ESCO (ESE) 10-Q 9 Feb 21 2021 Q1 Quarterly report Financial data

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