Sevcon 10-K 24 Dec 15 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Sep. 30, 2015	Dec. 24, 2015	Apr. 04, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	SEVCON, INC.
Entity Central Index Key	825,411
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float		$ 10,600,000
Entity Common Stock, Shares Outstanding			3,668,937
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Document Type	10-K
Amendment Flag	false
Document Period End Date	Sep. 30, 2015

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Current assets:
Cash and cash equivalents	$ 8,048	$ 11,238
Trade receivables net of allowances for doubtful accounts of $37 in 2015 and $40 in 2014	8,995	6,694
Other receivables	467	183
Inventories	6,790	6,258
Deferred taxes	1,244	522
Prepaid expenses and other current assets	2,337	1,225
Total current assets	27,881	26,120
Property, plant and equipment, at cost:
Land and improvements	21	23
Buildings and improvements	693	741
Equipment	11,485	10,918
Property, plant and equipment, at cost	12,199	11,682
Less: accumulated depreciation	(9,574)	(9,577)
Net property, plant and equipment	2,625	2,105
Long-term deferred tax assets	3,232	3,910
Goodwill	1,435	1,435
Other long-term assets	443	397
Total assets	35,616	33,967
Current liabilities:
Current portion of long-term debt	0	28
Accounts payable	6,184	4,405
Accrued expenses	1,973	1,836
Accrued and deferred taxes on income	0	7
Dividends payable	200	0
Total current liabilities	8,357	6,276
Liability for pension benefits	10,963	9,529
Long-term debt	500	1,700
Total liabilities	$ 19,820	$ 17,505
Commitments and contingencies (Note 7)
Stockholders' equity:
Preferred stock, par value $.10 per share - authorized - 1,000,000 shares; Outstanding - 452,124 shares at September 30, 2015 and 460,769 shares at September 30, 2014	$ 45	$ 46
Common stock, par value $.10 per share - authorized - 20,000,000 shares at September 30,2015 and 8,000,000 at September 30, 2014; Outstanding 3,694,872 shares at September 30, 2015 and 3,588,958 shares at September 30, 2014	369	359
Premium paid in on common stock	6,637	6,040
Premium paid in on preferred stock	9,058	9,231
Retained earnings	10,607	9,495
Accumulated other comprehensive loss	(11,004)	(8,829)
Total Sevcon, Inc. and subsidiaries stockholders' equity	15,712	16,342
Non-controlling interest	84	120
Total stockholders' equity	15,796	16,462
Total liabilities and stockholders' equity	$ 35,616	$ 33,967

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
Current assets:
Trade receivables, allowances for doubtful accounts	$ 37	$ 40
Stockholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.10	$ 0.10
Preferred stock, authorized (in shares)	1,000,000	1,000,000
Preferred stock, outstanding (in shares)	452,124	460,769
Common stock, par value (in dollars per share)	$ 0.10	$ 0.10
Common stock, authorized (in shares)	20,000,000	8,000,000
Common stock, outstanding (in shares)	3,694,872	3,588,958

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Net sales	$ 41,142	$ 37,923
Cost of sales	(25,308)	(23,133)
Gross profit	15,834	14,790
Selling, general and administrative expenses	(10,263)	(9,801)
Research and development expenses	(3,677)	(3,964)
Operating income	1,894	1,025
Interest expense	(76)	(136)
Interest income	31	10
Foreign currency gain (loss)	118	(83)
Change in fair value of foreign exchange contracts	(22)	0
Income before income tax	1,945	816
Income tax provision	(406)	(85)
Net income	1,539	731
Net loss attributable to non-controlling interests	36	201
Net income attributable to Sevcon, Inc. and subsidiaries	1,575	932
Preference share dividends	(440)	(23)
Net income attributable to common stockholders	$ 1,135	$ 909
Basic income per share (in dollars per share)	$ 0.33	$ 0.27
Fully diluted income per share (in dollars per share)	$ 0.32	$ 0.19
Weighted average shares used in computation of earnings per share:
Basic (in shares)	3,469	3,398
Diluted (in shares)	4,929	4,856

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract]
Net income attributable to Sevcon, Inc. and subsidiaries	$ 1,575	$ 932
Other comprehensive loss
Foreign currency translation adjustment	(318)	(99)
Defined benefit pension plans:
Actuarial loss net of $644 tax benefit (2014:Actuarial loss net of $351 tax benefit)	(1,857)	(1,311)
Comprehensive loss	$ (600)	$ (478)

CONSOLIDATED STATEMENTS OF COM6

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Defined benefit pension plans:
Actuarial (loss) gain tax benefit (charge)	$ 644	$ 351

CONSOLIDATED STATEMENTS OF STOC

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Preferred Stock [Member]	Common Stock [Member]	Premium Paid in on Common Stock and Preferred Stock [Member]	Retained Earnings [Member]	Non-Controlling Interest [Member]	Other Comprehensive Loss [Member]	Total
Balance at Sep. 30, 2013	$ 0	$ 347	$ 5,699	$ 8,591	$ 0	$ (7,419)	$ 7,218
Balance (in shares) at Sep. 30, 2013	0	3,474,388
Net income				932			932
Currency translation adjustment						(99)	(99)
Issuance of restricted stock		$ 11	(11)				0
Issuance of restricted stock (in shares)		108,600
Repurchase of shares		$ (1)	(62)				(63)
Repurchase of shares (in shares)		(8,223)
Stock-based compensation			320				320
Issuance of preferred stock	$ 47		9,326	(28)			9,345
Issuance of preferred stock (in shares)	465,500
Conversion of preferred stock to common stock	$ (1)	$ 2	(1)				0
Conversion of preferred stock to common stock (in shares)	(4,731)	14,193
Pension liability adjustment, net of tax benefit						(1,311)	(1,311)
Non-controlling interest					120		120
Balance at Sep. 30, 2014	$ 46	$ 359	15,271	9,495	120	(8,829)	$ 16,462
Balance (in shares) at Sep. 30, 2014	460,769	3,588,958					3,588,958
Net income				1,575			$ 1,575
Dividends				(463)			(463)
Currency translation adjustment						(318)	(318)
Issuance of restricted stock		$ 9	(9)				0
Issuance of restricted stock (in shares)		92,600
Repurchase of shares		$ (2)	(96)				(98)
Repurchase of shares (in shares)		(12,621)
Stock-based compensation			554				554
Shortfall related to current year stock compensation			(23)				(23)
Conversion of preferred stock to common stock	$ (1)	$ 3	(2)				0
Conversion of preferred stock to common stock (in shares)	(8,645)	25,935
Pension liability adjustment, net of tax benefit						(1,857)	(1,857)
Non-controlling interest					(36)		(36)
Balance at Sep. 30, 2015	$ 45	$ 369	$ 15,695	$ 10,607	$ 84	$ (11,004)	$ 15,796
Balance (in shares) at Sep. 30, 2015	452,124	3,694,872					3,694,872

CONSOLIDATED STATEMENTS OF STO8

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY [Abstract]
Pension liability adjustment, tax benefit (charge)	$ 644	$ 351

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flow from operating activities:
Net income	$ 1,539	$ 731
Adjustments to reconcile net income to net cash (used by) generated from operating activities:
Depreciation	637	608
Unrealized loss on foreign exchange contracts	22	0
Stock-based compensation	554	320
Pension contributions greater than pension expense	(412)	(477)
Deferred tax charge	344	260
Increase (decrease) in cash resulting from changes in operating assets and liabilities:
Trade receivables	(3,045)	(84)
Other receivables	(190)	197
Inventories	(841)	(544)
Prepaid expenses and other assets	(984)	(906)
Accounts payable	2,040	506
Accrued expenses	245	(218)
Accrued and deferred taxes on income	(70)	(53)
Net cash (used by) generated from operating activities	(161)	340
Cash flow used by investing activities:
Acquisition of property, plant and equipment	(1,309)	(744)
Investment in joint venture, net of cash required	0	321
Net cash used by investing activities	(1,309)	(423)
Cash flow (used by) generated from financing activities:
Net repayment of long term debt	(1,228)	(47)
Repurchase of common stock	(98)	(63)
Dividends paid	(263)	0
Proceeds from issuance of preferred stock, net of costs	0	9,345
Excess tax benefits from stock compensation	14	0
Net cash (used by) generated from financing activities	(1,575)	9,235
Effect of exchange rate changes on cash	(145)	24
Net (decrease) increase in cash	(3,190)	9,176
Beginning balance - cash and cash equivalents	11,238	2,062
Ending balance - cash and cash equivalents	8,048	11,238
Supplemental disclosure of cash flow information:
Cash paid for income taxes, net of refunds	135	3
Cash paid for interest	76	136
Non-cash accrual of dividend payable	$ 200	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Sep. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Basis of presentation Sevcon, Inc. (or the “Company”) is a Delaware corporation organized on December 22, 1987 to carry on the electronic controls business previously performed by Tech/Ops, Inc. (Tech/Ops). Through wholly-owned subsidiaries located in the United States, England, France, South Korea and Japan and a 50% owned joint venture located in China, and through an international dealer network, the Company designs and sells, under the Sevcon name, motor controllers for zero emission electric and hybrid vehicles (EVs). The controls are used to vary the speed and movement of vehicles, to integrate specialized functions and to optimize the energy consumption of the vehicle's power source. Sevcon's customers are manufacturers of on and off-road vehicles, including cars, trucks, buses, motorcycles, fork lift trucks, aerial lifts, mining vehicles, airport tractors, sweepers and other electrically powered vehicles. Through another subsidiary located in the United Kingdom, Sevcon, Inc. manufactures special metalized film capacitors that are used as components in the power electronics, signaling and audio equipment markets. Prior period balances in the consolidated statement of income have been reclassified to conform to the current period presentation of disclosing separately research and development expenses and selling, general and administrative expenses. In 2014 these expenses were disclosed together as selling, research and administrative expenses Accounting for wholly-owned subsidiaries The accompanying consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries; Sevcon USA, Inc., Sevcon Ltd, Industrial Capacitors (Wrexham) Ltd., Sevcon Asia Limited, Sevcon Japan KK and Sevcon Security Corp., in accordance with the provisions required by the Consolidation Topic 810 of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). All material intercompany transactions have been eliminated. Accounting for joint-venture subsidiary For the Company's less than wholly-owned subsidiary, Sevcon New Energy Technology (Hubei) Company Limited, the Company first analyzes whether this joint venture subsidiary is a variable interest entity (a “VIE”) in accordance with ASC 810 and if so, whether the Company is the primary beneficiary requiring consolidation. A VIE is an entity that has (i) insufficient equity to permit it to finance its activities without additional subordinated financial support or (ii) equity holders that lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary, which is the entity that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that potentially could be significant to the entity. Variable interests in a VIE are contractual, ownership, or other financial interests in a VIE that change with changes in the fair value of the VIE’s net assets. The Company continuously re-assesses at each level of the joint venture whether the entity is (i) a VIE, and (ii) if the Company is the primary beneficiary of the VIE. If it is determined that the entity in which the Company holds its interest qualifies as a VIE and the Company is the primary beneficiary, it is consolidated. Based on the Company's analysis for its 50% owned joint venture, the Company has determined that it is a VIE and that the Company is the primary beneficiary. While the Company owns 50% of the equity interest in this subsidiary, the other 50% is owned by a local unrelated third party, and the joint venture agreement with that third party provides the Company with greater voting rights. Accordingly, the Company consolidates its joint venture under the VIE rules and reflects the third party’s 50% interest in the consolidated financial statements as a non-controlling interest. The Company records this non-controlling interest at its initial fair value, adjusting the basis prospectively for their share of the respective consolidated investments’ net income or loss or equity contributions and distributions. This non-controlling interest is not redeemable by the equity holders and is presented as part of permanent equity. Income and losses are allocated to the non-controlling interest holder based on its economic ownership percentage. B. Revenue recognition Revenue from the sales of products is recognized at the time title and risks and rewards of ownership pass to the customer (either when the products reach the free-on-board shipping point or destination depending on the contractual terms), there is persuasive evidence of an arrangement, the sales price is fixed and determinable and collection is reasonably assured. Shipping, handling, purchasing, receiving, inspecting, warehousing, and other costs of distribution are presented in cost of sales in the consolidated statements of income. The Company classifies amounts charged to its customers for shipping and handling in net sales in its consolidated statement of income. The Company’s only post-shipment obligation relates to warranty in the normal course of business for which ongoing reserves, which management believes to be adequate, are maintained. Warranty reserves are included on the balance sheet within accrued expenses. The movement in warranty reserves was as follows: (in thousands of dollars) 2015 2014 Warranty reserves at beginning of year 153 138 Decrease in beginning balance for warranty obligations settled during the year (37 ) - Foreign currency translation adjustment (10 ) (4 ) Net increase in warranty reserves for products sold during the year 172 19 Warranty reserves at end of year $ 278 $ 153 Infrequently the Company enters into fixed-price non-recurring engineering contracts. We record revenue on engineering services contracts using either the percentage-of-completion method or the completed contract method. In general, the performance of these types of contracts involves the design, development, and prototype manufacture of complex engineered products to our customer’s specifications. The percentage-of-completion method is used in circumstances in which all the following conditions exist: • the contract includes enforceable rights regarding goods or services to be provided to the customer, the consideration to be exchanged, and the manner and terms of settlement; • both the Company and the customer are expected to satisfy all of the contractual obligations; and, • reasonably reliable estimates of total revenue, total cost, and the progress towards completion can be made. The percentage-of-completion method recognizes estimates for contract revenue and costs in progress as work on the contract continues. Estimates are revised as additional information becomes available. If estimates of costs to complete a contract indicate a loss, a provision is made at that time for the total loss anticipated on the contract. We use the completed contract method if reasonably dependable estimates cannot be made or for which inherent hazards make estimates doubtful. Under the completed contract method, contract revenue and costs in progress are deferred as work on the contract continues. C. Research and development The cost of research and development programs is charged against income as incurred and amounted to $3,677 “above the line” tax credits arising from U.K. government research and development incentives and research and development expense associated with engineering services revenue recorded in cost of sales. 9 In recent years the Company has received several awards of research and development grants by the Technology Strategy Board, a public body established by the U.K. government to stimulate technology-enabled innovation. In 2011, the Company was awarded a research and development grant by the Technology Strategy Board to lead a collaborative project with Cummins Generator Technologies and Newcastle University in the U.K. to develop an innovative electric drive system for electric vehicles using advanced switched reluctance motor technology. The Company recorded grant income from this Technology Strategy Board project of $54,000 in 2015 associated with research and development expense of $262,000. The Company recorded grant income of $84,000 associated with research and development expense of $251,000 in respect of this Technology Strategy Board grant in 2014. In 2013, the Company was awarded a grant of approximately $480,000 by the Low Emission Transport Collaborative Projects Fund, a U.K. government body. The grant is to develop next-generation controls for high-voltage, low-power applications. The Company recorded grant income from this Technology Strategy Board project of $54,000 in 2015 associated with research and development expense of $459,000. The Company recorded grant income from this Technology Strategy Board project of $410,000 in 2014 associated with research and development expense of $1,638,000. In 2013, the Company was awarded a research and development grant by the Technology Strategy Board as one of a consortium of organizations in the U.K to research and design ultra-efficient systems for electric and hybrid vehicles. The Company recorded grant income from this Technology Strategy Board project of $3,000 in 2015 associated with research and development expense of $14,000. The Company recorded grant income from this Technology Strategy Board project of $6,000 in 2014 associated with research and development expense of $25,000. In 2015 the Company was awarded a grant of approximately $625,000 by the U.K. Regional Growth Fund, a U.K. government body. The grant is to develop an innovative range of low voltage motor controls which are designed to serve the emerging needs for on-road, automotive electrification. The grant includes a commitment to create or safeguard a total of twenty jobs at the Company’s U.K. facility over the period of the project. The Company recorded grant income from this project of $80,000 associated with research and development expense of $443,000. In 2015 and 2014, the Company participated in a U.K. government research and development arrangement which allows U.K. companies to record an additional available tax credit to the income statement above operating income as an “above the line credit” subject to meeting certain qualifying conditions. The credit is a percentage, which currently ranges from 10% to 14.5% depending on circumstances, of qualifying research and development expenditure in the period. The credit discharges income tax the Company would have to pay or allows companies without an income tax liability to receive a refund payment from the U.K. government. In 2015, the Company recorded an income statement credit of $463,000 (2014 - $261,000) and had an income tax receivable balance of $469,000 at September 30, 2015 from this initiative (2014 - $227,000). D. Depreciation and maintenance Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives, which are primarily fifty years for buildings, seven years for equipment and four years for computer equipment and software. Maintenance and repairs are charged to expense and renewals and betterments are capitalized. E. Stock based compensation plans The Company’s 1996 Equity Incentive Plan (the “Equity Plan”) provides for the granting of stock options, restricted stock and other equity-based awards to officers, key employees, consultants and non-employee directors of the Company. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The Company has not granted stock options since 2003. Since 2004, the Company has granted restricted stock to certain officers, key employees and non-employee directors in exchange for services provided to the Company over the vesting period of the stock. The vesting period of the restricted stock (i.e. when the restrictions lapse) is normally five years in respect of officers and key employees and one year in respect of non-employee directors. For officers and key employees, the Company recognizes compensation expense in respect of restricted stock grants on a straight line basis over the vesting period of the restricted stock based on the closing stock price on the grant date and an expected forfeiture rate of awards of 4%. For non-employee directors, the Company recognizes compensation expense in respect of restricted stock grants on a straight line basis over the vesting period of the restricted stock based on the closing stock price on the grant date. F. Income taxes The Company uses the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities reflect the impact of temporary differences between amounts of assets and liabilities for financial reporting purposes and such amounts as measured under enacted tax laws. A valuation allowance is required to offset any net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax asset will not be realized. Sevcon, Inc. files tax returns in the respective countries in which it operates. The financial statements reflect the current and deferred tax consequences of all events recognized in the financial statements or tax returns. We account for income tax uncertainties according to guidance on the recognition, de-recognition and measurement of potential tax benefits associated with tax positions. We recognize interest and penalties relating to income tax matters as a component of income tax provision. See Note 5. G. Inventories Inventories are valued at the lower of cost or market. Inventory costs include materials, direct labor and overhead, and are relieved from inventory on a first-in, first-out basis. The Company’s reported financial condition includes a provision for estimated slow-moving and obsolete inventory that is based on a comparison of inventory levels with forecasted future demand. Such demand is estimated based on many factors, including management judgments, relating to each customer’s business and to economic conditions. The Company reviews in detail all significant inventory items with holdings in excess of estimated normal requirements. It also considers the likely impact of changing technology. It makes an estimate of the provision for slow moving and obsolete stock on an item-by-item basis based on a combination of likely usage based on forecasted customer demand, potential sale or scrap value and possible alternative use. This provision represents the difference between original cost and market value at the end of the financial period. In cases where there is no estimated future use for the inventory item and there is no estimated scrap or resale value, a 100% provision is recorded. Where the Company estimates that only part of the total holding of an inventory item will not be used, or there is an estimated scrap, resale or alternate use value, then a proportionate provision is recorded. Once an item has been written down, it is not subsequently revalued upwards. The reserve for slow moving and obsolete inventories at September 30, 2015 was $443,000 and at September 30, 2014, the reserve was $485,000. Inventories comprised: (in thousands of dollars) 2015 2014 Raw materials $ 2,453 $ 2,095 Work-in-process 90 102 Finished goods 4,247 4,061 $ 6,790 $ 6,258 H. Accounts receivable In the normal course of business, the Company provides credit to customers, performs credit evaluations of these customers, monitors payment performance, and maintains reserves for potential credit losses in the allowance for doubtful accounts which, when realized, have historically been within the range of the Company’s reserves. An account receivable is considered past due if any portion has been outstanding for greater than 60 days. I. Translation of foreign currencies Sevcon, Inc. translates the assets and liabilities of its foreign subsidiaries at the current rate of exchange, and statement of income accounts at the average exchange rates in effect during the period. Gains or losses from foreign currency translation are credited or charged to the cumulative translation adjustment included in the statements of comprehensive loss and as a component of accumulated other comprehensive loss in stockholders' equity in the consolidated balance sheets. Foreign currency transaction gains and losses are shown in the consolidated statements of income. J. Derivative instruments and hedging The Company sells to customers throughout the industrialized world. In the controls segment the majority of the Company’s product is produced in four separate plants in Poland, Malaysia, Mexico and China. Approximately 53% of the Company’s sales are made in U.S. Dollars, 26% are made in British Pounds and 21% are made in Euros. Approximately 20% of the Company’s cost of sales is incurred in British Pounds and 66% is incurred in Euros. This results in the Company’s sales and margins being exposed to fluctuations due to the change in the exchange rates of U.S. Dollar, the British Pound and the Euro. The Company uses derivative financial instruments to partially offset its market exposure to these fluctuations and does not enter into derivative contracts for speculative or trading purposes. Derivative financial instruments designated as cash flow hedges: The Company documents at the inception of the transaction the relationship between the hedging instruments and the hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an on-going basis, whether the derivative financial instruments that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in equity in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in the consolidated statement of income within ‘Other income and expense’. Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss (for example, when foreign currency denominated financial liabilities are translated in their functional currencies). The gain or loss relating to the effective portion of cross currency swaps which hedge the effects of changes in foreign exchange rates are recognized in the consolidated statement of income within ‘foreign exchange differences’. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in the consolidated statement of income. The company did not have any financial instruments designated as cash flow hedges at September 30, 2015 or September 30, 2014. Derivative financial instruments not designated for hedging: The fair value of derivative financial instruments that do not meet the FASB authoritative guidance for hedge accounting are immediately recognized in the consolidated statement of income under “Other income and expense”. The fair value of these derivatives are recorded under “Prepaid expenses and other current assets” for asset derivatives or “Accrued expenses and other current liabilities” for liability derivatives, in the consolidated balance sheets. During the year the company entered into foreign currency forward contracts to hedge its exposure to future fluctuations in the exchange rate between the U.S. Dollar and the Euro. These contracts were intended to partially hedge the U.S. Dollar equivalent cost of the company’s planned purchases of inventory denominated in Euros. The total gross amount of the outstanding forward contracts was $803,670 at September 30, 2015 ($0 at September 30, 2014). These agreements were recorded at fair value in the consolidated balance sheet, resulting in a net loss of $22,000 in the consolidated statement of income for the year ended September 30, 2015 ($0 net gain or loss for the year ended September 30, 2014). K. Cash equivalents and short-term investments The Company considers all highly liquid investments with a maturity of 90 days or less to be cash equivalents. Highly liquid investments with maturities greater than 90 days and less than one year are classified as short-term investments. Such investments are generally money market funds, bank certificates of deposit, U.S. Treasury bills and short-term bank deposits in Europe. L. Earnings per share Basic earnings per share is computed by dividing the net income or loss for the period by the weighted average number of shares of common stock outstanding during the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased for the assumed exercise of dilutive options and other potentially dilutive securities, including convertible preferred stock, using the treasury stock method unless the effect is anti-dilutive. Basic and diluted net income per common share for the two years ended September 30, 2015 is calculated as follows: (in thousands of dollars except per share data) 2015 2014 Numerator: Net income attributable to common stockholders for computing net income per ordinary share - basic $ 1,135 $ 909 Dividend eliminated upon assumed conversion of convertible preference shares 440 23 Net income attributable to common stockholders for computing net income per ordinary share - diluted $ 1,575 $ 932 Denominator: Weighted average shares used in calculating net income per ordinary share - basic 3,469 3,398 Adjustment for assumed conversion of convertible preference shares 1,374 1,382 Adjustment for shares issuable upon vesting of restricted stock 86 76 Weighted average shares used in calculating net income per ordinary share - diluted 4,929 4,856 Net income per ordinary share - basic $ 0.33 $ 0.27 Net income per ordinary share - diluted $ 0.32 $ 0.19 No. of shares of convertible preference stock excluded during the period as such shares and related dividends would have the effect of increasing earnings per share - - M. Use of estimates in the preparation of financial statements The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting periods. The most significant estimates and assumptions made by management include bad debt, inventory and warranty reserves, goodwill impairment assessment, pension plan assumptions and income tax assumptions. Operating results in the future could vary from the amounts derived from management's estimates and assumptions. N. Fair value measurements The FASB has issued authoritative guidance, which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. This guidance does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. In accordance with this guidance, financial assets and liabilities have been categorized, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The three levels of the hierarchy are defined as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices included in Level 1. Level 2 inputs include quoted prices for identical assets or liabilities in non-active markets, quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for substantially the full term of the asset or liability. Level 3 - Unobservable inputs reflecting management’s own assumptions about the input used in pricing the asset or liability. The Company currently does not have any Level 3 financial assets or liabilities. At September 30, 2015, the fair value measurements affect only the Company’s consideration of pension plan assets as disclosed in Note 8, Employee Benefit Plans, debt as disclosed in Note 10 and forward contracts as disclosed in Note 11, Derivative Financial Instruments. O. Fair value of financial instruments The Company's financial instruments consist mainly of cash and cash equivalents, short-term investments, accounts receivable and accounts payable. The carrying amount of these financial instruments as of September 30, 2015 approximates fair value due to the short-term nature of these instruments. The fair value of the Company’s long term debt at September 30, 2015 approximated $500,000 (the carrying value on the consolidated balance sheet at September 30, 2015) based on recent financial market pricing. The long term debt represents a level 2 liability in accordance with the fair value hierarchy outlined above. P. Goodwill The amount by which the cost of purchased businesses included in the accompanying financial statements exceeded the fair value of net assets at the date of acquisition has been recorded as goodwill. In accordance with FASB accounting guidance regarding goodwill and other intangible assets, the Company performs an assessment of goodwill impairment annually or more frequently if events or changes in circumstances indicate that the value has been impaired. The Company has designated September 30 as the date it performs the annual review of goodwill impairment. Goodwill impairment testing is performed at the segment (or “reporting unit”) level. In evaluating goodwill for impairment, the reporting unit’s fair value was first compared to its carrying value. The fair value of the reporting unit was estimated by considering (1) market capitalization, (2) market multiple and recent transaction values of similar companies and (3) projected discounted future cash flows, if reasonably estimable. Key assumptions in the estimation of projected discounted future cash flows include the use of an appropriate discount rate, estimated future cash flows and estimated run rates of sales, gross profit and operating expenses. In estimating future cash flows, the Company incorporates expected growth rates, as well as other factors into its revenue and expense forecasts. If the reporting unit’s fair value exceeds its carrying value, no further testing is required. If, however, the reporting unit’s carrying value exceeds its fair value, the amount of the impairment charge is determined, if any. An impairment charge is recognized if the carrying value of the reporting unit’s goodwill exceeds its implied fair value. At each of September 30, 2015 and 2014, there was $1,435,000 of goodwill on the balance sheet of the Company which related wholly to one business segment, the controls segment, and the estimated fair value of the reporting unit exceeded its carrying value under each method of calculation performed. Q. New Accounting Pronouncements In May 2014, the FASB amended its guidance regarding revenue recognition and created a new Topic 606, ‘Revenue from Contracts with Customers’. The objectives for creating Topic 606 were to remove inconsistencies and weaknesses in revenue recognition, provide a more robust framework for addressing revenue issues, provide more useful information to users of the financial statements through improved disclosure requirements, simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer, and improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve the core principle, an entity should apply the following steps: 1) identify the contract(s) with a customer; 2) identify the performance obligations in the contract; 3) determine the transition price; 4) allocate the transaction price to the performance obligations in the contract; and 5) recognize revenue when (or as) the entity satisfied a performance obligation. For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The amendments may be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the amendment recognized at the date of initial application. We are currently assessing the impact of adoption of this standard on our consolidated financial statements. R. Employee Benefit Plans Sevcon, Inc. recognizes its pension plans’ over-funded or under-funded status in its consolidated balance sheets and recognizes the change in a plan’s funded status in comprehensive income in the year which the changes occur.

CAPITAL STOCK

CAPITAL STOCK	12 Months Ended
	Sep. 30, 2015
CAPITAL STOCK [Abstract]
CAPITAL STOCK	(2) CAPITAL STOCK Sevcon, Inc. has two classes of authorized capital stock, preferred and common. There are authorized 1,000,000 shares of preferred stock, $.10 par value and 20,000,000 shares of common stock, $.10 par value.

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS	12 Months Ended
	Sep. 30, 2015
STOCK-BASED COMPENSATION PLANS [Abstract]
STOCK-BASED COMPENSATION PLANS	(3) STOCK-BASED COMPENSATION PLANS Under the Company’s 1996 Equity Incentive Plan there were 139,578 shares reserved and available for grant at September 30, 2015. There were 219,557 shares reserved and available for grant at September 30, 2014. There were no options exercised in 2015 or in 2014. Recipients of grants of options must execute a standard form of non-competition agreement. The plan provides for the grant of Restricted Stock, Restricted Stock Units, Options, and Stock Appreciation Rights (“SAR”s). SARs may be awarded either separately, or in relation to options granted, and for the grant of bonus shares. Options granted are exercisable at a price not less than fair market value on the date of grant. There were no options outstanding or exercisable at September 30, 2015 or September 30, 2014, and there were no options granted or exercised in the year ended September 30, 2015. In December 2014, the Company granted 42,000 shares of restricted stock to eight employees, which will vest in two equal annual installments so long as the employee is then employed by the Company, or as determined by the Compensation Committee. The estimated fair value of the stock measured on the date of grant was $330,000, based on the fair market value of the stock on the date of issue. The unvested compensation is being charged to income on a straight line basis over two years. The charge to income for this employee restricted stock in 2015 was $124,000 and the subsequent charge will be approximately $41,000 on a quarterly basis. In December 2014, the Company granted 20,000 shares of restricted stock to three employees, which will vest in five equal annual installments so long as the employee is then employed by the Company, or as determined by the Compensation Committee. The estimated fair value of the stock measured on the date of grant was $139,000, based on the fair market value of the stock on the date of issue. The unvested compensation is being charged to income on a straight line basis over five years. The charge to income for this employee restricted stock in 2015 was $21,000 and the subsequent charge will be approximately $7,000 on a quarterly basis. In February 2015, the Company granted 30,600 shares of restricted stock to nine non-employee directors, which will vest on the day before the 2016 annual meeting providing that the grantee remains a director of the Company, or as otherwise determined by the Compensation Committee. The aggregate fair value of the stock measured on the date of grant was $225,000, based on the closing sale price of the stock on the date of grant. Compensation expense is being charged to income on a straight line basis over the twelve month requisite service period during which the forfeiture conditions lapse. The charge to income for these restricted stock grants in 2015 was $131,000 and the subsequent charge will be approximately $56,000 on a quarterly basis. For the purposes of calculating average issued shares for basic earnings per share these shares are only considered to be outstanding when the forfeiture conditions lapse and the shares vest. Restricted stock transactions under the plans for the two years ended September 30, 2015 were as follows: (in thousands of shares) 2015 2014 Beginning Balance – Non-vested 168.6 103.8 Granted to employees – 5 year vesting 20.0 80.0 Granted to employees – 2 year vesting 42.0 - Granted to non-employee directors – 1 year vesting 30.6 28.6 Vested (64.6 ) (43.8 ) Forfeited - - Ending Balance – Non-vested 196.6 168.6 Weighted-average fair value for shares granted during the year $ 7.49 $ 5.23 Weighted-average fair value for shares vested during the year $ 6.32 $ 4.63 Weighted-average fair value for ending balance - non-vested $ 5.97 $ 5.27 As of September 30, 2015, there was $776,000 of compensation expense related to non-vested awards not yet recognized, which is expected to be recognized over a weighted average period of 2.2 years. Stock-based compensation expense was $554,000 and $320,000 for the years ended September 30, 2015 and 2014, respectively.

CASH DIVIDENDS

CASH DIVIDENDS	12 Months Ended
	Sep. 30, 2015
CASH DIVIDENDS [Abstract]
CASH DIVIDENDS	(4) CASH DIVIDENDS Common stock dividends: The Board of Directors suspended common stock dividends to conserve cash during the global recession that began in 2009 and will consider whether to resume paying common stock dividends as conditions and the Company’s operating results improve. Preferred stock dividends: At September 30, 2015 there were 452,124 shares of Series A Convertible Preferred Stock issued and outstanding. The preferred stock, which has a stated value of $24 per share, pays a 4% cumulative annual dividend semi-annually on October 15 and April 15 each year. Semi-annual dividends of $42,000 and $221,000 were paid on October 15, 2014 and April 15, 2015 respectively. On September 29, 2015, the board of directors declared a cash dividend of $0.48 per preferred share which was paid on October 15, 2015 to shareholders of record as of October 6, 2015, the record date.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Sep. 30, 2015
INCOME TAXES [Abstract]
INCOME TAXES	(5) INCOME TAXES The domestic and foreign components of income before income taxes are as follows: (in thousands of dollars) 2015 2014 Domestic $ 863 $ 430 Foreign 1,082 386 $ 1,945 $ 816 The components of the provision (benefit) for income taxes and deferred taxes for the years ended September 30, 2015 and 2014 are as follows: (in thousands of dollars) 2015 Current Deferred Federal $ 38 $ 349 State 85 3 Foreign (16 ) (53 ) $ 107 $ 299 2014 Current Deferred Federal $ - $ 134 State 44 87 Foreign (97 ) (83 ) $ (53 ) $ 138 The provision (benefit) for income taxes in each period differs from that which would be computed by applying the statutory U.S. Federal income tax rate to the income before income taxes. The following is a summary of the major items affecting the provision: (in thousands of dollars) 2015 2014 Statutory Federal income tax rate 34 % 34 % Computed tax provision at statutory rate $ 659 $ 275 Increases (decreases) resulting from: Foreign tax rate differentials (163 ) (122 ) State taxes net of federal tax benefit 57 71 Foreign research incentives (166 ) (213 ) U.K. rate change 5 27 Other 14 47 Income tax provision in the consolidated statements of income $ 406 $ 85 Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The significant items comprising the domestic and foreign deferred tax accounts at September 30, 2015 and 2014 are as follows: 2015 Domestic current Domestic long-term Foreign current Foreign long-term Total Assets: Pension accruals $ - $ 389 $ - $ 2,028 $ 2,417 Inventory basis differences 72 - - - 72 Warranty reserves 67 - - - 67 Foreign tax credit carry forwards - 203 - - 203 Accrued compensation expense - - - 54 54 Net operating losses - 2 1,101 818 1,921 Other (net) 3 211 1 - 215 142 805 1,102 2,900 4,949 Liabilities: Property basis asset (liability) - 1 - (233 ) (232 ) Net asset 142 806 1,102 2,667 4,717 Valuation allowance - (158 ) - (83 ) (241 ) Net deferred tax asset $ 142 $ 648 $ 1,102 $ 2,584 $ 4,476 2014 Domestic current Domestic long-term Foreign current Foreign long-term Total Assets: Pension accruals $ - $ 186 $ 37 $ 1,805 $ 2,028 Inventory basis differences 69 - - - 69 Warranty reserves 21 - - - 21 Foreign tax credit carry forwards - 266 - - 266 Accrued compensation expense - - - 58 58 Net operating losses 103 108 289 1,568 2,068 Other (net) - 308 3 - 311 193 868 329 3,431 4,821 Liabilities: Property basis asset (liability) - 12 - (130 ) (118 ) Net asset 193 880 329 3,301 4,703 Valuation allowance - (159 ) - (112 ) (271 ) Net deferred tax asset $ 193 $ 721 $ 329 $ 3,189 $ 4,432 The domestic valuation allowance at September 30, 2015 relates primarily to the realizability of foreign tax credit carry forwards in the U.S; the foreign valuation allowance relates to net operating losses in the Company’s Asian subsidiaries. In assessing the continuing need for a valuation allowance the Company has assessed the available means of recovering its deferred tax assets, including the ability to carryback net operating losses, the existence of reversing temporary differences, the availability of tax planning strategies, and available sources of future taxable income, including a revised estimate of future sources of pre-tax income. The Company has historically had profitable operations. The Company’s current projections reflect future profitable operations. Since the majority of the Company’s net operating loss deferred tax assets relate to operations in countries where net operating losses have unlimited carry forwards, the Company has concluded that no valuation allowance is required on these deferred tax assets. The Company has generated domestic state net operating losses of $39,100 which will expire in 2028. The Company has generated foreign net operating losses of approximately $9,150,000 which have an indefinite carry forward period. During the year, the Company elected to receive a refundable tax credit of $463,000 related to certain research and development incentives in the U.K. These amounts have been recorded in operating income, as they are refunded without regard to actual tax liability. At September 30, 2015, the Company has not provided United States income taxes or foreign withholding taxes on unremitted foreign earnings of approximately $13 million, as those amounts are considered indefinitely invested in light of the Company’s substantial non-U.S. operations. Due to the complexities of the U.S. tax law, including the effect of U.S. foreign tax credits, it is not practicable to estimate the amount of tax that might be payable on these earnings in the event they no longer are indefinitely reinvested. Uncertain tax positions The Company follows FASB authoritative guidance regarding the recognition and measurement of all tax positions taken or to be taken by the Company and its subsidiaries. The Company reviews all potential uncertain tax positions. As a consequence of that review, it was concluded that no provision was required and consequently the Company has not recorded a liability for uncertain tax positions. The Company’s tax returns are open to audit from 2012 and forward.

ACCRUED EXPENSES

ACCRUED EXPENSES	12 Months Ended
	Sep. 30, 2015
ACCRUED EXPENSES [Abstract]
ACCRUED EXPENSES	(6) ACCRUED EXPENSES The analysis of accrued expenses at September 30, 2015 and 2014 showing separately any items in excess of 5% of total current liabilities was as follows: (in thousands of dollars) 2015 2014 Accrued compensation and related costs $ 827 $ 1,062 Other accrued expenses 1,146 774 $ 1,973 $ 1,836

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Sep. 30, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]
COMMITMENTS AND CONTINGENCIES	(7) COMMITMENTS AND CONTINGENCIES Sevcon, Inc. is involved in various legal proceedings in the ordinary course of business but believes that it is remote that the outcome will be material to operations. The Company maintains a directors' retirement plan which provides for certain retirement benefits to non-employee directors. Effective January 1997 the plan was frozen and no further benefits are being accrued. While the cost of the plan has been fully charged to expense, the plan is not separately funded. The estimated maximum liability which has been recorded based on the cost of buying deferred annuities at September 30, 2015 and September 30, 2014 was $153,000 and $162,000 respectively. Minimum rental commitments under all non-cancelable leases are as follows for the years ended September 30: 2016 - $227,000 2017 - $211,000; 2018 - $200,000; 2019 - $188,000; 2020 - $173,000 and $2,544,000 thereafter. Net rentals of certain land, buildings and equipment charged to expense were $248,000 in 2015 and $242,000 in 2014. The U.K. subsidiaries of the Company have given to RBS NatWest Bank a security interest in certain leasehold and freehold property assets as security for overdraft facilities of $1,360,000. There were no amounts outstanding on the overdraft facilities at September 30, 2015 or 2014. The obligations under a secured revolving credit facility entered into in 2011 by the U.S. subsidiary of the Company, are guaranteed by the Company and are secured by all of the assets and a pledge of all of the capital stock, of Sevcon USA, Inc. The total amount outstanding under this revolving credit facility was $500,000 at September 30, 2015 and $1,700,000 at September 30, 2014.

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	12 Months Ended
	Sep. 30, 2015
EMPLOYEE BENEFIT PLANS [Abstract]
EMPLOYEE BENEFIT PLANS	(8) EMPLOYEE BENEFIT PLANS Sevcon, Inc. has defined contribution plans covering the majority of its U.S. and U.K. employees in the controls business. There is also a small defined contribution plan covering senior managers in the capacitor business. The Company has frozen U.K. and U.S. defined benefit plans for which no future benefits are being earned by employees. The Company uses a September 30 measurement date for its defined benefit pension plans. The Company’s French subsidiary, Sevcon S.A.S., has a liability to pay its employees a service and salary based award when they reach retirement age and leave the Company’s employment. This liability, which is unfunded, is recognized in accrued expenses and was $163,000 and $173,000 at September 30, 2015 and 2014, respectively. The obligation to pay this award is a French legal requirement and is only payable if the employee is employed by the Company when they retire; if they leave the Company prior to that time the award is no longer payable. The following table sets forth the estimated funded status of these frozen defined benefit plans and the amounts recognized by Sevcon, Inc.: (in thousands of dollars) 2015 2014 Change in benefit obligation: Benefit obligation at beginning of year $ 30,646 $ 27,908 Interest cost 1,236 1,303 Actuarial loss 1,540 1,911 Benefits paid (437 ) (482 ) Foreign currency exchange rate changes (1,895 ) 6 Benefit obligation at end of year 31,090 30,646 Change in plan assets: Fair value of plan assets at beginning of year 21,117 19,554 Return on plan assets 22 1,334 Employer contributions 662 698 Benefits paid (437 ) (482 ) Foreign currency exchange rate changes (1,237 ) 13 Fair value of plan assets at end of year 20,127 21,117 Funded status (10,963 ) (9,529 ) Liability for pension benefits recorded in the balance sheet $ (10,963 ) $ (9,529 ) The funded status of the Company’s defined benefit pension plans declined from a deficit of $9,529,000 at September 30, 2014 to a deficit of $10,963,000 at September 30, 2015. The increase in the deficit of $1,434,000 was due to several factors. The actuarial loss in the Company’s U.K. defined benefit plan was due to lower than expected returns on the U.K. plan’s assets of $1 million and also a deterioration in the financial assumptions underlying the calculation of the liabilities during the year, and in particular the yield on high quality corporate bonds, which accounted for a further increase to the liability of $1 million. In addition a revision to the assumptions relating to the longevity tables in the Company’s U.S. plan resulted in an increase to the liability of $800,000. Amounts recognized in the balance sheets consist of: (in thousands of dollars) 2015 2014 Non-current liabilities $ 10,963 $ 9,529 Amounts recognized in other comprehensive loss consist of: (in thousands of dollars) 2015 2014 Actuarial loss, net of $644 tax benefit (2014:actuarial loss net of $351 tax benefit) $ (1,857 ) $ (1,311 ) The Sevcon, Inc. net periodic pension cost included the following components: (in thousands of dollars) 2015 2014 Components of net periodic benefit cost: Interest cost $ 1,236 $ 1,303 Expected return on plan assets (1,250 ) (1,309 ) Amortization of net actuarial loss 264 227 Net periodic benefit cost $ 250 $ 221 Net cost of defined contribution plans $ 494 $ 500 The weighted average assumptions used to determine plan obligations and net periodic benefit cost for the years ended September 30, 2015 and 2014 were as set out below: 2015 2014 Plan obligations: Discount rate 3.90 % 4.24 % Net periodic benefit cost: Discount rate 3.90 % 4.24 % Expected long term return on plan assets 5.73 % 6.15 % The assumptions regarding mortality tables and estimated retirement dates were as follows: 2015 2014 Retirement age – U.K. Plan 65 65 Retirement age – U.S. Plan 65 65 Post-retirement mortality tables – U.K. Plan 105% of the S1PXA birth year tables with the latest CMI projections and a 1.0% p.a. long-term future improvement rate 105% of the S1PXA birth year tables with the latest CMI projections and a 1.0% p.a. long-term future improvement rate Post-retirement mortality tables – U.S. Plan RP-2014 White Collar Annuitant with MP-2014 Generational Projection (M/F) IRS 2013 Present Value Optional Combined Table Pre-retirement mortality tables – U.K. Plan None None Pre-retirement mortality tables – U.S. Plan RP-2014 White Collar Employee with MP-2014 Generational Projection (M/F) IRS 2013 Present Value Optional Combined Table The changes in these assumptions reflect actuarial advice and changing market conditions and experience. There is no compensation increase assumed in 2015 and in future years as both the U.K. and the U.S. defined benefit pension plans have been frozen and therefore there will be no future benefits earned by employees under these benefit arrangements. The Company’s investment strategy is to build an efficient, well-diversified portfolio based on a long-term strategic outlook of the investment markets. The investment markets outlook utilizes both historical-based and forward-looking return forecasts to establish future return expectations for various asset classes. These return expectations are used to develop a core asset allocation based on the specific needs of the plan. The core asset allocation utilizes multiple investment managers to maximize the plan’s return while minimizing risk. The assumed rate of return on plan assets represents an estimate of long-term returns on an investment portfolio consisting of a mixture of equities, fixed income and alternative investments. In determining the expected return on plan assets, the Company considers long-term rates of return on the asset classes (historically and forecasted) in which the Company expects the pension funds to be invested. At September 30, 2015, the assets of the U.S. plan were invested 83% in mutual funds and 17% in cash and cash equivalents. The U.S. plan had a deficit of $824,000, or 21% of the total U.S. benefit obligation, as at September 30, 2015. The Company has committed to future annual contributions to the defined benefit plan to pay down this deficit within the next six years. The Company established a 401(k) defined contribution plan for current and future U.S. employees effective October 1, 2010. At September 30, 2015, the assets of the U.K. plan were invested 38% in equity like securities, 19% in U.K. government bonds, 12% in hedge funds, 5% in property, all of which are represented by the Adept Strategy 9 Fund in the table below, 23% in liability matching assets represented by the Schroder Matching Plus Fund in the table below and 3% in cash and cash equivalents. The U.K. plan was frozen effective September 30, 2012 and in consequence there will be no future accrual earned by U.K. employees under this defined benefit arrangement. The U.K. plan had a deficit of $10,139,000 or 37% of the total U.K. benefit obligation, as at September 30, 2015. The Company has committed to future annual contributions to the defined benefit plan to pay down this deficit within the next eleven years. The Company has established a defined contribution pension plan for current and future U.K. employees effective October 1, 2012. The overall expected long-term rate of return on plan assets has been based on the expected returns on equities, bonds and real estate based broadly on the current and proposed future asset allocation. During the year, the assets of the frozen U.K. defined benefit plan (the Sevcon Pension Plan, ‘the Plan’) were reorganized by the trustees of the Plan. The trustees appointed Legal & General Investment Management to sell the plan investments held in pooled funds previously managed by Standard Life Investments and a holding in the Absolute Return Fund managed by Ruffer LLP. The cash proceeds were subsequently invested as to 80% in an investment in Adept Strategy 9 Fund, a sub-fund of Adept Investment Management plc, a Qualifying Investor Alternative Investment Fund authorized and supervised by the Central Bank of Ireland. The other 20% of the cash proceeds were invested in a range of Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds to match the profile of the Plan’s liability cash flows. The tables below present information about our plan assets measured and recorded at fair value as of September 30, 2015 and September 30, 2014, and indicates the fair value hierarchy of the inputs utilized by the Company to determine the fair values (see Fair value measurements in Note 1). (in thousands of dollars) 2015 Level 1* (Quoted prices in active markets) Level 2** (Significant observable inputs) Level 3*** (Unobservable inputs) Adept Strategy 9 Fund (a sub-fund of Adept Investment Management plc) - 13,044 - Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds (funds managed by Schroder Investment Management Limited) - 3,845 - U.S. Mutual Funds and Fixed Income Funds 2,557 - - U.S. Equity Funds 350 - - Other Types of Investments Cash 331 - - Total 3,238 16,889 - (in thousands of dollars) 2014 Level 1* (Quoted prices in active markets) Level 2** (Significant observable inputs) Level 3*** (Unobservable inputs) Mutual Funds Standard Life Pension Global Absolute Returns Strategies Fund 7,187 - - Standard Life UK Indexed Linked Fund Standard Life Long Corporate Bond Fund 1,856 1,785 - - CF Rubber Absolute Return Fund 7,177 - - U.S. Mutual Funds 2,431 U.S. Exchange Traded Funds 348 - - Other Types of Investments Cash 333 - - Total 21,117 - - * Level 1 investments represent mutual funds for which a quoted market price is available on an active market. These investments primarily hold stocks or bonds, or a combination of stocks and bonds. ** Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The Company’s pension plan financial assets held in the Adept Strategy 9 Fund and the Schroder investments are Level 2 assets. The Company uses the Net Asset Value to determine the fair value of underlying investments which (a) do not have readily determinable fair value; and (b) prepare their financial statements consistent with the measurement principles of an investment company. The Funds are not exchange traded. The Funds are not subject to any redemption notice periods or restrictions and can be redeemed on a daily basis. No gates or holdbacks or dealing suspensions are being applied to the Funds. The Funds are of perpetual duration. *** The Company currently does not have any Level 3 pension plan financial assets. The following estimated benefit payments, which reflect future service, as appropriate, are expected to be paid: (in thousands of dollars) 2016 $ 441 2017 514 2018 532 2019 540 2020 550 2021 – 2025 2,958 In 2016, it is estimated that the Company will make contributions to the U.K. and U.S. defined benefit pension plans of $653,000. In 2016 it is estimated that the Company will recognize $306,000 as a component of the net periodic benefit cost in respect of the amortization of actuarial losses from accumulated other comprehensive loss.

SEGMENT INFORMATION

SEGMENT INFORMATION	12 Months Ended
	Sep. 30, 2015
SEGMENT INFORMATION [Abstract]
SEGMENT INFORMATION	(9) SEGMENT INFORMATION The Company has two reportable segments: electronic controls and capacitors. The electronic controls segment produces microprocessor based control systems for zero emission and hybrid electric vehicles. The capacitor segment produces special metalized film capacitors for sale to electronic equipment manufacturers. Each segment has its own management team, manufacturing facilities and sales force. The accounting policies of the segments are the same as those described in Note 1. Inter-segment sales are accounted for at current market prices. The Company evaluates the performance of each segment principally based on operating income. The Company does not allocate income taxes, interest income and expense or foreign currency translation gains and losses to segments. Information concerning operations of these businesses is as follows: (in thousands of dollars) 2015 Controls Capacitors Corporate Total Sales to external customers $ 39,029 $ 2,113 $ - $ 41,142 Inter-segment revenues - 3 - 3 Operating income (loss) 1,776 160 (42 ) 1,894 Depreciation 556 81 - 637 Identifiable assets, excluding goodwill 25,702 1,176 7,303 34,181 Capital expenditures 1,266 43 - 1,309 2014 Controls Capacitors Corporate Total Sales to external customers $ 35,708 $ 2,215 $ - $ 37,923 Inter-segment revenues - 5 - 5 Operating income (loss) 977 283 (235 ) 1,025 Depreciation 517 90 1 608 Identifiable assets, excluding goodwill 21,072 1,199 10,261 32,532 Capital expenditures 709 33 2 744 The Company has businesses located in the United States, the United Kingdom, France, Korea, Japan and China. The analysis of revenues set out below is by the location of the business selling the products rather than by destination of the products. (in thousands of dollars) 2015 2014 Sales:- U.S. sales $ 18,327 $ 16,389 Foreign sales: United Kingdom 15,056 13,486 France 7,054 8,026 China 705 22 Total Foreign 22,815 21,534 Total sales $ 41,142 $ 37,923 Long-lived assets: U.S.A. $ 2,205 $ 2,245 Foreign: United Kingdom 4,908 5,239 France 298 74 Korea, Japan and China 324 289 Total Foreign 5,530 5,602 Total $ 7,735 $ 7,847 In the electronic controls business segment the revenues were derived from the following products and services: (in thousands of dollars) 2015 2014 Electronic controls for zero emission and hybrid electric vehicles $ 26,951 $ 26,014 Accessory and aftermarket products and services 12,078 9,694 Total controls segment revenues $ 39,029 $ 35,708 The business located in the United States services customers in North and South America. The business located in France services customers in Germany, France, Spain, Portugal, Belgium, Netherlands and North Africa. The businesses located in Korea and Japan support customers in Asia, however, sales to these customers are made from the United Kingdom. The businesses located in the United Kingdom service customers in the rest of the world, principally Europe and the Far East. The business in China services customers in the on-road sector in the People’s Republic of China. In 2015 Sevcon, Inc.'s largest customer, Toyota Group, accounted for 10.3% of sales and, at September 30, 2015, 7% of receivables. In 2014 the largest customer, Toyota Group, accounted for 14% of sales and, at September 30, 2014, 17% of receivables.

DEBT

DEBT	12 Months Ended
	Sep. 30, 2015
DEBT [Abstract]
Debt	(10) DEBT The Company’s wholly owned subsidiary, Sevcon USA, Inc., has a $3,500,000 secured revolving credit facility with Citizens Bank, National Association for working capital and general corporate purposes. The loan and security agreement was extended as of September 30, 2013 and will expire on June 14, 2017 when all outstanding principal and unpaid interest will be due and payable in full. The facility may be paid before maturity in whole or in part at the option of Sevcon USA, Inc., without penalty or premium. Under the facility, Sevcon USA, Inc. must maintain, on a quarterly basis, a debt to tangible net worth ratio of no more than 2.40:1 and a debt service coverage ratio of no less than 1.25:1 for each rolling twelve-month period. Interest on the loan is payable monthly, and was calculated at a margin of 3.125% over LIBOR. The total amount outstanding under this secured revolving credit facility at September 30, 2015 was $500,000 and at September 30, 2014 was $1,700,000. This $500,000 is shown in the accompanying consolidated balance sheet under long-term debt. The carrying value of the debt approximated fair value based on current interest rates. In July 2015, the Company’s U.K. bank renewed the overdraft facilities of the Company’s U.K. controls and capacitor subsidiaries. The Company’s U.K. controls and capacitor subsidiaries each have multi-currency overdraft facilities which together total $1,360,000 and which are secured against real estate owned by those companies. The renewal of the facilities is for a twelve month period although they can be withdrawn on demand by the bank. The facilities were unused at September 30, 2015 and at September 30, 2014. Annual principal payments on long term debt at September 30, 2015 are as follows: (in thousands of dollars) 2017 500 Total $ 500

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	12 Months Ended
	Sep. 30, 2015
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	(11) DERIVATIVE FINANCIAL INSTRUMENTS During the year the company entered into foreign currency forward contracts to hedge its exposure to future fluctuations in the exchange rate between the U.S. Dollar and the Euro. These contracts were intended to partially hedge the U.S. Dollar equivalent cost of the company’s planned purchases of inventory denominated in Euros. The total gross amount of the outstanding forward contracts was $803,670 at September 30, 2015 ($0 at September 30, 2014). These agreements were recorded at fair value in the consolidated balance sheet, resulting in a net loss of $22,000 in the consolidated statement of income for the year ended September 30, 2015 ($0 net gain or loss for the year ended September 30, 2014). The following table presents the fair values of the Company’s derivative financial instruments for the year: (in thousands of dollars) September 30, 2015 September 30, 2014 Assets Liabilities Assets Liabilities Foreign currency contracts - 22 - - The above liability derivative foreign currency contracts represent a Level 2 liability at September 30, 2015 in accordance with the fair value hierarchy described in Note 1 (N).

CHANGES IN OTHER COMPREHENSIVE

CHANGES IN OTHER COMPREHENSIVE LOSS	12 Months Ended
	Sep. 30, 2015
CHANGES IN OTHER COMPREHENSIVE LOSS [Abstract]
CHANGES IN OTHER COMPREHENSIVE LOSS	(12) CHANGES IN OTHER COMPREHENSIVE LOSS The following table illustrates changes in the balances of each component of accumulated other comprehensive loss in 2015 and 2014: (in thousands of dollars) Foreign Currency Items Defined Benefit Pension Plans Accumulated Other Comprehensive Loss Balance September 30, 2013 (857 ) (6,562 ) (7,419 ) Current period other comprehensive loss (99 ) (1,311 ) (1,410 ) Balance September 30, 2014 (956 ) (7,873 ) (8,829 ) Current period other comprehensive loss (318 ) (1,857 ) (2,175 ) Balance September 30, 2015 (1,274 ) (9,730 ) (11,004 )

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	12 Months Ended
	Sep. 30, 2015
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS	(13) SUBSEQUENT EVENTS In preparing these consolidated financial statements, the Company has evaluated, for the potential recognition or disclosure, events or transactions subsequent to the end of the fiscal year and through the date these financial statements were available to be issued. No further material subsequent events were identified that require recognition or disclosure in these financial statements.

SUMMARY OF SIGNIFICANT ACCOUN23

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Sep. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Basis of presentation	A. Basis of presentation Sevcon, Inc. (or the “Company”) is a Delaware corporation organized on December 22, 1987 to carry on the electronic controls business previously performed by Tech/Ops, Inc. (Tech/Ops). Through wholly-owned subsidiaries located in the United States, England, France, South Korea and Japan and a 50% owned joint venture located in China, and through an international dealer network, the Company designs and sells, under the Sevcon name, motor controllers for zero emission electric and hybrid vehicles (EVs). The controls are used to vary the speed and movement of vehicles, to integrate specialized functions and to optimize the energy consumption of the vehicle's power source. Sevcon's customers are manufacturers of on and off-road vehicles, including cars, trucks, buses, motorcycles, fork lift trucks, aerial lifts, mining vehicles, airport tractors, sweepers and other electrically powered vehicles. Through another subsidiary located in the United Kingdom, Sevcon, Inc. manufactures special metalized film capacitors that are used as components in the power electronics, signaling and audio equipment markets. Prior period balances in the consolidated statement of income have been reclassified to conform to the current period presentation of disclosing separately research and development expenses and selling, general and administrative expenses. In 2014 these expenses were disclosed together as selling, research and administrative expenses Accounting for wholly-owned subsidiaries The accompanying consolidated financial statements include the accounts of the Company’s wholly-owned subsidiaries; Sevcon USA, Inc., Sevcon Ltd, Industrial Capacitors (Wrexham) Ltd., Sevcon Asia Limited, Sevcon Japan KK and Sevcon Security Corp., in accordance with the provisions required by the Consolidation Topic 810 of the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”). All material intercompany transactions have been eliminated. Accounting for joint-venture subsidiary For the Company's less than wholly-owned subsidiary, Sevcon New Energy Technology (Hubei) Company Limited, the Company first analyzes whether this joint venture subsidiary is a variable interest entity (a “VIE”) in accordance with ASC 810 and if so, whether the Company is the primary beneficiary requiring consolidation. A VIE is an entity that has (i) insufficient equity to permit it to finance its activities without additional subordinated financial support or (ii) equity holders that lack the characteristics of a controlling financial interest. VIEs are consolidated by the primary beneficiary, which is the entity that has both the power to direct the activities that most significantly impact the entity’s economic performance and the obligation to absorb losses or the right to receive benefits from the entity that potentially could be significant to the entity. Variable interests in a VIE are contractual, ownership, or other financial interests in a VIE that change with changes in the fair value of the VIE’s net assets. The Company continuously re-assesses at each level of the joint venture whether the entity is (i) a VIE, and (ii) if the Company is the primary beneficiary of the VIE. If it is determined that the entity in which the Company holds its interest qualifies as a VIE and the Company is the primary beneficiary, it is consolidated. Based on the Company's analysis for its 50% owned joint venture, the Company has determined that it is a VIE and that the Company is the primary beneficiary. While the Company owns 50% of the equity interest in this subsidiary, the other 50% is owned by a local unrelated third party, and the joint venture agreement with that third party provides the Company with greater voting rights. Accordingly, the Company consolidates its joint venture under the VIE rules and reflects the third party’s 50% interest in the consolidated financial statements as a non-controlling interest. The Company records this non-controlling interest at its initial fair value, adjusting the basis prospectively for their share of the respective consolidated investments’ net income or loss or equity contributions and distributions. This non-controlling interest is not redeemable by the equity holders and is presented as part of permanent equity. Income and losses are allocated to the non-controlling interest holder based on its economic ownership percentage.
Revenue recognition	B. Revenue recognition Revenue from the sales of products is recognized at the time title and risks and rewards of ownership pass to the customer (either when the products reach the free-on-board shipping point or destination depending on the contractual terms), there is persuasive evidence of an arrangement, the sales price is fixed and determinable and collection is reasonably assured. Shipping, handling, purchasing, receiving, inspecting, warehousing, and other costs of distribution are presented in cost of sales in the consolidated statements of income. The Company classifies amounts charged to its customers for shipping and handling in net sales in its consolidated statement of income. The Company’s only post-shipment obligation relates to warranty in the normal course of business for which ongoing reserves, which management believes to be adequate, are maintained. Warranty reserves are included on the balance sheet within accrued expenses. The movement in warranty reserves was as follows: (in thousands of dollars) 2015 2014 Warranty reserves at beginning of year 153 138 Decrease in beginning balance for warranty obligations settled during the year (37 ) - Foreign currency translation adjustment (10 ) (4 ) Net increase in warranty reserves for products sold during the year 172 19 Warranty reserves at end of year $ 278 $ 153 Infrequently the Company enters into fixed-price non-recurring engineering contracts. We record revenue on engineering services contracts using either the percentage-of-completion method or the completed contract method. In general, the performance of these types of contracts involves the design, development, and prototype manufacture of complex engineered products to our customer’s specifications. The percentage-of-completion method is used in circumstances in which all the following conditions exist: • the contract includes enforceable rights regarding goods or services to be provided to the customer, the consideration to be exchanged, and the manner and terms of settlement; • both the Company and the customer are expected to satisfy all of the contractual obligations; and, • reasonably reliable estimates of total revenue, total cost, and the progress towards completion can be made. The percentage-of-completion method recognizes estimates for contract revenue and costs in progress as work on the contract continues. Estimates are revised as additional information becomes available. If estimates of costs to complete a contract indicate a loss, a provision is made at that time for the total loss anticipated on the contract. We use the completed contract method if reasonably dependable estimates cannot be made or for which inherent hazards make estimates doubtful. Under the completed contract method, contract revenue and costs in progress are deferred as work on the contract continues.
Research and development	C. Research and development The cost of research and development programs is charged against income as incurred and amounted to $3,677 “above the line” tax credits arising from U.K. government research and development incentives and research and development expense associated with engineering services revenue recorded in cost of sales. 9 In recent years the Company has received several awards of research and development grants by the Technology Strategy Board, a public body established by the U.K. government to stimulate technology-enabled innovation. In 2011, the Company was awarded a research and development grant by the Technology Strategy Board to lead a collaborative project with Cummins Generator Technologies and Newcastle University in the U.K. to develop an innovative electric drive system for electric vehicles using advanced switched reluctance motor technology. The Company recorded grant income from this Technology Strategy Board project of $54,000 in 2015 associated with research and development expense of $262,000. The Company recorded grant income of $84,000 associated with research and development expense of $251,000 in respect of this Technology Strategy Board grant in 2014. In 2013, the Company was awarded a grant of approximately $480,000 by the Low Emission Transport Collaborative Projects Fund, a U.K. government body. The grant is to develop next-generation controls for high-voltage, low-power applications. The Company recorded grant income from this Technology Strategy Board project of $54,000 in 2015 associated with research and development expense of $459,000. The Company recorded grant income from this Technology Strategy Board project of $410,000 in 2014 associated with research and development expense of $1,638,000. In 2013, the Company was awarded a research and development grant by the Technology Strategy Board as one of a consortium of organizations in the U.K to research and design ultra-efficient systems for electric and hybrid vehicles. The Company recorded grant income from this Technology Strategy Board project of $3,000 in 2015 associated with research and development expense of $14,000. The Company recorded grant income from this Technology Strategy Board project of $6,000 in 2014 associated with research and development expense of $25,000. In 2015 the Company was awarded a grant of approximately $625,000 by the U.K. Regional Growth Fund, a U.K. government body. The grant is to develop an innovative range of low voltage motor controls which are designed to serve the emerging needs for on-road, automotive electrification. The grant includes a commitment to create or safeguard a total of twenty jobs at the Company’s U.K. facility over the period of the project. The Company recorded grant income from this project of $80,000 associated with research and development expense of $443,000. In 2015 and 2014, the Company participated in a U.K. government research and development arrangement which allows U.K. companies to record an additional available tax credit to the income statement above operating income as an “above the line credit” subject to meeting certain qualifying conditions. The credit is a percentage, which currently ranges from 10% to 14.5% depending on circumstances, of qualifying research and development expenditure in the period. The credit discharges income tax the Company would have to pay or allows companies without an income tax liability to receive a refund payment from the U.K. government. In 2015, the Company recorded an income statement credit of $463,000 (2014 - $261,000) and had an income tax receivable balance of $469,000 at September 30, 2015 from this initiative (2014 - $227,000).
Depreciation and maintenance	D. Depreciation and maintenance Property, plant and equipment are depreciated on a straight-line basis over their estimated useful lives, which are primarily fifty years for buildings, seven years for equipment and four years for computer equipment and software. Maintenance and repairs are charged to expense and renewals and betterments are capitalized.
Stock based compensation plans	E. Stock based compensation plans The Company’s 1996 Equity Incentive Plan (the “Equity Plan”) provides for the granting of stock options, restricted stock and other equity-based awards to officers, key employees, consultants and non-employee directors of the Company. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model. The Company has not granted stock options since 2003. Since 2004, the Company has granted restricted stock to certain officers, key employees and non-employee directors in exchange for services provided to the Company over the vesting period of the stock. The vesting period of the restricted stock (i.e. when the restrictions lapse) is normally five years in respect of officers and key employees and one year in respect of non-employee directors. For officers and key employees, the Company recognizes compensation expense in respect of restricted stock grants on a straight line basis over the vesting period of the restricted stock based on the closing stock price on the grant date and an expected forfeiture rate of awards of 4%. For non-employee directors, the Company recognizes compensation expense in respect of restricted stock grants on a straight line basis over the vesting period of the restricted stock based on the closing stock price on the grant date.
Income taxes	F. Income taxes The Company uses the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities reflect the impact of temporary differences between amounts of assets and liabilities for financial reporting purposes and such amounts as measured under enacted tax laws. A valuation allowance is required to offset any net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax asset will not be realized. Sevcon, Inc. files tax returns in the respective countries in which it operates. The financial statements reflect the current and deferred tax consequences of all events recognized in the financial statements or tax returns. We account for income tax uncertainties according to guidance on the recognition, de-recognition and measurement of potential tax benefits associated with tax positions. We recognize interest and penalties relating to income tax matters as a component of income tax provision. See Note 5.
Inventories	G. Inventories Inventories are valued at the lower of cost or market. Inventory costs include materials, direct labor and overhead, and are relieved from inventory on a first-in, first-out basis. The Company’s reported financial condition includes a provision for estimated slow-moving and obsolete inventory that is based on a comparison of inventory levels with forecasted future demand. Such demand is estimated based on many factors, including management judgments, relating to each customer’s business and to economic conditions. The Company reviews in detail all significant inventory items with holdings in excess of estimated normal requirements. It also considers the likely impact of changing technology. It makes an estimate of the provision for slow moving and obsolete stock on an item-by-item basis based on a combination of likely usage based on forecasted customer demand, potential sale or scrap value and possible alternative use. This provision represents the difference between original cost and market value at the end of the financial period. In cases where there is no estimated future use for the inventory item and there is no estimated scrap or resale value, a 100% provision is recorded. Where the Company estimates that only part of the total holding of an inventory item will not be used, or there is an estimated scrap, resale or alternate use value, then a proportionate provision is recorded. Once an item has been written down, it is not subsequently revalued upwards. The reserve for slow moving and obsolete inventories at September 30, 2015 was $443,000 and at September 30, 2014, the reserve was $485,000. Inventories comprised: (in thousands of dollars) 2015 2014 Raw materials $ 2,453 $ 2,095 Work-in-process 90 102 Finished goods 4,247 4,061 $ 6,790 $ 6,258
Accounts receivable	H. Accounts receivable In the normal course of business, the Company provides credit to customers, performs credit evaluations of these customers, monitors payment performance, and maintains reserves for potential credit losses in the allowance for doubtful accounts which, when realized, have historically been within the range of the Company’s reserves. An account receivable is considered past due if any portion has been outstanding for greater than 60 days.
Translation of foreign currencies	I. Translation of foreign currencies Sevcon, Inc. translates the assets and liabilities of its foreign subsidiaries at the current rate of exchange, and statement of income accounts at the average exchange rates in effect during the period. Gains or losses from foreign currency translation are credited or charged to the cumulative translation adjustment included in the statements of comprehensive loss and as a component of accumulated other comprehensive loss in stockholders' equity in the consolidated balance sheets. Foreign currency transaction gains and losses are shown in the consolidated statements of income.
Derivative instruments and hedging	J. Derivative instruments and hedging The Company sells to customers throughout the industrialized world. In the controls segment the majority of the Company’s product is produced in four separate plants in Poland, Malaysia, Mexico and China. Approximately 53% of the Company’s sales are made in U.S. Dollars, 26% are made in British Pounds and 21% are made in Euros. Approximately 20% of the Company’s cost of sales is incurred in British Pounds and 66% is incurred in Euros. This results in the Company’s sales and margins being exposed to fluctuations due to the change in the exchange rates of U.S. Dollar, the British Pound and the Euro. The Company uses derivative financial instruments to partially offset its market exposure to these fluctuations and does not enter into derivative contracts for speculative or trading purposes. Derivative financial instruments designated as cash flow hedges: The Company documents at the inception of the transaction the relationship between the hedging instruments and the hedged items, as well as its risk management objectives and strategy for undertaking various hedging transactions. The Company also documents its assessment, both at hedge inception and on an on-going basis, whether the derivative financial instruments that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow hedges is recognized in equity in other comprehensive income. The gain or loss relating to the ineffective portion is recognized immediately in the consolidated statement of income within ‘Other income and expense’. Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss (for example, when foreign currency denominated financial liabilities are translated in their functional currencies). The gain or loss relating to the effective portion of cross currency swaps which hedge the effects of changes in foreign exchange rates are recognized in the consolidated statement of income within ‘foreign exchange differences’. When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at that time remains in equity and is recognized when the forecast transaction is ultimately recognized in the consolidated statement of income. The company did not have any financial instruments designated as cash flow hedges at September 30, 2015 or September 30, 2014. Derivative financial instruments not designated for hedging: The fair value of derivative financial instruments that do not meet the FASB authoritative guidance for hedge accounting are immediately recognized in the consolidated statement of income under “Other income and expense”. The fair value of these derivatives are recorded under “Prepaid expenses and other current assets” for asset derivatives or “Accrued expenses and other current liabilities” for liability derivatives, in the consolidated balance sheets. During the year the company entered into foreign currency forward contracts to hedge its exposure to future fluctuations in the exchange rate between the U.S. Dollar and the Euro. These contracts were intended to partially hedge the U.S. Dollar equivalent cost of the company’s planned purchases of inventory denominated in Euros. The total gross amount of the outstanding forward contracts was $803,670 at September 30, 2015 ($0 at September 30, 2014). These agreements were recorded at fair value in the consolidated balance sheet, resulting in a net loss of $22,000 in the consolidated statement of income for the year ended September 30, 2015 ($0 net gain or loss for the year ended September 30, 2014).
Cash equivalents and short-term investments	K. Cash equivalents and short-term investments The Company considers all highly liquid investments with a maturity of 90 days or less to be cash equivalents. Highly liquid investments with maturities greater than 90 days and less than one year are classified as short-term investments. Such investments are generally money market funds, bank certificates of deposit, U.S. Treasury bills and short-term bank deposits in Europe.
Earnings per share	L. Earnings per share Basic earnings per share is computed by dividing the net income or loss for the period by the weighted average number of shares of common stock outstanding during the period. The computation of diluted earnings per share is similar to the computation of basic earnings per share, except that the denominator is increased for the assumed exercise of dilutive options and other potentially dilutive securities, including convertible preferred stock, using the treasury stock method unless the effect is anti-dilutive. Basic and diluted net income per common share for the two years ended September 30, 2015 is calculated as follows: (in thousands of dollars except per share data) 2015 2014 Numerator: Net income attributable to common stockholders for computing net income per ordinary share - basic $ 1,135 $ 909 Dividend eliminated upon assumed conversion of convertible preference shares 440 23 Net income attributable to common stockholders for computing net income per ordinary share - diluted $ 1,575 $ 932 Denominator: Weighted average shares used in calculating net income per ordinary share - basic 3,469 3,398 Adjustment for assumed conversion of convertible preference shares 1,374 1,382 Adjustment for shares issuable upon vesting of restricted stock 86 76 Weighted average shares used in calculating net income per ordinary share - diluted 4,929 4,856 Net income per ordinary share - basic $ 0.33 $ 0.27 Net income per ordinary share - diluted $ 0.32 $ 0.19 No. of shares of convertible preference stock excluded during the period as such shares and related dividends would have the effect of increasing earnings per share - -
Use of estimates in the preparation of financial statements	M. Use of estimates in the preparation of financial statements The presentation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of income and expenses during the reporting periods. The most significant estimates and assumptions made by management include bad debt, inventory and warranty reserves, goodwill impairment assessment, pension plan assumptions and income tax assumptions. Operating results in the future could vary from the amounts derived from management's estimates and assumptions.
Fair value measurements	N. Fair value measurements The FASB has issued authoritative guidance, which defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. This guidance does not require any new fair value measurements, but provides guidance on how to measure fair value by providing a fair value hierarchy used to classify the source of the information. In accordance with this guidance, financial assets and liabilities have been categorized, based on the priority of the inputs to the valuation technique, into a three-level fair value hierarchy as set forth below. If the inputs used to measure the financial instruments fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument. The three levels of the hierarchy are defined as follows: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than quoted prices included in Level 1. Level 2 inputs include quoted prices for identical assets or liabilities in non-active markets, quoted prices for similar assets or liabilities in active markets and inputs other than quoted prices that are observable for substantially the full term of the asset or liability. Level 3 - Unobservable inputs reflecting management’s own assumptions about the input used in pricing the asset or liability. The Company currently does not have any Level 3 financial assets or liabilities. At September 30, 2015, the fair value measurements affect only the Company’s consideration of pension plan assets as disclosed in Note 8, Employee Benefit Plans, debt as disclosed in Note 10 and forward contracts as disclosed in Note 11, Derivative Financial Instruments.
Fair value of financial instruments	O. Fair value of financial instruments The Company's financial instruments consist mainly of cash and cash equivalents, short-term investments, accounts receivable and accounts payable. The carrying amount of these financial instruments as of September 30, 2015 approximates fair value due to the short-term nature of these instruments. The fair value of the Company’s long term debt at September 30, 2015 approximated $500,000 (the carrying value on the consolidated balance sheet at September 30, 2015) based on recent financial market pricing. The long term debt represents a level 2 liability in accordance with the fair value hierarchy outlined above.
Goodwill	P. Goodwill The amount by which the cost of purchased businesses included in the accompanying financial statements exceeded the fair value of net assets at the date of acquisition has been recorded as goodwill. In accordance with FASB accounting guidance regarding goodwill and other intangible assets, the Company performs an assessment of goodwill impairment annually or more frequently if events or changes in circumstances indicate that the value has been impaired. The Company has designated September 30 as the date it performs the annual review of goodwill impairment. Goodwill impairment testing is performed at the segment (or “reporting unit”) level. In evaluating goodwill for impairment, the reporting unit’s fair value was first compared to its carrying value. The fair value of the reporting unit was estimated by considering (1) market capitalization, (2) market multiple and recent transaction values of similar companies and (3) projected discounted future cash flows, if reasonably estimable. Key assumptions in the estimation of projected discounted future cash flows include the use of an appropriate discount rate, estimated future cash flows and estimated run rates of sales, gross profit and operating expenses. In estimating future cash flows, the Company incorporates expected growth rates, as well as other factors into its revenue and expense forecasts. If the reporting unit’s fair value exceeds its carrying value, no further testing is required. If, however, the reporting unit’s carrying value exceeds its fair value, the amount of the impairment charge is determined, if any. An impairment charge is recognized if the carrying value of the reporting unit’s goodwill exceeds its implied fair value. At each of September 30, 2015 and 2014, there was $1,435,000 of goodwill on the balance sheet of the Company which related wholly to one business segment, the controls segment, and the estimated fair value of the reporting unit exceeded its carrying value under each method of calculation performed.
New Accounting Pronouncements	Q. New Accounting Pronouncements In May 2014, the FASB amended its guidance regarding revenue recognition and created a new Topic 606, ‘Revenue from Contracts with Customers’. The objectives for creating Topic 606 were to remove inconsistencies and weaknesses in revenue recognition, provide a more robust framework for addressing revenue issues, provide more useful information to users of the financial statements through improved disclosure requirements, simplify the preparation of financial statements by reducing the number of requirements to which an entity must refer, and improve comparability of revenue recognition practices across entities, industries, jurisdictions and capital markets. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to a customer in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve the core principle, an entity should apply the following steps: 1) identify the contract(s) with a customer; 2) identify the performance obligations in the contract; 3) determine the transition price; 4) allocate the transaction price to the performance obligations in the contract; and 5) recognize revenue when (or as) the entity satisfied a performance obligation. For public entities, the amendments are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The amendments may be applied retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the amendment recognized at the date of initial application. We are currently assessing the impact of adoption of this standard on our consolidated financial statements.
Employee Benefit Plans	R. Employee Benefit Plans Sevcon, Inc. recognizes its pension plans’ over-funded or under-funded status in its consolidated balance sheets and recognizes the change in a plan’s funded status in comprehensive income in the year which the changes occur.

SUMMARY OF SIGNIFICANT ACCOUN24

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Sep. 30, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Warranty reserves	Warranty reserves are included on the balance sheet within accrued expenses. The movement in warranty reserves was as follows: (in thousands of dollars) 2015 2014 Warranty reserves at beginning of year 153 138 Decrease in beginning balance for warranty obligations settled during the year (37 ) - Foreign currency translation adjustment (10 ) (4 ) Net increase in warranty reserves for products sold during the year 172 19 Warranty reserves at end of year $ 278 $ 153
Inventories	The reserve for slow moving and obsolete inventories at September 30, 2015 was $443,000 and at September 30, 2014, the reserve was $485,000. Inventories comprised: (in thousands of dollars) 2015 2014 Raw materials $ 2,453 $ 2,095 Work-in-process 90 102 Finished goods 4,247 4,061 $ 6,790 $ 6,258
Basic and diluted net incomes per common share	Basic and diluted net income per common share for the two years ended September 30, 2015 is calculated as follows: (in thousands of dollars except per share data) 2015 2014 Numerator: Net income attributable to common stockholders for computing net income per ordinary share - basic $ 1,135 $ 909 Dividend eliminated upon assumed conversion of convertible preference shares 440 23 Net income attributable to common stockholders for computing net income per ordinary share - diluted $ 1,575 $ 932 Denominator: Weighted average shares used in calculating net income per ordinary share - basic 3,469 3,398 Adjustment for assumed conversion of convertible preference shares 1,374 1,382 Adjustment for shares issuable upon vesting of restricted stock 86 76 Weighted average shares used in calculating net income per ordinary share - diluted 4,929 4,856 Net income per ordinary share - basic $ 0.33 $ 0.27 Net income per ordinary share - diluted $ 0.32 $ 0.19 No. of shares of convertible preference stock excluded during the period as such shares and related dividends would have the effect of increasing earnings per share - -

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS (Tables)	12 Months Ended
	Sep. 30, 2015
STOCK-BASED COMPENSATION PLANS [Abstract]
Summary of restricted stock activity	Restricted stock transactions under the plans for the two years ended September 30, 2015 were as follows: (in thousands of shares) 2015 2014 Beginning Balance – Non-vested 168.6 103.8 Granted to employees – 5 year vesting 20.0 80.0 Granted to employees – 2 year vesting 42.0 - Granted to non-employee directors – 1 year vesting 30.6 28.6 Vested (64.6 ) (43.8 ) Forfeited - - Ending Balance – Non-vested 196.6 168.6 Weighted-average fair value for shares granted during the year $ 7.49 $ 5.23 Weighted-average fair value for shares vested during the year $ 6.32 $ 4.63 Weighted-average fair value for ending balance - non-vested $ 5.97 $ 5.27

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Sep. 30, 2015
INCOME TAXES [Abstract]
Domestic and foreign components of income before income taxes	The domestic and foreign components of income before income taxes are as follows: (in thousands of dollars) 2015 2014 Domestic $ 863 $ 430 Foreign 1,082 386 $ 1,945 $ 816
Provision for income taxes and deferred taxes components	The components of the provision (benefit) for income taxes and deferred taxes for the years ended September 30, 2015 and 2014 are as follows: (in thousands of dollars) 2015 Current Deferred Federal $ 38 $ 349 State 85 3 Foreign (16 ) (53 ) $ 107 $ 299 2014 Current Deferred Federal $ - $ 134 State 44 87 Foreign (97 ) (83 ) $ (53 ) $ 138
Provision (benefit) for income taxes in each period differs	The provision (benefit) for income taxes in each period differs from that which would be computed by applying the statutory U.S. Federal income tax rate to the income before income taxes. The following is a summary of the major items affecting the provision: (in thousands of dollars) 2015 2014 Statutory Federal income tax rate 34 % 34 % Computed tax provision at statutory rate $ 659 $ 275 Increases (decreases) resulting from: Foreign tax rate differentials (163 ) (122 ) State taxes net of federal tax benefit 57 71 Foreign research incentives (166 ) (213 ) U.K. rate change 5 27 Other 14 47 Income tax provision in the consolidated statements of income $ 406 $ 85
Domestic and foreign deferred tax accounts items	The significant items comprising the domestic and foreign deferred tax accounts at September 30, 2015 and 2014 are as follows: 2015 Domestic current Domestic long-term Foreign current Foreign long-term Total Assets: Pension accruals $ - $ 389 $ - $ 2,028 $ 2,417 Inventory basis differences 72 - - - 72 Warranty reserves 67 - - - 67 Foreign tax credit carry forwards - 203 - - 203 Accrued compensation expense - - - 54 54 Net operating losses - 2 1,101 818 1,921 Other (net) 3 211 1 - 215 142 805 1,102 2,900 4,949 Liabilities: Property basis asset (liability) - 1 - (233 ) (232 ) Net asset 142 806 1,102 2,667 4,717 Valuation allowance - (158 ) - (83 ) (241 ) Net deferred tax asset $ 142 $ 648 $ 1,102 $ 2,584 $ 4,476 2014 Domestic current Domestic long-term Foreign current Foreign long-term Total Assets: Pension accruals $ - $ 186 $ 37 $ 1,805 $ 2,028 Inventory basis differences 69 - - - 69 Warranty reserves 21 - - - 21 Foreign tax credit carry forwards - 266 - - 266 Accrued compensation expense - - - 58 58 Net operating losses 103 108 289 1,568 2,068 Other (net) - 308 3 - 311 193 868 329 3,431 4,821 Liabilities: Property basis asset (liability) - 12 - (130 ) (118 ) Net asset 193 880 329 3,301 4,703 Valuation allowance - (159 ) - (112 ) (271 ) Net deferred tax asset $ 193 $ 721 $ 329 $ 3,189 $ 4,432

ACCRUED EXPENSES (Tables)

ACCRUED EXPENSES (Tables)	12 Months Ended
	Sep. 30, 2015
ACCRUED EXPENSES [Abstract]
Analysis of other accrued expenses	The analysis of accrued expenses at September 30, 2015 and 2014 showing separately any items in excess of 5% of total current liabilities was as follows: (in thousands of dollars) 2015 2014 Accrued compensation and related costs $ 827 $ 1,062 Other accrued expenses 1,146 774 $ 1,973 $ 1,836

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	12 Months Ended
	Sep. 30, 2015
EMPLOYEE BENEFIT PLANS [Abstract]
Estimated funded status of these frozen defined benefit plans	(in thousands of dollars) 2015 2014 Change in benefit obligation: Benefit obligation at beginning of year $ 30,646 $ 27,908 Interest cost 1,236 1,303 Actuarial loss 1,540 1,911 Benefits paid (437 ) (482 ) Foreign currency exchange rate changes (1,895 ) 6 Benefit obligation at end of year 31,090 30,646 Change in plan assets: Fair value of plan assets at beginning of year 21,117 19,554 Return on plan assets 22 1,334 Employer contributions 662 698 Benefits paid (437 ) (482 ) Foreign currency exchange rate changes (1,237 ) 13 Fair value of plan assets at end of year 20,127 21,117 Funded status (10,963 ) (9,529 ) Liability for pension benefits recorded in the balance sheet $ (10,963 ) $ (9,529 )
Amounts recognized in balance sheet	Amounts recognized in the balance sheets consist of: (in thousands of dollars) 2015 2014 Non-current liabilities $ 10,963 $ 9,529
Amounts recognized in other comprehensive income	Amounts recognized in other comprehensive loss consist of: (in thousands of dollars) 2015 2014 Actuarial loss, net of $644 tax benefit (2014:actuarial loss net of $351 tax benefit) $ (1,857 ) $ (1,311 )
Components of the net pension cost	The Sevcon, Inc. net periodic pension cost included the following components: (in thousands of dollars) 2015 2014 Components of net periodic benefit cost: Interest cost $ 1,236 $ 1,303 Expected return on plan assets (1,250 ) (1,309 ) Amortization of net actuarial loss 264 227 Net periodic benefit cost $ 250 $ 221 Net cost of defined contribution plans $ 494 $ 500
Weighted average assumptions used to determine plan obligations and net periodic benefit cost	The weighted average assumptions used to determine plan obligations and net periodic benefit cost for the years ended September 30, 2015 and 2014 were as set out below: 2015 2014 Plan obligations: Discount rate 3.90 % 4.24 % Net periodic benefit cost: Discount rate 3.90 % 4.24 % Expected long term return on plan assets 5.73 % 6.15 %
Assumptions regarding mortality tables and estimated retirement dates.	The assumptions regarding mortality tables and estimated retirement dates were as follows: 2015 2014 Retirement age – U.K. Plan 65 65 Retirement age – U.S. Plan 65 65 Post-retirement mortality tables – U.K. Plan 105% of the S1PXA birth year tables with the latest CMI projections and a 1.0% p.a. long-term future improvement rate 105% of the S1PXA birth year tables with the latest CMI projections and a 1.0% p.a. long-term future improvement rate Post-retirement mortality tables – U.S. Plan RP-2014 White Collar Annuitant with MP-2014 Generational Projection (M/F) IRS 2013 Present Value Optional Combined Table Pre-retirement mortality tables – U.K. Plan None None Pre-retirement mortality tables – U.S. Plan RP-2014 White Collar Employee with MP-2014 Generational Projection (M/F) IRS 2013 Present Value Optional Combined Table
Pension plan assets measured and recorded at fair value	The tables below present information about our plan assets measured and recorded at fair value as of September 30, 2015 and September 30, 2014, and indicates the fair value hierarchy of the inputs utilized by the Company to determine the fair values (see Fair value measurements in Note 1). (in thousands of dollars) 2015 Level 1* (Quoted prices in active markets) Level 2** (Significant observable inputs) Level 3*** (Unobservable inputs) Adept Strategy 9 Fund (a sub-fund of Adept Investment Management plc) - 13,044 - Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds (funds managed by Schroder Investment Management Limited) - 3,845 - U.S. Mutual Funds and Fixed Income Funds 2,557 - - U.S. Equity Funds 350 - - Other Types of Investments Cash 331 - - Total 3,238 16,889 - (in thousands of dollars) 2014 Level 1* (Quoted prices in active markets) Level 2** (Significant observable inputs) Level 3*** (Unobservable inputs) Mutual Funds Standard Life Pension Global Absolute Returns Strategies Fund 7,187 - - Standard Life UK Indexed Linked Fund Standard Life Long Corporate Bond Fund 1,856 1,785 - - CF Rubber Absolute Return Fund 7,177 - - U.S. Mutual Funds 2,431 U.S. Exchange Traded Funds 348 - - Other Types of Investments Cash 333 - - Total 21,117 - - * Level 1 investments represent mutual funds for which a quoted market price is available on an active market. These investments primarily hold stocks or bonds, or a combination of stocks and bonds. ** Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The Company’s pension plan financial assets held in the Adept Strategy 9 Fund and the Schroder investments are Level 2 assets. The Company uses the Net Asset Value to determine the fair value of underlying investments which (a) do not have readily determinable fair value; and (b) prepare their financial statements consistent with the measurement principles of an investment company. The Funds are not exchange traded. The Funds are not subject to any redemption notice periods or restrictions and can be redeemed on a daily basis. No gates or holdbacks or dealing suspensions are being applied to the Funds. The Funds are of perpetual duration. *** The Company currently does not have any Level 3 pension plan financial assets.
Estimated future benefit payments	The following estimated benefit payments, which reflect future service, as appropriate, are expected to be paid: (in thousands of dollars) 2016 $ 441 2017 514 2018 532 2019 540 2020 550 2021 – 2025 2,958

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	12 Months Ended
	Sep. 30, 2015
SEGMENT INFORMATION [Abstract]
Information concerning operations of business segments	The Company does not allocate income taxes, interest income and expense or foreign currency translation gains and losses to segments. Information concerning operations of these businesses is as follows: (in thousands of dollars) 2015 Controls Capacitors Corporate Total Sales to external customers $ 39,029 $ 2,113 $ - $ 41,142 Inter-segment revenues - 3 - 3 Operating income (loss) 1,776 160 (42 ) 1,894 Depreciation 556 81 - 637 Identifiable assets, excluding goodwill 25,702 1,176 7,303 34,181 Capital expenditures 1,266 43 - 1,309 2014 Controls Capacitors Corporate Total Sales to external customers $ 35,708 $ 2,215 $ - $ 37,923 Inter-segment revenues - 5 - 5 Operating income (loss) 977 283 (235 ) 1,025 Depreciation 517 90 1 608 Identifiable assets, excluding goodwill 21,072 1,199 10,261 32,532 Capital expenditures 709 33 2 744
Analysis of revenues set out by location of business selling products	The Company has businesses located in the United States, the United Kingdom, France, Korea, Japan and China. The analysis of revenues set out below is by the location of the business selling the products rather than by destination of the products. (in thousands of dollars) 2015 2014 Sales:- U.S. sales $ 18,327 $ 16,389 Foreign sales: United Kingdom 15,056 13,486 France 7,054 8,026 China 705 22 Total Foreign 22,815 21,534 Total sales $ 41,142 $ 37,923 Long-lived assets: U.S.A. $ 2,205 $ 2,245 Foreign: United Kingdom 4,908 5,239 France 298 74 Korea, Japan and China 324 289 Total Foreign 5,530 5,602 Total $ 7,735 $ 7,847
Revenues of electronic controls segment by products and services	In the electronic controls business segment the revenues were derived from the following products and services: (in thousands of dollars) 2015 2014 Electronic controls for zero emission and hybrid electric vehicles $ 26,951 $ 26,014 Accessory and aftermarket products and services 12,078 9,694 Total controls segment revenues $ 39,029 $ 35,708

DEBT (Tables)

DEBT (Tables)	12 Months Ended
	Sep. 30, 2015
DEBT [Abstract]
Annual principal payments on long term debt	Annual principal payments on long term debt at September 30, 2015 are as follows: (in thousands of dollars) 2017 500 Total $ 500

DERIVATIVE FINANCIAL INSTRUME31

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	12 Months Ended
	Sep. 30, 2015
DERIVATIVE FINANCIAL INSTRUMENTS [Abstract]
Summary of the Company's derivative financial instruments	The following table presents the fair values of the Company’s derivative financial instruments for the year: (in thousands of dollars) September 30, 2015 September 30, 2014 Assets Liabilities Assets Liabilities Foreign currency contracts - 22 - -

CHANGES IN OTHER COMPREHENSIV32

CHANGES IN OTHER COMPREHENSIVE LOSS (Tables)	12 Months Ended
	Sep. 30, 2015
CHANGES IN OTHER COMPREHENSIVE LOSS [Abstract]
Comprehensive Income (Loss)	The following table illustrates changes in the balances of each component of accumulated other comprehensive loss in 2015 and 2014: (in thousands of dollars) Foreign Currency Items Defined Benefit Pension Plans Accumulated Other Comprehensive Loss Balance September 30, 2013 (857 ) (6,562 ) (7,419 ) Current period other comprehensive loss (99 ) (1,311 ) (1,410 ) Balance September 30, 2014 (956 ) (7,873 ) (8,829 ) Current period other comprehensive loss (318 ) (1,857 ) (2,175 ) Balance September 30, 2015 (1,274 ) (9,730 ) (11,004 )

SUMMARY OF SIGNIFICANT ACCOUN33

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, shares in Thousands	12 Months Ended
	Sep. 30, 2015USD ($)JobPlant$ / sharesshares	Sep. 30, 2014USD ($)$ / sharesshares	Sep. 30, 2013USD ($)
Variable Interest Entity [Line Items]
Equity interest ownership	50.00%
Joint venture ownership	50.00%
Third party's equity interest ownership	50.00%
Warranty reserves at beginning of year	$ 153,000	$ 138,000
Decrease in beginning balance for warranty obligations settled during the year	(37,000)	0
Foreign currency translation adjustment	(10,000)	(4,000)
Net increase in warranty reserves for products sold during the year	172,000	19,000
Warranty reserves at end of year	278,000	153,000	$ 138,000
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Cost of research and development program	$ 3,677,000	$ 3,964,000
Percentage of sales	12.00%	10.00%
Number of jobs created or safeguarded | Job	20
Income statement credit	$ 463,000	$ 261,000
Income tax receivable	$ 469,000	227,000
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected forfeiture rate	4.00%
Inventory, Net [Abstract]
Reserve for obsolete and slow moving inventories	$ 443,000	485,000
Raw materials	2,453,000	2,095,000
Work-in-process	90,000	102,000
Finished goods	4,247,000	4,061,000
Inventory, Net	$ 6,790,000	6,258,000
Trading Activity, Gains and Losses, Net [Line Items]
Number of production plants | Plant	4
Net gain (loss)	$ (22,000)	0
Numerator:
Net income attributable to common stockholders for computing net income per ordinary share - basic	1,135,000	909,000
Dividend eliminated upon assumed conversion of convertible preference shares	440,000	23,000
Net income attributable to common stockholders for computing net income per ordinary share - diluted	$ 1,575,000	$ 932,000
Denominator :
Weighted average shares used in calculating net income per ordinary share - basic (in shares) | shares	3,469	3,398
Adjustment for assumed conversion of convertible preference shares (in shares) | shares	1,374	1,382
Adjustment for shares issuable upon vesting of restricted stock (in shares) | shares	86	76
Weighted average shares used in calculating net income per ordinary share - diluted (in shares) | shares	4,929	4,856
Net income per ordinary share - basic (in dollars per share) | $ / shares	$ 0.33	$ 0.27
Net income per ordinary share - diluted (in dollars per share) | $ / shares	$ 0.32	$ 0.19
No. of shares of convertible preference stock excluded during the period as such shares and related dividends would have the effect of increasing earnings per share (in shares) | shares	0	0
Financial Instruments, Owned, at Fair Value [Abstract]
Long-term debt	$ 500,000
Goodwill [Abstract]
Goodwill	$ 1,435,000	$ 1,435,000
Minimum [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Credit percentage	10.00%
Maximum [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Credit percentage	14.50%
Foreign Exchange Contract [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Outstanding forward contracts	$ 803,670	0
Net gain (loss)	$ (22,000)	0
U.S Dollars [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Sales in different currencies	53.00%
British Pound [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Sales in different currencies	26.00%
Cost of sales in different currencies	20.00%
Euro [Member]
Trading Activity, Gains and Losses, Net [Line Items]
Sales in different currencies	21.00%
Cost of sales in different currencies	66.00%
Cummins Generator Technologies and Newcastle University [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Revenue from grants	$ 54,000	84,000
Research and development expense	262,000	251,000
Technology Strategy Board Project Grant in 2013 [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Revenue from grants	3,000	6,000
Research and development expense	14,000	25,000
Low Emission Transport Collaborative Projects Fund [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Revenue from grants	54,000	410,000
Research and development expense	459,000	$ 1,638,000
Total grants awarded			$ 480,000
U K Regional Growth Fund [Member]
Research and Development Arrangement, Contract to Perform for Others [Line Items]
Revenue from grants	80,000
Research and development expense	443,000
Total grants awarded	$ 625,000
Building [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	50 years
Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	7 years
Computer Equipment and Software [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Estimated Useful Lives	4 years
Restricted Stock [Member] | Officers and key employees [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	5 years
Restricted Stock [Member] | Non-Employee Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	1 year

CAPITAL STOCK (Details)

CAPITAL STOCK (Details) - $ / shares	Sep. 30, 2015	Sep. 30, 2014
CAPITAL STOCK [Abstract]
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, par or stated value per share (in dollars per share)	$ 0.10	$ 0.10
Common stock, shares authorized (in shares)	20,000,000	8,000,000
Common stock, par or stated value per share (in dollars per share)	$ 0.10	$ 0.10

STOCK-BASED COMPENSATION PLAN35

STOCK-BASED COMPENSATION PLANS (Details)	1 Months Ended		12 Months Ended
	Dec. 31, 2014USD ($)Employeeshares	Feb. 28, 2014USD ($)Employeeshares	Sep. 30, 2015USD ($)$ / sharesshares	Sep. 30, 2014USD ($)$ / sharesshares
Weighted Average Grant-Date Fair Value [Roll Forward]
Stock based compensation expense | $			$ 554,000	$ 320,000
Unrecognized compensation expense | $			$ 776,000
Weighted average period for unrecognized compensation expense to be recognized			2 years 2 months 12 days
Restricted Stock [Member]
Number of Shares of Restricted Stock [Roll Forward]
Non-vested balance, beginning of period (in shares)			168,600	103,800
Granted to employees - 5 year vesting (in shares)			20,000	80,000
Granted to employees - 2 year vesting (in shares)			42,000	0
Granted to non-employee directors - 1 year vesting (in shares)			30,600	28,600
Vested (in shares)			(64,600)	(43,800)
Forfeited (in shares)			0	0
Non-vested balance, end of period (in shares)			196,600	168,600
Weighted Average Grant-Date Fair Value [Roll Forward]
Granted (in dollars per share) | $ / shares			$ 7.49	$ 5.23
Vested (in dollars per share) | $ / shares			6.32	4.63
Non-vested balance, ending of period (in dollars per share) | $ / shares			$ 5.97	$ 5.27
Restricted Stock [Member] | Eight Employees [Member]
Number of Shares of Restricted Stock [Roll Forward]
Granted to employees - 5 year vesting (in shares)	42,000
Weighted Average Grant-Date Fair Value [Roll Forward]
Number of employees with restricted stock grant | Employee	8
Estimated fair value of stock at date of grant | $	$ 330,000
Period for recognition of unearned compensation	2 years
Charge to income for restricted stock | $	$ 124,000
Quarterly charge to income for restricted stock | $	$ 41,000
Restricted Stock [Member] | Three Employees [Member]
Number of Shares of Restricted Stock [Roll Forward]
Granted to employees - 5 year vesting (in shares)	20,000
Weighted Average Grant-Date Fair Value [Roll Forward]
Number of employees with restricted stock grant | Employee	3
Estimated fair value of stock at date of grant | $	$ 139,000
Period for recognition of unearned compensation	5 years
Charge to income for restricted stock | $	$ 21,000
Quarterly charge to income for restricted stock | $	$ 7,000
Restricted Stock [Member] | Nine Non-Employees [Member]
Number of Shares of Restricted Stock [Roll Forward]
Granted to employees - 5 year vesting (in shares)		30,600
Weighted Average Grant-Date Fair Value [Roll Forward]
Number of employees with restricted stock grant | Employee		9
Estimated fair value of stock at date of grant | $		$ 225,000
Period for recognition of unearned compensation		12 months
Charge to income for restricted stock | $		$ 131,000
Quarterly charge to income for restricted stock | $		$ 56,000
1996 Equity Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares reserved and available for grant (in shares)			139,578	219,557
Options granted (in shares)			0
Options exercised (in shares)			0	0
Options outstanding (in shares)			0	0
Options exercisable (in shares)			0	0

CASH DIVIDENDS (Details)

CASH DIVIDENDS (Details) - USD ($)	Sep. 29, 2015	Sep. 30, 2015	Apr. 15, 2015	Oct. 15, 2014	Sep. 30, 2014
Preference share dividends [Abstract]
Preferred stock, outstanding (in shares)		452,124			460,769
Series A Convertible Preferred Stock, stated value (in dollars per share)		$ 0.10			$ 0.10
Series A Convertible Preferred Stock [Member]
Preference share dividends [Abstract]
Preferred stock, issued (in shares)		452,124
Preferred stock, outstanding (in shares)		452,124
Series A Convertible Preferred Stock, stated value (in dollars per share)		$ 24
Percentage of cumulative annual dividend, Series A Convertible Preferred Stock		4.00%
Semi annual dividend			$ 42,000	$ 221,000
Next semi-annual dividend payable		Oct. 15, 2015
Cash dividends declared (in dollars per share)	$ 0.48
Dividend payable date	Oct. 15, 2015	Apr. 15, 2015
Dividends record date	Oct. 6, 2015

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Domestic and foreign components of income before income taxes [Abstract]
Domestic and foreign components of income before income taxes	$ 1,945,000	$ 816,000
Components of the provision for income taxes and deferred taxes [Abstract]
Federal	38,000	0
State	85,000	44,000
Foreign	(16,000)	(97,000)
Provision for income taxes and deferred taxes, current	107,000	(53,000)
Federal	349,000	134,000
State	3,000	87,000
Foreign	(53,000)	(83,000)
Provision for income taxes and deferred taxes, deferred	$ 299,000	$ 138,000
Provision (benefit) for income taxes [Abstract]
Statutory Federal income tax rate	34.00%	34.00%
Computed tax provision at statutory rate	$ 659,000	$ 275,000
Increases (decreases) resulting from [Abstract]
Foreign tax rate differentials	(163,000)	(122,000)
State taxes net of federal tax benefit	57,000	71,000
Foreign research incentives	(166,000)	(213,000)
U.K. rate change	5,000	27,000
Other	14,000	47,000
Income tax provision in the consolidated statement of operations	406,000	85,000
Assets [Abstract]
Pension accruals	2,417,000	2,028,000
Inventory basis differences	72,000	69,000
Warranty reserves	67,000	21,000
Foreign tax credit carry forwards	203,000	266,000
Accrued compensation expense	54,000	58,000
Net operating losses	1,921,000	2,068,000
Other (net)	215,000	311,000
Total assets	4,949,000	4,821,000
Liabilities [Abstract]
Property basis asset (liability)	(232,000)	(118,000)
Net asset	4,717,000	4,703,000
Valuation allowance	(241,000)	(271,000)
Net deferred tax asset	4,476,000	4,432,000
Unremitted foreign earnings	13,000,000
Domestic [Member]
Domestic and foreign components of income before income taxes [Abstract]
Domestic and foreign components of income before income taxes	863,000	430,000
Liabilities [Abstract]
Net operating losses	39,100
Foreign [Member]
Domestic and foreign components of income before income taxes [Abstract]
Domestic and foreign components of income before income taxes	1,082,000	386,000
Liabilities [Abstract]
Net operating losses	$ 9,150,000
State [Member]
Liabilities [Abstract]
Net operating losses, expiration dates	Sep. 30, 2028
Federal [Member]
Liabilities [Abstract]
Net operating losses, expiration dates	Sep. 30, 2028
Domestic Current [Member]
Assets [Abstract]
Pension accruals	$ 0	0
Inventory basis differences	72,000	69,000
Warranty reserves	67,000	21,000
Foreign tax credit carry forwards	0	0
Accrued compensation expense	0	0
Net operating losses	0	103,000
Other (net)	3,000	0
Total assets	142,000	193,000
Liabilities [Abstract]
Property basis asset (liability)	0	0
Net asset	142,000	193,000
Valuation allowance	0	0
Net deferred tax asset	142,000	193,000
Domestic Long-term [Member]
Assets [Abstract]
Pension accruals	389,000	186,000
Inventory basis differences	0	0
Warranty reserves	0	0
Foreign tax credit carry forwards	203,000	266,000
Accrued compensation expense	0	0
Net operating losses	2,000	108,000
Other (net)	211,000	308,000
Total assets	805,000	868,000
Liabilities [Abstract]
Property basis asset	1,000	12,000
Net asset	806,000	880,000
Valuation allowance	(158,000)	(159,000)
Net deferred tax asset	648,000	721,000
Foreign Current [Member]
Assets [Abstract]
Pension accruals	0	37,000
Inventory basis differences	0	0
Warranty reserves	0	0
Foreign tax credit carry forwards	0	0
Accrued compensation expense	0	0
Net operating losses	1,101,000	289,000
Other (net)	1,000	3,000
Total assets	1,102,000	329,000
Liabilities [Abstract]
Property basis asset (liability)	0	0
Net asset	1,102,000	329,000
Valuation allowance	0	0
Net deferred tax asset	1,102,000	329,000
Foreign Long-term [Member]
Assets [Abstract]
Pension accruals	2,028,000	1,805,000
Inventory basis differences	0	0
Warranty reserves	0	0
Foreign tax credit carry forwards	0	0
Accrued compensation expense	54,000	58,000
Net operating losses	818,000	1,568,000
Other (net)	0	0
Total assets	2,900,000	3,431,000
Liabilities [Abstract]
Property basis asset (liability)	(233,000)	(130,000)
Net asset	2,667,000	3,301,000
Valuation allowance	(83,000)	(112,000)
Net deferred tax asset	2,584,000	$ 3,189,000
U. K. [Member]
Liabilities [Abstract]
Refundable tax credit	$ 463,000

ACCRUED EXPENSES (Details)

ACCRUED EXPENSES (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Sep. 30, 2014
ACCRUED EXPENSES [Abstract]
Percentage of total current liabilities used to analyze accrued expenses	5.00%	5.00%
Accrued compensation and related costs	$ 827	$ 1,062
Other accrued expenses	1,146	774
Accrued expenses	$ 1,973	$ 1,836

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
COMMITMENTS AND CONTINGENCIES [Abstract]
Maximum recorded liability of deferred annuities	$ 153,000	$ 162,000
Minimum rental commitments under non-cancelable leases [Abstract]
2,016	227,000
2,017	211,000
2,018	200,000
2,019	188,000
2,020	173,000
Thereafter	2,544,000
Net rentals expense	248,000	242,000
Total overdraft facility	1,360,000
Revolving credit facility	$ 500,000	$ 1,700,000

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($)		12 Months Ended
		Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2013
Estimated funded status of these frozen defined benefit plans [Roll Forward]
Unfunded liability recognized in accrued expenses		$ 163,000	$ 173,000
Change in benefit obligation [Abstract]
Benefit obligation at beginning of year		30,646,000	27,908,000
Interest cost		1,236,000	1,303,000
Actuarial loss		1,540,000	1,911,000
Benefits paid		(437,000)	(482,000)
Foreign currency exchange rate changes		(1,895,000)	6,000
Benefit obligation at end of year		31,090,000	30,646,000	$ 27,908,000
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year		21,117,000	19,554,000
Return on plan assets		22,000	1,334,000
Employer contributions		662,000	698,000
Benefits paid		(437,000)	(482,000)
Foreign currency exchange rate changes		(1,237,000)	13,000
Fair value of plan assets at end of year		20,127,000	21,117,000	19,554,000
Funded status		(10,963,000)	(9,529,000)
Liability for pension benefits recorded in the balance sheet		(10,963,000)	(9,529,000)
Increase in the pension liability deficit		1,434,000
Amounts recognized in balance sheet [Abstract]
Non current liabilities		10,963,000	9,529,000
Amounts recognized in other comprehensive loss [Abstract]
Actuarial loss, net of $644 tax benefit (2014:actuarial loss net of $351 tax benefit)		(1,857,000)	(1,311,000)
Actuarial loss, tax benefit		644,000		$ 351,000
Components of net pension cost [Abstract]
Interest cost		1,236,000	1,303,000
Expected return on plan assets		(1,250,000)	(1,309,000)
Amortization of net actuarial loss		264,000	227,000
Net periodic benefit cost		250,000	221,000
Net cost of defined contribution plans		$ 494,000	$ 500,000
Plan obligations [Abstract]
Discount rate		3.90%	4.24%
Net periodic benefit cost [Abstract]
Discount rate		3.90%	4.24%
Expected long term return on plan assets		5.73%	6.15%
Estimated future benefit payments [Abstract]
2,016		$ 441,000
2,017		514,000
2,018		532,000
2,019		540,000
2,020		550,000
2021 - 2025		2,958,000
Estimated future employer contributions [Abstract]
Estimated defined benefit pension plans contributions		653,000
Estimated portion that the Company will recognize a component of the 2016 net periodic benefit		306,000
Level 1 (Quoted prices in active markets) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[1]	21,117,000
Fair value of plan assets at end of year	[1]	3,238,000	$ 21,117,000
Level 2 (Significant observable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[2]	0
Fair value of plan assets at end of year	[2]	16,889,000	0
Level 3 (Unobservable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[3]	0
Fair value of plan assets at end of year	[3]	0	0
Adept Strategy 9 Fund [Member] | Level 1 (Quoted prices in active markets) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at end of year	[1]	0
Adept Strategy 9 Fund [Member] | Level 2 (Significant observable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at end of year	[2]	13,044,000
Adept Strategy 9 Fund [Member] | Level 3 (Unobservable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at end of year	[3]	0
Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds [Member] | Level 1 (Quoted prices in active markets) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at end of year	[1]	0
Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds [Member] | Level 2 (Significant observable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at end of year	[2]	3,845,000
Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds [Member] | Level 3 (Unobservable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at end of year	[3]	0
Standard Life Pension Global Absolute Returns Strategies Fund [Member] | Level 1 (Quoted prices in active markets) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[1]	7,187,000
Fair value of plan assets at end of year	[1]		7,187,000
Standard Life Pension Global Absolute Returns Strategies Fund [Member] | Level 2 (Significant observable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[2]	0
Fair value of plan assets at end of year	[2]		0
Standard Life Pension Global Absolute Returns Strategies Fund [Member] | Level 3 (Unobservable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[3]	0
Fair value of plan assets at end of year	[3]		0
Standard Life U.K. Indexed Linked Fund [Member] | Level 1 (Quoted prices in active markets) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[1]	1,856,000
Fair value of plan assets at end of year	[1]		1,856,000
Standard Life U.K. Indexed Linked Fund [Member] | Level 2 (Significant observable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[2]	0
Fair value of plan assets at end of year	[2]		0
Standard Life U.K. Indexed Linked Fund [Member] | Level 3 (Unobservable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[3]	0
Fair value of plan assets at end of year	[3]		0
Standard Life Long Corporate Bond Fund [Member] | Level 1 (Quoted prices in active markets) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[1]	1,785,000
Fair value of plan assets at end of year	[1]		1,785,000
Standard Life Long Corporate Bond Fund [Member] | Level 2 (Significant observable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[2]	0
Fair value of plan assets at end of year	[2]		0
Standard Life Long Corporate Bond Fund [Member] | Level 3 (Unobservable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[3]	0
Fair value of plan assets at end of year	[3]		0
CF Ruffer Absolute Return Fund [Member] | Level 1 (Quoted prices in active markets) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[1]	7,177,000
Fair value of plan assets at end of year	[1]		7,177,000
CF Ruffer Absolute Return Fund [Member] | Level 2 (Significant observable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[2]	0
Fair value of plan assets at end of year	[2]		0
CF Ruffer Absolute Return Fund [Member] | Level 3 (Unobservable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[3]	$ 0
Fair value of plan assets at end of year	[3]		0
U.S. Mutual Funds and Fixed Income Funds [Member]
Net periodic benefit cost [Abstract]
Defined benefit plan, actual plan asset allocations		83.00%
U.S. Mutual Funds and Fixed Income Funds [Member] | Level 1 (Quoted prices in active markets) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at end of year	[1]	$ 2,557,000
U.S. Mutual Funds and Fixed Income Funds [Member] | Level 2 (Significant observable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at end of year	[2]	0
U.S. Mutual Funds and Fixed Income Funds [Member] | Level 3 (Unobservable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at end of year	[3]	0
U.S. Equity Funds [Member] | Level 1 (Quoted prices in active markets) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at end of year	[1]	350,000
U.S. Equity Funds [Member] | Level 2 (Significant observable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at end of year	[2]	0
U.S. Equity Funds [Member] | Level 3 (Unobservable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at end of year	[3]	$ 0
U.K. Equity Securities [Member]
Net periodic benefit cost [Abstract]
Defined benefit plan, actual plan asset allocations		38.00%
Liability Matching Assets [Member]
Net periodic benefit cost [Abstract]
Defined benefit plan, actual plan asset allocations		23.00%
U.S. Exchange Traded Funds [Member] | Level 1 (Quoted prices in active markets) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[1]	$ 348,000
Fair value of plan assets at end of year	[1]		348,000
U.S. Exchange Traded Funds [Member] | Level 2 (Significant observable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[2]	0
Fair value of plan assets at end of year	[2]		0
U.S. Exchange Traded Funds [Member] | Level 3 (Unobservable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[3]	0
Fair value of plan assets at end of year	[3]		0
U.S. Mutual funds [Member] | Level 1 (Quoted prices in active markets) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[1]	2,431,000
Fair value of plan assets at end of year	[1]		2,431,000
U.S. Mutual funds [Member] | Level 2 (Significant observable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[2]	0
Fair value of plan assets at end of year	[2]		0
U.S. Mutual funds [Member] | Level 3 (Unobservable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[3]	$ 0
Fair value of plan assets at end of year	[3]		0
U.K. Government Bonds [Member]
Net periodic benefit cost [Abstract]
Defined benefit plan, actual plan asset allocations		19.00%
U.K. Hedge Funds [Member]
Net periodic benefit cost [Abstract]
Defined benefit plan, actual plan asset allocations		12.00%
U.K. Property [Member]
Net periodic benefit cost [Abstract]
Defined benefit plan, actual plan asset allocations		5.00%
U.S. Cash and Cash Equivalents [Member]
Net periodic benefit cost [Abstract]
Defined benefit plan, actual plan asset allocations		17.00%
U.K. Cash and Cash Equivalents [Member]
Net periodic benefit cost [Abstract]
Defined benefit plan, actual plan asset allocations		3.00%
Cash [Member] | Level 1 (Quoted prices in active markets) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[1]	$ 333,000
Fair value of plan assets at end of year	[1]	331,000	333,000
Cash [Member] | Level 2 (Significant observable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[2]	0
Fair value of plan assets at end of year	[2]	0	0
Cash [Member] | Level 3 (Unobservable inputs) [Member]
Change in plan assets [Abstract]
Fair value of plan assets at beginning of year	[3]	0
Fair value of plan assets at end of year	[3]	0	$ 0
U.S. Pension Plans Defined Benefit [Member]
Change in plan assets [Abstract]
Defined benefit plan, increase in liabilities		800,000
Net periodic benefit cost [Abstract]
Defined benefit plan, benefit obligation		$ 824,000
Defined benefit plan, total benefit obligation percentage		21.00%
Defined benefit plan, future annual contribution payment period		6 years
U.K. Defined Benefit Plan [Member]
Change in plan assets [Abstract]
Change in expected return on plan assets		$ 1,000,000
Defined benefit plan, increase in liabilities		1,000,000
Net periodic benefit cost [Abstract]
Defined benefit plan, benefit obligation		$ 10,139,000
Defined benefit plan, total benefit obligation percentage		37.00%
Defined benefit plan, future annual contribution payment period		11 years
U.K. Defined Benefit Plan [Member] | Adept Strategy 9 Fund [Member]
Net periodic benefit cost [Abstract]
Defined benefit plan, actual plan asset allocations		80.00%
U.K. Defined Benefit Plan [Member] | Schroder Matching Plus Nominal and Index Linked Liability Driven Investment Swap Funds [Member]
Net periodic benefit cost [Abstract]
Defined benefit plan, actual plan asset allocations		20.00%
[1]	Level 1 investments represent mutual funds for which a quoted market price is available on an active market. These investments primarily hold stocks or bonds, or a combination of stocks and bonds.
[2]	Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The Company's pension plan financial assets held in the Adept Strategy 9 Fund and the Schroder investments are Level 2 assets. The Company uses the Net Asset Value to determine the fair value of underlying investments which (a) do not have readily determinable fair value; and (b) prepare their financial statements consistent with the measurement principles of an investment company. The Funds are not exchange traded. The Funds are not subject to any redemption notice periods or restrictions and can be redeemed on a daily basis. No gates or holdbacks or dealing suspensions are being applied to the Funds. The Funds are of perpetual duration.
[3]	The Company currently does not have any Level 3 pension plan financial assets.

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2015USD ($)Segment	Sep. 30, 2014USD ($)
SEGMENT INFORMATION [Abstract]
Number of reportable segments | Segment	2
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	$ 41,142	$ 37,923
Operating income (loss)	1,894	1,025
Depreciation	637	608
Identifiable assets, excluding goodwill	34,181	32,532
Capital expenditures	1,309	744
Reportable Segments [Member] | Controls [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	39,029	35,708
Operating income (loss)	1,776	977
Depreciation	556	517
Identifiable assets, excluding goodwill	25,702	21,072
Capital expenditures	1,266	709
Reportable Segments [Member] | Capacitors [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	2,113	2,215
Operating income (loss)	160	283
Depreciation	81	90
Identifiable assets, excluding goodwill	1,176	1,199
Capital expenditures	43	33
Intersegment Eliminations [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	3	5
Intersegment Eliminations [Member] | Controls [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	0	0
Intersegment Eliminations [Member] | Capacitors [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	3	5
Corporate [Member]
Segment Reporting Information, Revenue for Reportable Segment [Abstract]
Sales to external customers	0	0
Operating income (loss)	(42)	(235)
Depreciation	0	1
Identifiable assets, excluding goodwill	7,303	10,261
Capital expenditures	$ 0	$ 2

SEGMENT INFORMATION, BY REGION

SEGMENT INFORMATION, BY REGION AND PRODUCT (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Revenues from External Customers and Long-Lived Assets [Line Items]
Total sales	$ 41,142	$ 37,923
Long-Lived Assets	7,735	7,847
Revenue from External Customer [Line Items]
Electronic controls segment revenues	41,142	37,923
Total Foreign [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total sales	22,815	21,534
Long-Lived Assets	5,530	5,602
Reportable Segments [Member] | Controls [Member]
Revenue from External Customer [Line Items]
Electronic controls segment revenues	39,029	35,708
Reportable Segments [Member] | Electronic controls for zero emission and hybrid electric vehicles [Member] | Controls [Member]
Revenue from External Customer [Line Items]
Electronic controls segment revenues	26,951	26,014
Reportable Segments [Member] | Accessory and aftermarket products and services [Member] | Controls [Member]
Revenue from External Customer [Line Items]
Electronic controls segment revenues	12,078	9,694
Reportable Geographical Components [Member] | United States Of America [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total sales	18,327	16,389
Long-Lived Assets	2,205	2,245
Reportable Geographical Components [Member] | United Kingdom [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total sales	15,056	13,486
Long-Lived Assets	4,908	5,239
Reportable Geographical Components [Member] | France [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total sales	7,054	8,026
Long-Lived Assets	298	74
Reportable Geographical Components [Member] | China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Total sales	705	22
Reportable Geographical Components [Member] | Korea, Japan and China [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Long-Lived Assets	$ 324	$ 289
Sales [Member] | Toyota Group [Member]
Revenue, Major Customer [Line Items]
Concentration risk percentage	10.30%	14.00%
Receivables [Member] | Toyota Group [Member]
Revenue, Major Customer [Line Items]
Concentration risk percentage	7.00%	17.00%

DEBT (Details)

DEBT (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Line of Credit Facility [Line Items]
Debt covenant description	Under the facility, Sevcon USA, Inc. must maintain, on a quarterly basis, a debt to tangible net worth ratio of no more than 2.40:1 and a debt service coverage ratio of no less than 1.25:1 for each rolling twelve-month period.
Total overdraft facility	$ 1,360,000
Annual principal payments on long term debt [Abstract]
2,017	500,000
Total maturities	500,000
Secured Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Line of credit facility, amount outstanding	$ 500,000	$ 1,700,000
Citizens Bank [Member] | Secured Revolving Credit Facility [Member]
Line of Credit Facility [Line Items]
Margin interest rate	3.125%
Line of credit facility, maximum borrowing capacity	$ 3,500,000
Line of credit facility, expiration date	Jun. 14, 2017

DERIVATIVE FINANCIAL INSTRUME44

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($)	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Derivatives, Fair Value [Line Items]
Net gain (loss)	$ (22,000)	$ 0
Foreign Exchange Contract [Member]
Derivatives, Fair Value [Line Items]
Outstanding forward contracts	803,670	0
Net gain (loss)	(22,000)	0
Asset	0	0
Liability	$ 22,000	$ 0

CHANGES IN OTHER COMPREHENSIV45

CHANGES IN OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at the beginning of the period	$ (8,829)	$ (7,419)
Current period other comprehensive loss	(2,175)	(1,410)
Balance at the end of the period	(11,004)	(8,829)
Foreign Currency Items [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at the beginning of the period	(956)	(857)
Current period other comprehensive loss	(318)	(99)
Balance at the end of the period	(1,274)	(956)
Defined Benefit Pension Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance at the beginning of the period	(7,873)	(6,562)
Current period other comprehensive loss	(1,857)	(1,311)
Balance at the end of the period	$ (9,730)	$ (7,873)