Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Dec. 31, 2020 | Jan. 31, 2021 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-10596 | |
Entity Registrant Name | ESCO TECHNOLOGIES INC. | |
Entity Incorporation, State or Country Code | MO | |
Entity Tax Identification Number | 43-1554045 | |
Entity Address, Address Line One | 9900A CLAYTON ROAD | |
Entity Address, City or Town | ST. LOUIS | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 63124-1186 | |
City Area Code | 314 | |
Local Phone Number | 213-7200 | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Trading Symbol | ESE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,037,714 | |
Entity Central Index Key | 0000866706 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||
Net sales | $ 162,949 | $ 171,728 |
Costs and expenses: | ||
Cost of sales | 98,777 | 106,727 |
Selling, general and administrative expenses | 41,000 | 42,105 |
Amortization of intangible assets | 4,948 | 5,810 |
Interest expense, net | 541 | 2,421 |
Other expenses, net | 23 | 295 |
Total costs and expenses | 145,289 | 157,358 |
Earnings before income taxes | 17,660 | 14,370 |
Income tax expense | 3,974 | 3,606 |
Earnings from continuing operations | 13,686 | 10,764 |
Loss from discontinued operations, net of tax benefit of $269 | (601) | |
Gain on sale of discontinued operations, net of tax expense of $23,734 | 76,614 | |
Earnings from discontinued operations | 76,013 | |
Net earnings | $ 13,686 | $ 86,777 |
Earnings per share: | ||
Basic - Continuing operations | $ 0.53 | $ 0.41 |
Basic - Discontinued operations | 2.93 | |
Basic - Net earnings | 0.53 | 3.34 |
Diluted - Continuing operations | 0.52 | 0.41 |
Diluted - Discontinued operations | 2.91 | |
Diluted - Net earnings | $ 0.52 | $ 3.32 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) $ in Thousands | 3 Months Ended |
Dec. 31, 2020USD ($) | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |
(Loss) earnings from discontinued operations, net of tax benefit | $ 269 |
Gain on sale of discontinued operations, tax expense | $ 23,734 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) | ||
Net earnings | $ 13,686 | $ 86,777 |
Other comprehensive income, net of tax: | ||
Foreign currency translation adjustments | 5,349 | 3,923 |
Total other comprehensive income, net of tax | 5,349 | 3,923 |
Comprehensive income | $ 19,035 | $ 90,700 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 57,362 | $ 52,560 |
Accounts receivable, net | 143,675 | 144,082 |
Contract assets, net | 93,762 | 96,746 |
Inventories, net | 144,054 | 136,189 |
Other current assets | 13,392 | 17,053 |
Total current assets | 452,245 | 446,630 |
Property, plant and equipment, net of accumulated depreciation of $135,500 and $130,534, respectively | 141,538 | 139,870 |
Intangible assets, net of accumulated amortization of $134,005 and $129,063, respectively | 347,437 | 346,632 |
Goodwill | 411,161 | 408,063 |
Operating lease assets | 20,315 | 21,390 |
Other assets | 10,879 | 10,938 |
Total assets | 1,383,575 | 1,373,523 |
Current liabilities: | ||
Current maturities of long-term debt and short-term borrowings | 21,842 | 22,368 |
Accounts payable | 44,198 | 50,525 |
Contract liabilities, net | 112,286 | 100,551 |
Accrued salaries | 27,197 | 32,149 |
Accrued other expenses | 49,100 | 50,436 |
Total current liabilities | 254,623 | 256,029 |
Deferred tax liabilities | 60,400 | 60,938 |
Non-current operating lease liabilities | 15,746 | 16,785 |
Other liabilities | 39,207 | 38,176 |
Long-term debt | 34,000 | 40,000 |
Total liabilities | 403,976 | 411,928 |
Shareholders' equity: | ||
Preferred stock, par value $.01 per share, authorized 10,000,000 shares | ||
Common stock, par value $.01 per share, authorized 50,000,000 shares, issued 30,645,625 and 30,645,625 shares, respectively | 306 | 306 |
Additional paid-in capital | 294,735 | 293,682 |
Retained earnings | 790,000 | 778,398 |
Accumulated other comprehensive income (loss), net of tax | 1,692 | (3,657) |
Total stockholders' equity before treasury stock | 1,086,733 | 1,068,729 |
Less treasury stock, at cost: 4,607,911 and 4,607,911 common shares, respectively | (107,134) | (107,134) |
Total shareholders' equity | 979,599 | 961,595 |
Total liabilities and shareholders' equity | $ 1,383,575 | $ 1,373,523 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
CONSOLIDATED BALANCE SHEETS | ||
Accumulated depreciation | $ 135,500 | $ 130,534 |
Accumulated amortization | $ 134,005 | $ 129,063 |
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 |
Common Stock, Par or Stated Value Per Share | $ 0.01 | $ 0.01 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 30,645,625 | 30,645,625 |
Treasury stock, shares | 4,607,911 | 4,607,911 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | ||
Net earnings | $ 13,686 | $ 86,777 |
Earnings from discontinued operations | (76,013) | |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 10,012 | 10,540 |
Stock compensation expense | 1,368 | 1,446 |
Changes in assets and liabilities | 264 | (19,051) |
Effect of deferred taxes | (538) | (370) |
Net cash provided by operating activities - continuing operations | 24,792 | 3,329 |
Net cash used by operating activities - discontinued operations | (622) | |
Net cash provided by operating activities | 24,792 | 2,707 |
Cash flows from investing activities: | ||
Acquisition of business, net of cash acquired | (6,508) | |
Additions to capitalized software | (1,554) | (1,923) |
Capital expenditures | (5,973) | (12,647) |
Net cash used by investing activities - continuing operations | (14,035) | (14,570) |
Proceeds from sale of discontinued operations | 183,997 | |
Capital expenditures - discontinued operations | (1,728) | |
Net cash provided by investing activities - discontinued operations | 182,269 | |
Net cash (used) provided by investing activities | (14,035) | 167,699 |
Cash flows from financing activities: | ||
Proceeds from long-term debt and short-term borrowings | 30,000 | 10,000 |
Principal payments on long-term debt and short-term borrowings | 36,525 | 145,000 |
Dividends paid | (2,084) | (2,079) |
Net cash used by financing activities - continuing operations | (8,609) | (137,079) |
Net cash used by financing activities - discontinued operations | (2,140) | |
Net cash used by financing activities | (8,609) | (139,219) |
Effect of exchange rate changes on cash and cash equivalents | 2,654 | 3,697 |
Net increase in cash and cash equivalents | 4,802 | 34,884 |
Cash and cash equivalents, beginning of period | 52,560 | 61,808 |
Cash and cash equivalents, end of period | 57,362 | 96,692 |
Supplemental cash flow information: | ||
Interest paid | 179 | 2,150 |
Income taxes paid (including state and foreign) | $ 4,336 | $ 305 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Dec. 31, 2020 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION The accompanying consolidated financial statements, in the opinion of management, include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results for the interim periods presented. The consolidated financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all the disclosures required for annual financial statements by accounting principles generally accepted in the United States of America (GAAP). As a result of the pension plan termination referenced in the fourth quarter of 2020, certain prior year amounts have been reclassified to conform with the current year presentation. For further information, refer to the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020. The Company’s results for the three-month period ended December 31, 2020 are not necessarily indicative of the results for the entire 2021 fiscal year. References to the first quarters of 2021 and 2020 represent the fiscal quarters ended December 31, 2020 and 2019, respectively. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results could differ from those estimates. |
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS) | 3 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER SHARE (EPS) | |
EARNINGS PER SHARE (EPS) | 2. EARNINGS PER SHARE (EPS) Basic EPS is calculated using the weighted average number of common shares outstanding during the period. Diluted EPS is calculated using the weighted average number of common shares outstanding during the period plus shares issuable upon the assumed exercise of dilutive common share options and vesting of performance-accelerated restricted shares (restricted shares) by using the treasury stock method. The number of shares used in the calculation of earnings per share for each period presented is as follows (in thousands): Three Months Ended December 31, 2020 2019 Weighted Average Shares Outstanding — 26,038 25,981 Dilutive Options and Restricted Shares 144 187 Adjusted Shares — 26,182 26,168 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 3 Months Ended |
Dec. 31, 2020 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 3. SHARE-BASED COMPENSATION The Company provides compensation benefits to certain key employees under several share-based plans providing for performance-accelerated restricted shares (restricted shares), and to non-employee directors under a non-employee directors compensation plan. Performance-Accelerated Restricted Share Awards Compensation expense related to the restricted share awards was $1.1 million and $1.1 million for the three-month periods ended December 31, 2020 and 2019, respectively. There were 220,300 non-vested shares outstanding as of December 31, 2020. Non-Employee Directors Plan Compensation expense related to the non-employee director grants was $0.3 million and $0.3 million for the three-month periods ended December 31, 2020 and 2019, respectively. The total share-based compensation cost that has been recognized in the results of operations and included within selling, general and administrative expenses (SG&A) was $1.4 million for each of the three-month periods ended December 31, 2020 and 2019. The total income tax benefit recognized in results of operations for share-based compensation arrangements was $0.3 million for each of the three-month periods ended December 31, 2020 and 2019. As of December 31, 2020, there was $7.1 million of total unrecognized compensation cost related to share-based compensation arrangements. That cost is expected to be recognized over a remaining weighted-average period of 1.7 years. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Dec. 31, 2020 | |
INVENTORIES | |
INVENTORIES | 4. INVENTORIES Inventories, net, from continuing operations consist of the following: December 31, September 30, (In thousands) 2020 2020 Finished goods $ 28,365 28,471 Work in process 37,290 30,183 Raw materials 78,399 77,535 Total inventories $ 144,054 136,189 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 3 Months Ended |
Dec. 31, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 5. GOODWILL AND OTHER INTANGIBLE ASSETS Included on the Company’s Consolidated Balance Sheets at December 31, 2020 and September 30, 2020 are the following intangible assets gross carrying amounts and accumulated amortization from continuing operations: December 31, September 30, (Dollars in thousands) 2020 2020 Goodwill $ 411,161 408,063 Intangible assets with determinable lives: Patents Gross carrying amount $ 2,120 2,092 Less: accumulated amortization 887 858 Net $ 1,233 1,234 Capitalized software Gross carrying amount $ 86,442 84,888 Less: accumulated amortization 58,957 57,302 Net $ 27,485 27,586 Customer relationships Gross carrying amount $ 229,275 227,178 Less: accumulated amortization 70,746 67,643 Net $ 158,529 159,535 Other Gross carrying amount $ 5,342 5,156 Less: accumulated amortization 3,415 3,260 Net $ 1,927 1,896 Intangible assets with indefinite lives: Trade names $ 158,263 156,381 The changes in the carrying amount of goodwill attributable to each business segment for the three months ended December 31, 2020 is as follows: Aerospace (Dollars in millions) USG Test & Defense Total Balance as of September 30, 2020 271.9 34.1 102.1 408.1 Acquisition activity — — 2.3 2.3 Foreign currency translation 0.8 — — 0.8 Balance as of December 31, 2020 $ 272.7 34.1 104.4 411.2 The economic uncertainty, changes in the propensity for the general public to travel by air, and reductions in demand for commercial aircraft as a result of the COVID-19 pandemic have adversely impacted net sales and operating results in certain of the Aerospace and Defense reporting units. There were no impairment charges incurred for the three months ended December 31, 2020, however, the fair value of the Mayday reporting unit exceeded carrying value by slightly less than 10%. At December 31, 2020, we had $30 million of goodwill recorded for Mayday. |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 3 Months Ended |
Dec. 31, 2020 | |
BUSINESS SEGMENT INFORMATION | |
BUSINESS SEGMENT INFORMATION | 6. BUSINESS SEGMENT INFORMATION The Company is organized based on the products and services that it offers and classifies its continuing business operations in three reportable segments for financial reporting purposes: Aerospace & Defense (formerly called Filtration/Fluid Flow), RF Shielding and Test (Test), and Utility Solutions Group (USG). The Aerospace & Defense segment’s operations consist of PTI Technologies Inc. (PTI), VACCO Industries (VACCO), Crissair, Inc. (Crissair), Westland Technologies Inc. (Westland), Mayday Manufacturing Co. and its affiliate Hi-Tech Metals, Inc. (collectively referred to as Mayday) and Globe Composite Solutions, LLC (Globe). The companies within this segment primarily design and manufacture specialty filtration, fluid control and naval products, including hydraulic filter elements and fluid control devices used in aerospace and defense applications; unique filter mechanisms used in micro-propulsion devices for satellites and custom designed filters for manned aircraft and submarines; products and systems to reduce vibration and/or acoustic signatures and otherwise reduce or obscure a vessel’s signature, and other communications, sealing, surface control and hydrodynamic related applications to enhance U.S. Navy maritime survivability; precision-tolerance machined components for the aerospace and defense industry; and metal processing services. The Test segment’s operations consist primarily of ETS-Lindgren Inc. (ETS-Lindgren). ETS-Lindgren is an industry leader in providing its customers with the ability to identify, measure and contain magnetic, electromagnetic and acoustic energy. ETS-Lindgren also manufactures radio frequency shielding products and components used by manufacturers of medical equipment, communications systems, electronic products, and shielded rooms for high-security data processing and secure communication. The USG segment’s operations consist primarily of Doble Engineering Company and Morgan Schaffer Inc. (together Doble), and NRG Systems, Inc. (NRG). Doble is an industry leader in the development, manufacture and delivery of diagnostic testing solutions that enable electric power grid operators to assess the integrity of high voltage power delivery equipment. NRG designs and manufactures decision support tools for the renewable energy industry, primarily wind and solar. Management evaluates and measures the performance of its reportable segments based on “Net Sales” and “EBIT”, which are detailed in the table below. EBIT is defined as earnings from continuing operations before interest and taxes. The table below is presented on the basis of continuing operations and excludes discontinued operations. Three Months Ended December 31, (In thousands) 2020 2019 NET SALES Aerospace & Defense $ 66,891 77,511 USG 54,540 52,834 Test 41,518 41,383 Consolidated totals $ 162,949 171,728 EBIT Aerospace & Defense $ 9,380 12,513 USG 12,731 9,288 Test 5,342 4,656 Corporate (loss) (9,252) (9,666) Consolidated EBIT 18,201 16,791 Less: Interest expense (541) (2,421) Earnings before income taxes from continuing operations $ 17,660 14,370 Non-GAAP Financial Measures The financial measure “EBIT” is presented in the above table and elsewhere in this Report. EBIT on a consolidated basis is a non-GAAP financial measure. Management believes that EBIT is useful in assessing the operational profitability of the Company’s business segments because it excludes interest and taxes, which are generally accounted for across the entire Company on a consolidated basis. EBIT is also one of the measures used by management in determining resource allocations within the Company as well as incentive compensation. A reconciliation of EBIT to net earnings from continuing operations is set forth in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations – EBIT. The Company believes that the presentation of EBIT provides important supplemental information to investors to facilitate comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. However, the Company’s non-GAAP financial measures may not be comparable to other companies’ non-GAAP financial performance measures. Furthermore, the use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP. |
DEBT
DEBT | 3 Months Ended |
Dec. 31, 2020 | |
DEBT | |
DEBT | 7. DEBT The Company’s debt is summarized as follows: December 31, September 30, (In thousands) 2020 2020 Total borrowings $ 55,842 62,368 Current portion of long-term debt and short-term borrowings (21,842) (22,368) Total long-term debt, less current portion $ 34,000 40,000 The Credit Facility includes a $500 million revolving line of credit, as well as provisions allowing for the increase of the credit facility commitment amount by an additional $250 million, if necessary, with the consent of the lenders. The bank syndication supporting the facility is comprised of a diverse group of eight banks led by JP Morgan Chase Bank, N.A., as Administrative Agent. The Credit Facility matures September 27, 2024. At December 31, 2020, the Company had approximately $434 million available to borrow under the Credit Facility, plus the $250 million increase option, in addition to $57.4 million cash on hand. The Company classified $20.0 million as the current portion of long-term debt as of December 31, 2020, as the Company intends to repay this amount within the next twelve months; however, the Company has no contractual obligation to repay such amount during the next twelve months. The letters of credit issued and outstanding under the Credit Facility totaled $9.9 million at December 31, 2020. Interest on borrowings under the Credit Facility is calculated at a spread over either the London Interbank Offered Rate (LIBOR ), the New York Federal Reserve Bank Rate or the prime rate, depending on various factors. The Credit Facility also requires a facility fee ranging from 10 to 25 basis points per annum on the unused portion. The Credit Facility is secured by the unlimited guaranty of the Company’s direct and indirect material U.S. subsidiaries and the pledge of 100% of the equity interests of its direct and indirect material foreign subsidiaries. The financial covenants of the Credit Facility include a leverage ratio and an interest coverage ratio. The weighted average interest rates were 1.45% and 3.18% for the three-month periods ending December 31, 2020 and 2019, respectively. As of December 31, 2020, the Company was in compliance with all covenants. |
INCOME TAX EXPENSE
INCOME TAX EXPENSE | 3 Months Ended |
Dec. 31, 2020 | |
INCOME TAX EXPENSE | |
INCOME TAX EXPENSE | 8. INCOME TAX EXPENSE The first quarter 2021 effective income tax rate from continuing operations was 22.5% compared to 25.1% in the first quarter of 2020. There were no significant or unusual items impacting the effective income tax rate in the first quarter of 2021. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 3 Months Ended |
Dec. 31, 2020 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | 9. SHAREHOLDERS’ EQUITY The change in shareholders’ equity for the first three months of 2021 and 2020 is shown below (in thousands): Three Months Ended December 31, 2020 2019 Common stock Beginning balance 306 306 Stock plans — — Ending balance 306 306 Additional paid-in-capital Beginning balance 293,682 292,408 Stock plans 1,053 648 Ending balance 294,735 293,056 Retained earnings Beginning balance 778,398 684,741 Net earnings common stockholders 13,686 86,777 Dividends paid (2,084) (2,079) Ending balance 790,000 769,439 Accumulated other comprehensive income (loss) Beginning balance (3,657) (43,974) Foreign currency translation 5,349 3,923 Forward exchange contracts — — Ending balance 1,692 (40,051) Treasury stock Beginning balance (107,134) (107,259) Issued under stock plans — — Ending balance (107,134) (107,259) Total equity 979,599 915,491 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 3 Months Ended |
Dec. 31, 2020 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
DERIVATIVE FINANCIAL INSTRUMENTS | 10. DERIVATIVE FINANCIAL INSTRUMENTS Market risks relating to the Company’s operations result primarily from changes in interest rates and changes in foreign currency exchange rates. The Company is exposed to market risk related to changes in interest rates and selectively uses derivative financial instruments, including forward contracts and swaps, to manage these risks. In 2018, the Company entered into three interest rate swaps with a notional amount of $150 million to hedge some of its exposure to variability in future LIBOR-based interest payments on variable rate debt. The final interest rate swap was settled during September 2020; therefore, there are no outstanding interest rate swaps as of December 31, 2020. The Company’s Canadian subsidiary Morgan Schaffer enters into foreign exchange contracts to manage foreign currency risk as a portion of their revenue is denominated in U.S. dollars. The Company expects hedging gains or losses to be essentially offset by losses or gains on the related underlying exposures. The amounts ultimately recognized may differ for open positions, which remain subject to ongoing market price fluctuations until settlement. All derivative instruments are reported in either accrued expenses or other assets on the balance sheet at fair value. For derivative instruments designated as cash flow hedges, the gain or loss on the derivative is deferred in accumulated other comprehensive income until recognized in earnings with the underlying hedged item. The following is a summary of the notional transaction amounts and fair values for the Company’s outstanding derivative financial instruments by risk category and instrument type as of December 31, 2020: Notional Fair Value (In thousands) amount (US$) Forward contracts 3,500 USD 167 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 11. FAIR VALUE MEASUREMENTS The accounting guidance establishes a three-level hierarchy for disclosure of fair value measurements, based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date, as follows: ● Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. Financial Assets and Liabilities The Company has estimated the fair value of its financial instruments as of December 31, 2020 and September 30, 2020 using available market information or other appropriate valuation methodologies. The carrying amounts of cash and cash equivalents, receivables, inventories, payables, debt and other current assets and liabilities approximate fair value because of the short maturity of those instruments. Fair Value of Financial Instruments The Company’s forward contracts and interest rate swaps are classified within Level 2 of the valuation hierarchy in accordance with FASB Accounting Standards Codification (ASC) 825, as presented below as of December 31, 2020: (In thousands) Level 1 Level 2 Level 3 Total Assets (Liabilities): Forward contracts and interest rate swaps $ — 167 $ — 167 Valuation was based on third party evidence of similarly priced derivative instruments. Nonfinancial Assets and Liabilities The Company’s nonfinancial assets such as property, plant and equipment, and other intangible assets are not measured at fair value on a recurring basis; however they are subject to fair value adjustments in certain circumstances, such as when there is evidence that an impairment may exist. No impairments were recorded during the three-month period ended December 31, 2020. |
REVENUES
REVENUES | 3 Months Ended |
Dec. 31, 2020 | |
REVENUES | |
REVENUES | 12. REVENUES Disaggregation of Revenues Revenues by customer type, geographic location, and revenue recognition method for the three-month period ended December 31, 2020 are presented in the table below as the Company deems it best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors. The table below also includes a reconciliation of the disaggregated revenue within each reportable segment on a continuing operations basis. Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 27,879 $ 53,864 $ 36,722 $ 118,465 U.S. Government 39,012 676 4,796 44,484 Total revenues $ 66,891 $ 54,540 $ 41,518 $ 162,949 Geographic location: United States $ 57,813 $ 37,045 $ 23,266 $ 118,124 International 9,078 17,495 18,252 44,825 Total revenues $ 66,891 $ 54,540 $ 41,518 $ 162,949 Revenue recognition method: Point in time $ 26,946 $ 42,367 $ 8,868 $ 78,181 Over time 39,945 12,173 32,650 84,768 Total revenues $ 66,891 $ 54,540 $ 41,518 $ 162,949 Remaining Performance Obligations Remaining performance obligations, which is the equivalent of backlog, represent the expected transaction price allocated to contracts that the Company expects to recognize as revenue in future periods when the Company performs under the contracts. These remaining obligations include amounts that have been formally appropriated under contracts with the U.S. Government, and exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery, Indefinite Quantity contracts. At December 31, 2020, the Company had $512.1 million in remaining performance obligations of which the Company expects to recognize revenues of approximately 72% in the next twelve months. Contract assets and liabilities Assets and liabilities related to contracts with customers are reported on a contract-by-contract basis at the end of each reporting period. At December 31, 2020, contract assets and liabilities totaled $93.8 million and $112.3 million, respectively. During the first quarter of 2021, the Company recognized approximately $30 million in revenues that were included in the contract liabilities balance at the adoption date. |
LEASES
LEASES | 3 Months Ended |
Dec. 31, 2020 | |
LEASES | |
LEASES | 13. LEASES The Company determines at lease inception whether an arrangement that provides control over the use of an asset is a lease. The Company recognizes at lease commencement a right-of-use (ROU) asset and lease liability based on the present value of the future lease payments over the lease term. The Company has elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less. Certain of the Company’s leases include options to extend the term of the lease for up to 20 years. When it is reasonably certain that the Company will exercise the option, Management includes the impact of the option in the lease term for purposes of determining total future lease payments. As most of the Company’s lease agreements do not explicitly state the discount rate implicit in the lease, Management uses the Company’s incremental borrowing rate on the commencement date to calculate the present value of future payments based on the tenor of each arrangement. The Company’s leases for real estate commonly include escalating payments. These variable lease payments are included in the calculation of the ROU asset and lease liability. In addition to the present value of the future lease payments, the calculation of the ROU asset also includes any deferred rent, lease pre-payments and initial direct costs of obtaining the lease. In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar services, which are considered non-lease components for accounting purposes. Non-lease components are excluded from ROU assets and lease liabilities and expensed as incurred. The Company’s leases are for office space, manufacturing facilities, and machinery and equipment. The components of lease costs are shown below: Three Months Ended Three Months Ended December 31, December 31, (Dollars in thousands) 2020 2019 Finance lease cost Amortization of right-of-use assets $ 492 622 Interest on lease liabilities 313 328 Operating lease cost 1,452 1,419 Total lease costs $ 2,257 2,369 Additional information related to leases are shown below: Three Months Ended Three Months Ended December 31, December 31, (Dollars in thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,425 1,408 Operating cash flows from finance leases 313 138 Financing cash flows from finance leases 417 351 Right-of-use assets obtained in exchange for lease liabilities Operating leases $ — 22,014 Weighted-average remaining lease term Operating leases 5.9 years 6.5 years Finance leases 12.3 years 13.2 years Weighted-average discount rate Operating leases 3.10 % 3.14 % Finance leases 4.30 % 4.28 % The following is a reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets, presented on the Consolidated Balance Sheet on December 31, 2020: (Dollars in thousands) Operating Finance Years Ending September 30: Leases Leases 2021 (excluding the three months ended December 31, 2020) $ 4,182 2,204 2022 4,980 3,016 2023 3,984 3,098 2024 2,438 3,181 2025 and thereafter 7,208 28,285 Total minimum lease payments 22,792 39,784 Less: amounts representing interest 2,047 9,935 Present value of net minimum lease payments $ 20,745 29,849 Less: current portion of lease obligations 4,999 1,972 Non-current portion of lease obligations $ 15,746 27,877 ROU assets $ 20,315 25,674 Operating lease liabilities are included on the Consolidated Balance Sheet in accrued other expenses (current portion) and as a caption on the Consolidated Balance Sheet (long-term portion). Finance lease liabilities are included on the Consolidated Balance Sheet in accrued other liabilities caption Property |
EARNINGS PER SHARE (EPS) (Table
EARNINGS PER SHARE (EPS) (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
EARNINGS PER SHARE (EPS) | |
Schedule of weighted average number of shares used in the calculation of earnings per share | Three Months Ended December 31, 2020 2019 Weighted Average Shares Outstanding — 26,038 25,981 Dilutive Options and Restricted Shares 144 187 Adjusted Shares — 26,182 26,168 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
INVENTORIES | |
Schedule of inventories | December 31, September 30, (In thousands) 2020 2020 Finished goods $ 28,365 28,471 Work in process 37,290 30,183 Raw materials 78,399 77,535 Total inventories $ 144,054 136,189 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of goodwill and intangible assets | December 31, September 30, (Dollars in thousands) 2020 2020 Goodwill $ 411,161 408,063 Intangible assets with determinable lives: Patents Gross carrying amount $ 2,120 2,092 Less: accumulated amortization 887 858 Net $ 1,233 1,234 Capitalized software Gross carrying amount $ 86,442 84,888 Less: accumulated amortization 58,957 57,302 Net $ 27,485 27,586 Customer relationships Gross carrying amount $ 229,275 227,178 Less: accumulated amortization 70,746 67,643 Net $ 158,529 159,535 Other Gross carrying amount $ 5,342 5,156 Less: accumulated amortization 3,415 3,260 Net $ 1,927 1,896 Intangible assets with indefinite lives: Trade names $ 158,263 156,381 |
Schedule of carrying amount of goodwill attributable to each business segment | Aerospace (Dollars in millions) USG Test & Defense Total Balance as of September 30, 2020 271.9 34.1 102.1 408.1 Acquisition activity — — 2.3 2.3 Foreign currency translation 0.8 — — 0.8 Balance as of December 31, 2020 $ 272.7 34.1 104.4 411.2 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
BUSINESS SEGMENT INFORMATION | |
Schedule of Net Sales and Earnings Before Income Tax | Three Months Ended December 31, (In thousands) 2020 2019 NET SALES Aerospace & Defense $ 66,891 77,511 USG 54,540 52,834 Test 41,518 41,383 Consolidated totals $ 162,949 171,728 EBIT Aerospace & Defense $ 9,380 12,513 USG 12,731 9,288 Test 5,342 4,656 Corporate (loss) (9,252) (9,666) Consolidated EBIT 18,201 16,791 Less: Interest expense (541) (2,421) Earnings before income taxes from continuing operations $ 17,660 14,370 |
DEBT (Tables)
DEBT (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
DEBT | |
Schedule of debt | December 31, September 30, (In thousands) 2020 2020 Total borrowings $ 55,842 62,368 Current portion of long-term debt and short-term borrowings (21,842) (22,368) Total long-term debt, less current portion $ 34,000 40,000 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
SHAREHOLDERS' EQUITY | |
Schedule of change in shareholders' equity | The change in shareholders’ equity for the first three months of 2021 and 2020 is shown below (in thousands): Three Months Ended December 31, 2020 2019 Common stock Beginning balance 306 306 Stock plans — — Ending balance 306 306 Additional paid-in-capital Beginning balance 293,682 292,408 Stock plans 1,053 648 Ending balance 294,735 293,056 Retained earnings Beginning balance 778,398 684,741 Net earnings common stockholders 13,686 86,777 Dividends paid (2,084) (2,079) Ending balance 790,000 769,439 Accumulated other comprehensive income (loss) Beginning balance (3,657) (43,974) Foreign currency translation 5,349 3,923 Forward exchange contracts — — Ending balance 1,692 (40,051) Treasury stock Beginning balance (107,134) (107,259) Issued under stock plans — — Ending balance (107,134) (107,259) Total equity 979,599 915,491 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Schedule of outstanding derivative financial instruments | Notional Fair Value (In thousands) amount (US$) Forward contracts 3,500 USD 167 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value of financial instruments | The Company’s forward contracts and interest rate swaps are classified within Level 2 of the valuation hierarchy in accordance with FASB Accounting Standards Codification (ASC) 825, as presented below as of December 31, 2020: (In thousands) Level 1 Level 2 Level 3 Total Assets (Liabilities): Forward contracts and interest rate swaps $ — 167 $ — 167 |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
REVENUES | |
Schedule of disaggregation of revenue by reportable segment | Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 27,879 $ 53,864 $ 36,722 $ 118,465 U.S. Government 39,012 676 4,796 44,484 Total revenues $ 66,891 $ 54,540 $ 41,518 $ 162,949 Geographic location: United States $ 57,813 $ 37,045 $ 23,266 $ 118,124 International 9,078 17,495 18,252 44,825 Total revenues $ 66,891 $ 54,540 $ 41,518 $ 162,949 Revenue recognition method: Point in time $ 26,946 $ 42,367 $ 8,868 $ 78,181 Over time 39,945 12,173 32,650 84,768 Total revenues $ 66,891 $ 54,540 $ 41,518 $ 162,949 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
LEASES | |
Schedule of components of lease costs | Three Months Ended Three Months Ended December 31, December 31, (Dollars in thousands) 2020 2019 Finance lease cost Amortization of right-of-use assets $ 492 622 Interest on lease liabilities 313 328 Operating lease cost 1,452 1,419 Total lease costs $ 2,257 2,369 |
Schedule of additional information related to leases | Three Months Ended Three Months Ended December 31, December 31, (Dollars in thousands) 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,425 1,408 Operating cash flows from finance leases 313 138 Financing cash flows from finance leases 417 351 Right-of-use assets obtained in exchange for lease liabilities Operating leases $ — 22,014 Weighted-average remaining lease term Operating leases 5.9 years 6.5 years Finance leases 12.3 years 13.2 years Weighted-average discount rate Operating leases 3.10 % 3.14 % Finance leases 4.30 % 4.28 % |
Schedule of reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets | (Dollars in thousands) Operating Finance Years Ending September 30: Leases Leases 2021 (excluding the three months ended December 31, 2020) $ 4,182 2,204 2022 4,980 3,016 2023 3,984 3,098 2024 2,438 3,181 2025 and thereafter 7,208 28,285 Total minimum lease payments 22,792 39,784 Less: amounts representing interest 2,047 9,935 Present value of net minimum lease payments $ 20,745 29,849 Less: current portion of lease obligations 4,999 1,972 Non-current portion of lease obligations $ 15,746 27,877 ROU assets $ 20,315 25,674 |
EARNINGS PER SHARE (EPS) (Detai
EARNINGS PER SHARE (EPS) (Details) - shares shares in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
EARNINGS PER SHARE (EPS) | ||
Weighted Average Shares Outstanding - Basic | 26,038 | 25,981 |
Dilutive Options and Restricted Shares | 144 | 187 |
Adjusted Shares - Diluted | 26,182 | 26,168 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Selling, general and administrative expenses | ||
SHARE-BASED COMPENSATION | ||
Total share-based compensation cost | $ 1.4 | $ 1.4 |
Performance-Accelerated Restricted Share Awards | ||
SHARE-BASED COMPENSATION | ||
Pretax compensation expense | $ 1.1 | 1.1 |
Non-vested shares | 220,300 | |
Non-Employee Directors Plan | ||
SHARE-BASED COMPENSATION | ||
Pretax compensation expense | $ 0.3 | 0.3 |
Total income tax benefit recognized | 0.3 | $ 0.3 |
Total unrecognized compensation cost related to share-based compensation arrangements | $ 7.1 | |
Remaining weighted-average period for recognition of total unrecognized compensation cost | 1 year 8 months 12 days |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
INVENTORIES | ||
Finished goods | $ 28,365 | $ 28,471 |
Work in process | 37,290 | 30,183 |
Raw materials | 78,399 | 77,535 |
Total inventories | $ 144,054 | $ 136,189 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Goodwill | $ 411,161 | $ 408,063 |
Less: accumulated amortization | 134,005 | 129,063 |
Patents | ||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Gross carrying amount | 2,120 | 2,092 |
Less: accumulated amortization | 887 | 858 |
Net | 1,233 | 1,234 |
Capitalized software | ||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Gross carrying amount | 86,442 | 84,888 |
Less: accumulated amortization | 58,957 | 57,302 |
Net | 27,485 | 27,586 |
Customer relationships | ||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Gross carrying amount | 229,275 | 227,178 |
Less: accumulated amortization | 70,746 | 67,643 |
Net | 158,529 | 159,535 |
Other | ||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Gross carrying amount | 5,342 | 5,156 |
Less: accumulated amortization | 3,415 | 3,260 |
Net | 1,927 | 1,896 |
Trade names | ||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Trade names | $ 158,263 | $ 156,381 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in carrying amount of goodwill (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Changes in goodwill | |
Goodwill, Beginning Balance | $ 408,063 |
Acquisition activity | 2,300 |
Foreign currency translation | 800 |
Goodwill, Ending Balance | 411,161 |
Impairment | $ 0 |
Fair value exceeded carrying value percentage | 10.00% |
Goodwill, Gross | $ 30,000 |
USG | |
Changes in goodwill | |
Goodwill, Beginning Balance | 271,900 |
Foreign currency translation | 800 |
Goodwill, Ending Balance | 272,700 |
Test | |
Changes in goodwill | |
Goodwill, Beginning Balance | 34,100 |
Goodwill, Ending Balance | 34,100 |
Aerospace & Defense | |
Changes in goodwill | |
Goodwill, Beginning Balance | 102,100 |
Acquisition activity | 2,300 |
Goodwill, Ending Balance | $ 104,400 |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
BUSINESS SEGMENT INFORMATION | ||
NET SALES | $ 162,949 | $ 171,728 |
Consolidated EBIT | 18,201 | 16,791 |
Less: Interest expense | (541) | (2,421) |
Earnings before income taxes | 17,660 | 14,370 |
Aerospace & Defense | ||
BUSINESS SEGMENT INFORMATION | ||
NET SALES | 66,891 | 77,511 |
Consolidated EBIT | 9,380 | 12,513 |
Test | ||
BUSINESS SEGMENT INFORMATION | ||
NET SALES | 41,518 | 41,383 |
Consolidated EBIT | 5,342 | 4,656 |
USG | ||
BUSINESS SEGMENT INFORMATION | ||
NET SALES | 54,540 | 52,834 |
Consolidated EBIT | 12,731 | 9,288 |
Corporate (loss) | ||
BUSINESS SEGMENT INFORMATION | ||
Consolidated EBIT | $ (9,252) | $ (9,666) |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
DEBT | ||
Total borrowings | $ 55,842 | $ 62,368 |
Current portion of long-term debt and short-term borrowings | (21,842) | (22,368) |
Total long-term debt, less current portion | $ 34,000 | $ 40,000 |
DEBT - Additional information (
DEBT - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
DEBT | |||
Available to borrow under the credit facility | $ 434,000 | ||
Cash on hand | 57,362 | $ 52,560 | |
Letters of Credit Outstanding, Amount | $ 9,900 | ||
Equity interests in direct and indirect material foreign subsidiaries, pledged as collateral (as a percent) | 100.00% | ||
Weighted average interest rates | 1.45% | 3.18% | |
Long-term Debt, Current Maturities | $ 20,000 | ||
Revolving Credit Facility | |||
DEBT | |||
Line of Credit Facility, Amount Outstanding | 500,000 | ||
Line of Credit Facility, Commitment Fee Amount | 250,000 | ||
Maximum | |||
DEBT | |||
Incremental term loan | $ 250,000 |
INCOME TAX EXPENSE (Details)
INCOME TAX EXPENSE (Details) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
INCOME TAX EXPENSE | ||
Effective income tax rate | 22.50% | 25.10% |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in shareholder's equity | ||
Beginning Balance | $ 961,595 | |
Net earnings common stockholders | 13,686 | $ 86,777 |
Ending Balance | 979,599 | 915,491 |
Common Stock | ||
Changes in shareholder's equity | ||
Beginning Balance | 306 | 306 |
Ending Balance | 306 | 306 |
Additional paid-in-capital | ||
Changes in shareholder's equity | ||
Beginning Balance | 293,682 | 292,408 |
Stock plans | 1,053 | 648 |
Ending Balance | 294,735 | 293,056 |
Retained Earnings | ||
Changes in shareholder's equity | ||
Beginning Balance | 778,398 | 684,741 |
Net earnings common stockholders | 13,686 | 86,777 |
Dividends paid | (2,084) | (2,079) |
Ending Balance | 790,000 | 769,439 |
Accumulated other comprehensive income (loss) | ||
Changes in shareholder's equity | ||
Beginning Balance | (3,657) | (43,974) |
Foreign currency translation | 5,349 | 3,923 |
Ending Balance | 1,692 | (40,051) |
Treasury Stock | ||
Changes in shareholder's equity | ||
Beginning Balance | (107,134) | (107,259) |
Ending Balance | $ (107,134) | $ (107,259) |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Interest rate swap | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Notional amount | $ 150,000 |
Forward contracts | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Notional amount | 3,500 |
Fair Value | $ 167 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Forward contracts and interest rate swaps $ in Thousands | Dec. 31, 2020USD ($) |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Fair Value of Financial Instruments | $ 167 |
Level 2 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Fair Value of Financial Instruments | $ 167 |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of revenues | ||
Total revenues | $ 162,949 | $ 171,728 |
Point in time | ||
Disaggregation of revenues | ||
Total revenues | 78,181 | |
Over time | ||
Disaggregation of revenues | ||
Total revenues | 84,768 | |
United States | ||
Disaggregation of revenues | ||
Total revenues | 118,124 | |
International | ||
Disaggregation of revenues | ||
Total revenues | 44,825 | |
Commercial | ||
Disaggregation of revenues | ||
Total revenues | 118,465 | |
U.S. Government | ||
Disaggregation of revenues | ||
Total revenues | 44,484 | |
Aerospace & Defense | ||
Disaggregation of revenues | ||
Total revenues | 66,891 | 77,511 |
Aerospace & Defense | Point in time | ||
Disaggregation of revenues | ||
Total revenues | 26,946 | |
Aerospace & Defense | Over time | ||
Disaggregation of revenues | ||
Total revenues | 39,945 | |
Aerospace & Defense | United States | ||
Disaggregation of revenues | ||
Total revenues | 57,813 | |
Aerospace & Defense | International | ||
Disaggregation of revenues | ||
Total revenues | 9,078 | |
Aerospace & Defense | Commercial | ||
Disaggregation of revenues | ||
Total revenues | 27,879 | |
Aerospace & Defense | U.S. Government | ||
Disaggregation of revenues | ||
Total revenues | 39,012 | |
USG | ||
Disaggregation of revenues | ||
Total revenues | 54,540 | 52,834 |
USG | Point in time | ||
Disaggregation of revenues | ||
Total revenues | 42,367 | |
USG | Over time | ||
Disaggregation of revenues | ||
Total revenues | 12,173 | |
USG | United States | ||
Disaggregation of revenues | ||
Total revenues | 37,045 | |
USG | International | ||
Disaggregation of revenues | ||
Total revenues | 17,495 | |
USG | Commercial | ||
Disaggregation of revenues | ||
Total revenues | 53,864 | |
USG | U.S. Government | ||
Disaggregation of revenues | ||
Total revenues | 676 | |
Test | ||
Disaggregation of revenues | ||
Total revenues | 41,518 | $ 41,383 |
Test | Point in time | ||
Disaggregation of revenues | ||
Total revenues | 8,868 | |
Test | Over time | ||
Disaggregation of revenues | ||
Total revenues | 32,650 | |
Test | United States | ||
Disaggregation of revenues | ||
Total revenues | 23,266 | |
Test | International | ||
Disaggregation of revenues | ||
Total revenues | 18,252 | |
Test | Commercial | ||
Disaggregation of revenues | ||
Total revenues | 36,722 | |
Test | U.S. Government | ||
Disaggregation of revenues | ||
Total revenues | $ 4,796 |
REVENUES - Remaining Performanc
REVENUES - Remaining Performance Obligations (Details) $ in Millions | Dec. 31, 2020USD ($) |
Remaining Performance Obligations | |
Revenue, Remaining Performance Obligation, Amount | $ 512.1 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Remaining Performance Obligations | |
Percentage of remaining performance obligation expected to be recognized | 72.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
REVENUES - Contract assets and
REVENUES - Contract assets and liabilities (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2020USD ($) | |
REVENUES | |
Contract with Customer, Asset, Net | $ 93.8 |
Contract with Customer, Liability | 112.3 |
Contract with Customer, Liability, Revenue Recognized | $ 30 |
LEASES - Components of lease co
LEASES - Components of lease costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases | ||
Option to extend | true | |
Finance lease cost | ||
Amortization of right-of-use assets | $ 492 | $ 622 |
Interest on lease liabilities | 313 | 328 |
Operating lease cost | 1,452 | 1,419 |
Total lease costs | $ 2,257 | $ 2,369 |
Maximum | ||
Leases | ||
Lease term | 20 years |
LEASES - Additional information
LEASES - Additional information related to leases (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 1,425 | $ 1,408 |
Operating cash flows from finance leases | 313 | 138 |
Financing cash flows from finance leases | 417 | 351 |
Right-of-use assets obtained in exchange for lease liabilities | ||
Operating leases | $ 0 | $ 22,014 |
Weighted-average remaining lease term | ||
Operating leases | 5 years 10 months 24 days | 6 years 6 months |
Finance leases | 12 years 3 months 18 days | 13 years 2 months 12 days |
Weighted-average discount rate | ||
Operating leases | 3.10% | 3.14% |
Finance leases | 4.30% | 4.28% |
LEASES - Reconciliation of futu
LEASES - Reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Operating leases | ||
2021 (excluding the three months ended December 31, 2020) | $ 4,182 | |
2022 | 4,980 | |
2023 | 3,984 | |
2024 | 2,438 | |
2025 and thereafter | 7,208 | |
Total minimum lease payments | 22,792 | |
Less: amounts representing interest | 2,047 | |
Present value of net minimum lease payments | 20,745 | |
Less: current portion of lease obligations | 4,999 | |
Non-current portion of lease obligations | 15,746 | $ 16,785 |
ROU assets | 20,315 | $ 21,390 |
Finance leases | ||
2021 (excluding the three months ended December 31, 2020) | 2,204 | |
2022 | 3,016 | |
2023 | 3,098 | |
2024 | 3,181 | |
2025 and thereafter | 28,285 | |
Total minimum lease payments | 39,784 | |
Less: amounts representing interest | 9,935 | |
Present value of net minimum lease payments | 29,849 | |
Less: current portion of lease obligations | 1,972 | |
Non-current portion of lease obligations | 27,877 | |
ROU assets | $ 25,674 | |
Location of operating lease liabilities included on Consolidated Balance Sheets | us-gaap:OtherAccruedLiabilitiesCurrent us-gaap:OtherLiabilitiesNoncurrent | |
Location of finance lease liabilities included on Consolidated Balance Sheets | us-gaap:OtherAccruedLiabilitiesCurrent us-gaap:OtherLiabilitiesNoncurrent | |
Location of operating lease ROU assets included on Consolidated Balance Sheets | us-gaap:OperatingLeaseRightOfUseAsset | |
Location of finance lease ROU assets included on Consolidated Balance Sheets | us-gaap:PropertyPlantAndEquipmentNet |