ESCO (ESE) 10-Q 9 Feb 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Dec. 31, 2015	Jan. 31, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Registrant Name	ESCO TECHNOLOGIES INC
Entity Central Index Key	866,706
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Trading Symbol	ESE
Entity Common Stock, Shares Outstanding		25,823,850

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Net sales	$ 132,833	$ 120,547
Costs and expenses:
Cost of sales	80,049	71,621
Selling, general and administrative expenses	33,291	33,504
Amortization of intangible assets	2,694	1,873
Interest expense, net	229	195
Other expenses (income), net	3,602	(221)
Total costs and expenses	119,865	106,972
Earnings before income taxes	12,968	13,575
Income tax expense	4,139	3,552
Net earnings	$ 8,829	$ 10,023
Earnings per share:
Basic - Net earnings	$ 0.34	$ 0.38
Diluted - Net earnings	$ 0.34	$ 0.38

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Net earnings	$ 8,829	$ 10,023
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(1,138)	(2,463)
Net unrealized gain (loss) on derivative instruments	63	0
Total other comprehensive income (loss), net of tax	(1,075)	(2,463)
Comprehensive income	$ 7,754	$ 7,560

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 39,825	$ 39,411
Accounts receivable, net	101,192	102,607
Costs and estimated earnings on long-term contracts, less progress billings of $49,305 and $25,309, respectively	30,851	28,387
Inventories	104,260	99,786
Current portion of deferred tax assets	15,626	15,558
Other current assets	9,074	12,502
Total current assets	300,828	298,251
Property, plant and equipment:
Property, plant and equipment, net of accumulated depreciation of $78,476 and $76,727, respectively	80,941	77,358
Intangible assets, net of accumulated amortization of $48,986 and $46,292, respectively	193,274	190,748
Goodwill	295,561	291,157
Other assets	7,781	6,694
Total assets	878,385	864,208
Current liabilities:
Current maturities of long-term debt	20,000	20,000
Accounts payable	29,575	37,863
Advance payments on long-term contracts, less costs incurred of $35,519 and $49,779, respectively	17,229	18,626
Accrued salaries	15,262	23,373
Current portion of deferred revenue	22,260	21,498
Accrued other expenses	24,412	21,851
Total current liabilities	128,738	143,211
Pension obligations	30,642	30,382
Deferred tax liabilities	75,796	74,469
Other liabilities	2,072	1,964
Long-term debt	50,000	30,000
Total liabilities	287,248	280,026
Shareholders' equity:
Preferred stock, par value $.01 per share, authorized 10,000,000 shares	0	0
Common stock, par value $.01 per share, authorized 50,000,000 shares, issued 30,358,864 and 30,358,864 shares, respectively	304	304
Additional paid-in capital	287,694	286,485
Retained earnings	440,395	433,632
Accumulated other comprehensive loss, net of tax	(33,613)	(32,538)
Total stockholders' equity before Treasury Stock	694,780	687,883
Less treasury stock, at cost: 4,538,614 and 4,542,214 common shares, respectively	(103,643)	(103,701)
Total shareholders' equity	591,137	584,182
Total liabilities and shareholders’ equity	$ 878,385	$ 864,208

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Costs and estimated earnings on long-term contracts, progress billings	$ 49,305	$ 25,309
Property, plant and equipment, net of accumulated depreciation	78,476	76,727
Intangible assets, net of accumulated amortization	48,986	46,292
Advance payments on long-term contracts, costs incurred	$ 35,519	$ 49,779
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	10,000,000	10,000,000
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	30,358,864	30,358,864
Treasury stock, shares	4,538,614	4,542,214

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Cash flows from operating activities:
Net earnings	$ 8,829	$ 10,023
Adjustments to reconcile net earnings to net cash provided (used) by operating activities:
Depreciation and amortization	5,360	4,282
Stock compensation expense	1,329	1,255
Changes in assets and liabilities	(16,935)	(13,931)
Effect of deferred taxes	1,259	624
Change in deferred revenue and costs, net	1,290	(2,803)
Pension contributions	0	(620)
Other	208	213
Net cash provided (used) by operating activities	1,340	(957)
Cash flows from investing activities:
Acquisition of business, net of cash acquired	(12,408)	0
Additions to capitalized software	(1,713)	(1,615)
Capital expenditures	(2,749)	(3,532)
Net cash used by investing activities	(16,870)	(5,147)
Cash flows from financing activities:
Proceeds from long-term debt	33,000	45,000
Principal payments on long-term debt	(13,000)	(25,000)
Dividends paid	(2,065)	(2,105)
Purchases of common stock into treasury	0	(6,363)
Debt issuance costs	(950)	0
Other	0	(46)
Net cash provided by financing activities	16,985	11,486
Effect of exchange rate changes on cash and cash equivalents	(1,041)	(1,904)
Net increase in cash and cash equivalents	414	3,478
Cash and cash equivalents, beginning of period	39,411	35,131
Cash and cash equivalents, end of period	$ 39,825	$ 38,609

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Dec. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
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). 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, 2015. The Company’s business is typically not impacted by seasonality; however, the results for the three-month periods ended December 31, 2015 are not necessarily indicative of the results for the entire 2016 fiscal year. References to the first quarters of 2016 and 2015 represent the fiscal quarters ended December 31, 2015 and 2014, respectively. In preparing the financial statements, the Company uses estimates and assumptions that may affect reported amounts and disclosures. The Company regularly evaluates the estimates and assumptions related to the allowance for doubtful trade receivables, inventory obsolescence, warranty reserves, value of equity-based awards, goodwill and purchased intangible asset valuations, asset impairments, employee benefit plan liabilities, income tax liabilities and assets and related valuation allowances, uncertain tax positions, and claims, litigation and other loss contingencies. Actual results could differ from those estimates.

ACQUISITION

ACQUISITION	3 Months Ended
	Dec. 31, 2015
Business Combinations [Abstract]
Acquisitions	2. ACQUISITION On October 16, 2015, the Company acquired the stock of Fremont Plastics, Inc. (Fremont) for a purchase price of $ 10.5 2 4.4 3.6

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)	3 Months Ended
	Dec. 31, 2015
Earnings Per Share (EPS) [Abstract]
EARNINGS PER SHARE (EPS)	3. 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. Three Months Ended 2015 2014 Weighted Average Shares Outstanding - Basic 25,820 26,191 Dilutive Options and Restricted Shares 224 195 Adjusted Shares - Diluted 26,044 26,386 Approximately 207,000 209,000

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Dec. 31, 2015
Share-based Compensation [Abstract]
SHARE-BASED COMPENSATION	4. 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 Pretax compensation expense related to the restricted share awards was $ 1.1 1.0 439,438 Non-Employee Directors Plan Pretax compensation expense related to the non-employee director grants was $ 0.2 0.2 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 $ 1.3 1.3 0.5 0.5 7.9 2.0

INVENTORIES

INVENTORIES	3 Months Ended
	Dec. 31, 2015
Inventories [Abstract]
Inventories	5. INVENTORIES (In thousands) December 31, September 30, Finished goods $ 18,180 19,120 Work in process, including long-term contracts 36,764 33,176 Raw materials 49,316 47,490 Total inventories $ 104,260 99,786

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION	3 Months Ended
	Dec. 31, 2015
Business Segment Information [Abstract]
BUSINESS SEGMENT INFORMATION	6. BUSINESS SEGMENT INFORMATION The Company is organized based on the products and services that it offers. Under this organizational structure, the Company has three reporting segments: Filtration/Fluid Flow (Filtration), RF Shielding and Test (Test), and Utility Solutions Group (USG). The Filtration segment’s operations consist of PTI Technologies Inc. (PTI), VACCO Industries (VACCO), Crissair, Inc. (Crissair) and Thermoform Engineered Quality LLC (TEQ). The companies within this segment primarily design and manufacture specialty filtration products, including hydraulic filter elements used in commercial aerospace applications, unique filter mechanisms used in micro-propulsion devices for satellites and custom designed filters for manned and unmanned aircraft. 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. The USG segment’s operations consist primarily of Doble Engineering Company (Doble). Doble provides high-end, intelligent diagnostic test solutions for the electric power delivery industry and is a leading supplier of partial discharge testing instruments used to assess the integrity of high voltage power delivery equipment. (In thousands) Three Months Ended 2015 2014 NET SALES Filtration $ 55,538 47,511 Test 42,773 39,421 USG 34,522 33,615 Consolidated totals $ 132,833 120,547 EBIT Filtration $ 10,097 7,076 Test 2,338 2,594 USG 8,249 9,977 Corporate (loss) (7,487) (5,877) Consolidated EBIT 13,197 13,770 Less: Interest expense (229) (195) Earnings before income taxes $ 12,968 13,575 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 is set forth in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations – EBIT, below. The Company believes that the presentation of EBIT provides important supplemental information to investors by facilitating 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, 2015
Debt [Abstract]
DEBT	7. DEBT (In thousands) December 31, September 30, Total borrowings $ 70,000 50,000 Short-term borrowings and current portion of long-term debt (20,000) (20,000) Total long-term debt, less current portion $ 50,000 30,000 On December 21, 2015, the Company amended its existing credit facility to extend the maturity date from May 13, 2017 through December 21, 2020, and to reduce the outstanding borrowing rates and commitment fees. Consistent with the prior credit facility, the amended facility includes a $ 450 250 At December 31, 2015, the Company had approximately $ 372 250 39.8 70 7.8 250 The credit facility requires, as determined by certain financial ratios, a facility fee ranging from 12.5 27.5 65 1.41 1.44

INCOME TAX EXPENSE

INCOME TAX EXPENSE	3 Months Ended
	Dec. 31, 2015
Income Tax Expense [Abstract]
INCOME TAX EXPENSE	8. INCOME TAX EXPENSE The first quarter 2016 effective income tax rate was 31.9% compared to 26.2% in the first quarter of 2015. The income tax expense in the first quarter of 2016 was favorably impacted by the extension of the research credit as a result of The Protecting Americans from Tax Hikes Act reducing the first quarter effective tax rate by 7.5%. The income tax expense in the first quarter of 2016 was unfavorably impacted by losses in foreign jurisdictions for which no tax benefit was recorded increasing the first quarter effective tax rate by 5.7%. The income tax expense in the first quarter of 2015 was favorably impacted by the extension of the research credit as a result of the Tax Increase Prevention Act of 2014 reducing the first quarter effective tax rate by 7.1%. The Company estimates the fiscal 2016 effective tax rate will be approximately 35%. During the three-month period ended December 31, 2015, there was no material change in the unrecognized tax benefits. The Company does not anticipate a material change in the amount of unrecognized tax benefits in the next twelve months.

RETIREMENT PLANS

RETIREMENT PLANS	3 Months Ended
	Dec. 31, 2015
Retirement Plans [Abstract]
RETIREMENT PLANS	9. RETIREMENT PLANS Three Months Ended (In thousands) 2015 2014 Defined benefit plans Interest cost $ 963 951 Expected return on assets (1,093) (1,136) Amortization of: Prior service cost 3 3 Actuarial loss 486 442 Net periodic benefit cost $ 359 260

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	3 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
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. During 2015, the Company entered into several forward contracts to purchase Euros to hedge the foreign currency risk related to Euro denominated inventory payments. All derivative instruments are reported on the balance sheet at fair value. The derivative instruments are designated as cash flow hedges and the gain or loss on the derivative is deferred in accumulated other comprehensive income until recognized in earnings with the underlying hedged item. (In thousands) Notional Fair Forward contract 309 (32)

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
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, 2015 and September 30, 2015 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 (In thousands) Level 1 Level 2 Level 3 Total Liabilities: Forward contract $ - 32 $ - 32 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 nine months ended December 31, 2015.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	3 Months Ended
	Dec. 31, 2015
Subsequent Events [Abstract]
Subsequent Event	SUBSEQUENT EVENT On January 29, 2016, the Company acquired Plastique Group Limited (Plastique) headquartered in Tunbridge Wells, England, with manufacturing locations in Nottingham, England and Poznan, Poland. Plastique, which will become part of ESCO’s TEQ operating subsidiary, is a market leader in the development and manufacture of highly-technical thermoformed plastic and precision molded pulp fiber packaging primarily serving pharmaceutical, personal care, and various specialty end markets. Plastique has annual sales of approximately $ 35

EARNINGS PER SHARE (EPS) (Table

EARNINGS PER SHARE (EPS) (Tables)	3 Months Ended
	Dec. 31, 2015
Earnings Per Share (EPS) [Abstract]
Schedule of Weighted Average Number of Shares	The number of shares used in the calculation of earnings per share for each period presented is as follows (in thousands): Three Months Ended 2015 2014 Weighted Average Shares Outstanding - Basic 25,820 26,191 Dilutive Options and Restricted Shares 224 195 Adjusted Shares - Diluted 26,044 26,386

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Dec. 31, 2015
Inventories [Abstract]
Schedule Of Inventories	Inventories consist of the following: (In thousands) December 31, September 30, Finished goods $ 18,180 19,120 Work in process, including long-term contracts 36,764 33,176 Raw materials 49,316 47,490 Total inventories $ 104,260 99,786

BUSINESS SEGMENT INFORMATION (T

BUSINESS SEGMENT INFORMATION (Tables)	3 Months Ended
	Dec. 31, 2015
Business Segment Information [Abstract]
Schedule Of Net Sales And Earnings Before Income Tax	Management evaluates and measures the performance of its operating segments based on “Net Sales” and “EBIT”, which are detailed in the table below. EBIT is defined as earnings before interest and taxes. (In thousands) Three Months Ended 2015 2014 NET SALES Filtration $ 55,538 47,511 Test 42,773 39,421 USG 34,522 33,615 Consolidated totals $ 132,833 120,547 EBIT Filtration $ 10,097 7,076 Test 2,338 2,594 USG 8,249 9,977 Corporate (loss) (7,487) (5,877) Consolidated EBIT 13,197 13,770 Less: Interest expense (229) (195) Earnings before income taxes $ 12,968 13,575

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Dec. 31, 2015
Debt [Abstract]
Schedule Of Debt	The Company’s debt is summarized as follows: (In thousands) December 31, September 30, Total borrowings $ 70,000 50,000 Short-term borrowings and current portion of long-term debt (20,000) (20,000) Total long-term debt, less current portion $ 50,000 30,000

RETIREMENT PLANS (Tables)

RETIREMENT PLANS (Tables)	3 Months Ended
	Dec. 31, 2015
Retirement Plans [Abstract]
Schedule Of Components Of Net Periodic Benefit Cost For Plans	Three Months Ended (In thousands) 2015 2014 Defined benefit plans Interest cost $ 963 951 Expected return on assets (1,093) (1,136) Amortization of: Prior service cost 3 3 Actuarial loss 486 442 Net periodic benefit cost $ 359 260

DERIVATIVE FINANCIAL INSTRUME24

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Dec. 31, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Outstanding Derivative Financial Instruments	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, 2015: (In thousands) Notional Fair Forward contract 309 (32)

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Dec. 31, 2015
Fair Value Disclosures [Abstract]
Schedule of Fair Value of Financial Instruments	The Company’s forward contracts 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, 2015: (In thousands) Level 1 Level 2 Level 3 Total Liabilities: Forward contract $ - 32 $ - 32

ACQUISITON (Narrative) (Details

ACQUISITON (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
	Oct. 16, 2015	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015
Business Acquisition [Line Items]
Goodwill		$ 295,561		$ 291,157
Payments to Acquire Productive Assets, Total		$ 2,749	$ 3,532
Fremont Plastics, Inc [Member]
Business Acquisition [Line Items]
Goodwill	$ 4,400
Payments to Acquire Productive Assets, Total	10,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total	3,600
Business Acquisition Purchase Price Allocation Real Property	$ 2,000

EARNINGS PER SHARE (EPS) (Numbe

EARNINGS PER SHARE (EPS) (Number Of Shares Used In The Calculation Of Earnings Per Share) (Details) - shares	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Earning Per Share [Line Items]
Weighted Average Shares Outstanding - Basic	25,820	26,191
Dilutive Options and Restricted Shares	224	195
Adjusted Shares - Diluted	26,044	26,386

EARNINGS PER SHARE (EPS) (Narra

EARNINGS PER SHARE (EPS) (Narrative) (Details) - shares	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Restricted Shares [Member]
Earning Per Share [Line Items]
Common Stock outstanding, but were not included in the computation of diluted EPS	207,000	209,000

SHARE-BASED COMPENSATION (Narra

SHARE-BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation cost	$ 1.3	$ 1.3
Performance-Accelerated Restricted Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pretax compensation expense	$ 1.1	1
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Beginning Balance	439,438
Non-Employee Directors Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total income tax benefit recognized	$ 0.5	0.5
Pretax compensation expense	0.2	$ 0.2
Total unrecognized compensation cost related to share-based compensation arrangements	$ 7.9
Remaining weighted-average period for recognition of total unrecognized compensation cost	2 years

INVENTORIES (Schedule Of Invent

INVENTORIES (Schedule Of Inventories) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Inventory [Line Items]
Finished goods	$ 18,180	$ 19,120
Work in process, including long-term contracts	36,764	33,176
Raw materials	49,316	47,490
Total inventories	$ 104,260	$ 99,786

BUSINESS SEGMENT INFORMATION (S

BUSINESS SEGMENT INFORMATION (Schedule Of Net Sales And Earnings Before Income Tax) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Segment Reporting Information [Line Items]
Net sales	$ 132,833	$ 120,547
Consolidated EBIT	13,197	13,770
Less: Interest expense	(229)	(195)
Earnings before income taxes	12,968	13,575
Filtration [Member]
Segment Reporting Information [Line Items]
Net sales	55,538	47,511
Consolidated EBIT	10,097	7,076
Test [Member]
Segment Reporting Information [Line Items]
Net sales	42,773	39,421
Consolidated EBIT	2,338	2,594
Utility Solutions [Member]
Segment Reporting Information [Line Items]
Net sales	34,522	33,615
Consolidated EBIT	8,249	9,977
Corporate (loss) [Member]
Segment Reporting Information [Line Items]
Consolidated EBIT	$ (7,487)	$ (5,877)

DEBT (Schedule Of Debt) (Detail

DEBT (Schedule Of Debt) (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Sep. 30, 2015
Debt Instrument [Line Items]
Total borrowings	$ 70,000	$ 50,000
Short-term borrowings and current portion of long-term debt	(20,000)	(20,000)
Total long-term debt, less current portion	$ 50,000	$ 30,000

DEBT (Narrative) (Details)

DEBT (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Sep. 30, 2015	Sep. 30, 2014
Debt Instrument [Line Items]
Available to borrow under the credit facility	$ 372,000
Cash on hand	39,825	$ 38,609	$ 39,411	$ 35,131
Incremental term loan	$ 250,000
Percentage of foreign subsidiaries' share equity	65.00%
Letters of Credit Outstanding, Amount	$ 7,800
Line of Credit Facility, Amount Outstanding	70,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Amount Outstanding	$ 450,000
Weighted average interest rates	1.41%	1.44%
Line of Credit Facility, Commitment Fee Amount	$ 250,000
Minimum [Member]
Debt Instrument [Line Items]
Credit facility fees	12.50%
Maximum [Member]
Debt Instrument [Line Items]
Incremental term loan	$ 250,000
Credit facility fees	27.50%

INCOME TAX EXPENSE (Narrative)

INCOME TAX EXPENSE (Narrative) (Details)	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Income Tax Expense [Line Items]
Effective Income Tax Rate	31.90%	26.20%
Increase in effective tax rate	35.00%
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Percent	7.50%	7.10%
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent	5.70%

RETIREMENT PLANS (Schedule Of C

RETIREMENT PLANS (Schedule Of Components Of Net Periodic Benefit Cost For Plans) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
Defined benefit plans
Interest cost	$ 963	$ 951
Expected return on assets	(1,093)	(1,136)
Amortization of Prior service cost	3	3
Amortization of Actuarial loss	486	442
Net periodic benefit cost	$ 359	$ 260

DERIVATIVE FINANCIAL INSTRUME36

DERIVATIVE FINANCIAL INSTRUMENTS (Schedule of Outstanding Derivative Financial Instruments) (Details) - Dec. 31, 2015 - Forward Contracts [Member] € in Thousands, $ in Thousands	USD ($)	EUR (€)
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount | €		€ 309
Derivative, Fair Value | $	$ (32)

FAIR VALUE MEASUREMENTS (Schedu

FAIR VALUE MEASUREMENTS (Schedule of Fair Value of Financial Instruments) (Details) - Forward Contracts [Member] $ in Thousands	Dec. 31, 2015USD ($)
Derivative [Line Items]
Fair Value of Financial Instruments	$ 32
Fair Value, Inputs, Level 1 [Member]
Derivative [Line Items]
Fair Value of Financial Instruments	0
Fair Value, Inputs, Level 2 [Member]
Derivative [Line Items]
Fair Value of Financial Instruments	32
Fair Value, Inputs, Level 3 [Member]
Derivative [Line Items]
Fair Value of Financial Instruments	$ 0

SUBSEQUENT EVENT (Narrative) (D

SUBSEQUENT EVENT (Narrative) (Details) $ in Millions	1 Months Ended
	Jan. 29, 2016USD ($)
Subsequent Event [Member] | Plastique Group Ltd [Member]
Subsequent Event [Line Items]
Sales Revenue, Goods, Net, Total	$ 35