ESCO (ESE) 10-Q7 May 212021 Q2 Quarterly reportFinancial data

Company Profile

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
Document And Entity Information - shares	Mar. 31, 2021	Apr. 30, 2021
Document And Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2021
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		26,040,884
Entity Central Index Key	0000866706
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Amendment Flag	false

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	$ 166,644	$ 180,492	$ 329,593	$ 352,220
Costs and expenses:
Cost of sales	103,113	113,242	201,890	219,969
Selling, general and administrative expenses	38,746	39,982	79,746	82,087
Amortization of intangible assets	4,917	5,220	9,865	11,030
Interest expense, net	432	1,320	973	3,741
Other (income) expenses, net	(1,903)	703	(1,880)	998
Total costs and expenses	145,305	160,467	290,594	317,825
Earnings before income taxes	21,339	20,025	38,999	34,395
Income tax expense	5,025	2,203	8,999	5,809
Earnings from continuing operations			30,000	28,586
Loss from discontinued operations, net of tax expense 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	$ 16,314	$ 17,822	$ 30,000	$ 104,599
Earnings per share:
Basic - Continuing operations			$ 1.15	$ 1.10
Basic - Discontinued operations				2.93
Basic - Net earnings	$ 0.63	$ 0.69	1.15	4.03
Diluted - Continuing operations			1.15	1.09
Diluted - Discontinued operations				2.91
Diluted - Net earnings	$ 0.62	$ 0.68	$ 1.15	$ 4

CONSOLIDATED STATEMENTS OF OP_2

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) $ in Thousands	6 Months Ended
	Mar. 31, 2021USD ($)
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 - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net earnings	$ 16,314	$ 17,822	$ 30,000	$ 104,599
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	116	(6,885)	5,465	(2,962)
Total other comprehensive income (loss), net of tax	116	(6,885)	5,465	(2,962)
Comprehensive income	$ 16,430	$ 10,937	$ 35,465	$ 101,637

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
Current assets:
Cash and cash equivalents	$ 45,653	$ 52,560
Accounts receivable, net	124,580	144,082
Contract assets	95,002	96,746
Inventories, net	145,342	136,189
Other current assets	17,523	17,053
Total current assets	428,100	446,630
Property, plant and equipment, net of accumulated depreciation of $140,784 and $130,534, respectively	143,401	139,870
Intangible assets, net of accumulated amortization of $138,928 and $129,063, respectively	345,261	346,632
Goodwill	411,661	408,063
Operating lease assets	18,929	21,390
Other assets	10,050	10,938
Total assets	1,357,402	1,373,523
Current liabilities:
Current maturities of long-term debt and short-term borrowings	20,000	22,368
Accounts payable	47,091	50,525
Contract liabilities	106,622	100,551
Accrued salaries	28,740	32,149
Accrued other expenses	44,130	50,436
Total current liabilities	246,583	256,029
Deferred tax liabilities	59,949	60,938
Non-current operating lease liabilities	14,501	16,785
Other liabilities	39,362	38,176
Long-term debt	2,000	40,000
Total liabilities	362,395	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	295,796	293,682
Retained earnings	804,231	778,398
Accumulated other comprehensive income (loss), net of tax	1,808	(3,657)
Total stockholders' equity before treasury stock	1,102,141	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	995,007	961,595
Total liabilities and shareholders' equity	$ 1,357,402	$ 1,373,523

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
CONSOLIDATED BALANCE SHEETS
Accumulated depreciation	$ 140,784	$ 130,534
Accumulated amortization	$ 138,928	$ 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	6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020
Cash flows from operating activities:
Net earnings	$ 30,000	$ 104,599
Earnings from discontinued operations		(76,013)
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	20,115	20,583
Stock compensation expense	2,745	2,896
Changes in assets and liabilities	7,401	(16,247)
Gain on sale of building and land	(1,950)
Effect of deferred taxes	(989)	834
Net cash provided by operating activities - continuing operations	57,322	36,652
Net cash used by operating activities - discontinued operations		(14,622)
Net cash provided by operating activities	57,322	22,030
Cash flows from investing activities:
Acquisition of business, net of cash acquired	(6,684)
Proceeds from sale of building and land	1,950
Additions to capitalized software	(3,973)	(4,280)
Capital expenditures	(13,153)	(21,211)
Net cash used by investing activities - continuing operations	(21,860)	(25,491)
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	(21,860)	156,778
Cash flows from financing activities:
Proceeds from long-term debt and short-term borrowings	34,000	10,000
Principal payments on long-term debt and short-term borrowings	(74,368)	(145,000)
Dividends paid	(4,167)	(4,156)
Net cash used by financing activities - continuing operations	(44,535)	(139,156)
Net cash used by financing activities - discontinued operations		(2,140)
Net cash used by financing activities	(44,535)	(141,296)
Effect of exchange rate changes on cash and cash equivalents	2,166	875
Net (decrease) increase in cash and cash equivalents	(6,907)	38,387
Cash and cash equivalents, beginning of period	52,560	61,808
Cash and cash equivalents, end of period	45,653	100,195
Supplemental cash flow information:
Interest paid	281	3,477
Income taxes paid (including state and foreign)	$ 14,047	$ 23,098

BASIS OF PRESENTATION

BASIS OF PRESENTATION	6 Months Ended
BASIS OF PRESENTATION	Mar. 31, 2021
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 March 31, 2021 are not necessarily indicative of the results for the entire 2021 fiscal year. References to the second quarters of 2021 and 2020 represent the fiscal quarters ended March 31, 2021 and 2020, 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)	6 Months Ended
EARNINGS PER SHARE (EPS)	Mar. 31, 2021
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 Six Months Ended March 31, Ended March 31, 2021 2020 2021 2020 Weighted Average Shares Outstanding — 26,038 25,988 26,038 25,985 Dilutive Options and Restricted Shares 163 100 154 141 Adjusted Shares — 26,201 26,088 26,192 26,126

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
SHARE-BASED COMPENSATION	Mar. 31, 2021
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 $2.1 million for the three and six-month periods ended March 31, 2021, respectively, and $1.1 million and $2.3 million for the corresponding periods in 2020. There were 220,430 non-vested shares outstanding as of March 31, 2021. Non-Employee Directors Plan Compensation expense related to the non-employee director grants was $0.3 million and $0.6 million for the three and six-month periods ended March 31, 2021, respectively, and $0.3 million and $0.6 million for the corresponding periods in 2020. 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 and $2.7 million for the three and six-month periods ended March 31, 2021, respectively, and $1.5 million and $2.9 million for the corresponding periods in 2020. The total income tax benefit recognized in results of operations for share-based compensation arrangements was $0.3 million and $0.7 million for the three and six-month periods ended March 31, 2021, respectively, and $0.3 million and $0.7 million for the corresponding periods in 2020. As of March 31, 2021, there was $6.1 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 1.5 years.

INVENTORIES

INVENTORIES	6 Months Ended
INVENTORIES	Mar. 31, 2021
INVENTORIES
INVENTORIES	4. INVENTORIES Inventories, net, from continuing operations consist of the following: March 31, September 30, (In thousands) 2021 2020 Finished goods $ 29,363 28,471 Work in process 37,905 30,183 Raw materials 78,074 77,535 Total inventories $ 145,342 136,189

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	6 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS	Mar. 31, 2021
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 March 31, 2021 and September 30, 2020 are the following intangible assets gross carrying amounts and accumulated amortization from continuing operations: March 31, September 30, (Dollars in thousands) 2021 2020 Goodwill $ 411,661 408,063 Intangible assets with determinable lives: Patents Gross carrying amount $ 2,136 2,092 Less: accumulated amortization 915 858 Net $ 1,221 1,234 Capitalized software Gross carrying amount $ 88,862 84,888 Less: accumulated amortization 60,563 57,302 Net $ 28,299 27,586 Customer relationships Gross carrying amount $ 229,322 227,178 Less: accumulated amortization 73,864 67,643 Net $ 155,458 159,535 Other Gross carrying amount $ 5,356 5,156 Less: accumulated amortization 3,586 3,260 Net $ 1,770 1,896 Intangible assets with indefinite lives: Trade names $ 158,513 156,381 The changes in the carrying amount of goodwill attributable to each business segment for the six months ended March 31, 2021 is as follows on a continuing operations basis: Aerospace (Dollars in millions) USG Test & Defense Total Balance as of September 30, 2020 271.9 34.1 102.1 408.1 Acquisition activity — — 2.5 2.5 Foreign currency translation 1.1 — — 1.1 Balance as of March 31, 2021 $ 273.0 34.1 104.6 411.7 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 and six-month periods ended March 31, 2021, however, the fair value of the Mayday reporting unit exceeded carrying value by less than 10%. At March 31, 2021, we had $30 million of goodwill recorded for Mayday.

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION	6 Months Ended
BUSINESS SEGMENT INFORMATION	Mar. 31, 2021
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, Utility Solutions Group (USG), and RF Shielding and Test (Test). 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 USG segment’s operations consist primarily of Doble Engineering Company and Morgan Schaffer Ltd. (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. 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. 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 Six Months Ended March 31, Ended March 31, (In thousands) 2021 2020 2021 2020 NET SALES Aerospace & Defense $ 83,278 95,124 150,169 172,635 USG 39,555 43,768 94,095 96,602 Test 43,811 41,600 85,329 82,983 Consolidated totals $ 166,644 180,492 329,593 352,220 EBIT Aerospace & Defense $ 18,196 21,736 27,576 34,249 USG 6,725 4,866 19,456 14,153 Test 5,688 5,651 11,030 10,307 Corporate (loss) (8,838) (10,908) (18,090) (20,573) Consolidated EBIT 21,771 21,345 39,972 38,136 Less: Interest expense (432) (1,320) (973) (3,741) Earnings before income taxes $ 21,339 20,025 38,999 34,395 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	6 Months Ended
DEBT	Mar. 31, 2021
DEBT
DEBT	7. DEBT The Company’s debt is summarized as follows: March 31, September 30, (In thousands) 2021 2020 Total borrowings $ 22,000 62,368 Current portion of long-term debt and short-term borrowings (20,000) (22,368) Total long-term debt, less current portion $ 2,000 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 March 31, 2021, the Company had approximately $468 million available to borrow under the Credit Facility, plus the $250 million increase option, subject to lender approval, in addition to $45.7 million cash on hand. The Company classified $20.0 million as the current portion of long-term debt as of March 31, 2021, 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 $10.4 million at March 31, 2021. 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 1.27% and 1.40% for the three and six- month periods ending March 31, 2021, respectively, and 3.24% and 3.21% for the three and six-month periods ending March 31, 2020. As of March 31, 2021, the Company was in compliance with all covenants.

INCOME TAX EXPENSE

INCOME TAX EXPENSE	6 Months Ended
INCOME TAX EXPENSE	Mar. 31, 2021
INCOME TAX EXPENSE
INCOME TAX EXPENSE	8. INCOME TAX EXPENSE The second quarter 2021 effective income tax rate from continuing operations was 23.5% compared to 11.0% in the second quarter of 2020. The effective income tax rate in the first six months of 2021 was 23.1% compared to 16.9% for the first six months of 2020. Income tax expense in the second quarter of 2021 was unfavorably impacted by a change in our estimate of the fiscal 2020 research credit increasing the second quarter and year-to-date effective tax rate by 0.6% and 0.3%, respectively. Income tax expense in the second quarter of 2020 was favorably impacted by the release of a valuation allowance of $2.8 million for foreign net operating losses decreasing the second quarter 2020 and year-to-date effective tax rate by 14.3% and 8.2%, respectively.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	6 Months Ended
SHAREHOLDERS' EQUITY	Mar. 31, 2021
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY	9. SHAREHOLDERS’ EQUITY The change in shareholders’ equity for the first three and six months of 2020 and 2019 is shown below (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 Common stock Beginning balance 306 306 306 306 Stock plans — — — — Ending balance 306 306 306 306 Additional paid-in-capital Beginning balance 294,735 293,056 293,682 292,408 Stock plans 1,061 1,731 2,114 2,379 Ending balance 295,796 294,787 295,796 294,787 Retained earnings Beginning balance 790,000 769,439 778,398 684,741 Net earnings common stockholders 16,314 17,822 30,000 104,599 Dividends paid (2,083) (2,077) (4,167) (4,156) Ending balance 804,231 785,184 804,231 785,184 Accumulated other comprehensive income (loss) Beginning balance 1,692 (40,051) (3,657) (43,974) Foreign currency translation 116 (6,885) 5,465 (2,962) Ending balance 1,808 (46,936) 1,808 (46,936) Treasury stock Beginning balance (107,134) (107,259) (107,134) (107,259) Issued under stock plans — 125 — 125 Ending balance (107,134) (107,134) (107,134) (107,134) Total equity 995,007 926,207 995,007 926,207

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
FAIR VALUE MEASUREMENTS	Mar. 31, 2021
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	10. 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 March 31, 2021 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 March 31, 2021: (In thousands) Level 1 Level 2 Level 3 Total Assets (Liabilities): Forward contracts $ — 141 $ — 141 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 and six-month periods ended March 31, 2021.

REVENUES

REVENUES	6 Months Ended
REVENUES	Mar. 31, 2021
REVENUES
REVENUES	11. REVENUES Disaggregation of Revenues Revenues by customer type, geographic location, and revenue recognition method for the three and six-month periods ended March 31, 2021 are presented in the tables 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 tables below also include a reconciliation of the disaggregated revenue within each reportable segment on a continuing operations basis. Three months ended March 31, 2021 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 33,973 $ 38,549 $ 39,305 $ 111,827 U.S. Government 49,305 1,006 4,506 54,817 Total revenues $ 83,278 $ 39,555 $ 43,811 $ 166,644 Geographic location: United States $ 73,037 $ 27,445 $ 22,965 $ 123,447 International 10,241 12,110 20,846 43,197 Total revenues $ 83,278 $ 39,555 $ 43,811 $ 166,644 Revenue recognition method: Point in time $ 37,127 $ 27,563 $ 9,248 $ 73,938 Over time 46,151 11,992 34,563 92,706 Total revenues $ 83,278 $ 39,555 $ 43,811 $ 166,644 Six months ended March 31, 2021 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 62,114 $ 92,414 $ 76,027 $ 230,555 U.S. Government 88,055 1,681 9,302 99,038 Total revenues $ 150,169 $ 94,095 $ 85,329 $ 329,593 Geographic location: United States $ 130,849 $ 64,490 $ 46,231 $ 241,570 International 19,320 29,605 39,098 88,023 Total revenues $ 150,169 $ 94,095 $ 85,329 $ 329,593 Revenue recognition method: Point in time $ 64,000 $ 69,931 $ 18,116 $ 152,047 Over time 86,169 24,164 67,213 177,546 Total revenues $ 150,169 $ 94,095 $ 85,329 $ 329,593 Revenues by customer type, geographic location, and revenue recognition method for the three and six-month periods ended March 31, 2020 are presented in the tables below. Three months ended March 31, 2020 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 51,550 $ 43,736 $ 33,952 $ 129,238 U.S. Government 43,574 32 7,648 51,254 Total revenues $ 95,124 $ 43,768 $ 41,600 $ 180,492 Geographic location: United States $ 81,458 $ 28,706 $ 25,121 $ 135,285 International 13,666 15,062 16,479 45,207 Total revenues $ 95,124 $ 43,768 $ 41,600 $ 180,492 Revenue recognition method: Point in time $ 46,610 $ 32,209 $ 8,009 $ 86,828 Over time 48,514 11,559 33,591 93,664 Total revenues $ 95,124 $ 43,768 $ 41,600 $ 180,492 Six months ended March 31, 2020 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 93,417 $ 95,971 $ 69,194 $ 258,582 U.S. Government 79,218 631 13,789 93,638 Total revenues $ 172,635 $ 96,602 $ 82,983 $ 352,220 Geographic location: United States $ 146,164 $ 63,665 $ 49,959 $ 259,788 International 26,471 32,937 33,024 92,432 Total revenues $ 172,635 $ 96,602 $ 82,983 $ 352,220 Revenue recognition method: Point in time $ 82,897 $ 72,524 $ 17,019 $ 172,440 Over time 89,738 24,078 65,964 179,780 Total revenues $ 172,635 $ 96,602 $ 82,983 $ 352,220 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 March 31, 2021, the Company had $521.7 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 March 31, 2021, contract assets and liabilities totaled $95.0 million and $106.6 million, respectively. Contract assets and liabilities are presented as current in the consolidated balance sheets as it is expected all related transaction activity with customers will be substantially completed within twelve months. During the first six months of 2021, the Company recognized approximately $56 million in revenues that were included in the contract liabilities balance at September 30, 2020.

LEASES

LEASES	6 Months Ended
LEASES	Mar. 31, 2021
LEASES
LEASES	12. 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 our 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 March 31, March 31, (Dollars in thousands) 2021 2020 Finance lease cost Amortization of right-of-use assets $ 492 $ 622 Interest on lease liabilities 311 198 Operating lease cost 1,424 1,402 Total lease costs $ 2,227 $ 2,222 Six Months Six Months Ended Ended March 31, March 31, (Dollars in thousands) 2021 2020 Finance lease cost Amortization of right-of-use assets $ 985 $ 1,245 Interest on lease liabilities 623 335 Operating lease cost 2,877 2,750 Total lease costs $ 4,485 $ 4,330 Additional information related to leases are shown below: Three Months Ended Three Months Ended March 31, March 31, (Dollars in thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,375 $ 1,380 Operating cash flows from finance leases 311 198 Financing cash flows from finance leases 419 377 Six Months Six Months March 31, March 31, (Dollars in thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,800 $ 2,717 Operating cash flows from finance leases 623 335 Financing cash flows from finance leases 838 753 Weighted-average remaining lease term March 31, 2021 March 31, 2020 Operating leases 5.76 years 6.37 years Finance leases 12.2 years 12.7 years Weighted-average discount rate Operating leases 3.11 % 3.08 % Finance leases 4.31 % 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 our Consolidated Balance Sheet on March 31, 2021: (Dollars in thousands) Operating Finance Years Ending September 30: Leases Leases 2021 (excluding the six months ended March 31, 2021) $ 2,732 1,473 2022 4,907 3,015 2023 3,984 3,098 2024 2,438 3,181 2025 and thereafter 7,173 28,285 Total minimum lease payments 21,234 39,052 Less: amounts representing interest 1,894 9,625 Present value of net minimum lease payments $ 19,340 29,427 Less: current portion of lease obligations 4,839 2,001 Non-current portion of lease obligations 14,501 27,426 ROU assets $ 18,929 25,182 Operating lease liabilities are included in 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)	6 Months Ended
EARNINGS PER SHARE (EPS) (Tables)	Mar. 31, 2021
EARNINGS PER SHARE (EPS)
Schedule of weighted average number of shares used in the calculation of earnings per share	Three Months Six Months Ended March 31, Ended March 31, 2021 2020 2021 2020 Weighted Average Shares Outstanding — 26,038 25,988 26,038 25,985 Dilutive Options and Restricted Shares 163 100 154 141 Adjusted Shares — 26,201 26,088 26,192 26,126

INVENTORIES (Tables)

INVENTORIES (Tables)	6 Months Ended
INVENTORIES (Tables)	Mar. 31, 2021
INVENTORIES
Schedule of inventories	March 31, September 30, (In thousands) 2021 2020 Finished goods $ 29,363 28,471 Work in process 37,905 30,183 Raw materials 78,074 77,535 Total inventories $ 145,342 136,189

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	Mar. 31, 2021
GOODWILL AND OTHER INTANGIBLE ASSETS
Schedule of goodwill and intangible assets	March 31, September 30, (Dollars in thousands) 2021 2020 Goodwill $ 411,661 408,063 Intangible assets with determinable lives: Patents Gross carrying amount $ 2,136 2,092 Less: accumulated amortization 915 858 Net $ 1,221 1,234 Capitalized software Gross carrying amount $ 88,862 84,888 Less: accumulated amortization 60,563 57,302 Net $ 28,299 27,586 Customer relationships Gross carrying amount $ 229,322 227,178 Less: accumulated amortization 73,864 67,643 Net $ 155,458 159,535 Other Gross carrying amount $ 5,356 5,156 Less: accumulated amortization 3,586 3,260 Net $ 1,770 1,896 Intangible assets with indefinite lives: Trade names $ 158,513 156,381
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 — — 2.5 2.5 Foreign currency translation 1.1 — — 1.1 Balance as of March 31, 2021 $ 273.0 34.1 104.6 411.7

BUSINESS SEGMENT INFORMATION (T

BUSINESS SEGMENT INFORMATION (Tables)	6 Months Ended
BUSINESS SEGMENT INFORMATION (Tables)	Mar. 31, 2021
BUSINESS SEGMENT INFORMATION
Schedule of Net Sales and Earnings Before Income Tax	Three Months Six Months Ended March 31, Ended March 31, (In thousands) 2021 2020 2021 2020 NET SALES Aerospace & Defense $ 83,278 95,124 150,169 172,635 USG 39,555 43,768 94,095 96,602 Test 43,811 41,600 85,329 82,983 Consolidated totals $ 166,644 180,492 329,593 352,220 EBIT Aerospace & Defense $ 18,196 21,736 27,576 34,249 USG 6,725 4,866 19,456 14,153 Test 5,688 5,651 11,030 10,307 Corporate (loss) (8,838) (10,908) (18,090) (20,573) Consolidated EBIT 21,771 21,345 39,972 38,136 Less: Interest expense (432) (1,320) (973) (3,741) Earnings before income taxes $ 21,339 20,025 38,999 34,395

DEBT (Tables)

DEBT (Tables)	6 Months Ended
DEBT (Tables)	Mar. 31, 2021
DEBT
Schedule of debt	March 31, September 30, (In thousands) 2021 2020 Total borrowings $ 22,000 62,368 Current portion of long-term debt and short-term borrowings (20,000) (22,368) Total long-term debt, less current portion $ 2,000 40,000

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	6 Months Ended
SHAREHOLDERS' EQUITY (Tables)	Mar. 31, 2021
SHAREHOLDERS' EQUITY
Schedule of change in shareholders' equity	The change in shareholders’ equity for the first three and six months of 2020 and 2019 is shown below (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 Common stock Beginning balance 306 306 306 306 Stock plans — — — — Ending balance 306 306 306 306 Additional paid-in-capital Beginning balance 294,735 293,056 293,682 292,408 Stock plans 1,061 1,731 2,114 2,379 Ending balance 295,796 294,787 295,796 294,787 Retained earnings Beginning balance 790,000 769,439 778,398 684,741 Net earnings common stockholders 16,314 17,822 30,000 104,599 Dividends paid (2,083) (2,077) (4,167) (4,156) Ending balance 804,231 785,184 804,231 785,184 Accumulated other comprehensive income (loss) Beginning balance 1,692 (40,051) (3,657) (43,974) Foreign currency translation 116 (6,885) 5,465 (2,962) Ending balance 1,808 (46,936) 1,808 (46,936) Treasury stock Beginning balance (107,134) (107,259) (107,134) (107,259) Issued under stock plans — 125 — 125 Ending balance (107,134) (107,134) (107,134) (107,134) Total equity 995,007 926,207 995,007 926,207

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
FAIR VALUE MEASUREMENTS (Tables)	Mar. 31, 2021
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 March 31, 2021: (In thousands) Level 1 Level 2 Level 3 Total Assets (Liabilities): Forward contracts $ — 141 $ — 141

REVENUES (Tables)

REVENUES (Tables)	6 Months Ended
REVENUES (Tables)	Mar. 31, 2021
REVENUES
Schedule of disaggregation of revenue by reportable segment	Three months ended March 31, 2021 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 33,973 $ 38,549 $ 39,305 $ 111,827 U.S. Government 49,305 1,006 4,506 54,817 Total revenues $ 83,278 $ 39,555 $ 43,811 $ 166,644 Geographic location: United States $ 73,037 $ 27,445 $ 22,965 $ 123,447 International 10,241 12,110 20,846 43,197 Total revenues $ 83,278 $ 39,555 $ 43,811 $ 166,644 Revenue recognition method: Point in time $ 37,127 $ 27,563 $ 9,248 $ 73,938 Over time 46,151 11,992 34,563 92,706 Total revenues $ 83,278 $ 39,555 $ 43,811 $ 166,644 Six months ended March 31, 2021 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 62,114 $ 92,414 $ 76,027 $ 230,555 U.S. Government 88,055 1,681 9,302 99,038 Total revenues $ 150,169 $ 94,095 $ 85,329 $ 329,593 Geographic location: United States $ 130,849 $ 64,490 $ 46,231 $ 241,570 International 19,320 29,605 39,098 88,023 Total revenues $ 150,169 $ 94,095 $ 85,329 $ 329,593 Revenue recognition method: Point in time $ 64,000 $ 69,931 $ 18,116 $ 152,047 Over time 86,169 24,164 67,213 177,546 Total revenues $ 150,169 $ 94,095 $ 85,329 $ 329,593 Revenues by customer type, geographic location, and revenue recognition method for the three and six-month periods ended March 31, 2020 are presented in the tables below. Three months ended March 31, 2020 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 51,550 $ 43,736 $ 33,952 $ 129,238 U.S. Government 43,574 32 7,648 51,254 Total revenues $ 95,124 $ 43,768 $ 41,600 $ 180,492 Geographic location: United States $ 81,458 $ 28,706 $ 25,121 $ 135,285 International 13,666 15,062 16,479 45,207 Total revenues $ 95,124 $ 43,768 $ 41,600 $ 180,492 Revenue recognition method: Point in time $ 46,610 $ 32,209 $ 8,009 $ 86,828 Over time 48,514 11,559 33,591 93,664 Total revenues $ 95,124 $ 43,768 $ 41,600 $ 180,492 Six months ended March 31, 2020 Aerospace (In thousands) & Defense USG Test Total Customer type: Commercial $ 93,417 $ 95,971 $ 69,194 $ 258,582 U.S. Government 79,218 631 13,789 93,638 Total revenues $ 172,635 $ 96,602 $ 82,983 $ 352,220 Geographic location: United States $ 146,164 $ 63,665 $ 49,959 $ 259,788 International 26,471 32,937 33,024 92,432 Total revenues $ 172,635 $ 96,602 $ 82,983 $ 352,220 Revenue recognition method: Point in time $ 82,897 $ 72,524 $ 17,019 $ 172,440 Over time 89,738 24,078 65,964 179,780 Total revenues $ 172,635 $ 96,602 $ 82,983 $ 352,220

LEASES (Tables)

LEASES (Tables)	6 Months Ended
LEASES (Tables)	Mar. 31, 2021
LEASES
Schedule of components of lease costs	Three Months Ended Three Months Ended March 31, March 31, (Dollars in thousands) 2021 2020 Finance lease cost Amortization of right-of-use assets $ 492 $ 622 Interest on lease liabilities 311 198 Operating lease cost 1,424 1,402 Total lease costs $ 2,227 $ 2,222 Six Months Six Months Ended Ended March 31, March 31, (Dollars in thousands) 2021 2020 Finance lease cost Amortization of right-of-use assets $ 985 $ 1,245 Interest on lease liabilities 623 335 Operating lease cost 2,877 2,750 Total lease costs $ 4,485 $ 4,330
Schedule of additional information related to leases	Three Months Ended Three Months Ended March 31, March 31, (Dollars in thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,375 $ 1,380 Operating cash flows from finance leases 311 198 Financing cash flows from finance leases 419 377 Six Months Six Months March 31, March 31, (Dollars in thousands) 2021 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,800 $ 2,717 Operating cash flows from finance leases 623 335 Financing cash flows from finance leases 838 753 Weighted-average remaining lease term March 31, 2021 March 31, 2020 Operating leases 5.76 years 6.37 years Finance leases 12.2 years 12.7 years Weighted-average discount rate Operating leases 3.11 % 3.08 % Finance leases 4.31 % 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 six months ended March 31, 2021) $ 2,732 1,473 2022 4,907 3,015 2023 3,984 3,098 2024 2,438 3,181 2025 and thereafter 7,173 28,285 Total minimum lease payments 21,234 39,052 Less: amounts representing interest 1,894 9,625 Present value of net minimum lease payments $ 19,340 29,427 Less: current portion of lease obligations 4,839 2,001 Non-current portion of lease obligations 14,501 27,426 ROU assets $ 18,929 25,182

EARNINGS PER SHARE (EPS) (Detai

EARNINGS PER SHARE (EPS) (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
EARNINGS PER SHARE (EPS)
Weighted Average Shares Outstanding - Basic	26,038	25,988	26,038	25,985
Dilutive Options and Restricted Shares	163	100	154	141
Adjusted Shares - Diluted	26,201	26,088	26,192	26,126

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Selling, general and administrative expenses
SHARE-BASED COMPENSATION
Total share-based compensation cost	$ 1.4	$ 1.5	$ 2.7	$ 2.9
Performance-Accelerated Restricted Share Awards
SHARE-BASED COMPENSATION
Pretax compensation expense	$ 1.1	1.1	$ 2.1	2.3
Non-vested shares	220,430		220,430
Non-Employee Directors Plan
SHARE-BASED COMPENSATION
Pretax compensation expense	$ 0.3	0.3	$ 0.6	0.6
Total income tax benefit recognized	0.3	$ 0.3	0.7	$ 0.7
Total unrecognized compensation cost related to share-based compensation arrangements	$ 6.1		$ 6.1
Remaining weighted-average period for recognition of total unrecognized compensation cost			1 year 6 months

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
INVENTORIES
Finished goods	$ 29,363	$ 28,471
Work in process	37,905	30,183
Raw materials	78,074	77,535
Total inventories	$ 145,342	$ 136,189

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
GOODWILL AND OTHER INTANGIBLE ASSETS
Goodwill	$ 411,661	$ 408,063
Less: accumulated amortization	138,928	129,063
Patents
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	2,136	2,092
Less: accumulated amortization	915	858
Net	1,221	1,234
Capitalized software
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	88,862	84,888
Less: accumulated amortization	60,563	57,302
Net	28,299	27,586
Customer relationships
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	229,322	227,178
Less: accumulated amortization	73,864	67,643
Net	155,458	159,535
Other
GOODWILL AND OTHER INTANGIBLE ASSETS
Gross carrying amount	5,356	5,156
Less: accumulated amortization	3,586	3,260
Net	1,770	1,896
Trade names
GOODWILL AND OTHER INTANGIBLE ASSETS
Trade names	$ 158,513	$ 156,381

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in carrying amount of goodwill (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2021USD ($)	Mar. 31, 2021USD ($)
Changes in goodwill
Goodwill, Beginning Balance		$ 408,063
Acquisition activity		2,500
Foreign currency translation		1,100
Goodwill, Ending Balance	$ 411,661	411,661
Impairment	0	$ 0
Fair value exceeded carrying value percentage		10.00%
Goodwill, Gross	30,000	$ 30,000
USG
Changes in goodwill
Goodwill, Beginning Balance		271,900
Foreign currency translation		1,100
Goodwill, Ending Balance	273,000	273,000
Test
Changes in goodwill
Goodwill, Beginning Balance		34,100
Goodwill, Ending Balance	34,100	34,100
Aerospace & Defense
Changes in goodwill
Goodwill, Beginning Balance		102,100
Acquisition activity		2,500
Goodwill, Ending Balance	$ 104,600	$ 104,600

BUSINESS SEGMENT INFORMATION (D

BUSINESS SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
BUSINESS SEGMENT INFORMATION
NET SALES	$ 166,644	$ 180,492	$ 329,593	$ 352,220
Consolidated EBIT	21,771	21,345	39,972	38,136
Less: Interest expense	(432)	(1,320)	(973)	(3,741)
Earnings before income taxes	21,339	20,025	38,999	34,395
Aerospace & Defense
BUSINESS SEGMENT INFORMATION
NET SALES	83,278	95,124	150,169	172,635
Consolidated EBIT	18,196	21,736	27,576	34,249
USG
BUSINESS SEGMENT INFORMATION
NET SALES	39,555	43,768	94,095	96,602
Consolidated EBIT	6,725	4,866	19,456	14,153
Test
BUSINESS SEGMENT INFORMATION
NET SALES	43,811	41,600	85,329	82,983
Consolidated EBIT	5,688	5,651	11,030	10,307
Corporate (loss)
BUSINESS SEGMENT INFORMATION
Consolidated EBIT	$ (8,838)	$ (10,908)	$ (18,090)	$ (20,573)

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Sep. 30, 2020
DEBT
Total borrowings	$ 22,000	$ 62,368
Current portion of long-term debt and short-term borrowings	(20,000)	(22,368)
Total long-term debt, less current portion	$ 2,000	$ 40,000

DEBT - Additional information (

DEBT - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Sep. 30, 2020
DEBT
Available to borrow under the credit facility	$ 468,000		$ 468,000
Cash on hand	45,653		45,653		$ 52,560
Letters of Credit Outstanding, Amount	$ 10,400		$ 10,400
Equity interests in direct and indirect material foreign subsidiaries, pledged as collateral (as a percent)	100.00%		100.00%
Weighted average interest rates	1.27%	3.24%	1.40%	3.21%
Long-term Debt, Current Maturities	$ 20,000		$ 20,000
Revolving Credit Facility
DEBT
Line of Credit Facility, Amount Outstanding	500,000		500,000
Line of Credit Facility, Commitment Fee Amount			250,000
Maximum
DEBT
Incremental term loan	$ 250,000		$ 250,000

INCOME TAX EXPENSE (Details)

INCOME TAX EXPENSE (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
INCOME TAX EXPENSE (Details) - USD ($) $ in Millions	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
INCOME TAX EXPENSE
Effective income tax rate	23.50%	11.00%	23.10%	16.90%
Increase (decrease) in valuation allowance (as a percent)		14.30%		8.20%
Reduction in valuation allowance for excess foreign tax credits		$ 2.8
Effective Income Tax Rate Reconciliation, Research Tax Credit And Adjustments For Prior Years' Tax Return, Percent	0.60%		0.30%

SHAREHOLDERS' EQUITY (Details)

SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Changes in shareholder's equity
Beginning Balance			$ 961,595
Net earnings common stockholders	$ 16,314	$ 17,822	30,000	$ 104,599
Ending Balance	995,007	926,207	995,007	926,207
Common Stock
Changes in shareholder's equity
Beginning Balance	306	306	306	306
Ending Balance	306	306	306	306
Additional paid-in-capital
Changes in shareholder's equity
Beginning Balance	294,735	293,056	293,682	292,408
Stock plans	1,061	1,731	2,114	2,379
Ending Balance	295,796	294,787	295,796	294,787
Retained Earnings
Changes in shareholder's equity
Beginning Balance	790,000	769,439	778,398	684,741
Net earnings common stockholders	16,314	17,822	30,000	104,599
Dividends paid	(2,083)	(2,077)	(4,167)	(4,156)
Ending Balance	804,231	785,184	804,231	785,184
Accumulated other comprehensive income (loss)
Changes in shareholder's equity
Beginning Balance	1,692	(40,051)	(3,657)	(43,974)
Foreign currency translation	116	(6,885)	5,465	(2,962)
Ending Balance	1,808	(46,936)	1,808	(46,936)
Treasury Stock
Changes in shareholder's equity
Beginning Balance	(107,134)	(107,259)	(107,134)	(107,259)
Issued under stock plans		125		125
Ending Balance	$ (107,134)	$ (107,134)	$ (107,134)	$ (107,134)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Forward contracts $ in Thousands	Mar. 31, 2021USD ($)
DERIVATIVE FINANCIAL INSTRUMENTS
Fair Value of Financial Instruments	$ 141
Level 2
DERIVATIVE FINANCIAL INSTRUMENTS
Fair Value of Financial Instruments	$ 141

REVENUES - Disaggregation of Re

REVENUES - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Disaggregation of revenues
Total revenues	$ 166,644	$ 180,492	$ 329,593	$ 352,220
Point in time
Disaggregation of revenues
Total revenues	73,938	86,828	152,047	172,440
Over time
Disaggregation of revenues
Total revenues	92,706	93,664	177,546	179,780
United States
Disaggregation of revenues
Total revenues	123,447	135,285	241,570	259,788
International
Disaggregation of revenues
Total revenues	43,197	45,207	88,023	92,432
Commercial
Disaggregation of revenues
Total revenues	111,827	129,238	230,555	258,582
U.S. Government
Disaggregation of revenues
Total revenues	54,817	51,254	99,038	93,638
Aerospace & Defense
Disaggregation of revenues
Total revenues	83,278	95,124	150,169	172,635
Aerospace & Defense \| Point in time
Disaggregation of revenues
Total revenues	37,127	46,610	64,000	82,897
Aerospace & Defense \| Over time
Disaggregation of revenues
Total revenues	46,151	48,514	86,169	89,738
Aerospace & Defense \| United States
Disaggregation of revenues
Total revenues	73,037	81,458	130,849	146,164
Aerospace & Defense \| International
Disaggregation of revenues
Total revenues	10,241	13,666	19,320	26,471
Aerospace & Defense \| Commercial
Disaggregation of revenues
Total revenues	33,973	51,550	62,114	93,417
Aerospace & Defense \| U.S. Government
Disaggregation of revenues
Total revenues	49,305	43,574	88,055	79,218
USG
Disaggregation of revenues
Total revenues	39,555	43,768	94,095	96,602
USG \| Point in time
Disaggregation of revenues
Total revenues	27,563	32,209	69,931	72,524
USG \| Over time
Disaggregation of revenues
Total revenues	11,992	11,559	24,164	24,078
USG \| United States
Disaggregation of revenues
Total revenues	27,445	28,706	64,490	63,665
USG \| International
Disaggregation of revenues
Total revenues	12,110	15,062	29,605	32,937
USG \| Commercial
Disaggregation of revenues
Total revenues	38,549	43,736	92,414	95,971
USG \| U.S. Government
Disaggregation of revenues
Total revenues	1,006	32	1,681	631
Test
Disaggregation of revenues
Total revenues	43,811	41,600	85,329	82,983
Test \| Point in time
Disaggregation of revenues
Total revenues	9,248	8,009	18,116	17,019
Test \| Over time
Disaggregation of revenues
Total revenues	34,563	33,591	67,213	65,964
Test \| United States
Disaggregation of revenues
Total revenues	22,965	25,121	46,231	49,959
Test \| International
Disaggregation of revenues
Total revenues	20,846	16,479	39,098	33,024
Test \| Commercial
Disaggregation of revenues
Total revenues	39,305	33,952	76,027	69,194
Test \| U.S. Government
Disaggregation of revenues
Total revenues	$ 4,506	$ 7,648	$ 9,302	$ 13,789

REVENUES - Remaining Performanc

REVENUES - Remaining Performance Obligations (Details) $ in Millions	Mar. 31, 2021USD ($)
Remaining Performance Obligations
Revenue, Remaining Performance Obligation, Amount	$ 521.7
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	6 Months Ended
	Mar. 31, 2021USD ($)
REVENUES
Contract with Customer, Asset, Net	$ 95
Contract with Customer, Liability	106.6
Contract with Customer, Liability, Revenue Recognized	$ 56

LEASES - Components of lease co

LEASES - Components of lease costs (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Leases
Option to extend			true
Finance lease cost
Amortization of right-of-use assets	$ 492	$ 622	$ 985	$ 1,245
Interest on lease liabilities	311	198	623	335
Operating lease cost	1,424	1,402	2,877	2,750
Total lease costs	$ 2,227	$ 2,222	$ 4,485	$ 4,330
Maximum
Leases
Lease term	20 years		20 years

LEASES - Additional information

LEASES - Additional information related to leases (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 1,375	$ 1,380	$ 2,800	$ 2,717
Operating cash flows from finance leases	311	198	623	335
Financing cash flows from finance leases	$ 419	$ 377	$ 838	$ 753
Weighted-average remaining lease term
Operating leases	5 years 9 months 3 days	6 years 4 months 13 days	5 years 9 months 3 days	6 years 4 months 13 days
Finance leases	12 years 2 months 12 days	12 years 8 months 12 days	12 years 2 months 12 days	12 years 8 months 12 days
Weighted-average discount rate
Operating leases	3.11%	3.08%	3.11%	3.08%
Finance leases	4.31%	4.28%	4.31%	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	Mar. 31, 2021	Sep. 30, 2020
Operating leases
2021 (excluding the six months ended March 31, 2021)	$ 2,732
2022	4,907
2023	3,984
2024	2,438
2025 and thereafter	7,173
Total minimum lease payments	21,234
Less: amounts representing interest	1,894
Present value of net minimum lease payments	19,340
Less: current portion of lease obligations	4,839
Non-current portion of lease obligations	14,501	$ 16,785
ROU assets	18,929	$ 21,390
Finance leases
2021 (excluding the six months ended March 31, 2021)	1,473
2022	3,015
2023	3,098
2024	3,181
2025 and thereafter	28,285
Total minimum lease payments	39,052
Less: amounts representing interest	9,625
Present value of net minimum lease payments	29,427
Less: current portion of lease obligations	2,001
Non-current portion of lease obligations	27,426
ROU assets	$ 25,182
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	ROU assets
Location of finance lease ROU assets included on Consolidated Balance Sheets	us-gaap:PropertyPlantAndEquipmentNet