 |
Carrying Reported Amount Fair Value Disclosure [Member] | Term Loan Due February2021 [Member] | Fair Value Inputs Level2 [Member] | ' |
Fair value of financial instruments | ' |
Long-term debt | 511,875,000 |
Carrying Reported Amount Fair Value Disclosure [Member] | Revolving Credit Facility [Member] | Fair Value Inputs Level2 [Member] | ' |
Fair value of financial instruments | ' |
Long-term debt | 40,000,000 |
Estimate Of Fair Value Fair Value Disclosure [Member] | Term Loan Due December2017 [Member] | Fair Value Inputs Level2 [Member] | ' |
Fair value of financial instruments | ' |
Long-term debt | 550,781,000 |
Estimate Of Fair Value Fair Value Disclosure [Member] | Term Loan Due February2021 [Member] | Fair Value Inputs Level2 [Member] | ' |
Fair value of financial instruments | ' |
Long-term debt | 511,875,000 |
Estimate Of Fair Value Fair Value Disclosure [Member] | Revolving Credit Facility [Member] | Fair Value Inputs Level2 [Member] | ' |
Fair value of financial instruments | ' |
Long-term debt | $40,000,000 |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies (Details 4) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Foreign Currency Translation | ' | ' | ' |
Foreign currency transaction gains and (losses) | $1,555 | $1,748 | ($277) |
Shipping and Handling Costs | ' | ' | ' |
Shipping and handling revenues | 6,951 | 1,304 | 765 |
Shipping and handling costs | $24,801 | $8,330 | $6,202 |
Maximum [Member] | ' | ' | ' |
Revenue Recognition | ' | ' | ' |
Service fees as a percentage of consolidated net sales | 10.00% | ' | ' |
Consigned inventory fixed fees as a percentage of consolidated revenues | 1.00% | ' | ' |
Cost Of Goods Total [Member] | Supplier Concentration Risk [Member] | Alcoa Fastening Systems [Member] | ' | ' | ' |
Concentration of credit risk and significant vendors | ' | ' | ' |
Concentration risk (as a percent) | 15.00% | 19.00% | 23.00% |
Cost Of Goods Total [Member] | Supplier Concentration Risk [Member] | Precision Castparts Corporation [Member] | ' | ' | ' |
Concentration of credit risk and significant vendors | ' | ' | ' |
Concentration risk (as a percent) | 15.00% | 20.00% | 21.00% |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Alcoa Fastening Systems [Member] | ' | ' | ' |
Concentration of credit risk and significant vendors | ' | ' | ' |
Concentration risk (as a percent) | 10.00% | 14.00% | 15.00% |
Accounts Payable [Member] | Supplier Concentration Risk [Member] | Precision Castparts Corporation [Member] | ' | ' | ' |
Concentration of credit risk and significant vendors | ' | ' | ' |
Concentration risk (as a percent) | 6.00% | 14.00% | 13.00% |
Sales [Member] | Customer Concentration Risk [Member] | The Boeing Company [Member] | ' | ' | ' |
Concentration of credit risk and significant vendors | ' | ' | ' |
Concentration risk (as a percent) | 8.00% | 4.00% | 9.00% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | The Boeing Company [Member] | ' | ' | ' |
Concentration of credit risk and significant vendors | ' | ' | ' |
Concentration risk (as a percent) | 2.00% | 7.00% | 3.00% |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies (Details 5) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Stock-based and other compensation arrangements | ' | ' | ' |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 1,655,000 | 2,559,000 | 3,654,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 510,800 | 0 | 273,315 |
Performance Shares [Member] | ' | ' | ' |
Stock-based and other compensation arrangements | ' | ' | ' |
Vesting term | '3 years | ' | ' |
Employee Stock Option [Member] | ' | ' | ' |
Stock-based and other compensation arrangements | ' | ' | ' |
Vesting term | '3 years | ' | ' |
Contractual term of stock options | '10 years | ' | ' |
Acquisitions_Details
Acquisitions (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 7 Months Ended | 12 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 28, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 28, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Feb. 28, 2014 | Sep. 30, 2014 | Feb. 28, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Feb. 28, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Feb. 28, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 03, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 03, 2012 | |
Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Rest Of World Segment [Member] | Rest Of World Segment [Member] | Rest Of World Segment [Member] | Trademarks [Member] | Customer Relationships [Member] | Noncompete Agreements [Member] | Order Or Production Backlog [Member] | Order Or Production Backlog [Member] | Order Or Production Backlog [Member] | Revolving Credit Facility [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Interfast Inc [Member] | Interfast Inc [Member] | Interfast Inc [Member] | Interfast Inc [Member] | Interfast Inc [Member] | Interfast Inc [Member] | Interfast Inc [Member] | |||||||||||||
Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Trademarks [Member] | Customer Relationships [Member] | Technology Based Intangible Assets [Member] | Term Loan B Facility [Member] | Preliminary [Member] | Preliminary [Member] | Preliminary [Member] | Preliminary [Member] | Final [Member] | Final [Member] | Final [Member] | Final [Member] | Adjustment [Member] | Adjustment [Member] | Adjustment [Member] | Adjustment [Member] | Trademarks [Member] | Customer Relationships [Member] | Noncompete Agreements [Member] | Order Or Production Backlog [Member] | Revolving Credit Facility [Member] | ||||||||||||||||||||||||||||||
Trademarks [Member] | Customer Relationships [Member] | Technology Based Intangible Assets [Member] | Trademarks [Member] | Customer Relationships [Member] | Technology Based Intangible Assets [Member] | Trademarks [Member] | Customer Relationships [Member] | Technology Based Intangible Assets [Member] | |||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of acquired assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $560,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $131,894,000 | ' | ' | ' | ' | ' | ' |
Long-term debt, face amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 525,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 150,000,000 |
Transaction related costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,857,000 | ' | ' | ' | ' | ' | ' |
Allocation of the balance sheet upon acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 55,130,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 195,351,000 | ' | ' | ' | 191,232,000 | ' | ' | ' | -4,119,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,094,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20,121,000 | ' | ' | ' | 19,306,000 | ' | ' | ' | -815,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other Assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 13,061,000 | ' | ' | ' | 11,061,000 | ' | ' | ' | -2,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Identifiable Intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,087,000 | 19,423,000 | 455,000 | ' | ' | 3,161,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 15,200,000 | 77,400,000 | 32,400,000 | ' | 16,100,000 | 97,400,000 | 34,400,000 | ' | 900,000 | 20,000,000 | 2,000,000 | ' | ' | ' | ' | ' | ' | ' |
Goodwill. | 861,575,000 | ' | ' | ' | 562,493,000 | ' | ' | ' | 861,575,000 | 562,493,000 | 563,896,000 | 58,471,000 | 779,395,000 | 555,714,000 | 557,105,000 | 82,180,000 | 6,779,000 | 6,791,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 316,311,000 | ' | ' | ' | 299,039,000 | ' | ' | ' | -17,272,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total assets acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 138,821,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 669,844,000 | ' | ' | ' | 668,538,000 | ' | ' | ' | -1,306,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -6,927,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -109,644,000 | ' | ' | ' | -108,338,000 | ' | ' | ' | 1,306,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price, net of liabilities assumed | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 131,894,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 560,200,000 | ' | ' | ' | 560,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '2 years | '2 years | ' | ' | ' | ' | ' | ' | ' | '15 years | '15 years | '10 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | '15 years | '3 years | '2 years | ' |
Period of performance of the entity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '46 years | ' | ' | ' | ' | ' |
Consolidated revenues | 408,167,000 | 395,628,000 | 327,360,000 | 224,722,000 | 234,339,000 | 230,236,000 | 225,862,000 | 211,170,000 | 1,355,877,000 | 901,608,000 | 776,206,000 | ' | 1,030,511,000 | 713,725,000 | 628,842,000 | 325,366,000 | 187,883,000 | 147,364,000 | ' | ' | ' | ' | ' | ' | ' | ' | 356,154,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings | 24,647,000 | 28,772,000 | 24,312,000 | 24,370,000 | 29,972,000 | 27,026,000 | 29,388,000 | 18,426,000 | 102,102,000 | 104,812,000 | 92,175,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,850,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unaudited pro forma information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Consolidated revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,591,538,000 | 1,462,164,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 102,652,000 | 109,781,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic net income per share (in dollars per share) | $0.25 | $0.30 | $0.25 | $0.26 | $0.32 | $0.29 | $0.32 | $0.20 | $1.06 | $1.12 | $1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.07 | $1.18 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Diluted net income per share (in dollars per share) | $0.25 | $0.29 | $0.25 | $0.25 | $0.31 | $0.28 | $0.31 | $0.19 | $1.05 | $1.09 | $0.96 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.05 | $1.15 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Purchase price of the acquisition funded in cash | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 36,894,000 | ' | ' | ' | ' | ' | 95,000,000 |
Tax deductible goodwill | $0 | ' | ' | ' | ' | ' | ' | ' | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Excess_and_Obsolescence_Reserv1
Excess and Obsolescence Reserve Policy (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Excess and Obsolescence Reserve Policy | ' | ' |
Excess and obsolete reserve | $143,736 | $121,129 |
Amount of excess and obsolete reserve recorded | 17,700 | 8,710 |
Maximum manufacturer lead time for commitment to purchase inventory | '2 years | ' |
Scrapped inventory since 2006 | 17,283 | ' |
Slow-moving inventory left unreserved | $22,398 | ' |
Period over which unreserved slow-moving inventory will be sold | '3 years | ' |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Majority Shareholder [Member] | Management Agreement [Member] | ' | ' | ' |
Related Party Transactions | ' | ' | ' |
Expenses incurred | $1,077 | $1,053 | $1,079 |
Chief Executive Officer [Member] | Lease Agreements [Member] | ' | ' | ' |
Related Party Transactions | ' | ' | ' |
Expenses incurred | $1,826 | $1,754 | $1,750 |
Property_and_Equipment_net_Det
Property and Equipment, net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $78,938 | $54,516 | ' |
Less: accumulated depreciation and amortization | -29,674 | -27,722 | ' |
Depreciation and amortization expense | 8,766 | 4,781 | 5,536 |
Land Buildings And Improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 25,817 | 15,468 | ' |
Machinery And Equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 16,133 | 12,872 | ' |
Vehicles [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 951 | 871 | ' |
Computer Equipment Software And Software Development Costs [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 26,688 | 18,749 | ' |
Construction In Progress [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 4,347 | 3,492 | ' |
Assets Held Under Capital Leases [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 6,845 | 9,345 | 6,422 |
Less: accumulated depreciation and amortization | -2,713 | -6,700 | -5,680 |
Depreciation and amortization expense | $1,427 | $1,020 | $2,114 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Feb. 28, 2014 |
Change in goodwill | ' | ' | ' |
Beginning balance | $562,493 | $563,896 | $58,471 |
Foreign currency translation | 43 | -1,403 | ' |
Purchase accounting adjustment | 299,039 | ' | ' |
Ending balance | $861,575 | $562,493 | $58,471 |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets, net (Details 2) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Intangible Assets, net | ' | ' |
Gross Amount | 278,395 | 130,446 |
Accumulated Amortization | -43,450 | -30,805 |
Estimated future amortization expense | ' | ' |
2015 | 15,993 | ' |
2016 | 15,878 | ' |
2017 | 15,878 | ' |
2018 | 15,878 | ' |
2019 | 15,878 | ' |
Thereafter | 117,607 | ' |
Total | 197,112 | ' |
Trademarks [Member] | ' | ' |
Intangible Assets, net | ' | ' |
Gross Amount | 56,524 | 40,425 |
Accumulated Amortization | -2,372 | -1,637 |
Indefinite life intangibles | ' | ' |
Carrying value of Wesco Aircraft trademark | 37,832 | 37,832 |
Trademarks [Member] | Minimum [Member] | ' | ' |
Intangible Assets, net | ' | ' |
Estimated useful life | '5 years | '5 years |
Customer Relationships [Member] | ' | ' |
Intangible Assets, net | ' | ' |
Gross Amount | 181,687 | 84,237 |
Accumulated Amortization | -33,401 | -24,842 |
Customer Relationships [Member] | Minimum [Member] | ' | ' |
Intangible Assets, net | ' | ' |
Estimated useful life | '12 years | '12 years |
Customer Relationships [Member] | Maximum [Member] | ' | ' |
Intangible Assets, net | ' | ' |
Estimated useful life | '20 years | '20 years |
Order Or Production Backlog [Member] | ' | ' |
Intangible Assets, net | ' | ' |
Estimated useful life | '2 years | '2 years |
Gross Amount | 4,327 | 4,327 |
Accumulated Amortization | -4,327 | -3,136 |
Noncompete Agreements [Member] | ' | ' |
Intangible Assets, net | ' | ' |
Gross Amount | 1,457 | 1,457 |
Accumulated Amortization | -1,343 | -1,190 |
Noncompete Agreements [Member] | Minimum [Member] | ' | ' |
Intangible Assets, net | ' | ' |
Estimated useful life | '3 years | '3 years |
Noncompete Agreements [Member] | Maximum [Member] | ' | ' |
Intangible Assets, net | ' | ' |
Estimated useful life | '4 years | '4 years |
Technology Equipment [Member] | ' | ' |
Intangible Assets, net | ' | ' |
Estimated useful life | '10 years | '10 years |
Gross Amount | 34,400 | ' |
Accumulated Amortization | -2,007 | ' |
Accrued_Expenses_and_Other_Cur2
Accrued Expenses and Other Current Liabilities (Details) (USD $) | Sep. 30, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Accrued Expenses and Other Current Liabilities | ' | ' |
Accrued compensation and related expenses | $13,894 | $14,606 |
Accrual for commissions | 930 | 447 |
Accrued professional fees | 1,417 | 596 |
Accrued customer rebates | 2,874 | 1,743 |
Accrued taxes (property, sales and use) | 3,345 | 1,467 |
Accrued interest | 1,434 | 588 |
Integration costs | 3,232 | ' |
Accrued profit sharing | 600 | 791 |
Accrued freight duty | 867 | ' |
Other accruals | 3,003 | 809 |
Accrued expenses and other current liabilities | $31,596 | $21,047 |
LongTerm_Debt_Details
Long-Term Debt (Details) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||||||||||||||
Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 07, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Jul. 03, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | Term Loan Due December2017 [Member] | Term Loan Due December2017 [Member] | Term Loan Due December2017 [Member] | Term Loan Due December2017 [Member] | Term Loan Due December2017 [Member] | Term Loan Due December2017 [Member] | Term Loan Due February2021 [Member] | Term Loan Due February2021 [Member] | Term Loan Due February2021 [Member] | Term Loan Due February2021 [Member] | Term Loan Due February2021 [Member] | Line Of Credit [Member] | Line Of Credit [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Foreign Line Of Credit [Member] | Foreign Line Of Credit [Member] | |
USD ($) | USD ($) | London Interbank Offered Rate L I B O R [Member] | London Interbank Offered Rate L I B O R [Member] | Debt Instrument Variable Rate Basis Alternate Base Rate [Member] | Debt Instrument Variable Rate Basis Alternate Base Rate [Member] | USD ($) | Eurodollar [Member] | Eurodollar [Member] | Debt Instrument Variable Rate Basis Alternate Base Rate [Member] | Debt Instrument Variable Rate Basis Alternate Base Rate [Member] | Amendment And Restatement Of Credit Agreement [Member] | Amendment And Restatement Of Credit Agreement [Member] | USD ($) | Interfast Inc [Member] | Interfast Inc [Member] | Amendment And Restatement Of Credit Agreement [Member] | London Interbank Offered Rate L I B O R [Member] | London Interbank Offered Rate L I B O R [Member] | Debt Instrument Variable Rate Basis Alternate Base Rate [Member] | Debt Instrument Variable Rate Basis Alternate Base Rate [Member] | Wesco Aircraft Europe Limited [Member] | Wesco Aircraft Europe Limited [Member] | |||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | USD ($) | Pro Forma [Member] | Amendment And Restatement Of Credit Agreement [Member] | Amendment And Restatement Of Credit Agreement [Member] | Amendment And Restatement Of Credit Agreement [Member] | Amendment And Restatement Of Credit Agreement [Member] | USD ($) | GBP (£) | ||||||||||||
Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | ||||||||||||||||||||||||
Long-Term Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Principal amount | ' | ' | ' | ' | $625,000,000 | ' | ' | ' | ' | ' | $525,000,000 | ' | ' | ' | ' | ' | ' | $200,000,000 | $150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Basis of interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'Base Rate | 'Base Rate |
Applicable margin rate (as a percent) | ' | ' | ' | ' | ' | ' | 1.75% | 2.50% | 0.75% | 1.50% | ' | 2.50% | ' | 1.50% | ' | ' | ' | ' | ' | ' | ' | 1.75% | 2.50% | 0.75% | 1.50% | 1.65% | 1.65% |
Percentage of quarterly payment in year one | ' | ' | ' | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of quarterly payment in year five | ' | ' | ' | ' | 2.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate at end of period (as a percent) | ' | ' | ' | ' | 2.66% | ' | ' | ' | ' | ' | 3.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.66% | ' | ' | ' | ' | ' | ' |
Long-term debt, current and noncurrent | ' | 1,102,656,000 | ' | ' | 550,781,000 | 568,000,000 | ' | ' | ' | ' | 511,875,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: Current portion | ' | 23,437,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | 1,079,219,000 | 568,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | 11,367,000 | 7,000,000 |
Consolidated Total Leverage Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.25% | ' | ' | 4.14% | ' | ' | ' | ' | ' | ' | ' |
Consolidated Net Interest Coverage Ratio | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.25% | ' | ' | ' | 7.05% | ' | ' | ' | ' | ' | ' | ' |
Voluntary prepayment of debt | ' | ' | ' | ' | 19,531,000 | ' | ' | ' | ' | ' | 10,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net outstanding borrowing amount under line of credit | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 0 |
Loss on extinguishment of debt | 4,960,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Deferred financing costs capitalized | ' | ' | ' | 11,168,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate maturities of long-term debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2015 | ' | 23,437,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2016 | ' | 46,875,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2017 | ' | 63,844,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2018 | ' | 467,125,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
2019 & Thereafter | ' | $501,375,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Base rate (as a percent) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.75% | ' | 1.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of quarterly payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Income Taxes | ' | ' | ' |
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $112,841 | $115,194 | $110,120 |
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 44,067 | 42,433 | 23,542 |
Current Federal Tax Expense (Benefit) | 32,204 | 29,366 | 14,007 |
Current State and Local Tax Expense (Benefit) | 1,920 | 3,943 | 1,355 |
Current Foreign Tax Expense (Benefit) | 9,625 | 9,566 | 5,744 |
Current Income Tax Expense (Benefit) | 43,749 | 42,875 | 21,106 |
Deferred Federal Income Tax Expense (Benefit) | 9,756 | 8,901 | 18,867 |
Deferred State and Local Income Tax Expense (Benefit) | 1,497 | 1,022 | 1,719 |
Deferred Foreign Income Tax Expense (Benefit) | -196 | 17 | -205 |
Deferred Income Tax Expense (Benefit) | 11,057 | 9,940 | 20,381 |
Out-of-period adjustment, provision | 54,806 | 52,815 | 41,487 |
Adjustments to Additional Paid in Capital, Income Tax Benefit from Share-based Compensation | $10,235 | ' | ' |
Income_Taxes_Details_2
Income Taxes (Details 2) (USD $) | 12 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | |
Reconciliation of the Company's provision (benefit) for income taxes to the U.S. federal statutory rate | ' | ' | ' |
Provision for income taxes at statutory rate | $54,917,000 | $55,169,000 | $46,782,000 |
State taxes, net of tax benefit | 2,221,000 | 3,228,000 | 2,100,000 |
Nondeductible items | 1,114,000 | -48,000 | -498,000 |
Deemed foreign dividends | 7,091,000 | 5,358,000 | 1,838,000 |
Other | 1,825,000 | -2,060,000 | -407,000 |
IRC Section 199 and 41 | -649,000 | -610,000 | -3,550,000 |
Foreign income not taxed at the Federal rate | -5,707,000 | -4,910,000 | -2,699,000 |
Foreign tax credit | -5,329,000 | -3,312,000 | -2,079,000 |
Effective Income Tax Rate Reconciliation, Tax Contingency, Amount | -677,000 | ' | ' |
Provision for income taxes | -54,806,000 | -52,815,000 | -41,487,000 |
Reconciliation of the Company's provision (benefit) for income taxes to the U.S. federal statutory rate | ' | ' | ' |
Provision for income taxes at statutory rate (as a percent) | 35.00% | 35.00% | 35.00% |
State taxes, net of tax benefit (as a percent) | 1.42% | 2.05% | 1.57% |
Deemed foreign dividends (as a percent) | $4.52 | $3.40 | $1.38 |
Nondeductible items (as a percent) | 0.71% | -0.03% | -0.38% |
Other (as a percent) | 1.16% | -1.31% | -0.30% |
IRC Section 199 and 41 (as a percent) | -0.41% | -0.39% | -2.66% |
Foreign income not taxed at the Federal rate (as a percent) | -3.64% | -3.11% | -2.02% |
Foreign tax credit (as a percent) | -3.40% | -2.10% | -1.55% |
Effective Income Tax Rate Reconciliation, Tax Contingency, Percent | -0.43% | ' | ' |
Actual provision for income taxes (as a percent) | 34.93% | 33.51% | 31.04% |
Income_Taxes_Details_3
Income Taxes (Details 3) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Current deferred tax assets/(liabilities) | ' | ' |
Inventories | $44,688 | $34,537 |
Reserves and other accruals | 3,188 | 2,811 |
Net operating losses and tax credits | 1 | ' |
Compensation accruals | 1,927 | 2,292 |
Other | -616 | 31 |
Total current deferred tax assets/(liabilities) | 49,188 | 39,671 |
Non-current deferred tax assets/(liabilities) | ' | ' |
Property and equipment | -4,926 | -2,107 |
Goodwill and intangible assets | -116,804 | -73,268 |
Stock options | 2,018 | 3,062 |
Deferred financing costs and other | 51 | 129 |
Net operating losses and tax credits | 11,138 | ' |
Others | 507 | ' |
Total non-current deferred tax assets/(liabilities) | -108,016 | -72,184 |
Valuation allowance | 4,930 | ' |
Net deferred tax assets/(liabilities) | -63,758 | -32,513 |
Undistributed earnings of foreign subsidiaries considered to be indefinitely reinvested | 128,232 | ' |
Federal or state and local taxes or foreign withholding tax provision on undistributed earnings | 0 | ' |
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | 10,000 | 15,000 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' |
Increases related to tax positions taken during a prior year | 2,491 | ' |
Decreases related to tax positions taken during a prior year | -590 | ' |
Unrecognized Tax Benefits, Ending Balance | 1,901 | ' |
Valuation allowance for deferred tax assets | ' | ' |
Valuation allowance recorded during the period | 4,930 | ' |
Valuation allowance, ending balance | 4,930 | ' |
State and Local Jurisdiction [Member] | ' | ' |
Non-current deferred tax assets/(liabilities) | ' | ' |
Operating Loss Carryforwards | 2,839 | ' |
Foreign Tax Authority [Member] | ' | ' |
Non-current deferred tax assets/(liabilities) | ' | ' |
Operating Loss Carryforwards | 10,013 | ' |
Tax Credit Carryforward, Amount | 8,277 | ' |
Internal Revenue Service (IRS) [Member] | ' | ' |
Non-current deferred tax assets/(liabilities) | ' | ' |
Cumulative owenership change percent | 50.00% | ' |
Cumulative ownership change period | '3 years | ' |
Haas Group Inc [Member] | ' | ' |
Non-current deferred tax assets/(liabilities) | ' | ' |
Unrecognized Tax Benefits, Increase Resulting from Acquisition | 2,299 | ' |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 2,299 | ' |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 1,100 | ' |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $1,100 | ' |
StockBased_and_Other_Compensat2
Stock-Based and Other Compensation Arrangements (Details) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Weighted Average Exercise Price | ' | ' | ' |
Granted (in dollars per share) | ' | $13.49 | ' |
Employee Stock Option [Member] | ' | ' | ' |
Stock-Based and Other Compensation Arrangements | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Exercisable term | '10 years | ' | ' |
Number of Shares | ' | ' | ' |
Outstanding at the beginning of the period (in shares) | 4,238,026 | 5,928,935 | ' |
Granted (in shares) | 558,300 | 687,338 | ' |
Exercised (in shares) | -2,069,055 | -2,133,334 | ' |
Forfeited options (in shares) | 89,015 | -244,913 | ' |
Outstanding at the end of the period (in shares) | 2,638,256 | 4,238,026 | 5,928,935 |
Weighted Average Exercise Price | ' | ' | ' |
Outstanding at the beginning of the period (in dollars per share) | $6.46 | $5.32 | ' |
Granted (in dollars per share) | $20.87 | ' | ' |
Exercised (in dollars per share) | $4.66 | $4.63 | ' |
Forfeited options (in dollars per share) | $17.52 | $14.66 | ' |
Outstanding at the end of the period (in dollars per share) | $10.54 | $6.46 | $5.32 |
Weighted Average Remaining Contractual Life | ' | ' | ' |
Outstanding at the end of the period | '5 years 9 months 18 days | '4 years 7 months 6 days | '4 years 10 months 24 days |
Aggregate Intrinsic Value | ' | ' | ' |
Outstanding at the end of the period | $19,589,147 | $61,338,566 | $50,006,187 |
Additional disclosures | ' | ' | ' |
Total intrinsic value of options exercised | 34,593 | 25,519 | ' |
Stock-based compensation expense | 2,946 | 1,713 | 716 |
Unrecognized stock-based compensation cost | 4,445 | ' | ' |
Unrecognized stock-based compensation expected period of recognition | '2 years | ' | ' |
Options exercisable (in shares) | 2,088,988 | ' | ' |
Exercise stock options cash proceeds, net | 9,643 | 9,893 | 7,375 |
Employee Stock Option [Member] | Time Based Vesting [Member] | ' | ' | ' |
Stock-Based and Other Compensation Arrangements | ' | ' | ' |
Unvested stock options (in shares) | 549,266 | ' | ' |
Employee Stock Option [Member] | Maximum [Member] | Time Based Vesting [Member] | ' | ' | ' |
Stock-Based and Other Compensation Arrangements | ' | ' | ' |
Percentage of total number of shares held by all principal stockholders to total number of equity shares held at effective date of a liquidity event | 30.00% | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Additional disclosures | ' | ' | ' |
Stock-based compensation expense | $2,561 | $1,681 | $910 |
Unrecognized stock-based compensation expected period of recognition | '2 years | ' | ' |
Amended And Restated Equity Incentive Award Plan2006 [Member] | ' | ' | ' |
Number of Shares | ' | ' | ' |
Granted (in shares) | 0 | ' | ' |
Equity Incentive Award Plan2011 [Member] | ' | ' | ' |
Stock-Based and Other Compensation Arrangements | ' | ' | ' |
Shares authorized for issuance | 5,850,000 | ' | ' |
Shares remaining available for issuance | 4,000,819 | ' | ' |
StockBased_and_Other_Compensat3
Stock-Based and Other Compensation Arrangements (Details 2) (USD $) | 12 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Weighted Average Fair Value | ' | ' | ' |
Tax benefits realized from tax deductions associated with option exercised and restricted share activity | $10,235 | $6,879 | $21,476 |
Restricted Stock And Restricted Stock Units [Member] | ' | ' | ' |
Shares | ' | ' | ' |
Outstanding at start of year (in shares) | 156,631 | ' | ' |
Granted (in shares) | 205,674 | ' | ' |
Vested (in shares) | -156,829 | ' | ' |
Forfeited (in shares) | -40,073 | ' | ' |
Outstanding at end of year (in shares) | 165,403 | ' | ' |
Weighted Average Fair Value | ' | ' | ' |
Outstanding at start of year (in dollars per share) | $13.65 | ' | ' |
Granted (in dollars per share) | $20.88 | ' | ' |
Vested (in dollars per share) | $17.38 | ' | ' |
Forfeited (in dollars per share) | $17.47 | ' | ' |
Outstanding at end of year (in dollars per share) | $18.18 | ' | ' |
Employee Stock Option [Member] | ' | ' | ' |
Stock-Based and Other Compensation Arrangements | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Stock-based compensation expense | 2,946 | 1,713 | 716 |
Weighted average assumptions used to value the option grants | ' | ' | ' |
Expected life | '6 years | '5 years 11 months 19 days | '0 years |
Volatility (as a percent) | 45.00% | 46.50% | ' |
Risk free interest rate (as a percent) | 1.72% | 1.04% | ' |
Weighted average fair value per option at grant date for options issued (in dollars per share) | $9.36 | $6.08 | ' |
Restricted Stock [Member] | ' | ' | ' |
Stock-Based and Other Compensation Arrangements | ' | ' | ' |
Stock-based compensation expense | 2,561 | 1,681 | 910 |
Unrecognized stock-based compensation cost | 3,007 | ' | ' |
Weighted Average Fair Value | ' | ' | ' |
Granted (in dollars per share) | $2,088 | $13.52 | $10.93 |
Fair value of shares vested | 2,807 | 1,764 | 23,417 |
Fair value of shares granted | $4,294 | $3,426 | $412 |
Restricted Stock [Member] | Employee [Member] | ' | ' | ' |
Stock-Based and Other Compensation Arrangements | ' | ' | ' |
Vesting period | '3 years | ' | ' |
Shares | ' | ' | ' |
Granted (in shares) | 178,800 | ' | ' |
Restricted Stock [Member] | Director [Member] | ' | ' | ' |
Shares | ' | ' | ' |
Granted (in shares) | 26,874 | 44,286 | 37,740 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Operating Leases | ' | ' | ' |
2015 | $10,254 | ' | ' |
2016 | 8,074 | ' | ' |
2017 | 6,938 | ' | ' |
2018 | 5,830 | ' | ' |
2019 | 5,129 | ' | ' |
Thereafter | 7,643 | ' | ' |
Total | 43,868 | ' | ' |
Total rent expense | 6,648 | 4,654 | 4,218 |
Capital Lease Commitments | ' | ' | ' |
2015 | 1,705 | ' | ' |
2016 | 1,013 | ' | ' |
2017 | 730 | ' | ' |
2018 | 557 | ' | ' |
2019 | 430 | ' | ' |
Thereafter | 422 | ' | ' |
Total including interest | 4,857 | 2,694 | ' |
Less: Interest | -673 | ' | ' |
Total | 4,184 | ' | ' |
Third Party [Member] | ' | ' | ' |
Operating Leases | ' | ' | ' |
2015 | 8,479 | ' | ' |
2016 | 6,299 | ' | ' |
2017 | 5,163 | ' | ' |
2018 | 3,653 | ' | ' |
2019 | 2,952 | ' | ' |
Thereafter | 5,474 | ' | ' |
Total | 32,020 | ' | ' |
Related Party [Member] | ' | ' | ' |
Operating Leases | ' | ' | ' |
2015 | 1,775 | ' | ' |
2016 | 1,775 | ' | ' |
2017 | 1,775 | ' | ' |
2018 | 2,177 | ' | ' |
2019 | 2,177 | ' | ' |
Thereafter | 2,169 | ' | ' |
Total | $11,848 | ' | ' |
Employee_Benefit_Plan_Details
Employee Benefit Plan (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Employee Benefit Plan | ' | ' | ' |
Minimum requisite service period to participate in plan | '6 months | ' | ' |
Minimum age of full-time employees to be eligible to participate in the plan | '21 years | ' | ' |
Maximum percentage of employee gross pay the employee may contribute to a defined contribution plan. | 60.00% | ' | ' |
Employer contributions | $1,580 | $945 | $858 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Cash payments for: | ' | ' | ' |
Interest paid | $24,440 | $16,343 | $21,006 |
Income taxes paid | 24,457 | 5,977 | 37,428 |
Schedule of non-cash investing and financing activities: | ' | ' | ' |
Property and equipment acquired pursuant to capital leases | 1,528 | 2,923 | 116 |
Property and equipment disposed of pursuant to termination of capital leases | ($5,414) | ' | ($154) |
Quarterly_Financial_Data_unaud2
Quarterly Financial Data (unaudited) (Details) - 10K (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Quarterly Financial Data (unaudited) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $408,167 | $395,628 | $327,360 | $224,722 | $234,339 | $230,236 | $225,862 | $211,170 | $1,355,877 | $901,608 | $776,206 |
Gross profit | 119,749 | 121,535 | 99,089 | 78,058 | 85,000 | 81,891 | 81,308 | 74,100 | 418,431 | 322,299 | 283,570 |
Net income | $24,647 | $28,772 | $24,312 | $24,370 | $29,972 | $27,026 | $29,388 | $18,426 | $102,102 | $104,812 | $92,175 |
Basic net income per share (in dollars per share) | $0.25 | $0.30 | $0.25 | $0.26 | $0.32 | $0.29 | $0.32 | $0.20 | $1.06 | $1.12 | $1 |
Diluted net income per share (in dollars per share) | $0.25 | $0.29 | $0.25 | $0.25 | $0.31 | $0.28 | $0.31 | $0.19 | $1.05 | $1.09 | $0.96 |
Segment_Reporting_Details
Segment Reporting (Details) (USD $) | 3 Months Ended | 12 Months Ended | 12 Months Ended | 7 Months Ended | 12 Months Ended | ||||||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Feb. 28, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Operating Segments [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | Haas Group Inc [Member] | |||||||||||||
Rest Of World Segment [Member] | Rest Of World Segment [Member] | Rest Of World Segment [Member] | North America [Member] | Rest Of World Segment [Member] | |||||||||||||||||
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $408,167 | $395,628 | $327,360 | $224,722 | $234,339 | $230,236 | $225,862 | $211,170 | $1,355,877 | $901,608 | $776,206 | ' | $1,030,511 | $713,725 | $628,842 | $325,366 | $187,883 | $147,364 | $356,154 | ' | ' |
Gross profit | 119,749 | 121,535 | 99,089 | 78,058 | 85,000 | 81,891 | 81,308 | 74,100 | 418,431 | 322,299 | 283,570 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | 24,647 | 28,772 | 24,312 | 24,370 | 29,972 | 27,026 | 29,388 | 18,426 | 102,102 | 104,812 | 92,175 | ' | ' | ' | ' | ' | ' | ' | 2,850 | ' | ' |
Operating earnings | ' | ' | ' | ' | ' | ' | ' | ' | 183,934 | 180,802 | 158,832 | ' | 145,357 | 150,587 | 138,391 | 38,577 | 30,215 | 20,441 | ' | ' | ' |
Interest expense, net | ' | ' | ' | ' | ' | ' | ' | ' | -29,225 | -25,178 | -24,646 | ' | -25,836 | -25,355 | -22,756 | -3,389 | 177 | -1,890 | ' | ' | ' |
Provision for income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 54,806 | 52,815 | 41,487 | ' | 47,459 | 45,102 | 38,052 | 7,347 | 7,713 | 3,435 | ' | ' | ' |
Total assets | 2,412,274 | ' | ' | ' | 1,631,152 | ' | ' | ' | 2,412,274 | 1,631,152 | 1,537,416 | ' | 2,093,384 | 1,463,598 | 1,402,409 | 406,988 | 167,554 | 135,007 | ' | ' | ' |
Goodwill | 861,575 | ' | ' | ' | 562,493 | ' | ' | ' | 861,575 | 562,493 | 563,896 | 58,471 | 779,395 | 555,714 | 557,105 | 82,180 | 6,779 | 6,791 | ' | ' | ' |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 10,517 | 7,882 | 4,528 | ' | 9,763 | 7,220 | 4,037 | 754 | 662 | 491 | ' | ' | ' |
Depreciation and amortization | ' | ' | ' | ' | ' | ' | ' | ' | 21,402 | 11,380 | 9,963 | ' | 18,317 | 10,425 | 9,101 | 3,085 | 955 | 862 | ' | ' | ' |
Changes in goodwill during the period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $223,681 | $75,358 |
Segment_Reporting_Details_2
Segment Reporting (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | $408,167 | $395,628 | $327,360 | $224,722 | $234,339 | $230,236 | $225,862 | $211,170 | $1,355,877 | $901,608 | $776,206 |
% of sales | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% |
Long-lived assets | 49,264 | ' | ' | ' | 26,794 | ' | ' | ' | 49,264 | 26,794 | 20,769 |
Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 1,030,511 | 713,725 | 628,842 |
Hardware [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 837,615 | 744,741 | 632,283 |
% of sales | ' | ' | ' | ' | ' | ' | ' | ' | 61.80% | 82.60% | 81.50% |
Chemicals [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 356,154 | ' | ' |
% of sales | ' | ' | ' | ' | ' | ' | ' | ' | 26.30% | ' | ' |
Electronic Components [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 109,616 | 104,383 | 90,311 |
% of sales | ' | ' | ' | ' | ' | ' | ' | ' | 8.10% | 11.60% | 11.60% |
Bearings [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 31,729 | 32,218 | 26,462 |
% of sales | ' | ' | ' | ' | ' | ' | ' | ' | 2.30% | 3.60% | 3.40% |
Machined Parts And Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 20,763 | 20,266 | 27,150 |
% of sales | ' | ' | ' | ' | ' | ' | ' | ' | 1.50% | 2.20% | 3.50% |
U [S] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 950,058 | 628,220 | 590,367 |
% of sales | ' | ' | ' | ' | ' | ' | ' | ' | 70.10% | 69.70% | 76.10% |
C [A] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 46,610 | 73,409 | 28,538 |
% of sales | ' | ' | ' | ' | ' | ' | ' | ' | 3.40% | 8.10% | 3.70% |
G [B] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 180,535 | 134,943 | 116,809 |
% of sales | ' | ' | ' | ' | ' | ' | ' | ' | 13.30% | 15.00% | 15.00% |
Other European countries [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 121,589 | 52,927 | 31,087 |
% of sales | ' | ' | ' | ' | ' | ' | ' | ' | 9.00% | 5.90% | 4.00% |
Emerging Markets [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | 57,085 | 12,109 | 9,405 |
% of sales | ' | ' | ' | ' | ' | ' | ' | ' | 4.20% | 1.30% | 1.20% |
Long-lived assets | 361 | ' | ' | ' | ' | ' | ' | ' | 361 | ' | ' |
North America [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 46,433 | ' | ' | ' | 25,048 | ' | ' | ' | 46,433 | 25,048 | 19,104 |
Europe [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 2,470 | ' | ' | ' | 1,746 | ' | ' | ' | 2,470 | 1,746 | 1,665 |
Rest Of World Segment [Member] | Operating Segments [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Sales | ' | ' | ' | ' | ' | ' | ' | ' | $325,366 | $187,883 | $147,364 |