Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Nov. 30, 2013 | Mar. 31, 2013 | |
Document - Document and Entity Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'POWELL INDUSTRIES INC | ' | ' |
Entity Central Index Key | '0000080420 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Trading Symbol | 'powl | ' | ' |
Entity Public Float | ' | ' | $624,554,752 |
Entity Common Stock, Shares Outstanding | ' | 11,969,661 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and cash equivalents | $107,748 | $90,040 |
Accounts receivable, less allowance for doubtful accounts of $703 and $1,399, respectively | 119,420 | 125,771 |
Costs and estimated earnings in excess of billings on uncompleted contracts | 86,621 | 86,734 |
Inventories, net | 28,983 | 32,917 |
Income taxes receivable | 3,022 | 485 |
Deferred income taxes | 4,716 | 4,598 |
Prepaid expenses and other current assets | 6,831 | 5,865 |
Total Current Assets | 357,341 | 346,410 |
Property, plant and equipment, net | 144,589 | 78,652 |
Goodwill | 1,003 | 1,003 |
Intangible assets, net | 11,612 | 13,317 |
Deferred income taxes | 9,025 | 2,423 |
Other assets | 7,333 | 6,507 |
Total Assets | 530,903 | 448,312 |
Current Liabilities: | ' | ' |
Current maturities of long-term debt and capital lease obligations | 416 | 725 |
Income taxes payable | 5,917 | 3,516 |
Accounts payable | 58,501 | 48,490 |
Accrued salaries, bonuses and commissions | 27,474 | 25,822 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 60,201 | 37,144 |
Accrued product warranty | 5,450 | 5,714 |
Other accrued expenses | 10,104 | 9,462 |
Total Current Liabilities | 168,063 | 130,873 |
Long-term debt and capital lease obligations, net of current maturities | 3,200 | 3,630 |
Deferred compensation | 3,480 | 2,891 |
Postretirement benefit obligation | 739 | 685 |
Other liabilities | 195 | 130 |
Total Liabilities | 175,677 | 138,209 |
Commitments and Contingencies (Note J) | ' | ' |
Stockholders’ Equity: | ' | ' |
Preferred stock, par value $.01; 5,000,000 shares authorized; none issued | ' | ' |
Common stock, par value $.01; 30,000,000 shares authorized; 11,970,967 and 11,915,673 shares issued and outstanding, respectively | 119 | 119 |
Additional paid-in capital | 43,193 | 38,452 |
Retained earnings | 313,987 | 271,911 |
Accumulated other comprehensive loss | -2,073 | -379 |
Total Stockholders’ Equity | 355,226 | 310,103 |
Total Liabilities and Stockholders’ Equity | $530,903 | $448,312 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $703 | $1,399 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 11,970,967 | 11,915,673 |
Common stock, shares outstanding | 11,970,967 | 11,915,673 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $) | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract] | ' | ' | ' | |
Revenues | $674,772 | $717,194 | $562,397 | |
Cost of goods sold | 527,936 | 577,256 | 462,467 | |
Gross profit | 146,836 | 139,938 | 99,930 | |
Selling, general and administrative expenses | 83,539 | 81,295 | 77,538 | |
Research and development expenses | 8,521 | 7,652 | 7,520 | |
Amortization of intangible assets | 1,659 | 2,599 | 4,752 | |
Restructuring and relocation costs | 3,927 | ' | ' | |
Impairments | ' | ' | 7,158 | |
Operating income | 49,190 | 48,392 | 2,962 | |
Gain on sale of investment | ' | ' | -1,229 | |
Gain on settlement | -1,709 | ' | ' | |
Interest expense | 202 | 272 | 408 | |
Interest income | -35 | -114 | -214 | |
Income before income taxes | 50,732 | 48,234 | 3,997 | |
Income tax provision | 8,656 | 18,577 | 6,712 | |
Net income (loss) | $42,076 | $29,657 | ($2,715) | |
Earnings (loss) per share: | ' | ' | ' | |
Basic | $3.52 | [1] | $2.50 | ($0.23) |
Diluted | $3.51 | [1] | $2.49 | ($0.23) |
Weighted average shares: | ' | ' | ' | |
Basic | 11,948 | 11,850 | 11,735 | |
Diluted | 11,994 | 11,925 | 11,735 | |
[1] | The increase in earnings per share for the fourth quarter of Fiscal 2013 was primarily driven by the release of our Canadian valuation allowance. For an explanation of the effective tax rate in Fiscal 2013, see Note H. |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Consolidated Statement of Comprehensive Income (Loss) [Abstract] | ' | ' | ' |
Net income (loss) | $42,076 | $29,657 | ($2,715) |
Foreign currency translation adjustment | -1,719 | 833 | -19 |
Unrealized gain on cash flow hedges, net of tax | ' | ' | 111 |
Postretirement benefit adjustment, net of tax | 25 | 159 | -111 |
Comprehensive income (loss) | $40,382 | $30,649 | ($2,734) |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) |
In Thousands | |||||
Balance at Sep. 30, 2010 | $277,303 | $117 | $33,569 | $244,969 | ($1,352) |
Balance, shares at Sep. 30, 2010 | ' | 11,677 | ' | ' | ' |
Net income (loss) | -2,715 | ' | ' | -2,715 | ' |
Foreign currency translation adjustments | -19 | ' | ' | ' | -19 |
Exercise of stock options | 495 | ' | 495 | ' | ' |
Exercise of stock options, shares | ' | 27 | ' | ' | ' |
Stock-based compensation | -1,223 | ' | -1,223 | ' | ' |
Stock-based compensation, shares | ' | 20 | ' | ' | ' |
Excess tax benefit from share-based compensation | 180 | ' | 180 | ' | ' |
Amortization of restricted stock | 280 | ' | 280 | ' | ' |
Issuance of restricted stock | 1,042 | ' | 1,042 | ' | ' |
Issuance of restricted stock, shares | ' | 28 | ' | ' | ' |
Unrealized gain on cash flow hedges, net of tax | 111 | ' | ' | ' | 111 |
Postretirement benefit adjustment, net of tax | -111 | ' | ' | ' | -111 |
Balance at Sep. 30, 2011 | 275,343 | 117 | 34,343 | 242,254 | -1,371 |
Balance, shares at Sep. 30, 2011 | ' | 11,752 | ' | ' | ' |
Net income (loss) | 29,657 | ' | ' | 29,657 | ' |
Foreign currency translation adjustments | 833 | ' | ' | ' | 833 |
Exercise of stock options | 1,799 | 1 | 1,798 | ' | ' |
Exercise of stock options, shares | ' | 98 | ' | ' | ' |
Stock-based compensation | 1,004 | ' | 1,004 | ' | ' |
Stock-based compensation, shares | ' | 7 | ' | ' | ' |
Excess tax benefit from share-based compensation | 589 | ' | 589 | ' | ' |
Amortization of restricted stock | 135 | ' | 135 | ' | ' |
Issuance of restricted stock | 584 | 1 | 583 | ' | ' |
Issuance of restricted stock, shares | ' | 74 | ' | ' | ' |
Retirement of stock, shares | ' | -15 | ' | ' | ' |
Postretirement benefit adjustment, net of tax | 159 | ' | ' | ' | 159 |
Balance at Sep. 30, 2012 | 310,103 | 119 | 38,452 | 271,911 | -379 |
Balance, shares at Sep. 30, 2012 | ' | 11,916 | ' | ' | ' |
Net income (loss) | 42,076 | ' | ' | 42,076 | ' |
Foreign currency translation adjustments | -1,719 | ' | ' | ' | -1,719 |
Exercise of stock options, shares | ' | ' | ' | ' | ' |
Stock-based compensation | 2,369 | ' | 2,369 | ' | ' |
Stock-based compensation, shares | ' | 39 | ' | ' | ' |
Excess tax benefit from share-based compensation | 277 | ' | 277 | ' | ' |
Amortization of restricted stock | 2,095 | ' | 2,095 | ' | ' |
Issuance of restricted stock | ' | ' | ' | ' | ' |
Issuance of restricted stock, shares | ' | 17 | ' | ' | ' |
Retirement of stock, shares | ' | -1 | ' | ' | ' |
Postretirement benefit adjustment, net of tax | 25 | ' | ' | ' | 25 |
Balance at Sep. 30, 2013 | $355,226 | $119 | $43,193 | $313,987 | ($2,073) |
Balance, shares at Sep. 30, 2013 | ' | 11,971 | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (PARENTHETICAL) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Statement Of Stockholders Equity [Abstract] | ' | ' | ' |
Unrealized gain on cash flow hedges, net of tax | ' | ' | $94 |
Postretirement benefit adjustment, net of tax | $14 | $20 | $60 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Operating Activities: | ' | ' | ' |
Net income (loss) | $42,076 | $29,657 | ($2,715) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ' | ' | ' |
Depreciation | 8,519 | 10,465 | 10,598 |
Amortization | 1,671 | 2,612 | 4,848 |
Impairments | ' | ' | 7,158 |
Stock-based compensation | 4,464 | 1,723 | 99 |
Bad debt expense (recovery) | -544 | 842 | -114 |
Deferred income tax benefit | -6,720 | -1,422 | -425 |
Gain on sale of investment | ' | ' | -1,229 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable, net | 5,838 | -16,209 | -17,616 |
Costs and estimated earnings in excess of billings on uncompleted contracts | -165 | -34,755 | -13,519 |
Inventories | 3,881 | 3,948 | 1,542 |
Prepaid expenses and other current assets | -3,530 | 4,821 | 4,514 |
Other assets | -847 | -13 | -2,627 |
Accounts payable and income taxes payable | 12,565 | -6,036 | 14,487 |
Accrued liabilities | -633 | 6,411 | -4,255 |
Billings in excess of costs and estimated earnings on uncompleted contracts | 23,219 | -7,492 | 13,553 |
Other, net | 1,968 | -517 | 1,188 |
Net cash provided by (used in) operating activities | 91,762 | -5,965 | 15,487 |
Investing Activities: | ' | ' | ' |
Proceeds from sale of property, plant and equipment | 885 | 195 | 354 |
Purchases of property, plant and equipment | -74,369 | -29,063 | -7,347 |
Proceeds from sale of investment | ' | ' | 1,229 |
Decrease in cash held in escrow | ' | 1,000 | ' |
Increase in cash held in escrow | ' | ' | -1,000 |
Net cash used in investing activities | -73,484 | -27,868 | -6,764 |
Financing Activities: | ' | ' | ' |
Borrowings on Canadian revolving line of credit | 5,234 | 7,992 | 7,810 |
Payments on Canadian revolving line of credit | -5,234 | -7,992 | -7,818 |
Payments on industrial development revenue bonds | -400 | -400 | -400 |
Payments on short-term and other financing | -329 | -717 | -1,068 |
Proceeds from exercise of stock options | ' | 1,799 | 495 |
Excess tax benefit from stock-based compensation | 277 | 589 | 180 |
Net cash provided by (used in) financing activities | -452 | 1,271 | -801 |
Net increase (decrease) in cash and cash equivalents | 17,826 | -32,562 | 7,922 |
Effect of exchange rate changes on cash and cash equivalents | -118 | -864 | 191 |
Cash and cash equivalents at beginning of year | 90,040 | 123,466 | 115,353 |
Cash and cash equivalents at end of year | $107,748 | $90,040 | $123,466 |
Business_and_Organization
Business and Organization | 12 Months Ended |
Sep. 30, 2013 | |
Business and Organization | ' |
A. Business and Organization | |
Powell Industries, Inc. (we, us, our, Powell or the Company) was incorporated in the state of Delaware in 2004 as a successor to a Nevada company incorporated in 1968. The Nevada corporation was the successor to a company founded by William E. Powell in 1947, which merged into the Company in 1977. Our major subsidiaries, all of which are wholly-owned, include: Powell Electrical Systems, Inc.; Transdyn, Inc.; Powell Industries International, B.V.; Switchgear & Instrumentation Limited (S&I) and Powell Canada Inc. | |
We develop, design, manufacture and service custom engineered-to-order equipment and systems for the management and control of electrical energy and other critical processes. Headquartered in Houston, Texas, we serve the transportation, environmental, energy, industrial and utility industries. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||||||||||
B. Summary of Significant Accounting Policies | ||||||||||||||||||||||||
Principles of Consolidation | ||||||||||||||||||||||||
The consolidated financial statements include the accounts of Powell and our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | ||||||||||||||||||||||||
Reclassifications | ||||||||||||||||||||||||
Reclassifications have been made in prior years’ financial statements to conform and expand the presentation of deferred income taxes and research and development used in the current year. These reclassifications have not resulted in any changes to previously reported net income or cash flows for any periods. | ||||||||||||||||||||||||
Use of Estimates | ||||||||||||||||||||||||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying footnotes. The most significant estimates used in our financial statements affect revenue and cost recognition for construction contracts, the allowance for doubtful accounts, provision for excess and obsolete inventory, goodwill and other intangible assets, self-insurance, warranty accruals and income taxes. The amounts recorded for insurance claims, warranties, legal, income taxes and other contingent liabilities require judgments regarding the amount of expenses that will ultimately be incurred. We base our estimates on historical experience and on various other assumptions, as well as the specific circumstances surrounding these contingent liabilities, in evaluating the amount of liability that should be recorded. Estimates may change as new events occur, additional information becomes available or operating environments change. Actual results may differ from our estimates. | ||||||||||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||||||||
Cash and cash equivalents include cash on hand, deposits with banks and highly liquid investments with original maturities of three months or less. | ||||||||||||||||||||||||
Supplemental Disclosures of Cash Flow Information (in thousands): | ||||||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Cash paid during the period for: | ||||||||||||||||||||||||
Interest, net of interest income | $ | 164 | $ | 141 | $ | 102 | ||||||||||||||||||
Income taxes, net of refunds | 14,783 | 12,104 | 3,889 | |||||||||||||||||||||
Non-cash capital expenditures | 2,807 | − | − | |||||||||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||||||||||
Financial instruments include cash, cash equivalents, receivables, payables and debt obligations. Except as described below, due to the short-term nature of account receivables and account payables, the book value is representative of their fair value. The carrying value of debt approximates fair value as interest rates are indexed to the Federal Funds Rate, the Canadian Prime Rate or the bank’s prime rate. | ||||||||||||||||||||||||
Accounts Receivable | ||||||||||||||||||||||||
Accounts receivable are stated net of allowances for doubtful accounts. We maintain and continually assess the adequacy of the allowance for doubtful accounts representing our estimate for losses resulting from the inability of our customers to pay amounts due to us. This estimated allowance is based on historical experience of uncollected accounts, the level of past due accounts, the overall level of outstanding accounts receivable, information about specific customers with respect to their inability to make payments and expectations of future conditions that could impact the collectability of accounts receivable. Future changes in our customers’ operating performance and cash flows, or in general economic conditions, could have an impact on their ability to fully pay these amounts, which could have a material impact on our operating results. In most cases, receivables are not collateralized. However, we utilize letters of credit to secure payment on sales when possible. At September 30, 2013 and 2012, accounts receivable included retention amounts of $11.5 million and $8.7 million, respectively. Retention amounts are in accordance with applicable provisions of engineering and construction contracts and become due upon completion of contractual requirements. Approximately $1.0 million of the retained amount at September 30, 2013, is expected to be collected subsequent to September 30, 2014. | ||||||||||||||||||||||||
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | ||||||||||||||||||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts arise when revenues are recorded on a percentage-of-completion basis but cannot be invoiced under the terms of the contract. Such amounts are invoiced upon completion of contractual milestones. | ||||||||||||||||||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts also include certain costs associated with unapproved change orders. These costs are included when the approval of the change order is probable. Amounts are carried at the lower of cost or net realizable value. Revenue is recognized to the extent of costs incurred when recovery is probable. The amounts recorded involve the use of judgments and estimates; thus, actual recoverable amounts could differ from original assumptions. | ||||||||||||||||||||||||
In accordance with industry practice, assets and liabilities related to costs and estimated earnings in excess of billings on uncompleted contracts, as well as billings in excess of costs and estimated earnings on uncompleted contracts, have been classified as current. The contract cycle for certain long-term contracts may extend beyond one year; thus, collection of amounts related to these contracts may extend beyond one year. | ||||||||||||||||||||||||
Inventories | ||||||||||||||||||||||||
Inventories are stated at the lower of cost or market using weighted-average methods and include the cost of materials, labor and manufacturing overhead. We use estimates in determining the level of reserves required to state inventory at the lower of cost or market. Our estimates are based on market activity levels, production requirements, the physical condition of products and technological innovation. Changes in any of these factors may result in adjustments to the carrying value of inventory. | ||||||||||||||||||||||||
Property, Plant and Equipment | ||||||||||||||||||||||||
Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and improvements, which extend the useful lives of existing equipment, are capitalized and depreciated. Upon retirement or disposition of property, plant and equipment, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in the Consolidated Statements of Operations. | ||||||||||||||||||||||||
We review property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value may not be realizable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if an impairment of such asset is necessary. This requires us to make long-term forecasts of the future revenues and the costs related to the assets subject to review. Forecasts require assumptions about demand for our products and future market conditions. Estimating future cash flows requires significant judgment and our projections may vary from cash flows eventually realized. Future events and unanticipated changes to assumptions could require a provision for impairment in a future period. The effect of any impairment would be reflected in income (loss) from operations in the Consolidated Statements of Operations. In addition, we estimate the useful lives of our property, plant and equipment and periodically review these estimates to determine whether these lives are appropriate. | ||||||||||||||||||||||||
Intangible Assets | ||||||||||||||||||||||||
The costs of intangible assets with determinable useful lives are amortized over their estimated useful lives. When certain events or changes in operating conditions occur, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if an impairment of such assets is necessary. For intangible assets that are amortized, we review their estimated useful lives and evaluate whether events and circumstances warrant a revision to the remaining useful life. For additional information regarding our intangible assets and related impairment, see Note D herein. | ||||||||||||||||||||||||
Goodwill | ||||||||||||||||||||||||
Goodwill is evaluated for impairment annually, or immediately if conditions indicate that impairment could exist. The evaluation requires a two-step impairment test to identify potential goodwill impairment and measure the amount of a goodwill impairment loss. The first step of the test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss. Both steps of the goodwill impairment testing involve significant estimates. | ||||||||||||||||||||||||
Income Taxes | ||||||||||||||||||||||||
We account for income taxes under the asset and liability method, based on the income tax laws and rates in the countries in which operations are conducted and income is earned. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Developing our provision for income taxes requires significant judgment and expertise in federal, international and state income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and, if necessary, any valuation allowances that may be required for deferred tax assets. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. We believe that the deferred tax asset recorded as of September 30, 2013, is realizable through future reversals of existing taxable temporary differences and future taxable income. If we were to subsequently determine that we would be able to realize deferred tax assets in the future in excess of our net recorded amount, an adjustment to deferred tax assets would increase earnings for the period in which such determination was made. We will continue to assess the adequacy of the valuation allowance on a quarterly basis. Our judgments and tax strategies are subject to audit by various taxing authorities. | ||||||||||||||||||||||||
The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Accounting literature also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact our financial statements. | ||||||||||||||||||||||||
Revenue Recognition | ||||||||||||||||||||||||
Our revenues are primarily generated from engineering and manufacturing of custom products under long-term contracts that may last from one month to several years, depending on the contract. Revenues from long-term contracts are recognized on the percentage-of-completion method of accounting. Occasionally a contract may require that we segment the project into specific deliverables for revenue recognition. Segmenting a contract may result in different interim rates of profitability for each scope of service than if we had recognized revenue on a combined basis. | ||||||||||||||||||||||||
Under the percentage-of-completion method of accounting, revenues are recognized as work is performed. The estimated completion to date is calculated by multiplying the total contract price by the percentage of performance to date, which is based on total costs or total labor dollars incurred to date compared to the total estimated costs or total labor dollars estimated at completion. The method used to determine the percentage of completion is typically the cost method, unless the labor method is a more accurate method of measuring the progress of the project. Application of the percentage-of-completion method of accounting requires the use of estimates of costs to be incurred for the performance of the contract. Contract costs include all direct material costs, direct labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and all costs associated with operation of equipment. The cost estimation process is based upon the professional knowledge and experience of our engineers, project managers and financial professionals. Factors that are considered in estimating the work to be completed and ultimate contract recovery include the availability and productivity of labor, the nature and complexity of the work to be performed, the effect of change orders, the availability of materials, the effect of any delays on our project performance and the recoverability of any claims. Changes in job performance, job conditions, estimated profitability and final contract settlements, including our estimate of liquidated damages, if any, may result in revisions to costs and income, with their effects being recognized in the period in which the revisions are determined. Whenever revisions of estimated contract costs and contract values indicate that the contract costs will exceed estimated revenues, thus creating a loss, a provision for the total estimated loss is recorded in that period. | ||||||||||||||||||||||||
Revenues associated with maintenance, repair and service contracts are recognized when the services are performed. Expenses related to these types of services are recognized as incurred. | ||||||||||||||||||||||||
Warranties | ||||||||||||||||||||||||
We provide for estimated warranty costs at the time of sale based upon historical rates applicable to individual product lines. In addition, specific provisions are made when the costs of such warranties are expected to exceed accruals. Our standard terms and conditions of sale include a warranty for parts and service for the earlier of 18 months from the date of shipment or 12 months from the date of initial operations. Occasionally projects require warranty terms that are longer than our standard terms due to the nature of the project. Extended warranty terms may be negotiated and included in our contracts. We use past experience and historical claims to determine the estimated liability. Actual results could differ from our estimate. | ||||||||||||||||||||||||
Research and Development Expense | ||||||||||||||||||||||||
Research and development costs are charged to expense as incurred. Such amounts were $8.5 million, $7.7 million and $7.5 million in Fiscal 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||||
Foreign Currency Translation | ||||||||||||||||||||||||
The functional currency for our foreign subsidiaries is the local currency in which the entity is located. The financial statements of all subsidiaries with a functional currency other than the U.S. Dollar have been translated into U.S. Dollars. All assets and liabilities of foreign operations are translated into U.S. Dollars using year-end exchange rates, and all revenues and expenses are translated at average rates during the respective period. The U.S. Dollar results that arise from such translation, as well as exchange gains and losses on intercompany balances of a long-term investment nature, are included in the cumulative currency translation adjustments in accumulated other comprehensive income in stockholders’ equity. | ||||||||||||||||||||||||
Stock-Based Compensation | ||||||||||||||||||||||||
We measure stock-based compensation cost at the grant date based on the fair value of the award. Compensation expense is recognized over the period during which the employee is required to provide service in exchange for the awards, typically the vesting period. Excess income tax benefits related to share-based compensation expense that must be recognized directly in equity are considered financing rather than operating cash flow activities. | ||||||||||||||||||||||||
New Accounting Standards | ||||||||||||||||||||||||
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the FASB), which are adopted by us as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on our consolidated statements upon adoption. | ||||||||||||||||||||||||
In August 2012, the Securities and Exchange Commission (SEC) adopted a rule mandated by the Wall Street Reform and Consumer Protection Act to require companies to publicly disclose their use of conflict minerals that originate in the Democratic Republic of the Congo or an adjoining country. The final rule applies to a company that uses minerals including tantalum, tin, gold or tungsten. The final rule requires companies to provide disclosure on a new form filed with the SEC, with the first specialized disclosure report due on May 31, 2014, for the 2013 calendar year, and annually on May 31 each year thereafter. We are implementing the processes and procedures to comply with this rule. | ||||||||||||||||||||||||
In February 2013, the FASB issued accounting guidance that requires companies to provide information regarding the amounts reclassified out of accumulated other comprehensive income by component. A company will be required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required by U.S. generally accepted accounting principles (U.S. GAAP) to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, a company is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail regarding those amounts. This accounting guidance was effective for fiscal years beginning after December 15, 2012, on a prospective basis. We are evaluating the impact of this guidance on our consolidated financial statements, but since the guidance only affects presentation and disclosure of amounts reclassified out of accumulated other comprehensive income, the adoption of this guidance in the first quarter of fiscal year 2014 is not expected to have a significant impact on our consolidated financial position or results of operations. | ||||||||||||||||||||||||
In March 2013, the FASB issued accounting guidance to resolve the diversity in practice for accounting for the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of real estate or conveyance of oil and gas mineral rights) within a foreign entity. This guidance is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013, our fiscal year ending September 30, 2015. We do not expect this guidance to have a material impact on our consolidated financial position or results of operations. | ||||||||||||||||||||||||
In July 2013, the FASB issued accounting guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, our fiscal year ended September 30, 2015. This guidance should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of this guidance is not expected to have a significant impact on our consolidated financial position or results of operations. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Fair Value Measurements | ' | |||||||||||||||||||||||
C. Fair Value Measurements | ||||||||||||||||||||||||
We measure certain financial assets and liabilities at fair value. Fair value is defined as an “exit price” which represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in valuing an asset or liability. The accounting guidance requires the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. As a basis for considering such assumptions and inputs, a fair value hierarchy has been established that identifies and prioritizes three levels of inputs to be used in measuring fair value. | ||||||||||||||||||||||||
The three levels of the fair value hierarchy are as follows: | ||||||||||||||||||||||||
Level 1 — Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||||||||||||
Level 2 — Inputs other than the quoted prices in active markets that are observable either directly or indirectly, including: quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data. | ||||||||||||||||||||||||
Level 3 — Unobservable inputs that are supported by little or no market data and require the reporting entity to develop its own assumptions. | ||||||||||||||||||||||||
The following table summarizes the fair value of our assets that were accounted for at fair value on a recurring basis as of September 30, 2013 (in thousands): | ||||||||||||||||||||||||
Fair Value Measurements at September 30, 2013 | ||||||||||||||||||||||||
Quoted Prices in Active Markets for | Significant Other | Significant | Fair Value at | |||||||||||||||||||||
Identical Assets | Observable | Unobservable | September 30, | |||||||||||||||||||||
(Level 1) | Inputs | Inputs | 2013 | |||||||||||||||||||||
(Level 2) | (Level 3) | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash equivalents | $ | 10,531 | $ | − | $ | − | $ | 10,531 | ||||||||||||||||
Total | $ | 10,531 | $ | − | $ | − | $ | 10,531 | ||||||||||||||||
The following table summarizes the fair value of our assets that were accounted for at fair value on a recurring basis as of September 30, 2012 (in thousands): | ||||||||||||||||||||||||
Fair Value Measurements at September 30, 2012 | ||||||||||||||||||||||||
Quoted Prices in Active Markets for | Significant Other | Significant | Fair Value at | |||||||||||||||||||||
Identical Assets | Observable | Unobservable | September 30, | |||||||||||||||||||||
(Level 1) | Inputs | Inputs | 2012 | |||||||||||||||||||||
(Level 2) | (Level 3) | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash equivalents | $ | 45,888 | $ | − | $ | − | $ | 45,888 | ||||||||||||||||
Total | $ | 45,888 | $ | − | $ | − | $ | 45,888 | ||||||||||||||||
Cash equivalents, primarily funds held in money market savings instruments, are reported at their current carrying value which approximates fair value due to the short-term nature of these instruments and are included in cash and cash equivalents in our Consolidated Balance Sheets. | ||||||||||||||||||||||||
Fair Value of Other Financial Instruments | ||||||||||||||||||||||||
Fair value guidance requires certain fair value disclosures, such as those on our long-term debt, to be presented in both interim and annual reports. The estimated fair value amounts of financial instruments have been determined using available market information and valuation methodologies described below. | ||||||||||||||||||||||||
Industrial Development Revenue Bonds – The fair value of our long-term debt depends primarily on the coupon rate of our industrial development revenue bonds. The carrying value of our long-term debt at September 30, 2013, approximates fair value based on the current coupon rate of the bonds, which is reset weekly. It is classified as a Level 2 input in the fair value measurement hierarchy as there is an active market for the trading of these industrial development revenue bonds. | ||||||||||||||||||||||||
There were no transfers between levels with the fair value measurement hierarchy during fiscal year 2013. |
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Intangible Assets | ' | |||||||||||||||||||||||||||||||
D. Intangible Assets | ||||||||||||||||||||||||||||||||
Our intangible assets consist of (1) goodwill, which is not being amortized, and (2) a supply agreement (15 year useful life), purchased technology (6 to 7 year useful lives) and trade names (10 year useful life), which are amortized over their estimated useful lives. We test for impairment of goodwill and intangible assets annually, or immediately if conditions indicate that impairment could exist. | ||||||||||||||||||||||||||||||||
No impairment was identified as a result of performing our annual impairment test of goodwill for Fiscal 2013 or 2012. | ||||||||||||||||||||||||||||||||
During Fiscal 2011, our impairment analysis indicated that the non-compete agreements, trade name and customer relationships intangible assets related to the Powell Canada acquisition were impaired due to continued operating losses at Powell Canada, which have reduced our projections for future revenues and cash flows. Accordingly, we recognized a loss on impairment of $7.2 million. | ||||||||||||||||||||||||||||||||
Intangible assets balances, subject to amortization, at September 30, 2013 and 2012, consisted of the following (in thousands): | ||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||
Supply agreement | $ | 17,580 | $ | (8,397 | ) | $ | 9,183 | $ | 17,580 | $ | (7,225 | ) | $ | 10,355 | ||||||||||||||||||
Purchased technology | 11,749 | (9,489 | ) | 2,260 | 11,818 | (9,121 | ) | 2,697 | ||||||||||||||||||||||||
Trade name | 1,136 | (967 | ) | 169 | 1,136 | (871 | ) | 265 | ||||||||||||||||||||||||
Total | $ | 30,465 | $ | (18,853 | ) | $ | 11,612 | $ | 30,534 | $ | (17,217 | ) | $ | 13,317 | ||||||||||||||||||
All goodwill and intangible assets disclosed above are reported in our Electrical Power Products business segment. | ||||||||||||||||||||||||||||||||
Amortization of intangible assets recorded for the years ended September 30, 2013, 2012 and 2011, was $1.7 million, $2.6 million and $4.8 million, respectively. | ||||||||||||||||||||||||||||||||
Estimated amortization expense for each of the five subsequent fiscal years is expected to be (in thousands): | ||||||||||||||||||||||||||||||||
Years Ending September 30, | Total | |||||||||||||||||||||||||||||||
2014 | $ | 1,652 | ||||||||||||||||||||||||||||||
2015 | 1,637 | |||||||||||||||||||||||||||||||
2016 | 1,560 | |||||||||||||||||||||||||||||||
2017 | 1,560 | |||||||||||||||||||||||||||||||
2018 | 1,560 | |||||||||||||||||||||||||||||||
Earnings_per_Share
Earnings per Share | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Earnings per Share | ' | |||||||||||||||||||||||
E. Earnings Per Share | ||||||||||||||||||||||||
We compute basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common and potential common share includes the weighted average of additional shares associated with the incremental effect of dilutive restricted stock and restrictive stock units, as prescribed by the FASB guidance on earnings per share. | ||||||||||||||||||||||||
The following table reconciles basic and diluted weighted average shares used in the computation of earnings per share for the years ended September 30, 2013, 2012 and 2011 (in thousands, except per share data): | ||||||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net income (loss) | $ | 42,076 | $ | 29,657 | $ | (2,715 | ) | |||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average basic shares | 11,948 | 11,850 | 11,735 | |||||||||||||||||||||
Dilutive effect of stock options, restricted stock and restricted stock units (1) | 46 | 75 | − | |||||||||||||||||||||
Weighted average diluted shares with assumed conversions | 11,994 | 11,925 | 11,735 | |||||||||||||||||||||
Net earnings (loss) per share: | ||||||||||||||||||||||||
Basic | $ | 3.52 | $ | 2.50 | $ | (0.23 | ) | |||||||||||||||||
Diluted | $ | 3.51 | $ | 2.49 | $ | (0.23 | ) | |||||||||||||||||
(1) In Fiscal 2011, approximately 23,000 shares related to outstanding stock options and restricted stock units were excluded from the computation of diluted earnings (loss) per share because they were antidilutive. | ||||||||||||||||||||||||
Detail_of_Selected_Balance_She
Detail of Selected Balance Sheet Accounts | 12 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Detail of Selected Balance Sheet Accounts | ' | |||||||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||||||||
Activity in our allowance for doubtful accounts consisted of the following (in thousands): | ||||||||||||||||||||||
September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Balance at beginning of year | $ | 1,399 | $ | 391 | ||||||||||||||||||
Increase in (decrease to) bad debt expense | (544 | ) | 842 | |||||||||||||||||||
Deductions for uncollectible accounts written off, net of recoveries | (142 | ) | 142 | |||||||||||||||||||
Increase (decrease) due to foreign currency translation | (10 | ) | 24 | |||||||||||||||||||
Balance at end of year | $ | 703 | $ | 1,399 | ||||||||||||||||||
Inventories | ||||||||||||||||||||||
The components of inventories are summarized below (in thousands): | ||||||||||||||||||||||
September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Raw materials, parts and subassemblies | $ | 30,097 | $ | 33,632 | ||||||||||||||||||
Work-in-progress | 3,818 | 6,422 | ||||||||||||||||||||
Provision for excess and obsolete inventory | (4,932 | ) | (7,137 | ) | ||||||||||||||||||
Total inventories | $ | 28,983 | $ | 32,917 | ||||||||||||||||||
Cost and Estimated Earnings on Uncompleted Contracts | ||||||||||||||||||||||
The components of costs and estimated earnings and related amounts billed on uncompleted contracts are summarized below (in thousands): | ||||||||||||||||||||||
September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Costs incurred on uncompleted contracts | $ | 697,760 | $ | 635,714 | ||||||||||||||||||
Estimated earnings | 177,921 | 168,480 | ||||||||||||||||||||
875,681 | 804,194 | |||||||||||||||||||||
Less: Billings to date | 849,261 | 754,604 | ||||||||||||||||||||
Net underbilled position | $ | 26,420 | $ | 49,590 | ||||||||||||||||||
Included in the accompanying balance sheets under the following captions: | ||||||||||||||||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts – underbilled | $ | 86,621 | $ | 86,734 | ||||||||||||||||||
Billings in excess of costs and estimated earnings on uncompleted contracts – overbilled | (60,201 | ) | (37,144 | ) | ||||||||||||||||||
Net underbilled position | $ | 26,420 | $ | 49,590 | ||||||||||||||||||
Property, Plant and Equipment | ||||||||||||||||||||||
Property, plant and equipment are summarized below (in thousands): | ||||||||||||||||||||||
September 30, | Range of | |||||||||||||||||||||
2013 | 2012 | Asset Lives | ||||||||||||||||||||
Land | $ | 24,022 | $ | 24,766 | — | |||||||||||||||||
Buildings and improvements | 79,746 | 55,431 | 3 ‑ 39 Years | |||||||||||||||||||
Machinery and equipment | 72,217 | 67,007 | 3 ‑ 15 Years | |||||||||||||||||||
Furniture and fixtures | 2,964 | 2,940 | 3 ‑ 10 Years | |||||||||||||||||||
Construction in process | 48,300 | 7,224 | — | |||||||||||||||||||
227,249 | 157,368 | |||||||||||||||||||||
Less: Accumulated depreciation | (82,660 | ) | (78,716 | ) | ||||||||||||||||||
Total property, plant and equipment, net | $ | 144,589 | $ | 78,652 | ||||||||||||||||||
The increases in buildings and construction in process are primarily the result of construction of the new facilities in Houston, Texas, and Acheson, Alberta, Canada. | ||||||||||||||||||||||
Included in property and equipment are assets under capital lease of $0.5 million and $1.8 million at September 30, 2013 and 2012, with related accumulated depreciation of $0.5 million and $1.0 million, respectively. Depreciation expense, including the depreciation of capital leases, was $8.5 million, $10.5 million and $10.6 million for fiscal years 2013, 2012 and 2011, respectively. | ||||||||||||||||||||||
Warranty Accrual | ||||||||||||||||||||||
Activity in our product warranty accrual consisted of the following (in thousands): | ||||||||||||||||||||||
September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Balance at beginning of year | $ | 5,714 | $ | 4,603 | ||||||||||||||||||
Increase to warranty expense | 4,060 | 3,624 | ||||||||||||||||||||
Deductions for warranty charges | (4,359 | ) | (2,323 | ) | ||||||||||||||||||
Increase (decrease) due to foreign currency translation | 35 | (190 | ) | |||||||||||||||||||
Balance at end of year | $ | 5,450 | $ | 5,714 | ||||||||||||||||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Long-Term Debt | ' | |||||||||
G. Long-Term Debt | ||||||||||
Long-term debt consisted of the following (in thousands): | ||||||||||
September 30, | ||||||||||
2013 | 2012 | |||||||||
Industrial development revenue bonds | $ | 3,600 | $ | 4,000 | ||||||
Capital lease obligations | 16 | 355 | ||||||||
Subtotal long-term debt and capital lease obligations | 3,616 | 4,355 | ||||||||
Less current portion | (416 | ) | (725 | ) | ||||||
Total long-term debt and capital lease obligations | $ | 3,200 | $ | 3,630 | ||||||
The annual maturities of long-term debt as of September 30, 2013, were as follows (in thousands): | ||||||||||
Year Ending September 30, | Long‑Term | |||||||||
Debt | ||||||||||
Maturities | ||||||||||
2014 | $ | 416 | ||||||||
2015 | 400 | |||||||||
2016 | 400 | |||||||||
2017 | 400 | |||||||||
2018 | 400 | |||||||||
Thereafter | 1,600 | |||||||||
Total long-term debt maturities | $ | 3,616 | ||||||||
U.S. Revolver | ||||||||||
In June 2013, we amended our existing credit agreement (Amended Credit Agreement) with a major domestic bank. We amended our credit facility in order to increase the dollar limit on capital expenditures related to the construction of our new facilities in Houston, Texas and Acheson, Alberta, Canada. The Amended Credit Agreement provides for a $75.0 million revolving credit facility (U.S. Revolver). Obligations are collateralized by the stock of certain of our subsidiaries. | ||||||||||
The interest rate for amounts outstanding under the Amended Credit Agreement for the U.S. Revolver is a floating rate based upon the higher of the Federal Funds Rate plus 0.5%, or the bank’s prime rate. Once the applicable rate is determined, a margin ranging up to 1.75%, as determined by our consolidated leverage ratio, is added to the applicable rate. | ||||||||||
The U.S. Revolver provides for the issuance of letters of credit which reduce the amounts that may be borrowed under this revolver. The amount available under the U.S. Revolver was reduced by $20.0 million for our outstanding letters of credit at September 30, 2013. | ||||||||||
There were no borrowings outstanding under the U.S. Revolver as of September 30, 2013. Amounts available under the U.S. Revolver were $55.0 million at September 30, 2013. The U.S. Revolver expires on December 31, 2016. | ||||||||||
The Amended Credit Agreement contains certain restrictive and maintenance-type covenants, such as restrictions on the amount of capital expenditures allowed. It also contains financial covenants defining various financial measures and the levels of these measures with which we must comply, as well as a “material adverse change” clause. A “material adverse change” is defined as a material change in our operations, business, properties, liabilities or condition (financial or otherwise) or a material impairment of our ability to perform our obligations under our credit agreements. | ||||||||||
The Amended Credit Agreement is collateralized by a pledge of 100% of the voting capital stock of each of our domestic subsidiaries and 66% of the voting capital stock of each non-domestic subsidiary, excluding Powell Canada. The Amended Credit Agreement provides for customary events of default and carries cross-default provisions with other existing debt agreements. If an event of default (as defined in the Amended Credit Agreement) occurs and is continuing, on the terms and subject to the conditions set forth in the Amended Credit Agreement, amounts outstanding under the Amended Credit Agreement may be accelerated and may become immediately due and payable. As of September 30, 2013, we were in compliance with all of the financial covenants of the Amended Credit Agreement. | ||||||||||
Canadian Revolver | ||||||||||
We have a $9.5 million credit agreement with a major international bank in Canada (the Canadian Revolver) to provide working capital support and letters of credit for our operations in Canada. The issuance of letters of credit reduces the amounts which may be borrowed under the Canadian Revolver. The amount available under the Canadian Revolver was reduced by $0.1 million for an outstanding letter of credit at September 30, 2013. | ||||||||||
There were no borrowings outstanding under the Canadian Revolver, and $9.4 million was available at September 30, 2013. The Canadian Revolver expires on February 28, 2015. The interest rate for amounts outstanding under the Canadian Revolver is a floating interest rate based upon either the Canadian Prime Rate, or the lender’s Bankers’ Acceptance Rate. Once the applicable rate is determined, a margin of 0.50% to 1.75%, as determined by our consolidated leverage ratio, is added to the applicable rate. | ||||||||||
The principal financial covenants are consistent with those described in our Amended Credit Agreement. The Canadian Revolver contains a “material adverse effect” clause. A “material adverse effect” is defined as a material change in the operations of Powell or Powell Canada in relation to our financial condition, property, business operations, expected net cash flows, liabilities or capitalization. | ||||||||||
The Canadian Revolver is secured by the assets of our Canadian operations and provides for customary events of default and carries cross-default provisions with our existing debt agreements. If an event of default (as defined in the Canadian Revolver) occurs and is continuing, per the terms and subject to the conditions set forth in the Canadian Revolver, amounts outstanding under the Canadian Revolver may be accelerated and may become immediately due and payable. As of September 30, 2013, we were in compliance with all of the financial covenants of the Canadian Revolver. | ||||||||||
Industrial Development Revenue Bonds | ||||||||||
We borrowed $8.0 million in October 2001 through a loan agreement funded with proceeds from tax-exempt industrial development revenue bonds (Bonds). These Bonds were issued by the Illinois Development Finance Authority and were used for the completion of our Northlake, Illinois facility. Pursuant to the Bond issuance, a reimbursement agreement between us and a major domestic bank required an issuance by the bank of an irrevocable direct-pay letter of credit (Bond LC), as collateral, to the Bonds’ trustee to guarantee payment of the Bonds’ principal and interest when due. The Bond LC is subject to both early termination and extension provisions customary to such agreements, as well as various covenants, for which we were in compliance at September 30, 2013. While the Bonds mature in 2021, the reimbursement agreement requires annual redemptions of $0.4 million that commenced on October 25, 2002. A sinking fund is used for the redemption of the Bonds. At September 30, 2013, the balance in the restricted sinking fund was approximately $0.4 million and was recorded in cash and cash equivalents. The Bonds bear interest at a floating rate determined weekly by the Bonds’ remarketing agent, which was the underwriter for the Bonds and is an affiliate of the bank. This interest rate was 0.25% per year on September 30, 2013. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Income Taxes | ' | ||||||||||||||||||||||||
H. Income Taxes | |||||||||||||||||||||||||
At September 30, 2013, we had $15 million of gross foreign operating loss carryforwards which are subject to a 20-year carryforward period, the first of which expire in 2031. As of September 30, 2013, we have released a valuation allowance that was recorded against Canadian deferred tax assets, resulting in a $7 million tax benefit. We believe these deferred tax assets are more likely than not to be utilized by future taxable income. We believe that our deferred tax assets in other tax jurisdictions are more likely than not realizable through future reversals of existing taxable temporary differences and our estimate of future taxable income. | |||||||||||||||||||||||||
The components of the income tax provision were as follows (in thousands): | |||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | 12,003 | $ | 18,156 | $ | 5,470 | |||||||||||||||||||
State | 1,813 | 1,512 | 939 | ||||||||||||||||||||||
Foreign | 1,562 | 331 | 563 | ||||||||||||||||||||||
15,378 | 19,999 | 6,972 | |||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | (447 | ) | (1,840 | ) | (122 | ) | |||||||||||||||||||
State | (105 | ) | 25 | (76 | ) | ||||||||||||||||||||
Foreign | (6,170 | ) | 393 | (62 | ) | ||||||||||||||||||||
(6,722 | ) | (1,422 | ) | (260 | ) | ||||||||||||||||||||
Total income tax provision | $ | 8,656 | $ | 18,577 | $ | 6,712 | |||||||||||||||||||
Income before income taxes was as follows (in thousands): | |||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
U.S. | $ | 46,905 | $ | 53,885 | $ | 19,850 | |||||||||||||||||||
Other than U.S. | 3,827 | (5,651 | ) | (15,853 | ) | ||||||||||||||||||||
Income before income taxes | $ | 50,732 | $ | 48,234 | $ | 3,997 | |||||||||||||||||||
A reconciliation of the statutory U.S. income tax rate and the effective income tax rate, as computed on earnings before income tax provision in each of the three years presented in the Consolidated Statements of Operations, was as follows: | |||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | |||||||||||||||||||
State income taxes, net of federal benefit | 2 | 2 | 14 | ||||||||||||||||||||||
International withholding tax | (1 | ) | (1 | ) | (9 | ) | |||||||||||||||||||
Other permanent tax items | 1 | − | 5 | ||||||||||||||||||||||
Foreign rate differential | (1 | ) | 1 | 33 | |||||||||||||||||||||
Domestic production activities deduction | (3 | ) | (3 | ) | (16 | ) | |||||||||||||||||||
Foreign valuation allowance and other | (16 | ) | 4 | 106 | |||||||||||||||||||||
Effective rate | 17 | % | 38 | % | 168 | % | |||||||||||||||||||
The decrease in the effective tax rate for Fiscal 2013 resulted from the release of the valuation allowance against deferred tax assets in Canada. The effective tax rate for the Fiscal 2011 was negatively impacted by our inability to record a tax benefit related to pre-tax losses in Canada. | |||||||||||||||||||||||||
We have not recorded deferred income taxes on $15 million of undistributed earnings of our foreign subsidiaries because of management’s intent to indefinitely reinvest such earnings. Upon distribution of these earnings in the form of dividends or otherwise, we may be subject to U.S. income taxes and foreign withholding taxes. It is not practical, however, to estimate the amount of taxes that may be payable on the eventual remittance of these earnings. | |||||||||||||||||||||||||
We are subject to income tax in the U.S., multiple state jurisdictions and a few international jurisdictions, primarily the U.K. and Canada. We do not consider any state in which we do business to be a major tax jurisdiction. We remain open to examination in the other jurisdictions as follows: Canada 2010 – 2012, United Kingdom 2012 and the United States 2009 – 2012. | |||||||||||||||||||||||||
The net deferred income tax asset (liability) was comprised of the following (in thousands): | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Current deferred income taxes: | |||||||||||||||||||||||||
Gross assets | $ | 5,561 | $ | 7,053 | |||||||||||||||||||||
Gross liabilities | (845 | ) | (2,455 | ) | |||||||||||||||||||||
Net current deferred income tax asset | 4,716 | 4,598 | |||||||||||||||||||||||
Noncurrent deferred income taxes: | |||||||||||||||||||||||||
Gross assets | 9,025 | 2,423 | |||||||||||||||||||||||
Gross liabilities | − | − | |||||||||||||||||||||||
Net noncurrent deferred income tax asset | 9,025 | 2,423 | |||||||||||||||||||||||
Net deferred income tax asset | $ | 13,741 | $ | 7,021 | |||||||||||||||||||||
The tax effect of temporary differences between U.S. GAAP accounting and federal income tax accounting creating deferred income tax assets and liabilities was as follows (in thousands): | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Deferred Tax Assets: | |||||||||||||||||||||||||
Net operating loss | $ | 3,892 | $ | 4,787 | |||||||||||||||||||||
Uniform capitalization and inventory | 2,510 | 3,683 | |||||||||||||||||||||||
Reserve for accrued employee benefits | 1,517 | 1,546 | |||||||||||||||||||||||
Deferred compensation | 1,297 | 1,013 | |||||||||||||||||||||||
Goodwill | 1,198 | 1,285 | |||||||||||||||||||||||
Stock-based compensation | 1,291 | 729 | |||||||||||||||||||||||
Warranty accrual | 1,101 | 1,336 | |||||||||||||||||||||||
Workers’ compensation | 185 | 360 | |||||||||||||||||||||||
Depreciation and amortization | 953 | 1,366 | |||||||||||||||||||||||
Postretirement benefits liability | 396 | 373 | |||||||||||||||||||||||
Allowance for doubtful accounts | 209 | 367 | |||||||||||||||||||||||
Accrued legal | 57 | 114 | |||||||||||||||||||||||
Other | 115 | 15 | |||||||||||||||||||||||
Gross deferred tax asset | 14,721 | 16,974 | |||||||||||||||||||||||
Less: valuation allowance | (135 | ) | (7,498 | ) | |||||||||||||||||||||
Deferred tax asset | 14,586 | 9,476 | |||||||||||||||||||||||
Deferred Tax Liabilities: | |||||||||||||||||||||||||
Uncompleted contracts | (845 | ) | (2,455 | ) | |||||||||||||||||||||
Deferred tax liabilities | (845 | ) | (2,455 | ) | |||||||||||||||||||||
$ | 13,741 | $ | 7,021 | ||||||||||||||||||||||
Net deferred tax asset | |||||||||||||||||||||||||
A reconciliation of the beginning and ending amount of the unrecognized tax liabilities follows (in thousands): | |||||||||||||||||||||||||
Balance as of September 30, 2012 | $ | 511 | |||||||||||||||||||||||
Increases related to tax positions taken during the current period | 880 | ||||||||||||||||||||||||
Increases related to tax positions taken during a prior period | 2,869 | ||||||||||||||||||||||||
Decreases related to expirations of statute of limitations | (415 | ) | |||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 3,845 | |||||||||||||||||||||||
Our continuing policy is to recognize interest and penalties related to income tax matters as tax expense. The amount of interest and penalty expense recorded for the year ended September 30, 2013 was not material. | |||||||||||||||||||||||||
During Fiscal 2013, prior year U.S. federal income tax returns were amended to reflect increased research and development credits, and unrecognized tax benefits related to these refund claims were recorded. Management believes that it is reasonably possible that within the next 12 months, the total unrecognized tax benefits will decrease by approximately 1% due to the expiration of certain statutes of limitations in various state and local jurisdictions. | |||||||||||||||||||||||||
Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a manner not consistent with management’s expectations, we could be required to adjust our provision for income tax in the period such resolution occurs. Although timing of the resolution and/or closure of audits is highly uncertain, we do not believe it is reasonably possible that our unrecognized tax benefits would materially change in the next 12 months. |
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Employee Benefit Plans | ' | |||||||||||||||
I. Employee Benefit Plans | ||||||||||||||||
401(k) Plan | ||||||||||||||||
We have a defined employee contribution 401(k) plan for substantially all of our U.S. employees. We match 100% of employee contributions up to an employee contribution of 4% of each employee’s salary. We recognized expenses under this plan primarily related to matching contributions of $5.3 million, $4.6 million and $3.4 million in Fiscal 2013, 2012 and 2011, respectively. | ||||||||||||||||
Deferred Compensation | ||||||||||||||||
We offer an unfunded, non-qualified deferred compensation plan to a select group of management and highly compensated individuals. The plan permits the deferral of up to 50% of a participant’s base salary and/or 100% of a participant’s annual incentive bonus. The deferrals are held in a separate trust, which has been established to administer the plan. The assets of the trust are subject to the claims of our creditors in the event that we become insolvent. Consequently, the trust qualifies as a grantor trust for income tax purposes (a Rabbi Trust). The assets and liabilities of the plan are recorded in other assets and deferred compensation, respectively, in the accompanying Consolidated Balance Sheets. Changes in the deferred compensation balance are charged to compensation expense. The plan is not qualified under Section 401 of the Internal Revenue code. There was no compensation expense related to this plan in Fiscal 2013. Total assets held by the trustee and deferred compensation liabilities were $2.9 million at September 30, 2013. | ||||||||||||||||
Certain former executives were provided an executive benefit plan which provides for fixed payments upon normal retirement on or after age 65 and the completion of at least 10 years of continuous employment. The estimated present value of these payments were accrued over the service life of these individuals, and $0.6 million is recorded in deferred compensation in the accompanying Consolidated Balance Sheets related to this executive benefit plan. To assist in funding the deferred compensation liability, we have invested in corporate-owned life insurance policies. The cash surrender value of these policies is presented in other assets in the accompanying Consolidated Balance Sheets. The cash surrender value of life insurance policies was $4.2 million at September 30, 2013. | ||||||||||||||||
Retiree Medical Plan | ||||||||||||||||
We have a plan that extends health benefits to retirees that are also available to active employees under our existing health plans. This plan is unfunded. The plan provides coverage for employees with at least 10 years of service who are age 55 or older but less than 65. The retiree is required to pay the COBRA rate less a subsidy provided by us based on years of service at the time of retirement. | ||||||||||||||||
For the year ended September 30, 2013, the measurement of postretirement benefit expense was based on assumptions used to value the postretirement benefit liability as of September 30, 2013, our measurement date. | ||||||||||||||||
Amounts recognized in accumulated other comprehensive income as of September 30, 2013 and 2012, consisted of the following on a pretax basis (in thousands): | ||||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Net actuarial gain | $ | (830 | ) | $ | (909 | ) | ||||||||||
Prior service cost | − | − | ||||||||||||||
Total recognized in accumulated other comprehensive income | $ | (830 | ) | $ | (909 | ) | ||||||||||
Amounts in accumulated other comprehensive income as of September 30, 2013, expected to be recognized as components of net periodic postretirement benefit cost in 2014 were as follows (in thousands): | ||||||||||||||||
Net actuarial gain | $ | (61 | ) | |||||||||||||
Prior service cost | − | |||||||||||||||
Total | $ | (61 | ) | |||||||||||||
The unfunded liability was $0.7 million as of September 30, 2013 and 2012. The following table illustrates the changes in accumulated postretirement benefit obligation and the changes in fair value of assets of the postretirement benefit plan (in thousands): | ||||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Changes in postretirement benefit obligation: | ||||||||||||||||
Balance at beginning of year | $ | 689 | $ | 895 | ||||||||||||
Service cost | 66 | 23 | ||||||||||||||
Interest cost | 23 | 17 | ||||||||||||||
Actuarial loss (gain) | 20 | (189 | ) | |||||||||||||
Benefits paid | (59 | ) | (57 | ) | ||||||||||||
Balance at end of year | $ | 739 | $ | 689 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of assets at beginning of year | $ | − | $ | − | ||||||||||||
Employer contributions | 59 | 57 | ||||||||||||||
Benefits paid | (59 | ) | (57 | ) | ||||||||||||
Fair value of assets at end of year | $ | − | $ | − | ||||||||||||
2013 | 2012 | |||||||||||||||
Weighted-average assumptions used to determine benefit obligations at September 30: | ||||||||||||||||
Discount rate pre-retirement | 0.00 | % | 0.00 | % | ||||||||||||
Discount rate post-retirement | 4.26 | % | 3.08 | % | ||||||||||||
Current year trend rate | 8.10 | % | 8.40 | % | ||||||||||||
Ultimate trend rate | 5.00 | % | 5.00 | % | ||||||||||||
Year ultimate trend rate reached | 2023 | 2023 | ||||||||||||||
If the medical care cost trend rate assumptions were increased or decreased by 1% as of September 30, 2013, the effect of this change on the accumulated postretirement benefit obligation and service and interest costs would be an increase of $138,709 and $24,151 or a decrease of $100,063 and $17,894, respectively. | ||||||||||||||||
The components of net periodic postretirement benefit costs for the last three years are as follows: | ||||||||||||||||
Year Ended September 30, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Components of net periodic postretirement benefit cost: | ||||||||||||||||
Service cost | $ | 66 | $ | 23 | $ | 40 | ||||||||||
Interest cost | 23 | 17 | 39 | |||||||||||||
Prior service cost | − | 51 | 115 | |||||||||||||
Net gain recognized | (59 | ) | (107 | ) | (37 | ) | ||||||||||
Net periodic postretirement benefit cost | $ | 30 | $ | (16 | ) | $ | 157 | |||||||||
2013 | 2012 | |||||||||||||||
Weighted-average assumptions used to determine benefit costs at September 30: | ||||||||||||||||
Discount rate pre-retirement | 0.00 | % | 0.00 | % | ||||||||||||
Discount rate post-retirement | 3.08 | % | 4.24 | % | ||||||||||||
Current year trend rate | 8.40 | % | 9.00 | % | ||||||||||||
Ultimate trend rate | 5.00 | % | 5.00 | % | ||||||||||||
Year ultimate trend rate reached | 2023 | 2015 | ||||||||||||||
Future expected benefit payments as of September 30, 2013, related to postretirement benefits for the subsequent five years were as follows (in thousands): | ||||||||||||||||
Year Ending September 30, | Expected | |||||||||||||||
Benefit | ||||||||||||||||
Payments | ||||||||||||||||
2014 | $ | 40 | ||||||||||||||
2015 | 43 | |||||||||||||||
2016 | 43 | |||||||||||||||
2017 | 54 | |||||||||||||||
2018 | 63 | |||||||||||||||
2019 through 2023 | 353 | |||||||||||||||
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||
Sep. 30, 2013 | ||||||
Commitments and Contingencies | ' | |||||
J. Commitments and Contingencies | ||||||
Long-Term Debt | ||||||
See Note G herein for a discussion of our long-term debt. | ||||||
Leases | ||||||
We lease certain offices, facilities and equipment under operating leases expiring at various dates through 2023. | ||||||
At September 30, 2013, the minimum annual rental commitments under leases having terms in excess of one year were as follows (in thousands): | ||||||
Years Ending September 30, | Operating | |||||
Leases | ||||||
2014 | $ | 4,741 | ||||
2015 | 3,661 | |||||
2016 | 2,801 | |||||
2017 | 1,956 | |||||
2018 | 2,143 | |||||
Thereafter | 6,405 | |||||
Total lease commitments | 21,707 | |||||
Lease expense for all operating leases was $6.0 million, $5.4 million and $3.7 million for Fiscal 2013, 2012 and 2011, respectively. The lease on our previous Canadian facility does not expire until July 2023, however, we have sublet that facility through July 2019. We recorded a $1.7 million loss in the fourth quarter of fiscal year 2013 for the net difference between our annual lease costs and the expected receipts from the anticipated sublease, as well as the write-off of leasehold improvements. | ||||||
Letters of Credit and Bonds | ||||||
Certain customers require us to post bank letter of credit guarantees or performance bonds issued by a surety. These guarantees and performance bonds assure that we will perform under the terms of our contract. In the event of default, the counterparty may demand payment from the bank under a letter of credit or performance by the surety under a performance bond. To date, there have been no significant expenses related to either letters of credit or performance bonds for the periods reported. We were contingently liable for secured and unsecured letters of credit of $20.1 million as of September 30, 2013. We also had performance and maintenance bonds totaling $283.4 million that were outstanding, with additional bonding capacity of $116.7 million available, at September 30, 2013. | ||||||
We have an $8.1 million facility agreement (Facility Agreement) between S&I and a large international bank. This Facility Agreement provides S&I the ability to enter into various guarantees, such as forward exchange contracts, currency options and performance bonds. At September 30, 2013, we had outstanding guarantees totaling $4.7 million under this Facility Agreement. | ||||||
The Facility Agreement provides for financial covenants and customary events of default, and carries cross-default provisions with our Amended Credit Facility. If an event of default (as defined in the Facility Agreement) occurs and is continuing, per the terms and subject to the conditions set forth in the Facility Agreement, obligations outstanding under the Facility Agreement may be accelerated and may become or be declared immediately due and payable. As of September 30, 2013, we were in compliance with all of the financial covenants of the Facility Agreement. The Facility Agreement expires in July 2014. | ||||||
Litigation | ||||||
We are involved in various legal proceedings, claims and other disputes arising in the ordinary course of business which, in general, are subject to uncertainties and in which the outcomes are not predictable. Although we can give no assurance about the outcome of pending or threatened litigation and the effect such outcomes may have on us, management believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided or covered by insurance, will not have a material adverse effect on our consolidated financial position or results of operations or liquidity. | ||||||
In March 2013, we settled a lawsuit we had filed against the previous owners of Powell Canada in the amount of $1.7 million, which was received in April 2013 and is recorded as gain on settlement in the accompanying Consolidated Statement of Operations. | ||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Stock-Based Compensation | ' | ||||||||
K. Stock-Based Compensation | |||||||||
We have the following stock-based compensation plans: | |||||||||
We have a Restricted Stock Plan for the benefit of members of the Board of Directors of the Company (the Board) who, at the time of their service, are not employees of the Company or any of its affiliates. Subject to certain conditions and restrictions as determined by the Compensation Committee of the Board and proportionate adjustments in the event of stock dividends, stock splits and similar corporate transactions, each eligible director will receive 2,000 shares of restricted stock annually. In January 2013, 500 shares of restricted stock were issued to a newly appointed director at a price of $42.54 per share. In February 2013, 16,000 shares of restricted stock were issued to such directors at a price of $58.54 per share. In Fiscal 2012, 16,000 shares of restricted stock were issued to such directors at a price of $37.50 per share. The maximum aggregate number of shares of stock that may be issued under the Restricted Stock Plan is 150,000 and consists of authorized but unissued or reacquired shares of stock, or any combination thereof. The restricted stock grants vest 50% per year over a two-year period on each anniversary of the grant date. Unless terminated by the Board, the Restricted Stock Plan will terminate at the close of business on December 16, 2014, and no further grants shall be made under the plan after such date. Awards granted before such date shall continue to be subject to the terms and conditions of the plan and the respective agreements pursuant to which they were granted. The total number of shares of common stock available for future awards under the plan was 16,379 shares as of September 30, 2013. | |||||||||
The 2000 Non-Employee Director Stock Option Plan, as amended, previously had been adopted for the benefit of members of the Board of Directors of the Company who, at the time of their service, were not employees of the Company or any of its affiliates. Following the adoption of the Restricted Stock Plan described above, the Compensation Committee ceased the use of this plan in making new grants to directors. The total number of shares of common stock available for future awards under the plan was 33,117 shares as of September 30, 2013. | |||||||||
The 2006 Equity Compensation Plan (the 2006 Plan) grants any employee of the Company and its subsidiaries the right to participate in the plan and receive awards. Awards can take the form of options, stock appreciation rights, stock awards and performance unit awards. The maximum aggregate number of shares of stock that may be issued under the 2006 Plan is 750,000 shares. The total number of shares of common stock available under the plan was 435,711 shares as of September 30, 2013. | |||||||||
In August 2012, 45,000 shares of restricted stock were issued under the 2006 Plan to our new President and Chief Executive Officer. These shares were issued at a price of $39.11 per share. The restricted stock grant vests 33% per year over a three-year period on each anniversary of the grant date. | |||||||||
In June 2012, 2,000 shares of restricted stock were issued under the 2006 Plan to the Chairman of the Board, who was an employee of the Company at the time the shares were issued. These shares were issued at a price of $37.50 per share. The restricted stock grant vests 50% per year over a two-year period on each anniversary of the grant date. | |||||||||
During the first quarter of Fiscal 2011, 26,000 shares of restricted stock were issued to certain officers and key employees of the Company with a fair value ranging from $30.79 to $32.12 per share under the 2006 Plan. These restricted stock grants vest equally over a three-year period on each anniversary of the grant date. Compensation expense is recognized over a three-year period based on the price per share on the grant date. In conjunction with the separation of our former President and Chief Executive Officer (CEO) in September 2011, the remaining unvested 7,601 shares previously issued to him became immediately vested and were expensed in selling, general and administrative expenses. At September 30, 2013 and 2012, there were 68,100 shares and 89,641 shares of unvested restricted stock outstanding. | |||||||||
During the year ended September 30, 2013, we recorded compensation expense of $2.1 million related to restricted stock grants. We recorded compensation expense of $0.7 million and $0.8 million related to restricted stock grants for the years ended September 30, 2012 and 2011, respectively. | |||||||||
We issue restricted stock units (RSUs) to certain officers and key employees of the company. The RSUs vest over a three-year period from their date of issuance. The fair value of the RSUs is based on the closing price of our common stock as reported on the NASDAQ Global Market (NASDAQ) on the grant dates. Sixty-percent of the actual amount of the RSUs earned will be based on the cumulative earnings as reported relative to the three-year performance cycle which begins October 1 of the year granted, and ranges from 0% to 150% of the target RSUs granted. The remaining forty-percent of the RSUs are time-based and vest over a three-year period. At September 30, 2013, there were 81,555 RSUs outstanding. The RSUs do not have voting rights and do not receive dividends on common stock; additionally, the shares of common stock underlying the RSUs are not considered issued and outstanding until actually issued. | |||||||||
Total RSU activity (number of shares) for the past three years is summarized below: | |||||||||
Number of | Weighted | ||||||||
Restricted | Average | ||||||||
Stock | Grant Date | ||||||||
Units | Fair Value | ||||||||
Per Share | |||||||||
Outstanding at September 30, 2010 | 87,454 | $ | 38.96 | ||||||
Granted | 39,048 | 30.94 | |||||||
Vested | (57,124 | ) | 36.94 | ||||||
Forfeited | − | − | |||||||
Outstanding at September 30, 2011 | 69,378 | $ | 36.10 | ||||||
Granted | 54,825 | 31.18 | |||||||
Vested | (24,478 | ) | 38.71 | ||||||
Forfeited | − | − | |||||||
Outstanding at September 30, 2012 | 99,725 | $ | 32.69 | ||||||
Granted | 58,775 | 39.05 | |||||||
Vested | (66,383 | ) | 34.00 | ||||||
Forfeited | (10,562 | ) | 33.46 | ||||||
Outstanding at September 30, 2013 | 81,555 | $ | 38.66 | ||||||
We present the amortization of non-vested restricted stock as an increase to additional paid-in capital. As of September 30, 2013 and 2012, amounts not yet recognized related to non-vested stock totaled $2.1 million and $1.9 million, respectively. As of September 30, 2013, the total weighted average remaining contractual life of our restricted stock and RSU’s is 1.43 years and 1.59 years, respectively. We recorded compensation expense of $2.4 million and $1.5 million related to RSUs for the years ended September 30, 2013 and 2012, respectively. For the year ended September 30, 2011, we recorded a reduction to compensation expense of $1.4 million related to RSUs, as the estimated earnings per share goals were not met for the three-year cumulative performance cycle for all RSU awards currently outstanding. | |||||||||
Stock Options | |||||||||
The 1992 Stock Option Plan, as amended (the 1992 Plan), permits us to grant to key employees non-qualified options and stock grants, subject to certain conditions and restrictions as determined by the Compensation Committee of the Board of Directors and proportionate adjustments in the event of stock dividends, stock splits and similar corporate transactions. The maximum number of shares that may be issued under the 1992 Plan is 2.7 million shares. Stock options are granted at an exercise price equal to the fair market value of the common stock on the date of the grant. Generally, options granted have an expiration date of seven years from the grant date and vest in increments of 20% per year over a five-year period. Pursuant to the 1992 Plan, option holders who exercise their options and hold the underlying shares of common stock for five years are entitled to an additional stock grant equal to 20% of the original option shares. While restricted until the expiration of five years, the stock grant is considered issued at the date of the stock option exercise and is included in earnings per share. During Fiscal 2013 and 2012, zero shares and 3,740 shares, respectively, of restricted stock were issued to option holders who met specified requirements under the 1992 Plan. There were no restricted stock grants under the 1992 Plan during Fiscal 2011. There have been no stock options granted since July 2005, and all outstanding options under the 1992 Plan were exercised or forfeited as of September 30, 2012. There were 466,392 shares available to be granted under this plan as of September 30, 2013. |
Business_Segments
Business Segments | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Business Segments | ' | ||||||||||||||||||||
L. Business Segments | |||||||||||||||||||||
We manage our business through two reportable operating segments: Electrical Power Products and Process Control Systems. Electrical Power Products includes equipment and systems for the distribution and control of electrical energy. Process Control Systems consists principally of instrumentation, computer controls, communications and data management systems to control and manage critical processes. | |||||||||||||||||||||
The table below reflects certain information relating to our operations by business segment. All revenues represent sales from unaffiliated customers. The accounting policies of the business segments are the same as those described in the summary of significant accounting policies. Corporate expenses are allocated to the operating business segments primarily based on revenues. The corporate assets are mainly cash, cash equivalents and marketable securities. | |||||||||||||||||||||
Detailed information regarding our business segments is shown below (in thousands): | |||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Revenues: | |||||||||||||||||||||
Electrical Power Products | $ | 635,253 | $ | 686,581 | $ | 533,339 | |||||||||||||||
Process Control Systems | 39,519 | 30,613 | 29,058 | ||||||||||||||||||
Total | $ | 674,772 | $ | 717,194 | $ | 562,397 | |||||||||||||||
Gross profit: | |||||||||||||||||||||
Electrical Power Products | $ | 137,756 | $ | 132,458 | $ | 91,730 | |||||||||||||||
Process Control Systems | 9,080 | 7,480 | 8,200 | ||||||||||||||||||
Total | $ | 146,836 | $ | 139,938 | $ | 99,930 | |||||||||||||||
Income before income taxes: | |||||||||||||||||||||
Electrical Power Products | $ | 49,421 | $ | 48,055 | $ | 3,888 | |||||||||||||||
Process Control Systems | 1,311 | 179 | 109 | ||||||||||||||||||
Total | $ | 50,732 | $ | 48,234 | $ | 3,997 | |||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||
Electrical Power Products | $ | 10,103 | $ | 13,010 | $ | 15,188 | |||||||||||||||
Process Control Systems | 87 | 55 | 162 | ||||||||||||||||||
Total | $ | 10,190 | $ | 13,065 | $ | 15,350 | |||||||||||||||
In the fourth quarter of our Fiscal 2013, we recovered approximately $5.1 million related to one large project at Powell Canada, of which approximately $3.8 million was recorded as revenue and the remaining $1.3 million was related to amounts recorded to other assets. This recovery related to cost overruns on a large project with execution challenges in the first half of fiscal year 2012 which negatively impacted revenue and gross profit in Fiscal 2012 in our Electrical Power Products segment. Also, in our Electrical Power Products segment, in the second quarter of Fiscal 2013, we settled a lawsuit we had filed against the previous owners of Powell Canada in the amount of $1.7 million, which was received in the third quarter of Fiscal 2013. | |||||||||||||||||||||
Income before income taxes for Fiscal 2011 includes a $1.2 million gain recorded in the second quarter resulting from cash received from the sale of our 50% equity investment in Kazakhstan. This gain was recorded in our Electrical Power Products business segment. Income before income taxes for Fiscal 2011 includes an impairment charge of $7.2 million, which was recorded in the fourth quarter, to reflect the impairment for the value of the intangible assets that were recorded in relation to the acquisition of Powell Canada. The loss was recorded in our Electrical Power Products business segment. | |||||||||||||||||||||
September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Segment assets: | |||||||||||||||||||||
Electrical Power Products | $ | 334,169 | $ | 319,215 | |||||||||||||||||
Process Control Systems | 17,083 | 14,540 | |||||||||||||||||||
Corporate | 179,651 | 114,557 | |||||||||||||||||||
Total | $ | 530,903 | $ | 448,312 | |||||||||||||||||
Geographic Information | |||||||||||||||||||||
Revenues are as follows (in thousands): | |||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Europe (including former Soviet Union) | $ | 753 | $ | 24,857 | $ | 7,107 | |||||||||||||||
Far East | 36,965 | 14,865 | 17,172 | ||||||||||||||||||
Middle East and Africa | 86,470 | 79,781 | 46,304 | ||||||||||||||||||
North, Central and South America (excluding U.S.) | 145,470 | 184,935 | 112,949 | ||||||||||||||||||
United States | 405,114 | 412,756 | 378,865 | ||||||||||||||||||
Total revenues | $ | 674,772 | $ | 717,194 | $ | 562,397 | |||||||||||||||
The United States accounted for 60%, 58% and 67% of consolidated revenues in Fiscal 2013, 2012 and 2011, respectively. During Fiscal 2013, 2012 and 2011, revenues from customers located in Canada accounted for 17%, 13% and 16% of revenues with customers, respectively. | |||||||||||||||||||||
During Fiscal 2012, one petrochemical project shipped to Colombia accounted for 11% of revenues with customers. | |||||||||||||||||||||
September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Long-lived assets: | |||||||||||||||||||||
United States | $ | 96,918 | $ | 60,012 | |||||||||||||||||
United Kingdom | 5,894 | 6,238 | |||||||||||||||||||
Canada | 41,777 | 12,402 | |||||||||||||||||||
Total | $ | 144,589 | $ | 78,652 | |||||||||||||||||
Long-lived assets consist of property, plant and equipment net of accumulated depreciation. |
Restructuring_and_Relocation_C
Restructuring and Relocation Costs | 12 Months Ended |
Sep. 30, 2013 | |
Restructuring and Relocation Costs | ' |
M. Restructuring and Relocation Costs | |
During Fiscal 2013 we recorded restructuring and relocation charges totaling $3.9 million. These charges were related to our Electrical Power Products business segment. | |
We recorded approximately $2.8 million in Fiscal 2013 related to relocation efforts in connection with the construction of our new facility in Houston, Texas and our new facility in Acheson, Alberta, Canada. These costs were primarily related to the relocation of our operations, the loss on the sublease, and the abandonment of leasehold improvements on the previously occupied facilities in the second half of Fiscal 2013. The construction of our two new facilities was substantially completed in September 2013 and we have relocated the majority of our operations and personnel from their previously leased facilities. | |
In the third quarter of Fiscal 2013, we recorded $1.1 million related to severance at our United Kingdom operations. These operations were negatively impacted by market conditions and competitive pressures in the international markets in which they operate; therefore, we exited certain non-core operations and eliminated certain positions to better align our workforce with current market conditions. | |
Quarterly_Results_Of_Operation
Quarterly Results Of Operations | 12 Months Ended | ||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||
Quarterly Results of Operations | ' | ||||||||||||||||||||||||||||||
N. Quarterly Results of Operations (Unaudited) | |||||||||||||||||||||||||||||||
The table below sets forth the unaudited consolidated operating results by fiscal quarter for the years ended September 30, 2013 and 2012 (in thousands, except per share data): | |||||||||||||||||||||||||||||||
2013 Quarters | |||||||||||||||||||||||||||||||
First | Second | Third | Fourth | 2013 | |||||||||||||||||||||||||||
Revenues | $ | 153,941 | $ | 153,915 | $ | 179,519 | $ | 187,397 | $ | 674,772 | |||||||||||||||||||||
Gross profit | 33,784 | 31,715 | 38,485 | 42,852 | 146,836 | ||||||||||||||||||||||||||
Net income | 7,385 | 6,818 | 9,305 | 18,568 | 42,076 | ||||||||||||||||||||||||||
Earnings per share: (1) | |||||||||||||||||||||||||||||||
Basic | $ | 0.62 | $ | 0.57 | $ | 0.78 | $ | 1.55 | $ | 3.52 | |||||||||||||||||||||
Diluted | 0.62 | 0.57 | 0.77 | 1.54 | 3.51 | ||||||||||||||||||||||||||
(1) The increase in earnings per share for the fourth quarter of Fiscal 2013 was primarily driven by the release of our Canadian valuation allowance. For an explanation of the effective tax rate in Fiscal 2013, see Note H. | |||||||||||||||||||||||||||||||
2012 Quarters | |||||||||||||||||||||||||||||||
First | Second | Third | Fourth | 2012 | |||||||||||||||||||||||||||
Revenues | $ | 157,456 | $ | 181,486 | $ | 194,093 | $ | 184,159 | $ | 717,194 | |||||||||||||||||||||
Gross profit | 20,378 | 34,237 | 43,843 | 41,480 | 139,938 | ||||||||||||||||||||||||||
Net income (loss) | (1,745 | ) | 7,411 | 12,138 | 11,853 | 29,657 | |||||||||||||||||||||||||
Earnings per share | |||||||||||||||||||||||||||||||
Basic | $ | (0.15 | ) | $ | 0.63 | $ | 1.03 | $ | 0.99 | $ | 2.50 | ||||||||||||||||||||
Diluted | (0.15 | ) | 0.63 | 1.02 | 0.99 | 2.49 | |||||||||||||||||||||||||
The sum of the individual earnings per share amounts may not agree with year-to-date earnings per share as each period’s computation is based on the weighted-average number of shares outstanding during the period. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Sep. 30, 2013 | |
Subsequent Events | ' |
O. Subsequent Events | |
On November 4, 2013, our Board elected to begin quarterly payments of dividends. The first payout will be December 18, 2013 in the amount of $0.25 per share to shareholders of record on November 20, 2013, which will result in an aggregate payment of approximately $3.0 million. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Sep. 30, 2013 | |
Principles of Consolidation | ' |
Principles of Consolidation | |
The consolidated financial statements include the accounts of Powell and our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. | |
Reclassifications | ' |
Reclassifications | |
Reclassifications have been made in prior years’ financial statements to conform and expand the presentation of deferred income taxes and research and development used in the current year. These reclassifications have not resulted in any changes to previously reported net income or cash flows for any periods. | |
Use of Estimates | ' |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States (U.S. GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying footnotes. The most significant estimates used in our financial statements affect revenue and cost recognition for construction contracts, the allowance for doubtful accounts, provision for excess and obsolete inventory, goodwill and other intangible assets, self-insurance, warranty accruals and income taxes. The amounts recorded for insurance claims, warranties, legal, income taxes and other contingent liabilities require judgments regarding the amount of expenses that will ultimately be incurred. We base our estimates on historical experience and on various other assumptions, as well as the specific circumstances surrounding these contingent liabilities, in evaluating the amount of liability that should be recorded. Estimates may change as new events occur, additional information becomes available or operating environments change. Actual results may differ from our estimates. | |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents include cash on hand, deposits with banks and highly liquid investments with original maturities of three months or less. | |
Fair Value of Financial Instruments | ' |
Fair Value of Financial Instruments | |
Financial instruments include cash, cash equivalents, receivables, payables and debt obligations. Except as described below, due to the short-term nature of account receivables and account payables, the book value is representative of their fair value. The carrying value of debt approximates fair value as interest rates are indexed to the Federal Funds Rate, the Canadian Prime Rate or the bank’s prime rate. | |
Accounts Receivable | ' |
Accounts Receivable | |
Accounts receivable are stated net of allowances for doubtful accounts. We maintain and continually assess the adequacy of the allowance for doubtful accounts representing our estimate for losses resulting from the inability of our customers to pay amounts due to us. This estimated allowance is based on historical experience of uncollected accounts, the level of past due accounts, the overall level of outstanding accounts receivable, information about specific customers with respect to their inability to make payments and expectations of future conditions that could impact the collectability of accounts receivable. Future changes in our customers’ operating performance and cash flows, or in general economic conditions, could have an impact on their ability to fully pay these amounts, which could have a material impact on our operating results. In most cases, receivables are not collateralized. However, we utilize letters of credit to secure payment on sales when possible. At September 30, 2013 and 2012, accounts receivable included retention amounts of $11.5 million and $8.7 million, respectively. Retention amounts are in accordance with applicable provisions of engineering and construction contracts and become due upon completion of contractual requirements. Approximately $1.0 million of the retained amount at September 30, 2013, is expected to be collected subsequent to September 30, 2014. | |
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | ' |
Costs and Estimated Earnings in Excess of Billings on Uncompleted Contracts | |
Costs and estimated earnings in excess of billings on uncompleted contracts arise when revenues are recorded on a percentage-of-completion basis but cannot be invoiced under the terms of the contract. Such amounts are invoiced upon completion of contractual milestones. | |
Costs and estimated earnings in excess of billings on uncompleted contracts also include certain costs associated with unapproved change orders. These costs are included when the approval of the change order is probable. Amounts are carried at the lower of cost or net realizable value. Revenue is recognized to the extent of costs incurred when recovery is probable. The amounts recorded involve the use of judgments and estimates; thus, actual recoverable amounts could differ from original assumptions. | |
In accordance with industry practice, assets and liabilities related to costs and estimated earnings in excess of billings on uncompleted contracts, as well as billings in excess of costs and estimated earnings on uncompleted contracts, have been classified as current. The contract cycle for certain long-term contracts may extend beyond one year; thus, collection of amounts related to these contracts may extend beyond one year. | |
Inventories | ' |
Inventories | |
Inventories are stated at the lower of cost or market using weighted-average methods and include the cost of materials, labor and manufacturing overhead. We use estimates in determining the level of reserves required to state inventory at the lower of cost or market. Our estimates are based on market activity levels, production requirements, the physical condition of products and technological innovation. Changes in any of these factors may result in adjustments to the carrying value of inventory. | |
Property, Plant and Equipment | ' |
Property, Plant and Equipment | |
Property, plant and equipment are stated at cost and are depreciated using the straight-line method over the estimated useful lives of the assets. Expenditures for repairs and maintenance are charged to expense when incurred. Expenditures for major renewals and improvements, which extend the useful lives of existing equipment, are capitalized and depreciated. Upon retirement or disposition of property, plant and equipment, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in the Consolidated Statements of Operations. | |
We review property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value may not be realizable. If an evaluation is required, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if an impairment of such asset is necessary. This requires us to make long-term forecasts of the future revenues and the costs related to the assets subject to review. Forecasts require assumptions about demand for our products and future market conditions. Estimating future cash flows requires significant judgment and our projections may vary from cash flows eventually realized. Future events and unanticipated changes to assumptions could require a provision for impairment in a future period. The effect of any impairment would be reflected in income (loss) from operations in the Consolidated Statements of Operations. In addition, we estimate the useful lives of our property, plant and equipment and periodically review these estimates to determine whether these lives are appropriate. | |
Goodwill and Intangible Assets | ' |
Intangible Assets | |
The costs of intangible assets with determinable useful lives are amortized over their estimated useful lives. When certain events or changes in operating conditions occur, the estimated future undiscounted cash flows associated with the asset are compared to the asset’s carrying amount to determine if an impairment of such assets is necessary. For intangible assets that are amortized, we review their estimated useful lives and evaluate whether events and circumstances warrant a revision to the remaining useful life. For additional information regarding our intangible assets and related impairment, see Note D herein. | |
Goodwill | |
Goodwill is evaluated for impairment annually, or immediately if conditions indicate that impairment could exist. The evaluation requires a two-step impairment test to identify potential goodwill impairment and measure the amount of a goodwill impairment loss. The first step of the test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of the impairment loss. Both steps of the goodwill impairment testing involve significant estimates. | |
Income Taxes | ' |
Income Taxes | |
We account for income taxes under the asset and liability method, based on the income tax laws and rates in the countries in which operations are conducted and income is earned. This approach requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax basis of assets and liabilities. Developing our provision for income taxes requires significant judgment and expertise in federal, international and state income tax laws, regulations and strategies, including the determination of deferred tax assets and liabilities and, if necessary, any valuation allowances that may be required for deferred tax assets. We record a valuation allowance to reduce our deferred tax assets to the amount that is more likely than not to be realized. We believe that the deferred tax asset recorded as of September 30, 2013, is realizable through future reversals of existing taxable temporary differences and future taxable income. If we were to subsequently determine that we would be able to realize deferred tax assets in the future in excess of our net recorded amount, an adjustment to deferred tax assets would increase earnings for the period in which such determination was made. We will continue to assess the adequacy of the valuation allowance on a quarterly basis. Our judgments and tax strategies are subject to audit by various taxing authorities. | |
The objectives of accounting for income taxes are to recognize the amount of taxes payable or refundable for the current year and deferred tax liabilities and assets for the future tax consequences of events that have been recognized in an entity’s financial statements or tax returns. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Accounting literature also provides guidance on derecognition of income tax assets and liabilities, classification of current and deferred income tax assets and liabilities, accounting for interest and penalties associated with tax positions, and income tax disclosures. Judgment is required in assessing the future tax consequences of events that have been recognized in our financial statements or tax returns. Variations in the actual outcome of these future tax consequences could materially impact our financial statements. | |
Revenue Recognition | ' |
Revenue Recognition | |
Our revenues are primarily generated from engineering and manufacturing of custom products under long-term contracts that may last from one month to several years, depending on the contract. Revenues from long-term contracts are recognized on the percentage-of-completion method of accounting. Occasionally a contract may require that we segment the project into specific deliverables for revenue recognition. Segmenting a contract may result in different interim rates of profitability for each scope of service than if we had recognized revenue on a combined basis. | |
Under the percentage-of-completion method of accounting, revenues are recognized as work is performed. The estimated completion to date is calculated by multiplying the total contract price by the percentage of performance to date, which is based on total costs or total labor dollars incurred to date compared to the total estimated costs or total labor dollars estimated at completion. The method used to determine the percentage of completion is typically the cost method, unless the labor method is a more accurate method of measuring the progress of the project. Application of the percentage-of-completion method of accounting requires the use of estimates of costs to be incurred for the performance of the contract. Contract costs include all direct material costs, direct labor costs and those indirect costs related to contract performance, such as indirect labor, supplies, tools, repairs and all costs associated with operation of equipment. The cost estimation process is based upon the professional knowledge and experience of our engineers, project managers and financial professionals. Factors that are considered in estimating the work to be completed and ultimate contract recovery include the availability and productivity of labor, the nature and complexity of the work to be performed, the effect of change orders, the availability of materials, the effect of any delays on our project performance and the recoverability of any claims. Changes in job performance, job conditions, estimated profitability and final contract settlements, including our estimate of liquidated damages, if any, may result in revisions to costs and income, with their effects being recognized in the period in which the revisions are determined. Whenever revisions of estimated contract costs and contract values indicate that the contract costs will exceed estimated revenues, thus creating a loss, a provision for the total estimated loss is recorded in that period. | |
Revenues associated with maintenance, repair and service contracts are recognized when the services are performed. Expenses related to these types of services are recognized as incurred. | |
Warranties | ' |
Warranties | |
We provide for estimated warranty costs at the time of sale based upon historical rates applicable to individual product lines. In addition, specific provisions are made when the costs of such warranties are expected to exceed accruals. Our standard terms and conditions of sale include a warranty for parts and service for the earlier of 18 months from the date of shipment or 12 months from the date of initial operations. Occasionally projects require warranty terms that are longer than our standard terms due to the nature of the project. Extended warranty terms may be negotiated and included in our contracts. We use past experience and historical claims to determine the estimated liability. Actual results could differ from our estimate. | |
Research and Development Expense | ' |
Research and Development Expense | |
Research and development costs are charged to expense as incurred. Such amounts were $8.5 million, $7.7 million and $7.5 million in Fiscal 2013, 2012 and 2011, respectively. | |
Foreign Currency Translation | ' |
Foreign Currency Translation | |
The functional currency for our foreign subsidiaries is the local currency in which the entity is located. The financial statements of all subsidiaries with a functional currency other than the U.S. Dollar have been translated into U.S. Dollars. All assets and liabilities of foreign operations are translated into U.S. Dollars using year-end exchange rates, and all revenues and expenses are translated at average rates during the respective period. The U.S. Dollar results that arise from such translation, as well as exchange gains and losses on intercompany balances of a long-term investment nature, are included in the cumulative currency translation adjustments in accumulated other comprehensive income in stockholders’ equity. | |
Stock-Based Compensation | ' |
Stock-Based Compensation | |
We measure stock-based compensation cost at the grant date based on the fair value of the award. Compensation expense is recognized over the period during which the employee is required to provide service in exchange for the awards, typically the vesting period. Excess income tax benefits related to share-based compensation expense that must be recognized directly in equity are considered financing rather than operating cash flow activities. | |
New Accounting Standards | ' |
New Accounting Standards | |
From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board (the FASB), which are adopted by us as of the specified effective date. Unless otherwise discussed, management believes that the impact of recently issued standards, which are not yet effective, will not have a material impact on our consolidated statements upon adoption. | |
In August 2012, the Securities and Exchange Commission (SEC) adopted a rule mandated by the Wall Street Reform and Consumer Protection Act to require companies to publicly disclose their use of conflict minerals that originate in the Democratic Republic of the Congo or an adjoining country. The final rule applies to a company that uses minerals including tantalum, tin, gold or tungsten. The final rule requires companies to provide disclosure on a new form filed with the SEC, with the first specialized disclosure report due on May 31, 2014, for the 2013 calendar year, and annually on May 31 each year thereafter. We are implementing the processes and procedures to comply with this rule. | |
In February 2013, the FASB issued accounting guidance that requires companies to provide information regarding the amounts reclassified out of accumulated other comprehensive income by component. A company will be required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income, but only if the amount reclassified is required by U.S. generally accepted accounting principles (U.S. GAAP) to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, a company is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail regarding those amounts. This accounting guidance was effective for fiscal years beginning after December 15, 2012, on a prospective basis. We are evaluating the impact of this guidance on our consolidated financial statements, but since the guidance only affects presentation and disclosure of amounts reclassified out of accumulated other comprehensive income, the adoption of this guidance in the first quarter of fiscal year 2014 is not expected to have a significant impact on our consolidated financial position or results of operations. | |
In March 2013, the FASB issued accounting guidance to resolve the diversity in practice for accounting for the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of real estate or conveyance of oil and gas mineral rights) within a foreign entity. This guidance is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013, our fiscal year ending September 30, 2015. We do not expect this guidance to have a material impact on our consolidated financial position or results of operations. | |
In July 2013, the FASB issued accounting guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, our fiscal year ended September 30, 2015. This guidance should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of this guidance is not expected to have a significant impact on our consolidated financial position or results of operations. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Supplemental Disclosures of Cash Flow Information | ' | |||||||||||||||||||||||
Supplemental Disclosures of Cash Flow Information (in thousands): | ||||||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Cash paid during the period for: | ||||||||||||||||||||||||
Interest, net of interest income | $ | 164 | $ | 141 | $ | 102 | ||||||||||||||||||
Income taxes, net of refunds | 14,783 | 12,104 | 3,889 | |||||||||||||||||||||
Non-cash capital expenditures | 2,807 | − | − | |||||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Fair Value of Assets Measured on Recurring Basis | ' | |||||||||||||||||||||||
The following table summarizes the fair value of our assets that were accounted for at fair value on a recurring basis as of September 30, 2013 (in thousands): | ||||||||||||||||||||||||
Fair Value Measurements at September 30, 2013 | ||||||||||||||||||||||||
Quoted Prices in Active Markets for | Significant Other | Significant | Fair Value at | |||||||||||||||||||||
Identical Assets | Observable | Unobservable | September 30, | |||||||||||||||||||||
(Level 1) | Inputs | Inputs | 2013 | |||||||||||||||||||||
(Level 2) | (Level 3) | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash equivalents | $ | 10,531 | $ | − | $ | − | $ | 10,531 | ||||||||||||||||
Total | $ | 10,531 | $ | − | $ | − | $ | 10,531 | ||||||||||||||||
The following table summarizes the fair value of our assets that were accounted for at fair value on a recurring basis as of September 30, 2012 (in thousands): | ||||||||||||||||||||||||
Fair Value Measurements at September 30, 2012 | ||||||||||||||||||||||||
Quoted Prices in Active Markets for | Significant Other | Significant | Fair Value at | |||||||||||||||||||||
Identical Assets | Observable | Unobservable | September 30, | |||||||||||||||||||||
(Level 1) | Inputs | Inputs | 2012 | |||||||||||||||||||||
(Level 2) | (Level 3) | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||
Cash equivalents | $ | 45,888 | $ | − | $ | − | $ | 45,888 | ||||||||||||||||
Total | $ | 45,888 | $ | − | $ | − | $ | 45,888 | ||||||||||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||||||||||
Schedule of Intangible Assets Subject to Amortization | ' | |||||||||||||||||||||||||||||||
Intangible assets balances, subject to amortization, at September 30, 2013 and 2012, consisted of the following (in thousands): | ||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | |||||||||||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||||||||||
Carrying | Amortization | Carrying | Carrying | Amortization | Carrying | |||||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||
Supply agreement | $ | 17,580 | $ | (8,397 | ) | $ | 9,183 | $ | 17,580 | $ | (7,225 | ) | $ | 10,355 | ||||||||||||||||||
Purchased technology | 11,749 | (9,489 | ) | 2,260 | 11,818 | (9,121 | ) | 2,697 | ||||||||||||||||||||||||
Trade name | 1,136 | (967 | ) | 169 | 1,136 | (871 | ) | 265 | ||||||||||||||||||||||||
Total | $ | 30,465 | $ | (18,853 | ) | $ | 11,612 | $ | 30,534 | $ | (17,217 | ) | $ | 13,317 | ||||||||||||||||||
Schedule of Estimated Amortization Expense | ' | |||||||||||||||||||||||||||||||
Estimated amortization expense for each of the five subsequent fiscal years is expected to be (in thousands): | ||||||||||||||||||||||||||||||||
Years Ending September 30, | Total | |||||||||||||||||||||||||||||||
2014 | $ | 1,652 | ||||||||||||||||||||||||||||||
2015 | 1,637 | |||||||||||||||||||||||||||||||
2016 | 1,560 | |||||||||||||||||||||||||||||||
2017 | 1,560 | |||||||||||||||||||||||||||||||
2018 | 1,560 | |||||||||||||||||||||||||||||||
Earnings_per_Share_Tables
Earnings per Share (Tables) | 12 Months Ended | |||||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||||
Computation of Basic and Diluted Earnings per Share | ' | |||||||||||||||||||||||
The following table reconciles basic and diluted weighted average shares used in the computation of earnings per share for the years ended September 30, 2013, 2012 and 2011 (in thousands, except per share data): | ||||||||||||||||||||||||
Year Ended September 30, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||
Net income (loss) | $ | 42,076 | $ | 29,657 | $ | (2,715 | ) | |||||||||||||||||
Denominator: | ||||||||||||||||||||||||
Weighted average basic shares | 11,948 | 11,850 | 11,735 | |||||||||||||||||||||
Dilutive effect of stock options, restricted stock and restricted stock units (1) | 46 | 75 | − | |||||||||||||||||||||
Weighted average diluted shares with assumed conversions | 11,994 | 11,925 | 11,735 | |||||||||||||||||||||
Net earnings (loss) per share: | ||||||||||||||||||||||||
Basic | $ | 3.52 | $ | 2.50 | $ | (0.23 | ) | |||||||||||||||||
Diluted | $ | 3.51 | $ | 2.49 | $ | (0.23 | ) | |||||||||||||||||
(1) In Fiscal 2011, approximately 23,000 shares related to outstanding stock options and restricted stock units were excluded from the computation of diluted earnings (loss) per share because they were antidilutive. |
Detail_of_Selected_Balance_She1
Detail of Selected Balance Sheet Accounts (Tables) | 12 Months Ended | |||||||||||||||||||||
Sep. 30, 2013 | ||||||||||||||||||||||
Activity in Allowance for Doubtful Accounts | ' | |||||||||||||||||||||
Activity in our allowance for doubtful accounts consisted of the following (in thousands): | ||||||||||||||||||||||
September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Balance at beginning of year | $ | 1,399 | $ | 391 | ||||||||||||||||||
Increase in (decrease to) bad debt expense | (544 | ) | 842 | |||||||||||||||||||
Deductions for uncollectible accounts written off, net of recoveries | (142 | ) | 142 | |||||||||||||||||||
Increase (decrease) due to foreign currency translation | (10 | ) | 24 | |||||||||||||||||||
Balance at end of year | $ | 703 | $ | 1,399 | ||||||||||||||||||
Components of Inventories | ' | |||||||||||||||||||||
The components of inventories are summarized below (in thousands): | ||||||||||||||||||||||
September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Raw materials, parts and subassemblies | $ | 30,097 | $ | 33,632 | ||||||||||||||||||
Work-in-progress | 3,818 | 6,422 | ||||||||||||||||||||
Provision for excess and obsolete inventory | (4,932 | ) | (7,137 | ) | ||||||||||||||||||
Total inventories | $ | 28,983 | $ | 32,917 | ||||||||||||||||||
Cost and Estimated Earnings on Uncompleted Contracts | ' | |||||||||||||||||||||
The components of costs and estimated earnings and related amounts billed on uncompleted contracts are summarized below (in thousands): | ||||||||||||||||||||||
September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Costs incurred on uncompleted contracts | $ | 697,760 | $ | 635,714 | ||||||||||||||||||
Estimated earnings | 177,921 | 168,480 | ||||||||||||||||||||
875,681 | 804,194 | |||||||||||||||||||||
Less: Billings to date | 849,261 | 754,604 | ||||||||||||||||||||
Net underbilled position | $ | 26,420 | $ | 49,590 | ||||||||||||||||||
Included in the accompanying balance sheets under the following captions: | ||||||||||||||||||||||
Costs and estimated earnings in excess of billings on uncompleted contracts – underbilled | $ | 86,621 | $ | 86,734 | ||||||||||||||||||
Billings in excess of costs and estimated earnings on uncompleted contracts – overbilled | (60,201 | ) | (37,144 | ) | ||||||||||||||||||
Net underbilled position | $ | 26,420 | $ | 49,590 | ||||||||||||||||||
Schedule of Property, Plant and Equipment | ' | |||||||||||||||||||||
Property, plant and equipment are summarized below (in thousands): | ||||||||||||||||||||||
September 30, | Range of | |||||||||||||||||||||
2013 | 2012 | Asset Lives | ||||||||||||||||||||
Land | $ | 24,022 | $ | 24,766 | — | |||||||||||||||||
Buildings and improvements | 79,746 | 55,431 | 3 ‑ 39 Years | |||||||||||||||||||
Machinery and equipment | 72,217 | 67,007 | 3 ‑ 15 Years | |||||||||||||||||||
Furniture and fixtures | 2,964 | 2,940 | 3 ‑ 10 Years | |||||||||||||||||||
Construction in process | 48,300 | 7,224 | — | |||||||||||||||||||
227,249 | 157,368 | |||||||||||||||||||||
Less: Accumulated depreciation | (82,660 | ) | (78,716 | ) | ||||||||||||||||||
Total property, plant and equipment, net | $ | 144,589 | $ | 78,652 | ||||||||||||||||||
Activity in Product Warranty Accrual | ' | |||||||||||||||||||||
Activity in our product warranty accrual consisted of the following (in thousands): | ||||||||||||||||||||||
September 30, | ||||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||||
Balance at beginning of year | $ | 5,714 | $ | 4,603 | ||||||||||||||||||
Increase to warranty expense | 4,060 | 3,624 | ||||||||||||||||||||
Deductions for warranty charges | (4,359 | ) | (2,323 | ) | ||||||||||||||||||
Increase (decrease) due to foreign currency translation | 35 | (190 | ) | |||||||||||||||||||
Balance at end of year | $ | 5,450 | $ | 5,714 | ||||||||||||||||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||||
Sep. 30, 2013 | ||||||||||
Components of Long-Term Debt | ' | |||||||||
Long-term debt consisted of the following (in thousands): | ||||||||||
September 30, | ||||||||||
2013 | 2012 | |||||||||
Industrial development revenue bonds | $ | 3,600 | $ | 4,000 | ||||||
Capital lease obligations | 16 | 355 | ||||||||
Subtotal long-term debt and capital lease obligations | 3,616 | 4,355 | ||||||||
Less current portion | (416 | ) | (725 | ) | ||||||
Total long-term debt and capital lease obligations | $ | 3,200 | $ | 3,630 | ||||||
Schedule of Maturities of Long-Term Debt | ' | |||||||||
The annual maturities of long-term debt as of September 30, 2013, were as follows (in thousands): | ||||||||||
Year Ending September 30, | Long‑Term | |||||||||
Debt | ||||||||||
Maturities | ||||||||||
2014 | $ | 416 | ||||||||
2015 | 400 | |||||||||
2016 | 400 | |||||||||
2017 | 400 | |||||||||
2018 | 400 | |||||||||
Thereafter | 1,600 | |||||||||
Total long-term debt maturities | $ | 3,616 | ||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Schedule of Components Of Income Tax Provision | ' | ||||||||||||||||||||||||
The components of the income tax provision were as follows (in thousands): | |||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Current: | |||||||||||||||||||||||||
Federal | $ | 12,003 | $ | 18,156 | $ | 5,470 | |||||||||||||||||||
State | 1,813 | 1,512 | 939 | ||||||||||||||||||||||
Foreign | 1,562 | 331 | 563 | ||||||||||||||||||||||
15,378 | 19,999 | 6,972 | |||||||||||||||||||||||
Deferred: | |||||||||||||||||||||||||
Federal | (447 | ) | (1,840 | ) | (122 | ) | |||||||||||||||||||
State | (105 | ) | 25 | (76 | ) | ||||||||||||||||||||
Foreign | (6,170 | ) | 393 | (62 | ) | ||||||||||||||||||||
(6,722 | ) | (1,422 | ) | (260 | ) | ||||||||||||||||||||
Total income tax provision | $ | 8,656 | $ | 18,577 | $ | 6,712 | |||||||||||||||||||
Schedule of Income Before Income Taxes | ' | ||||||||||||||||||||||||
Income before income taxes was as follows (in thousands): | |||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
U.S. | $ | 46,905 | $ | 53,885 | $ | 19,850 | |||||||||||||||||||
Other than U.S. | 3,827 | (5,651 | ) | (15,853 | ) | ||||||||||||||||||||
Income before income taxes | $ | 50,732 | $ | 48,234 | $ | 3,997 | |||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||||||||||||||||||
A reconciliation of the statutory U.S. income tax rate and the effective income tax rate, as computed on earnings before income tax provision in each of the three years presented in the Consolidated Statements of Operations, was as follows: | |||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | |||||||||||||||||||
State income taxes, net of federal benefit | 2 | 2 | 14 | ||||||||||||||||||||||
International withholding tax | (1 | ) | (1 | ) | (9 | ) | |||||||||||||||||||
Other permanent tax items | 1 | − | 5 | ||||||||||||||||||||||
Foreign rate differential | (1 | ) | 1 | 33 | |||||||||||||||||||||
Domestic production activities deduction | (3 | ) | (3 | ) | (16 | ) | |||||||||||||||||||
Foreign valuation allowance and other | (16 | ) | 4 | 106 | |||||||||||||||||||||
Effective rate | 17 | % | 38 | % | 168 | % | |||||||||||||||||||
Schedule of Components of Deferred Income Tax Assets and Liabilities | ' | ||||||||||||||||||||||||
The net deferred income tax asset (liability) was comprised of the following (in thousands): | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Current deferred income taxes: | |||||||||||||||||||||||||
Gross assets | $ | 5,561 | $ | 7,053 | |||||||||||||||||||||
Gross liabilities | (845 | ) | (2,455 | ) | |||||||||||||||||||||
Net current deferred income tax asset | 4,716 | 4,598 | |||||||||||||||||||||||
Noncurrent deferred income taxes: | |||||||||||||||||||||||||
Gross assets | 9,025 | 2,423 | |||||||||||||||||||||||
Gross liabilities | − | − | |||||||||||||||||||||||
Net noncurrent deferred income tax asset | 9,025 | 2,423 | |||||||||||||||||||||||
Net deferred income tax asset | $ | 13,741 | $ | 7,021 | |||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||||||||||||||
The tax effect of temporary differences between U.S. GAAP accounting and federal income tax accounting creating deferred income tax assets and liabilities was as follows (in thousands): | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
Deferred Tax Assets: | |||||||||||||||||||||||||
Net operating loss | $ | 3,892 | $ | 4,787 | |||||||||||||||||||||
Uniform capitalization and inventory | 2,510 | 3,683 | |||||||||||||||||||||||
Reserve for accrued employee benefits | 1,517 | 1,546 | |||||||||||||||||||||||
Deferred compensation | 1,297 | 1,013 | |||||||||||||||||||||||
Goodwill | 1,198 | 1,285 | |||||||||||||||||||||||
Stock-based compensation | 1,291 | 729 | |||||||||||||||||||||||
Warranty accrual | 1,101 | 1,336 | |||||||||||||||||||||||
Workers’ compensation | 185 | 360 | |||||||||||||||||||||||
Depreciation and amortization | 953 | 1,366 | |||||||||||||||||||||||
Postretirement benefits liability | 396 | 373 | |||||||||||||||||||||||
Allowance for doubtful accounts | 209 | 367 | |||||||||||||||||||||||
Accrued legal | 57 | 114 | |||||||||||||||||||||||
Other | 115 | 15 | |||||||||||||||||||||||
Gross deferred tax asset | 14,721 | 16,974 | |||||||||||||||||||||||
Less: valuation allowance | (135 | ) | (7,498 | ) | |||||||||||||||||||||
Deferred tax asset | 14,586 | 9,476 | |||||||||||||||||||||||
Deferred Tax Liabilities: | |||||||||||||||||||||||||
Uncompleted contracts | (845 | ) | (2,455 | ) | |||||||||||||||||||||
Deferred tax liabilities | (845 | ) | (2,455 | ) | |||||||||||||||||||||
$ | 13,741 | $ | 7,021 | ||||||||||||||||||||||
Net deferred tax asset | |||||||||||||||||||||||||
Reconciliation of Unrecognized Tax Liabilities | ' | ||||||||||||||||||||||||
A reconciliation of the beginning and ending amount of the unrecognized tax liabilities follows (in thousands): | |||||||||||||||||||||||||
Balance as of September 30, 2012 | $ | 511 | |||||||||||||||||||||||
Increases related to tax positions taken during the current period | 880 | ||||||||||||||||||||||||
Increases related to tax positions taken during a prior period | 2,869 | ||||||||||||||||||||||||
Decreases related to expirations of statute of limitations | (415 | ) | |||||||||||||||||||||||
Balance as of September 30, 2013 | $ | 3,845 | |||||||||||||||||||||||
Employee_Benefit_Plans_Tables
Employee Benefit Plans (Tables) | 12 Months Ended | |||||||||||||||
Sep. 30, 2013 | ||||||||||||||||
Schedule of Amounts Recognized in Accumulated Other Comprehensive Income | ' | |||||||||||||||
Amounts recognized in accumulated other comprehensive income as of September 30, 2013 and 2012, consisted of the following on a pretax basis (in thousands): | ||||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Net actuarial gain | $ | (830 | ) | $ | (909 | ) | ||||||||||
Prior service cost | − | − | ||||||||||||||
Total recognized in accumulated other comprehensive income | $ | (830 | ) | $ | (909 | ) | ||||||||||
Schedule of Amounts in Accumulated Other Comprehensive Income to be Recognized Over Next Fiscal Year | ' | |||||||||||||||
Amounts in accumulated other comprehensive income as of September 30, 2013, expected to be recognized as components of net periodic postretirement benefit cost in 2014 were as follows (in thousands): | ||||||||||||||||
Net actuarial gain | $ | (61 | ) | |||||||||||||
Prior service cost | − | |||||||||||||||
Total | $ | (61 | ) | |||||||||||||
Schedule of Changes in Accumulated Postretirement Benefit Obligations Changes in Fair Value of Plan Assets and Funded Status | ' | |||||||||||||||
The unfunded liability was $0.7 million as of September 30, 2013 and 2012. The following table illustrates the changes in accumulated postretirement benefit obligation and the changes in fair value of assets of the postretirement benefit plan (in thousands): | ||||||||||||||||
September 30, | ||||||||||||||||
2013 | 2012 | |||||||||||||||
Changes in postretirement benefit obligation: | ||||||||||||||||
Balance at beginning of year | $ | 689 | $ | 895 | ||||||||||||
Service cost | 66 | 23 | ||||||||||||||
Interest cost | 23 | 17 | ||||||||||||||
Actuarial loss (gain) | 20 | (189 | ) | |||||||||||||
Benefits paid | (59 | ) | (57 | ) | ||||||||||||
Balance at end of year | $ | 739 | $ | 689 | ||||||||||||
Change in plan assets: | ||||||||||||||||
Fair value of assets at beginning of year | $ | − | $ | − | ||||||||||||
Employer contributions | 59 | 57 | ||||||||||||||
Benefits paid | (59 | ) | (57 | ) | ||||||||||||
Fair value of assets at end of year | $ | − | $ | − | ||||||||||||
Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations | ' | |||||||||||||||
2013 | 2012 | |||||||||||||||
Weighted-average assumptions used to determine benefit obligations at September 30: | ||||||||||||||||
Discount rate pre-retirement | 0.00 | % | 0.00 | % | ||||||||||||
Discount rate post-retirement | 4.26 | % | 3.08 | % | ||||||||||||
Current year trend rate | 8.10 | % | 8.40 | % | ||||||||||||
Ultimate trend rate | 5.00 | % | 5.00 | % | ||||||||||||
Year ultimate trend rate reached | 2023 | 2023 | ||||||||||||||
Components of Net Periodic Postretirement Benefit Cost | ' | |||||||||||||||
The components of net periodic postretirement benefit costs for the last three years are as follows: | ||||||||||||||||
Year Ended September 30, | ||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||
Components of net periodic postretirement benefit cost: | ||||||||||||||||
Service cost | $ | 66 | $ | 23 | $ | 40 | ||||||||||
Interest cost | 23 | 17 | 39 | |||||||||||||
Prior service cost | − | 51 | 115 | |||||||||||||
Net gain recognized | (59 | ) | (107 | ) | (37 | ) | ||||||||||
Net periodic postretirement benefit cost | $ | 30 | $ | (16 | ) | $ | 157 | |||||||||
Schedule of Weighted-Average Assumptions Used to Determine Benefit Costs | ' | |||||||||||||||
2013 | 2012 | |||||||||||||||
Weighted-average assumptions used to determine benefit costs at September 30: | ||||||||||||||||
Discount rate pre-retirement | 0.00 | % | 0.00 | % | ||||||||||||
Discount rate post-retirement | 3.08 | % | 4.24 | % | ||||||||||||
Current year trend rate | 8.40 | % | 9.00 | % | ||||||||||||
Ultimate trend rate | 5.00 | % | 5.00 | % | ||||||||||||
Year ultimate trend rate reached | 2023 | 2015 | ||||||||||||||
Schedule of Future Expected Benefit Payments | ' | |||||||||||||||
Future expected benefit payments as of September 30, 2013, related to postretirement benefits for the subsequent five years were as follows (in thousands): | ||||||||||||||||
Year Ending September 30, | Expected | |||||||||||||||
Benefit | ||||||||||||||||
Payments | ||||||||||||||||
2014 | $ | 40 | ||||||||||||||
2015 | 43 | |||||||||||||||
2016 | 43 | |||||||||||||||
2017 | 54 | |||||||||||||||
2018 | 63 | |||||||||||||||
2019 through 2023 | 353 | |||||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||
Sep. 30, 2013 | ||||||
Schedule of Future Minimum Annual Rental Commitments Under Leases | ' | |||||
At September 30, 2013, the minimum annual rental commitments under leases having terms in excess of one year were as follows (in thousands): | ||||||
Years Ending September 30, | Operating | |||||
Leases | ||||||
2014 | $ | 4,741 | ||||
2015 | 3,661 | |||||
2016 | 2,801 | |||||
2017 | 1,956 | |||||
2018 | 2,143 | |||||
Thereafter | 6,405 | |||||
Total lease commitments | 21,707 | |||||
Stock_Based_Compensation_Table
Stock Based Compensation (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Schedule of Restricted Stock Units Activity | ' | ||||||||
Total RSU activity (number of shares) for the past three years is summarized below: | |||||||||
Number of | Weighted | ||||||||
Restricted | Average | ||||||||
Stock | Grant Date | ||||||||
Units | Fair Value | ||||||||
Per Share | |||||||||
Outstanding at September 30, 2010 | 87,454 | $ | 38.96 | ||||||
Granted | 39,048 | 30.94 | |||||||
Vested | (57,124 | ) | 36.94 | ||||||
Forfeited | − | − | |||||||
Outstanding at September 30, 2011 | 69,378 | $ | 36.10 | ||||||
Granted | 54,825 | 31.18 | |||||||
Vested | (24,478 | ) | 38.71 | ||||||
Forfeited | − | − | |||||||
Outstanding at September 30, 2012 | 99,725 | $ | 32.69 | ||||||
Granted | 58,775 | 39.05 | |||||||
Vested | (66,383 | ) | 34.00 | ||||||
Forfeited | (10,562 | ) | 33.46 | ||||||
Outstanding at September 30, 2013 | 81,555 | $ | 38.66 | ||||||
Business_Segments_Tables
Business Segments (Tables) | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Detailed Information Regarding Business Segments | ' | ||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Revenues: | |||||||||||||||||||||
Electrical Power Products | $ | 635,253 | $ | 686,581 | $ | 533,339 | |||||||||||||||
Process Control Systems | 39,519 | 30,613 | 29,058 | ||||||||||||||||||
Total | $ | 674,772 | $ | 717,194 | $ | 562,397 | |||||||||||||||
Gross profit: | |||||||||||||||||||||
Electrical Power Products | $ | 137,756 | $ | 132,458 | $ | 91,730 | |||||||||||||||
Process Control Systems | 9,080 | 7,480 | 8,200 | ||||||||||||||||||
Total | $ | 146,836 | $ | 139,938 | $ | 99,930 | |||||||||||||||
Income before income taxes: | |||||||||||||||||||||
Electrical Power Products | $ | 49,421 | $ | 48,055 | $ | 3,888 | |||||||||||||||
Process Control Systems | 1,311 | 179 | 109 | ||||||||||||||||||
Total | $ | 50,732 | $ | 48,234 | $ | 3,997 | |||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||
Electrical Power Products | $ | 10,103 | $ | 13,010 | $ | 15,188 | |||||||||||||||
Process Control Systems | 87 | 55 | 162 | ||||||||||||||||||
Total | $ | 10,190 | $ | 13,065 | $ | 15,350 | |||||||||||||||
Reconciliation of Assets from Segment to Consolidated | ' | ||||||||||||||||||||
September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Segment assets: | |||||||||||||||||||||
Electrical Power Products | $ | 334,169 | $ | 319,215 | |||||||||||||||||
Process Control Systems | 17,083 | 14,540 | |||||||||||||||||||
Corporate | 179,651 | 114,557 | |||||||||||||||||||
Total | $ | 530,903 | $ | 448,312 | |||||||||||||||||
Schedule of Revenues from External Customers by Geographical Areas | ' | ||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||
Europe (including former Soviet Union) | $ | 753 | $ | 24,857 | $ | 7,107 | |||||||||||||||
Far East | 36,965 | 14,865 | 17,172 | ||||||||||||||||||
Middle East and Africa | 86,470 | 79,781 | 46,304 | ||||||||||||||||||
North, Central and South America (excluding U.S.) | 145,470 | 184,935 | 112,949 | ||||||||||||||||||
United States | 405,114 | 412,756 | 378,865 | ||||||||||||||||||
Total revenues | $ | 674,772 | $ | 717,194 | $ | 562,397 | |||||||||||||||
Schedule of Long-Lived Assets, by Geographical Areas | ' | ||||||||||||||||||||
September 30, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
Long-lived assets: | |||||||||||||||||||||
United States | $ | 96,918 | $ | 60,012 | |||||||||||||||||
United Kingdom | 5,894 | 6,238 | |||||||||||||||||||
Canada | 41,777 | 12,402 | |||||||||||||||||||
Total | $ | 144,589 | $ | 78,652 | |||||||||||||||||
Quarterly_Results_Of_Operation1
Quarterly Results Of Operations (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||
Schedule of Quarterly Financial Information | ' | ||||||||||||||||||||||||||||||
The table below sets forth the unaudited consolidated operating results by fiscal quarter for the years ended September 30, 2013 and 2012 (in thousands, except per share data): | |||||||||||||||||||||||||||||||
2013 Quarters | |||||||||||||||||||||||||||||||
First | Second | Third | Fourth | 2013 | |||||||||||||||||||||||||||
Revenues | $ | 153,941 | $ | 153,915 | $ | 179,519 | $ | 187,397 | $ | 674,772 | |||||||||||||||||||||
Gross profit | 33,784 | 31,715 | 38,485 | 42,852 | 146,836 | ||||||||||||||||||||||||||
Net income | 7,385 | 6,818 | 9,305 | 18,568 | 42,076 | ||||||||||||||||||||||||||
Earnings per share: (1) | |||||||||||||||||||||||||||||||
Basic | $ | 0.62 | $ | 0.57 | $ | 0.78 | $ | 1.55 | $ | 3.52 | |||||||||||||||||||||
Diluted | 0.62 | 0.57 | 0.77 | 1.54 | 3.51 | ||||||||||||||||||||||||||
(1) The increase in earnings per share for the fourth quarter of Fiscal 2013 was primarily driven by the release of our Canadian valuation allowance. For an explanation of the effective tax rate in Fiscal 2013, see Note H. | |||||||||||||||||||||||||||||||
2012 Quarters | |||||||||||||||||||||||||||||||
First | Second | Third | Fourth | 2012 | |||||||||||||||||||||||||||
Revenues | $ | 157,456 | $ | 181,486 | $ | 194,093 | $ | 184,159 | $ | 717,194 | |||||||||||||||||||||
Gross profit | 20,378 | 34,237 | 43,843 | 41,480 | 139,938 | ||||||||||||||||||||||||||
Net income (loss) | (1,745 | ) | 7,411 | 12,138 | 11,853 | 29,657 | |||||||||||||||||||||||||
Earnings per share | |||||||||||||||||||||||||||||||
Basic | $ | (0.15 | ) | $ | 0.63 | $ | 1.03 | $ | 0.99 | $ | 2.50 | ||||||||||||||||||||
Diluted | (0.15 | ) | 0.63 | 1.02 | 0.99 | 2.49 | |||||||||||||||||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Supplemental Disclosures of Cash Flow Information) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Interest, net of interest income | $164 | $141 | $102 |
Income taxes, net of refunds | 14,783 | 12,104 | 3,889 |
Non-cash capital expenditures | $2,807 | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Narrative) (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Summary Of Significant Accounting Policies [Line Items] | ' | ' | ' |
Retention amounts included in accounts receivable | $11,500,000 | $8,700,000 | ' |
Retained amount expected to be collected subsequent to September 30, 2014 | 1,000,000 | ' | ' |
Research and development expenses | $8,521,000 | $7,652,000 | $7,520,000 |
Fair_Value_Measurements_Fair_V
Fair Value Measurements (Fair Value of Assets Measured on Recurring Basis) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash equivalents | $10,531 | $45,888 |
Total | 10,531 | 45,888 |
Quoted Prices In Active Markets For Identical Assets (Level 1) | ' | ' |
Assets | ' | ' |
Cash equivalents | 10,531 | 45,888 |
Total | 10,531 | 45,888 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Assets | ' | ' |
Cash equivalents | ' | ' |
Total | ' | ' |
Significant Unobservable Inputs (Level 3) | ' | ' |
Assets | ' | ' |
Cash equivalents | ' | ' |
Total | ' | ' |
Intangible_Assets_Schedule_of_
Intangible Assets (Schedule of Intangible Assets Subject to Amortization) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | $30,465 | $30,534 |
Accumulated Amortization | -18,853 | -17,217 |
Net Carrying Value | 11,612 | 13,317 |
Supply Agreement | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 17,580 | 17,580 |
Accumulated Amortization | -8,397 | -7,225 |
Net Carrying Value | 9,183 | 10,355 |
Purchased Technology | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 11,749 | 11,818 |
Accumulated Amortization | -9,489 | -9,121 |
Net Carrying Value | 2,260 | 2,697 |
Trade Names | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Value | 1,136 | 1,136 |
Accumulated Amortization | -967 | -871 |
Net Carrying Value | $169 | $265 |
Intangible_Assets_Schedule_of_1
Intangible Assets (Schedule of Estimated Amortization Expense) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Intangible Assets [Abstract] | ' |
2014 | $1,652 |
2015 | 1,637 |
2016 | 1,560 |
2017 | 1,560 |
2018 | $1,560 |
Intangible_Assets_Narrative_De
Intangible Assets (Narrative) (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Finite Lived Intangible Assets [Line Items] | ' | ' | ' |
Amortization of intangible assets | $1,659,000 | $2,599,000 | $4,752,000 |
Trade Names | ' | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' | ' |
Useful life of intangible asset | '10 years | ' | ' |
Supply Agreement | ' | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' | ' |
Useful life of intangible asset | '15 years | ' | ' |
Purchased Technology | Minimum | ' | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' | ' |
Useful life of intangible asset | '6 years | ' | ' |
Purchased Technology | Maximum | ' | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' | ' |
Useful life of intangible asset | '7 years | ' | ' |
Powell Canada | ' | ' | ' |
Finite Lived Intangible Assets [Line Items] | ' | ' | ' |
Loss on impairment of Goodwill | 0 | 0 | ' |
Loss on impairment of intangible assets | ' | ' | $7,200,000 |
Earnings_per_Share_Computation
Earnings per Share (Computation of Basic and Diluted Earnings per Share) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||||||
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Net income (loss) | $18,568 | $9,305 | $6,818 | $7,385 | $11,853 | $12,138 | $7,411 | ($1,745) | $42,076 | $29,657 | ($2,715) | ||||||
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Basic | ' | ' | ' | ' | ' | ' | ' | ' | 11,948 | 11,850 | 11,735 | ||||||
Dilutive effect of stock options, restricted stock and restricted stock units (1) | ' | ' | ' | ' | ' | ' | ' | ' | 46 | [1] | 75 | [1] | ' | ||||
Weighted average diluted shares with assumed conversions | ' | ' | ' | ' | ' | ' | ' | ' | 11,994 | 11,925 | 11,735 | ||||||
Net earnings (loss) per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||
Basic | $1.55 | [2] | $0.78 | [2] | $0.57 | [2] | $0.62 | [2] | $0.99 | $1.03 | $0.63 | ($0.15) | $3.52 | [2] | $2.50 | ($0.23) | |
Diluted | $1.54 | [2] | $0.77 | [2] | $0.57 | [2] | $0.62 | [2] | $0.99 | $1.02 | $0.63 | ($0.15) | $3.51 | [2] | $2.49 | ($0.23) | |
[1] | In Fiscal 2011, approximately 23,000 shares related to outstanding stock options and restricted stock units were excluded from the computation of diluted earnings (loss) per share because they were antidilutive. | ||||||||||||||||
[2] | The increase in earnings per share for the fourth quarter of Fiscal 2013 was primarily driven by the release of our Canadian valuation allowance. For an explanation of the effective tax rate in Fiscal 2013, see Note H. |
Earnings_per_Share_Narrative_D
Earnings per Share (Narrative) (Details) | 12 Months Ended |
Sep. 30, 2011 | |
Earnings (loss) per share: | ' |
Shares excluded from the computation of diluted earnings (loss) per share | 23,000 |
Detail_of_Selected_Balance_She2
Detail of Selected Balance Sheet Accounts (Activity In Allowance For Doubtful Accounts) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Balance at beginning of year | $1,399 | $391 | ' |
Increase in (decrease to) bad debt expense | -544 | 842 | -114 |
Deductions for uncollectible accounts written off, net of recoveries | -142 | 142 | ' |
Increase (decrease) due to foreign currency translation | -10 | 24 | ' |
Balance at end of year | $703 | $1,399 | $391 |
Detail_of_Selected_Balance_She3
Detail of Selected Balance Sheet Accounts (Activity in Product Warranty Accrual) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Balance at beginning of year | $5,714 | $4,603 |
Increase to warranty expense | 4,060 | 3,624 |
Deductions for warranty charges | -4,359 | -2,323 |
Increase (decrease) due to foreign currency translation | 35 | -190 |
Balance at end of year | $5,450 | $5,714 |
Detail_of_Selected_Balance_She4
Detail of Selected Balance Sheet Accounts (Components of Inventories) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Raw materials, parts and subassemblies | $30,097 | $33,632 |
Work-in-progress | 3,818 | 6,422 |
Provision for excess and obsolete inventory | -4,932 | -7,137 |
Total inventories | $28,983 | $32,917 |
Detail_of_Selected_Balance_She5
Detail of Selected Balance Sheet Accounts (Cost and Estimated Earnings on Uncompleted Contracts) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Costs incurred on uncompleted contracts | $697,760 | $635,714 |
Estimated earnings | 177,921 | 168,480 |
Total | 875,681 | 804,194 |
Less: Billings to date | 849,261 | 754,604 |
Net underbilled position | 26,420 | 49,590 |
Costs and estimated earnings in excess of billings on uncompleted contracts – underbilled | 86,621 | 86,734 |
Billings in excess of costs and estimated earnings on uncompleted contracts – overbilled | ($60,201) | ($37,144) |
Detail_of_Selected_Balance_She6
Detail of Selected Balance Sheet Accounts (Schedule of Property, Plant and Equipment) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | Land | Land | Building And Improvements | Building And Improvements | Building And Improvements | Building And Improvements | Machinery And Equipment | Machinery And Equipment | Machinery And Equipment | Machinery And Equipment | Furniture And Fixtures | Furniture And Fixtures | Furniture And Fixtures | Furniture And Fixtures | Construction In Process | Construction In Process | ||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | |||||||||||||
Property Plant And Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property, plant and equipment gross | $227,249 | $157,368 | $24,022 | $24,766 | $79,746 | $55,431 | ' | ' | $72,217 | $67,007 | ' | ' | $2,964 | $2,940 | ' | ' | $48,300 | $7,224 |
Less: Accumulated depreciation | -82,660 | -78,716 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total property, plant and equipment, net | $144,589 | $78,652 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset Life | ' | ' | ' | ' | ' | ' | '3 years | '39 years | ' | ' | '3 years | '15 years | ' | ' | '3 years | '10 years | ' | ' |
Detail_of_Selected_Balance_She7
Detail of Selected Balance Sheet Accounts (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Property, plant and equipment gross | $227,249 | $157,368 | ' |
Accumulated depreciation | 82,660 | 78,716 | ' |
Depreciation | 8,519 | 10,465 | 10,598 |
Assets Under Capital Leases | ' | ' | ' |
Property, plant and equipment gross | 500 | 1,800 | ' |
Accumulated depreciation | $500 | $1,000 | ' |
LongTerm_Debt_Components_of_Lo
Long-Term Debt (Components of Long-Term Debt) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Long-Term Debt [Abstract] | ' | ' |
Industrial development revenue bonds | $3,600 | $4,000 |
Capital lease obligations | 16 | 355 |
Subtotal long-term debt and capital lease obligations | 3,616 | 4,355 |
Less current portion | -416 | -725 |
Long-term debt and capital lease obligations, net of current maturities | $3,200 | $3,630 |
LongTerm_Debt_Schedule_of_Matu
Long-Term Debt (Schedule of Maturities of Long-Term Debt) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Long-Term Debt [Abstract] | ' |
2014 | $416 |
2015 | 400 |
2016 | 400 |
2017 | 400 |
2018 | 400 |
Thereafter | 1,600 |
Total long-term debt maturities | $3,616 |
Long_Term_Debt_Narrative_Detai
Long Term Debt (Narrative) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Oct. 31, 2001 |
U.S. Revolver | U.S. Revolver | U.S. Revolver | Canadian Revolver | Canadian Revolver | Canadian Revolver | Industrial Development Revenue Bonds | Industrial Development Revenue Bonds | ||
Maximum | Maximum | Minimum | |||||||
Line Of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility | ' | ' | $75,000,000 | ' | ' | ' | ' | ' | ' |
Revolving credit interest rate | ' | 'The interest rate for amounts outstanding under the Amended Credit Agreement for the U.S. Revolver is a floating rate based upon the higher of the Federal Funds Rate plus 0.5%, or the bank’s prime rate. | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | 0.50% | ' | ' | ' | ' | ' | ' | ' |
Margin | ' | ' | ' | 1.75% | ' | 1.75% | 0.50% | ' | ' |
Outstanding letters of credit | ' | 20,000,000 | ' | ' | 100,000 | ' | ' | ' | ' |
Amount of credit facility remaining borrowing capacity | ' | 55,000,000 | ' | ' | 9,400,000 | ' | ' | ' | ' |
Credit facility expiration date | ' | 31-Dec-16 | ' | ' | 28-Feb-15 | ' | ' | ' | ' |
Percentage of voting capital stock pledged as collateral | ' | 100.00% | ' | ' | ' | ' | ' | ' | ' |
Non-domestic subsidiaries of voting capital stock | ' | 66.00% | ' | ' | ' | ' | ' | ' | ' |
Revolving credit facility, current borrowing capacity | ' | ' | ' | ' | 9,500,000 | ' | ' | ' | ' |
Borrowings | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 |
Reimbursement agreement requires annual redemptions | ' | ' | ' | ' | ' | ' | ' | 400,000 | ' |
Balance in the restricted sinking fund | $400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | 0.25% | ' |
Income_Taxes_Schedule_of_Compo
Income Taxes (Schedule of Components of Income Tax Provision) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Current: | ' | ' | ' |
Federal | $12,003 | $18,156 | $5,470 |
State | 1,813 | 1,512 | 939 |
Foreign | 1,562 | 331 | 563 |
Current income tax provision | 15,378 | 19,999 | 6,972 |
Deferred: | ' | ' | ' |
Federal | -447 | -1,840 | -122 |
State | -105 | 25 | -76 |
Foreign | -6,170 | 393 | -62 |
Deferred income tax provision | -6,722 | -1,422 | -260 |
Total income tax provision | $8,656 | $18,577 | $6,712 |
Income_Taxes_Schedule_of_Incom
Income Taxes (Schedule of Income Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Income Tax Disclosure [Line Items] | ' | ' | ' |
U.S. | $46,905 | $53,885 | $19,850 |
Other than U.S. | 3,827 | -5,651 | -15,853 |
Income before income taxes | $50,732 | $48,234 | $3,997 |
Income_Taxes_Schedule_of_Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Income Tax Disclosure [Line Items] | ' | ' | ' |
Statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 2.00% | 2.00% | 14.00% |
International withholding tax | -1.00% | -1.00% | -9.00% |
Other permanent tax items | 1.00% | ' | 5.00% |
Foreign rate differential | -1.00% | 1.00% | 33.00% |
Domestic production activities deduction | -3.00% | -3.00% | -16.00% |
Foreign valuation allowance and other | -16.00% | 4.00% | 106.00% |
Effective rate | 17.00% | 38.00% | 168.00% |
Income_Taxes_Schedule_of_Compo1
Income Taxes (Schedule of Components of Deferred Income Tax Assets And Liabilities) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Line Items] | ' | ' |
Gross assets, current | $5,561 | $7,053 |
Gross liabilities, current | -845 | -2,455 |
Net current deferred income tax asset | 4,716 | 4,598 |
Gross assets, noncurrent | 9,025 | 2,423 |
Gross liabilities, noncurrent | ' | ' |
Net noncurrent deferred income tax asset | 9,025 | 2,423 |
Net deferred income tax asset | $13,741 | $7,021 |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Line Items] | ' | ' |
Net operating loss | $3,892 | $4,787 |
Uniform capitalization and inventory | 2,510 | 3,683 |
Reserve for accrued employee benefits | 1,517 | 1,546 |
Deferred compensation | 1,297 | 1,013 |
Goodwill | 1,198 | 1,285 |
Stock-based compensation | 1,291 | 729 |
Warranty accrual | 1,101 | 1,336 |
Workers’ compensation | 185 | 360 |
Depreciation and amortization | 953 | 1,366 |
Postretirement benefits liability | 396 | 373 |
Allowance for doubtful accounts | 209 | 367 |
Accrued legal | 57 | 114 |
Other | 115 | 15 |
Gross deferred tax asset | 14,721 | 16,974 |
Less: valuation allowance | -135 | -7,498 |
Deferred tax asset | 14,586 | 9,476 |
Uncompleted contracts | -845 | -2,455 |
Deferred tax liabilities | -845 | -2,455 |
Net deferred income tax asset | $13,741 | $7,021 |
Income_Taxes_Reconciliation_of
Income Taxes (Reconciliation of Unrecognized Tax Liabilities) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Income Tax Disclosure [Line Items] | ' |
Balance as of September 30, 2012 | $511 |
Increases related to tax positions taken during the current period | 880 |
Increases related to tax positions taken during a prior period | 2,869 |
Decreases related to expirations of statute of limitations | -415 |
Balance as of September 30, 2013 | $3,845 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Income Tax Disclosure [Line Items] | ' |
Undistributed earnings of foreign subsidiaries | $15 |
Operating loss carryforward | 15 |
Valuation allowance | $7 |
Foreign operating loss carryforwards expiration date | '2031 |
Decrease in unrecognized tax benefits due to expiration of certain statutes of limitations | 1.00% |
Employee_Benefit_Plans_Schedul
Employee Benefit Plans (Schedule of Amounts Recognized in Accumulated Other Comprehensive Income) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Defined Benefit Plan Disclosure [Line Items] | ' | ' |
Net actuarial gain | ($830) | ($909) |
Prior service cost | ' | ' |
Total recognized in accumulated other comprehensive income | ($830) | ($909) |
Employee_Benefit_Plans_Schedul1
Employee Benefit Plans (Schedule of Amounts in Accumulated Other Comprehensive Income Expected to be Recognized Over Next Fiscal Year) (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2013 |
Defined Benefit Plan Disclosure [Line Items] | ' |
Net actuarial gain | ($61) |
Prior service cost | ' |
Total | ($61) |
Employee_Benefit_Plans_Schedul2
Employee Benefit Plans (Schedule of Changes in Accumulated Postretirement Benefit Obligation and Changes in Fair Value of Assets of Postretirement Benefit Plan) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Changes in postretirement benefit obligation: | ' | ' | ' |
Balance at beginning of year | $689 | $895 | ' |
Service cost | 66 | 23 | 40 |
Interest cost | 23 | 17 | 39 |
Actuarial loss (gain) | 20 | -189 | ' |
Benefits paid | -59 | -57 | ' |
Balance at end of year | 739 | 689 | 895 |
Change in plan assets: | ' | ' | ' |
Fair value of assets at beginning of year | ' | ' | ' |
Employer contributions | 59 | 57 | ' |
Benefits paid | -59 | -57 | ' |
Fair value of assets at end of year | ' | ' | ' |
Employee_Benefit_Plans_Schedul3
Employee Benefit Plans (Schedule of Weighted-Average Assumptions Used to Determine Benefit Obligations) (Details) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Pre Retirement | ' | ' |
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Benefit Obligation [Line Items] | ' | ' |
Discount rate | 0.00% | 0.00% |
Post Retirement | ' | ' |
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Benefit Obligation [Line Items] | ' | ' |
Discount rate | 4.26% | 3.08% |
Benefit Obligation | ' | ' |
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Benefit Obligation [Line Items] | ' | ' |
Current year trend rate | 8.10% | 8.40% |
Ultimate trend rate | 5.00% | 5.00% |
Year ultimate trend rate reached | '2023 | '2023 |
Employee_Benefit_Plans_Compone
Employee Benefit Plans (Components of Net Periodic Postretirement Benefit Cost) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Defined Benefit Plan Disclosure [Line Items] | ' | ' | ' |
Service cost | $66 | $23 | $40 |
Interest cost | 23 | 17 | 39 |
Prior service cost | ' | 51 | 115 |
Net gain recognized | -59 | -107 | -37 |
Net periodic postretirement benefit cost | $30 | ($16) | $157 |
Employee_Benefit_Plans_Schedul4
Employee Benefit Plans (Schedule of Weighted-Average Assumptions Used to Determine Benefit Costs) (Details) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Pre Retirement | ' | ' |
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost [Line Items] | ' | ' |
Discount rate | 0.00% | 0.00% |
Post Retirement | ' | ' |
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost [Line Items] | ' | ' |
Discount rate | 3.08% | 4.24% |
Net Periodic Benefit Cost | ' | ' |
Defined Benefit Plan Weighted Average Assumptions Used In Calculating Net Periodic Benefit Cost [Line Items] | ' | ' |
Current year trend rate | 8.40% | 9.00% |
Ultimate trend rate | 5.00% | 5.00% |
Year ultimate trend rate reached | '2023 | '2015 |
Employee_Benefit_Plans_Schedul5
Employee Benefit Plans (Schedule of Future Expected Benefit Payments) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Defined Benefit Plan Disclosure [Line Items] | ' |
2014 | $40 |
2015 | 43 |
2016 | 43 |
2017 | 54 |
2018 | 63 |
2019 through 2023 | $353 |
Employee_Benefit_Plans_Narrati
Employee Benefit Plans (Narrative) (Details) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | ' | ' | ' |
Percentage of employee gross salary matched by employer | 4.00% | ' | ' |
Defined contribution plan recognized expenses | $5,300,000 | $4,600,000 | $3,400,000 |
Percentage of employee based salary permitted for deferral under the plan | 50.00% | ' | ' |
Percentage of employee annual bonus permitted for deferral under the plan | 100.00% | ' | ' |
Deferred compensation plan assets | 2,900,000 | ' | ' |
Deferred compensation recorded liability | 600,000 | ' | ' |
Cash Surrender value of life insurance | 4,200,000 | ' | ' |
Effect of one percentage point increase on accumulated postretirement benefit obligation | 138,709 | ' | ' |
Effect of one percentage point increase on service and interest cost | 24,151 | ' | ' |
Effect of one percentage point decrease on accumulated postretirement benefit obligation | 100,063 | ' | ' |
Effect of one percentage point decrease on service and interest cost | 17,894 | ' | ' |
Unfunded liability | $700,000 | $700,000 | ' |
Deferred Compensation | ' | ' | ' |
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | ' | ' | ' |
Deferred compensation requisite service period | 'on or after age 65 and the completion of at least 10 years of continuous employment. | ' | ' |
Retiree Medical Plan | ' | ' | ' |
Deferred Compensation Arrangement With Individual Postretirement Benefits [Line Items] | ' | ' | ' |
Deferred compensation requisite service period | '10 years of service who are age 55 or older but less than 65. | ' | ' |
Commitments_and_Contingencies_1
Commitments and Contingencies (Schedule of Future Minimum Annual Rental Commitments Under Leases) (Details) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Loss Contingencies [Line Items] | ' |
2014 | $4,741 |
2015 | 3,661 |
2016 | 2,801 |
2017 | 1,956 |
2018 | 2,143 |
Thereafter | 6,405 |
Total lease commitments | $21,707 |
Commitments_and_Contingencies_2
Commitments and Contingencies (Narrative) (Details) (USD $) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Apr. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Lease expense for operating leases | ' | ' | $6,000,000 | $5,400,000 | $3,700,000 |
Loss on sublease and write-off of leasehold improvements | ' | 1,700,000 | ' | ' | ' |
Additional bonding capacity | ' | 116,700,000 | 116,700,000 | ' | ' |
Proceeds from legal settlements | 1,700,000 | ' | ' | ' | ' |
Financial Standby Letter of Credit | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Guarantee liability | ' | 20,100,000 | 20,100,000 | ' | ' |
Performance Guarantee | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Guarantee liability | ' | 283,400,000 | 283,400,000 | ' | ' |
S&I | ' | ' | ' | ' | ' |
Loss Contingencies [Line Items] | ' | ' | ' | ' | ' |
Guarantee liability | ' | 4,700,000 | 4,700,000 | ' | ' |
Revolving credit facility | ' | $8,100,000 | $8,100,000 | ' | ' |
Stock_Based_Compensation_Sched
Stock Based Compensation (Schedule Of Restricted Stock Units Activity) (Details) (Restricted Stock Units (RSUs), USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Restricted Stock Units (RSUs) | ' | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' |
Outstanding Beginning Balance, Number of Restricted Stock Units | 99,725 | 69,378 | 87,454 |
Granted, Number of Restricted Stock Units | 58,775 | 54,825 | 39,048 |
Vested, Number of Restricted Stock Units | -66,383 | -24,478 | -57,124 |
Forfeited, Number of Restricted Stock Units | -10,562 | ' | ' |
Outstanding Ending balance, Number of Restricted Stock Units | 81,555 | 99,725 | 69,378 |
Outstanding Beginning Balance, Weighted Average Grant Date Fair Value Per Share | $32.69 | $36.10 | $38.96 |
Granted, Weighted Average Grant Date Fair Value Per Share | $39.05 | $31.18 | $30.94 |
Vested, Weighted Average Grant Date Fair Value Per Share | $34 | $38.71 | $36.94 |
Forfeited, Weighted Average Grant Date Fair Value Per Share | $33.46 | ' | ' |
Outstanding Ending balance, Weighted Average Grant Date Fair Value Per Share | $38.66 | $32.69 | $36.10 |
Vested, Weighted Average Grant Date Fair Value Per Share | $34 | $38.71 | $36.94 |
Forfeited, Weighted Average Grant Date Fair Value Per Share | $33.46 | ' | ' |
Stock_Based_Compensation_Restr
Stock Based Compensation (Restricted Stock) (Narrative) (Details) (USD $) | Sep. 30, 2013 | Feb. 28, 2013 | Jan. 31, 2013 | Jun. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | Sep. 30, 2013 | Aug. 31, 2012 |
In Millions, except Share data, unless otherwise specified | 2006 Plan | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock |
Minimum | Maximum | Non Employee Director Stock Option Plan | 2006 Plan | |||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restricted stock issuable to eligible Board of Directors members annually | ' | ' | ' | ' | ' | 2,000 | ' | ' | ' | ' | ' | ' |
Maximum aggregate number of shares to be issued under the plan | ' | ' | ' | ' | ' | 150,000 | ' | ' | ' | ' | ' | ' |
Number of shares available for grant | 435,711 | ' | ' | ' | ' | 16,379 | ' | ' | ' | ' | 33,117 | ' |
Shares issued under the plan | ' | 16,000 | 500 | 2,000 | 26,000 | ' | 16,000 | ' | ' | ' | ' | 45,000 |
Shares issued, price per share | ' | $58.54 | $42.54 | $37.50 | ' | ' | $37.50 | ' | $30.79 | $32.12 | ' | $39.11 |
Vesting period | ' | ' | ' | '2 years | '3 years | '2 years | ' | ' | ' | ' | ' | '3 years |
Vesting percentage per year | ' | ' | ' | 50.00% | ' | 50.00% | ' | ' | ' | ' | ' | 33.00% |
Number of shares authorized | 750,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares vested | ' | ' | ' | ' | 7,601 | ' | ' | ' | ' | ' | ' | ' |
Unvested restricted stock outstanding | ' | ' | ' | ' | ' | 68,100 | 89,641 | ' | ' | ' | ' | ' |
Compensation expense | ' | ' | ' | ' | ' | $2.10 | $0.70 | $0.80 | ' | ' | ' | ' |
Stock_Based_Compensation_Restr1
Stock Based Compensation (Restricted Stock Units) (Narrative) (Details) (USD $) | 3 Months Ended | 12 Months Ended | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | Jun. 30, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 |
Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Restricted Stock | Time Based Restricted Stock Unit | Performance Based Restricted Stock Unit | Performance Based Restricted Stock Unit | Performance Based Restricted Stock Unit | |
Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | Restricted Stock Units (RSUs) | |||||||||||
Minimum | Maximum | |||||||||||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Actual amount of RSUs earned based on cumulative earnings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | ' | ' |
Remaining Time based RSUs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 40.00% | ' | 0.00% | 150.00% |
Unvested restricted stock outstanding | ' | 81,555 | 99,725 | 69,378 | 87,454 | ' | ' | 68,100 | 89,641 | ' | ' | ' | ' | ' |
Performance cycle | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' |
Vesting period | ' | ' | ' | ' | ' | '2 years | '3 years | '2 years | ' | ' | '3 years | ' | ' | ' |
Compensation expense | ' | $2.40 | $1.50 | $1.40 | ' | ' | ' | $2.10 | $0.70 | $0.80 | ' | ' | ' | ' |
Amounts not yet recognized related to non-vested stock totaled | ' | $2.10 | $1.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average remaining contractual life | ' | '1 year 7 months 2 days | ' | ' | ' | ' | ' | '1 year 5 months 5 days | ' | ' | ' | ' | ' | ' |
Stock_Based_Compensation_Stock
Stock Based Compensation (Stock Options) (Narrative) (Details) | 12 Months Ended | |
Sep. 30, 2013 | Sep. 30, 2012 | |
Stock Options | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Options expiration period | '7 years | ' |
Vesting percentage per year | 20.00% | ' |
Vesting period | '5 years | ' |
1992 | ' | ' |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ' | ' |
Number of shares authorized | 2,700,000 | ' |
Number of shares available for grant | 466,392 | ' |
Restricted stock issued | 0 | 3,740 |
Business_Segments_Schedule_Of_
Business Segments (Schedule Of Business Segments Detailed Information) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $674,772 | $717,194 | $562,397 |
Gross profit | 42,852 | 38,485 | 31,715 | 33,784 | 41,480 | 43,843 | 34,237 | 20,378 | 146,836 | 139,938 | 99,930 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 50,732 | 48,234 | 3,997 |
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 10,190 | 13,065 | 15,350 |
Electrical Power Products | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 635,253 | 686,581 | 533,339 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 137,756 | 132,458 | 91,730 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 49,421 | 48,055 | 3,888 |
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | 10,103 | 13,010 | 15,188 |
Process Control Systems | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 39,519 | 30,613 | 29,058 |
Gross profit | ' | ' | ' | ' | ' | ' | ' | ' | 9,080 | 7,480 | 8,200 |
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 1,311 | 179 | 109 |
Depreciation and amortization expense | ' | ' | ' | ' | ' | ' | ' | ' | $87 | $55 | $162 |
Business_Segments_Reconciliati
Business Segments (Reconciliation of Assets from Segment to Consolidated) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ' | ' |
Segment assets | $530,903 | $448,312 |
Electrical Power Products | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment assets | 334,169 | 319,215 |
Process Control Systems | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment assets | 17,083 | 14,540 |
Corporate | ' | ' |
Segment Reporting Information [Line Items] | ' | ' |
Segment assets | $179,651 | $114,557 |
Business_Segments_Schedule_Of_1
Business Segments (Schedule Of Revenue From External Customers, By Geographical Areas) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Total revenues | $674,772 | $717,194 | $562,397 |
Europe (including former Soviet Union) | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Total revenues | 753 | 24,857 | 7,107 |
Far East | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Total revenues | 36,965 | 14,865 | 17,172 |
Middle East and Africa | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Total revenues | 86,470 | 79,781 | 46,304 |
North, Central and South America (excluding U.S.) | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Total revenues | 145,470 | 184,935 | 112,949 |
United States | ' | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' | ' |
Total revenues | $405,114 | $412,756 | $378,865 |
Recovered_Sheet1
Business Segments (Schedule of Long-Lived Assets, By Geographical Areas) (Details) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' |
Total long-lived assets | $144,589 | $78,652 |
United States | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' |
Total long-lived assets | 96,918 | 60,012 |
United Kingdom | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' |
Total long-lived assets | 5,894 | 6,238 |
Canada | ' | ' |
Revenues From External Customers And Long Lived Assets [Line Items] | ' | ' |
Total long-lived assets | $41,777 | $12,402 |
Business_Segments_Narrative_De
Business Segments (Narrative) (Details) | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 3 Months Ended | ||||||||||||
Apr. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2011 | Jun. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Dec. 31, 2011 | Dec. 31, 2011 | |
USD ($) | USD ($) | USD ($) | USD ($) | United States | United States | United States | Canada | Canada | Canada | Colombia | Powell Canada | Powell Canada | Electrical Power Products | Electrical Power Products | Electrical Power Products | Electrical Power Products | Electrical Power Products | Electrical Power Products | |
segment | USD ($) | USD ($) | USD ($) | CAD | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Kazakhstan Joint Venture | Powell Canada | ||||||||
CAD | CAD | ||||||||||||||||||
Number of reportable business segments | ' | 2 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gain on sale of investment | ' | ' | ' | $1,229,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,200,000 | ' |
Equity investment in Kazakhstan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50.00% | ' |
Loss on impairment of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,200,000 | ' | ' | ' | ' | ' | 7,200,000 |
Recovery relating to cost overruns on a large project | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,100,000 | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | 674,772,000 | 717,194,000 | 562,397,000 | 405,114,000 | 412,756,000 | 378,865,000 | ' | ' | ' | ' | 3,800,000 | ' | ' | 635,253,000 | 686,581,000 | 533,339,000 | ' | ' |
Other assets | ' | 7,333,000 | 6,507,000 | ' | ' | ' | ' | ' | ' | ' | ' | 1,300,000 | ' | ' | ' | ' | ' | ' | ' |
Proceeds from legal settlements | $1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,700,000 | ' | ' | ' | ' | ' |
Concentration risk percentage | ' | ' | ' | ' | 60.00% | 58.00% | 67.00% | 17.00% | 13.00% | 16.00% | 11.00% | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring_and_Relocation_C1
Restructuring and Relocation Costs (Details) (USD $) | 3 Months Ended | 12 Months Ended |
Jun. 30, 2013 | Sep. 30, 2013 | |
Restructuring Cost And Reserve [Line Items] | ' | ' |
Restructuring and relocation costs | ' | $3,927,000 |
Costs incurred | ' | 2,800,000 |
Severance costs | $1,100,000 | ' |
Quarterly_Results_Of_Operation2
Quarterly Results Of Operations (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||||
Disclosure - Quarterly Results Of Operations (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Revenues | $187,397 | $179,519 | $153,915 | $153,941 | $184,159 | $194,093 | $181,486 | $157,456 | $674,772 | $717,194 | ' | |||||
Gross profit | 42,852 | 38,485 | 31,715 | 33,784 | 41,480 | 43,843 | 34,237 | 20,378 | 146,836 | 139,938 | 99,930 | |||||
Net income (loss) | $18,568 | $9,305 | $6,818 | $7,385 | $11,853 | $12,138 | $7,411 | ($1,745) | $42,076 | $29,657 | ($2,715) | |||||
Earnings (loss) per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||
Basic | $1.55 | [1] | $0.78 | [1] | $0.57 | [1] | $0.62 | [1] | $0.99 | $1.03 | $0.63 | ($0.15) | $3.52 | [1] | $2.50 | ($0.23) |
Diluted | $1.54 | [1] | $0.77 | [1] | $0.57 | [1] | $0.62 | [1] | $0.99 | $1.02 | $0.63 | ($0.15) | $3.51 | [1] | $2.49 | ($0.23) |
[1] | The increase in earnings per share for the fourth quarter of Fiscal 2013 was primarily driven by the release of our Canadian valuation allowance. For an explanation of the effective tax rate in Fiscal 2013, see Note H. |
Subsequent_Events_Narrative_De
Subsequent Events (Narrative) (Details) (Subsequent Event, USD $) | 1 Months Ended |
In Millions, except Per Share data, unless otherwise specified | Nov. 04, 2013 |
Subsequent Event | ' |
Disclosure - Subsequent Events (Narrative) (Details) [Line Items] | ' |
Dividend declared per share | $0.25 |
Aggregate amount of dividend declared | $3 |