ESCO (ESE) 10-Q 8 Aug 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Jul. 31, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
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		25,716,828

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net sales	$ 140,191	$ 134,191	$ 411,954	$ 383,679
Costs and expenses:
Cost of sales	86,602	82,956	254,769	235,719
Selling, general and administrative expenses	31,369	32,786	97,189	99,221
Amortization of intangible assets	2,951	2,285	8,540	6,378
Interest expense, net	320	247	917	655
Other expenses (income), net	1,429	337	6,436	(238)
Total costs and expenses	122,671	118,611	367,851	341,735
Earnings before income taxes	17,520	15,580	44,103	41,944
Income tax expense	5,992	4,832	15,136	13,191
Net earnings from continuing operations	11,528	10,748	28,967	28,753
Earnings from discontinued operations, net of tax expense	0	1,148	0	776
Net earnings	$ 11,528	$ 11,896	$ 28,967	$ 29,529
Earnings per share:
Basic - Continuing operations	$ 0.45	$ 0.41	$ 1.12	$ 1.1
- Discontinued operations	0	0.05	0	0.03
- Net earnings	0.45	0.46	1.12	1.13
Diluted - Continuing operations	0.44	0.41	1.12	1.09
- Discontinued operations	0	0.04	0	0.03
- Net earnings	$ 0.44	$ 0.45	$ 1.12	$ 1.12

CONSOLIDATED STATEMENTS OF OPE3

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Loss on sale from discontinued operations,net of tax expense (benefit)	$ 591	$ 390

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Net earnings	$ 11,528	$ 11,896	$ 28,967	$ 29,529
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	(1,930)	953	(1,730)	(4,972)
Net unrealized gain (loss) on derivative instruments	(211)	135	(129)	(94)
Total other comprehensive income (loss), net of tax	(2,141)	1,088	(1,859)	(5,066)
Comprehensive income	$ 9,387	$ 12,984	$ 27,108	$ 24,463

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 40,542	$ 39,411
Accounts receivable, net	115,158	102,607
Costs and estimated earnings on long-term contracts, less progress billings of $40,694 and $25,309, respectively	25,781	28,387
Inventories	105,534	99,786
Current portion of deferred tax assets	16,657	15,558
Other current assets	18,188	12,502
Total current assets	321,860	298,251
Property, plant and equipment, net of accumulated depreciation of $83,154 and $76,727, respectively	89,037	77,358
Intangible assets, net of accumulated amortization of $54,832 and $46,292, respectively	203,871	190,748
Goodwill	305,704	291,157
Other assets	7,776	6,694
Total assets	928,248	864,208
Current liabilities:
Short-term borrowings and current maturities of long-term debt	21,458	20,000
Accounts payable	34,543	37,863
Advance payments on long-term contracts, less costs incurred of $51,069 and $49,779, respectively	20,311	18,626
Accrued salaries	22,533	23,373
Current portion of deferred revenue	24,190	21,498
Accrued other expenses	20,856	21,851
Total current liabilities	143,891	143,211
Pension obligations	30,838	30,382
Deferred tax liabilities	79,339	74,469
Other liabilities	4,923	1,964
Long-term debt	65,000	30,000
Total liabilities	323,991	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	289,766	286,485
Retained earnings	456,415	433,632
Accumulated other comprehensive loss, net of tax	(34,398)	(32,538)
Total stockholders' equity before Treasury Stock	712,087	687,883
Less treasury stock, at cost: 4,650,922 and 4,542,214 common shares, respectively	(107,830)	(103,701)
Total shareholders' equity	604,257	584,182
Total liabilities and shareholders’ equity	$ 928,248	$ 864,208

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Costs and estimated earnings on long-term contracts, progress billings	$ 40,694	$ 25,309
Property, plant and equipment, net of accumulated depreciation	83,154	76,727
Intangible assets, net of accumulated amortization	54,832	46,292
Advance payments on long-term contracts, costs incurred	$ 51,069	$ 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	4,650,922	4,542,214

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net earnings	$ 28,967	$ 29,529
Adjustments to reconcile net earnings to net cash provided by operating activities:
Net earnings from discontinued operations, net of tax	0	(776)
Depreciation and amortization	17,209	13,614
Stock compensation expense	3,652	3,701
Changes in assets and liabilities	(21,106)	(19,132)
Effect of deferred taxes	1,141	3,370
Change in deferred revenue and costs, net	3,029	1,837
Pension contributions	0	(650)
Other	350	(1,101)
Net cash provided by operating activities - continuing operations	33,242	30,392
Net cash provided by operating activities - discontinued operations	0	1,166
Net cash provided by operating activities	33,242	31,558
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired	(41,308)	(20,500)
Additions to capitalized software	(6,257)	(4,394)
Capital expenditures	(7,812)	(10,557)
Net cash used by investing activities	(55,377)	(35,451)
Cash flows from financing activities:
Proceeds from long-term debt	81,458	97,407
Principal payments on long-term debt	(45,000)	(72,000)
Dividends paid	(6,191)	(6,282)
Purchases of common stock into treasury	(4,303)	(9,882)
Debt issuance costs	(1,037)	0
Other	(123)	77
Net cash provided by financing activities	24,804	9,320
Effect of exchange rate changes on cash and cash equivalents	(1,538)	(3,679)
Net increase in cash and cash equivalents	1,131	1,748
Cash and cash equivalents, beginning of period	39,411	35,131
Cash and cash equivalents, end of period	$ 40,542	$ 36,879

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Jun. 30, 2016
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 and nine-month periods ended June 30, 2016 are not necessarily indicative of the results for the entire 2016 fiscal year. References to the third quarters of 2016 and 2015 represent the fiscal quarters ended June 30, 2016 and 2015, 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. The Company is organized based on the products and services that it offers. To enhance shareholders’ understanding of the Company’s underlying operations, beginning in the second quarter of 2016, Management expanded the presentation of its reporting segments to include “Technical Packaging”. The new Technical Packaging reporting segment was created to separately disclose Thermoform Engineered Quality LLC (TEQ) along with the recent acquisitions of Plastique Group Limited and Fremont Plastics, Inc., as it no longer met the criteria for aggregation with our Filtration/Fluid Flow (Filtration) reporting segment.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
ACQUISITIONS	2. ACQUISITIONS 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 for a purchase price of approximately $ 31.6 2.7 35 9.6 10.2 11.9 On October 16, 2015, the Company acquired the stock of Fremont Plastics, Inc. (Fremont) for a purchase price of approximately $ 10.5 2 4.4 3.6

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)	9 Months Ended
	Jun. 30, 2016
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 Nine Months 2016 2015 2016 2015 Weighted Average Shares Outstanding - Basic 25,725 26,080 25,777 26,104 Dilutive Options and Restricted Shares 185 100 185 148 Adjusted Shares - Diluted 25,910 26,180 25,962 26,252 Approximately 151,000 149,000 183,000 174,000

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Jun. 30, 2016
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 $ 0.8 3.1 0.9 3.1 435,438 Non-Employee Directors Plan Pretax compensation expense related to the non-employee director grants was $ 0.2 0.6 0.2 0.6 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 $ 1.0 3.7 1.1 3.7 0.4 1.3 0.4 1.4 5.8 1.3

INVENTORIES

INVENTORIES	9 Months Ended
	Jun. 30, 2016
Inventories [Abstract]
INVENTORIES	5. INVENTORIES (In thousands) June 30, September 30, Finished goods $ 20,549 19,120 Work in process, including long-term contracts 34,992 33,176 Raw materials 49,993 47,490 Total inventories $ 105,534 99,786

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	9 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	GOODWILL AND OTHER INTANGIBLE ASSETS (Dollars in thousands) June 30, 2016 September 30, 2015 Goodwill $ 305,704 291,157 Intangible assets with determinable lives: Patents Gross carrying amount $ 897 892 Less: accumulated amortization 693 657 Net $ 204 235 Capitalized software Gross carrying amount $ 51,728 45,470 Less: accumulated amortization 25,148 20,115 Net $ 26,580 25,355 Customer Relationships Gross carrying amount $ 84,740 70,527 Less: accumulated amortization 27,721 24,775 Net $ 57,019 45,752 Other Gross carrying amount $ 2,947 2,690 Less: accumulated amortization 926 401 Net $ 2,021 2,289 Intangible assets with indefinite lives: Trade names $ 118,047 117,117

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION	9 Months Ended
	Jun. 30, 2016
Business Segment Information [Abstract]
BUSINESS SEGMENT INFORMATION	7. BUSINESS SEGMENT INFORMATION The Company is organized based on the products and services that it offers. To enhance shareholders’ understanding of the Company’s underlying operations, beginning in the second quarter of 2016, Management expanded the presentation of its reporting segments to include “Technical Packaging”. The new Technical Packaging reporting segment was created to separately disclose Thermoform Engineered Quality LLC (TEQ) along with the recent acquisitions of Plastique and Fremont, as it no longer met the criteria for aggregation with our Filtration/Fluid Flow (Filtration) reporting segment. Prior year periods presented have been updated to reflect the presentation of the current reporting segment structure. Under the current organizational structure, the Company has four reporting segments: Filtration, Technical Packaging (Packaging), RF Shielding and Test (Test), and Utility Solutions Group (USG). The Filtration segment’s operations consist of PTI Technologies Inc. (PTI), VACCO Industries (VACCO), and Crissair, Inc. (Crissair). 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 Technical Packaging segment’s operations consist of Thermoform Engineered Quality LLC (TEQ) and Plastique. The companies within this segment provide innovative solutions to the medical and commercial markets for thermoformed and precision molded pulp fiber packages and specialty products using a wide variety of thin gauge plastics and pulp. 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 Nine Months 2016 2015 2016 2015 NET SALES Filtration $ 54,396 49,615 145,758 139,272 Technical Packaging 20,440 10,786 52,931 27,068 Test 36,234 42,945 119,608 124,449 USG 29,121 30,845 93,657 92,890 Consolidated totals $ 140,191 134,191 411,954 383,679 EBIT Filtration $ 12,163 10,372 29,511 28,709 Technical Packaging 2,474 1,913 7,035 2,703 Test 3,744 2,014 8,587 7,073 USG 6,124 7,357 21,581 22,189 Corporate (loss) (6,665) (5,829) (21,694) (18,075) Consolidated EBIT 17,840 15,827 45,020 42,599 Less: Interest expense (320) (247) (917) (655) Earnings before income taxes $ 17,520 15,580 44,103 41,944 Non-GAAP Financial Measures The financial measure “EBIT” is presented in the above table and elsewhere in this Report. EBIT 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	9 Months Ended
	Jun. 30, 2016
Debt [Abstract]
DEBT	8. DEBT (In thousands) June 30, September Total borrowings $ 86,458 50,000 Short-term borrowings and current portion of long-term debt (21,458) (20,000) Total long-term debt, less current portion $ 65,000 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 June 30, 2016, the Company had approximately $ 361 250 40.5 85.0 1.5 4.4 250 The credit facility requires, as determined by certain financial ratios, a facility fee ranging from 12.5 27.5 65 1.50 1.58 1.14 1.28

INCOME TAX EXPENSE

INCOME TAX EXPENSE	9 Months Ended
	Jun. 30, 2016
Income Tax Expense [Abstract]
INCOME TAX EXPENSE	9. INCOME TAX EXPENSE The third quarter 2016 effective income tax rate from continuing operations was 34.2 31.0 34.3 31.5 1.5 0.9 2.7 1.3 0.5 1.7 The income tax expense in the first nine months 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 year-to-date effective tax rate by 2.2 1.6 0.6 0.7 0.3 0.9 0.3 0.9 0.4 2.4 2.1 The Company estimates the fiscal 2016 effective tax rate will be approximately 34

RETIREMENT PLANS

RETIREMENT PLANS	9 Months Ended
	Jun. 30, 2016
Retirement Plans [Abstract]
RETIREMENT PLANS	10. RETIREMENT PLANS Three Months Nine Months (In thousands) 2016 2015 2016 2015 Defined benefit plans Interest cost $ 963 951 2,888 2,852 Expected return on assets (1,093) (1,136) (3,280) (3,408) Amortization of: Prior service cost 3 3 10 10 Actuarial loss 486 442 1,459 1,326 Net periodic benefit cost $ 359 260 1,077 780

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	9 Months Ended
	Jun. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	11. 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 the second quarter of 2016, the Company entered into several forward contracts to purchase pounds sterling (GBP) to hedge two deferred payments due in connection with the acquisition of the Plastique Group. During 2015, the Company entered into a forward contract 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 Euro (29) Forward contracts 1,858 GBP (195)

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Jun. 30, 2016
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	12. 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: · · · Financial Assets and Liabilities The Company has estimated the fair value of its financial instruments as of June 30, 2016 and September 30, 2015 using available market information or other appropriate valuation methodologies. The carrying amounts of cash and cash equivalents, accounts receivable, inventories, accounts payable, 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 contracts $ - 224 $ - 224 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 nine-month periods ended June 30, 2016.

NEW ACCOUNTING PRONOUNCEMENTS

NEW ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Jun. 30, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
NEW ACCOUNTING PRONOUNCEMENTS	13. NEW ACCOUNTING PRONOUNCEMENTS In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) In July 2015, the FASB affirmed its proposed one-year deferral of ASU No. 2014-09, Revenue from Contracts with Customers

EARNINGS PER SHARE (EPS) (Table

EARNINGS PER SHARE (EPS) (Tables)	9 Months Ended
	Jun. 30, 2016
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 Nine Months 2016 2015 2016 2015 Weighted Average Shares Outstanding - Basic 25,725 26,080 25,777 26,104 Dilutive Options and Restricted Shares 185 100 185 148 Adjusted Shares - Diluted 25,910 26,180 25,962 26,252

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Jun. 30, 2016
Inventories [Abstract]
Schedule Of Inventories	(In thousands) June 30, September 30, Finished goods $ 20,549 19,120 Work in process, including long-term contracts 34,992 33,176 Raw materials 49,993 47,490 Total inventories $ 105,534 99,786

GOODWILL AND OTHER INTANGIBLE23

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
	Jun. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill	Included on the Company’s Consolidated Balance Sheets at June 30, 2016 and September 30, 2015 are the following intangible assets gross carrying amounts and accumulated amortization: (Dollars in thousands) June 30, 2016 September 30, 2015 Goodwill $ 305,704 291,157 Intangible assets with determinable lives: Patents Gross carrying amount $ 897 892 Less: accumulated amortization 693 657 Net $ 204 235 Capitalized software Gross carrying amount $ 51,728 45,470 Less: accumulated amortization 25,148 20,115 Net $ 26,580 25,355 Customer Relationships Gross carrying amount $ 84,740 70,527 Less: accumulated amortization 27,721 24,775 Net $ 57,019 45,752 Other Gross carrying amount $ 2,947 2,690 Less: accumulated amortization 926 401 Net $ 2,021 2,289 Intangible assets with indefinite lives: Trade names $ 118,047 117,117

BUSINESS SEGMENT INFORMATION (T

BUSINESS SEGMENT INFORMATION (Tables)	9 Months Ended
	Jun. 30, 2016
Business Segment Information [Abstract]
Schedule Of Net Sales And Earnings Before Income Tax	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 before interest and taxes. (In thousands) Three Months Nine Months 2016 2015 2016 2015 NET SALES Filtration $ 54,396 49,615 145,758 139,272 Technical Packaging 20,440 10,786 52,931 27,068 Test 36,234 42,945 119,608 124,449 USG 29,121 30,845 93,657 92,890 Consolidated totals $ 140,191 134,191 411,954 383,679 EBIT Filtration $ 12,163 10,372 29,511 28,709 Technical Packaging 2,474 1,913 7,035 2,703 Test 3,744 2,014 8,587 7,073 USG 6,124 7,357 21,581 22,189 Corporate (loss) (6,665) (5,829) (21,694) (18,075) Consolidated EBIT 17,840 15,827 45,020 42,599 Less: Interest expense (320) (247) (917) (655) Earnings before income taxes $ 17,520 15,580 44,103 41,944

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Jun. 30, 2016
Debt [Abstract]
Schedule Of Debt	The Company’s debt is summarized as follows: (In thousands) June 30, September Total borrowings $ 86,458 50,000 Short-term borrowings and current portion of long-term debt (21,458) (20,000) Total long-term debt, less current portion $ 65,000 30,000

RETIREMENT PLANS (Tables)

RETIREMENT PLANS (Tables)	9 Months Ended
	Jun. 30, 2016
Retirement Plans [Abstract]
Schedule Of Components Of Net Periodic Benefit Cost For Plans	A summary of net periodic benefit expense for the Company’s defined benefit plans for the three and nine-month periods ended June 30, 2016 and 2015 is shown in the following table. Net periodic benefit cost for each period presented is comprised of the following: Three Months Nine Months (In thousands) 2016 2015 2016 2015 Defined benefit plans Interest cost $ 963 951 2,888 2,852 Expected return on assets (1,093) (1,136) (3,280) (3,408) Amortization of: Prior service cost 3 3 10 10 Actuarial loss 486 442 1,459 1,326 Net periodic benefit cost $ 359 260 1,077 780

DERIVATIVE FINANCIAL INSTRUME27

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Jun. 30, 2016
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 June 30, 2016: (In thousands) Notional Fair Forward contract 309 Euro (29) Forward contracts 1,858 GBP (195)

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Jun. 30, 2016
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 June 30, 2016: (In thousands) Level 1 Level 2 Level 3 Total Liabilities: Forward contracts $ - 224 $ - 224

ACQUISITIONS (Narrative) (Detai

ACQUISITIONS (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended		3 Months Ended		9 Months Ended
	Jan. 29, 2016	Oct. 16, 2015	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Business Acquisition [Line Items]
Goodwill			$ 305,704		$ 305,704		$ 291,157
Business Combination, Contingent Consideration, Liability	$ 2,700
Revenue, Net			$ 140,191	$ 134,191	$ 411,954	$ 383,679
Fremont Plastics, Inc [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross		$ 10,500
Goodwill		4,400
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
Plastique Group Limited [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross	31,600
Goodwill	10,200
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total	11,900
Revenue, Net	35,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment, Total	$ 9,600

EARNINGS PER SHARE (EPS) (Numbe

EARNINGS PER SHARE (EPS) (Number Of Shares Used In The Calculation Of Earnings Per Share) (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Earning Per Share [Line Items]
Weighted Average Shares Outstanding - Basic	25,725	26,080	25,777	26,104
Dilutive Options and Restricted Shares	185	100	185	148
Adjusted Shares - Diluted	25,910	26,180	25,962	26,252

EARNINGS PER SHARE (EPS) (Narra

EARNINGS PER SHARE (EPS) (Narrative) (Details) - shares	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Restricted Shares [Member]
Earning Per Share [Line Items]
Common Stock outstanding, but were not included in the computation of diluted EPS	151,000	149,000	183,000	174,000

SHARE-BASED COMPENSATION (Narra

SHARE-BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Performance-Accelerated Restricted Share Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pretax compensation expense	$ 0.8	$ 0.9	$ 3.1	$ 3.1
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Beginning Balance	435,438		435,438
Non-Employee Directors Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total income tax benefit recognized	$ 0.4	0.4	$ 1.3	1.4
Pretax compensation expense	0.2	0.2	0.6	0.6
Total unrecognized compensation cost related to share-based compensation arrangements	5.8		$ 5.8
Remaining weighted-average period for recognition of total unrecognized compensation cost			1 year 3 months 18 days
Non-Employee Directors Plan [Member] | Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation cost	$ 1	$ 1.1	$ 3.7	$ 3.7

INVENTORIES (Schedule Of Invent

INVENTORIES (Schedule Of Inventories) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Inventory [Line Items]
Finished goods	$ 20,549	$ 19,120
Work in process, including long-term contracts	34,992	33,176
Raw materials	49,993	47,490
Total inventories	$ 105,534	$ 99,786

GOODWILL AND OTHER INTANGIBLE34

GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule Of Intangible Assets Gross Carrying Amounts And Accumulated Amortization) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Goodwill and Other Intangible Assets [Line Items]
Goodwill	$ 305,704	$ 291,157
Less: accumulated amortization	54,832	46,292
Patents [Member]
Goodwill and Other Intangible Assets [Line Items]
Gross carrying amount	897	892
Less: accumulated amortization	693	657
Net	204	235
Capitalized Software [Member]
Goodwill and Other Intangible Assets [Line Items]
Gross carrying amount	51,728	45,470
Less: accumulated amortization	25,148	20,115
Net	26,580	25,355
Customer Relationships [Member]
Goodwill and Other Intangible Assets [Line Items]
Gross carrying amount	84,740	70,527
Less: accumulated amortization	27,721	24,775
Net	57,019	45,752
Other [Member]
Goodwill and Other Intangible Assets [Line Items]
Gross carrying amount	2,947	2,690
Less: accumulated amortization	926	401
Net	2,021	2,289
Trade names [Member]
Goodwill and Other Intangible Assets [Line Items]
Trade names	$ 118,047	$ 117,117

BUSINESS SEGMENT INFORMATION (S

BUSINESS SEGMENT INFORMATION (Schedule Of Net Sales And Earnings Before Income Tax) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment Reporting Information [Line Items]
Net sales	$ 140,191	$ 134,191	$ 411,954	$ 383,679
Consolidated EBIT	17,840	15,827	45,020	42,599
Less: Interest expense	(320)	(247)	(917)	(655)
Earnings before income taxes	17,520	15,580	44,103	41,944
Filtration [Member]
Segment Reporting Information [Line Items]
Net sales	54,396	49,615	145,758	139,272
Consolidated EBIT	12,163	10,372	29,511	28,709
Technical Packaging [Member]
Segment Reporting Information [Line Items]
Net sales	20,440	10,786	52,931	27,068
Consolidated EBIT	2,474	1,913	7,035	2,703
Test [Member]
Segment Reporting Information [Line Items]
Net sales	36,234	42,945	119,608	124,449
Consolidated EBIT	3,744	2,014	8,587	7,073
Utility Solutions [Member]
Segment Reporting Information [Line Items]
Net sales	29,121	30,845	93,657	92,890
Consolidated EBIT	6,124	7,357	21,581	22,189
Corporate (loss) [Member]
Segment Reporting Information [Line Items]
Consolidated EBIT	$ (6,665)	$ (5,829)	$ (21,694)	$ (18,075)

DEBT (Schedule Of Debt) (Detail

DEBT (Schedule Of Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Debt Instrument [Line Items]
Total borrowings	$ 86,458	$ 50,000
Short-term borrowings and current portion of long-term debt	(21,458)	(20,000)
Total long-term debt, less current portion	$ 65,000	$ 30,000

DEBT (Narrative) (Details)

DEBT (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015	Sep. 30, 2014
Debt Instrument [Line Items]
Available to borrow under the credit facility	$ 361,000		$ 361,000
Cash on hand	40,542	$ 36,879	40,542	$ 36,879	$ 39,411	$ 35,131
Incremental term loan	250,000		$ 250,000
Percentage of foreign subsidiaries' share equity			65.00%
Letters of Credit Outstanding, Amount	4,400		$ 4,400
Line of Credit Facility, Amount Outstanding	85,000		85,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Amount Outstanding	$ 450,000		$ 450,000
Weighted average interest rates	1.50%	1.14%	1.58%	1.28%
Line of Credit Facility, Commitment Fee Amount			$ 250,000
Other Short-term Borrowings	$ 1,500		$ 1,500
Minimum [Member]
Debt Instrument [Line Items]
Credit facility fees			12.50%
Maximum [Member]
Debt Instrument [Line Items]
Incremental term loan	$ 250,000		$ 250,000
Credit facility fees			27.50%

INCOME TAX EXPENSE (Narrative)

INCOME TAX EXPENSE (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2016
Income Tax Expense [Line Items]
Decrease in effective tax rate		0.70%		0.30%
Increase in effective tax rate			1.50%
Unrecognized Tax Benefits, Period Increase (Decrease)				$ (0.1)
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Percent	0.90%		2.70%	2.20%
Effective Income Tax Rate Reconciliation Foreign Deferred Tax Liability		0.90%		0.30%
Effective Income Tax Rate Reconciliation, Percent	34.20%	31.00%	34.30%	31.50%
Scenario, Forecast [Member]
Income Tax Expense [Line Items]
Effective Income Tax Rate Reconciliation, Percent					34.00%
Foreign Tax Authority [Member]
Income Tax Expense [Line Items]
Decrease in effective tax rate		1.60%		0.60%
Increase in effective tax rate	1.30%	2.40%	0.50%	2.10%
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent			1.70%
German Valuation Allowance [Member]
Income Tax Expense [Line Items]
Decrease in effective tax rate		0.90%		0.40%

RETIREMENT PLANS (Schedule Of C

RETIREMENT PLANS (Schedule Of Components Of Net Periodic Benefit Cost For Plans) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Defined benefit plans
Interest cost	$ 963	$ 951	$ 2,888	$ 2,852
Expected return on assets	(1,093)	(1,136)	(3,280)	(3,408)
Amortization of Prior service cost	3	3	10	10
Amortization of Actuarial loss	486	442	1,459	1,326
Net periodic benefit cost	$ 359	$ 260	$ 1,077	$ 780

DERIVATIVE FINANCIAL INSTRUME40

DERIVATIVE FINANCIAL INSTRUMENTS (Schedule of Outstanding Derivative Financial Instruments) (Details) - Jun. 30, 2016 € in Thousands, £ in Thousands, $ in Thousands	USD ($)	EUR (€)	GBP (£)
Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount | €		€ 309
Derivative, Fair Value	$ (29)
Forward Contracts One [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount | £			£ 1,858
Derivative, Fair Value	$ (195)

FAIR VALUE MEASUREMENTS (Schedu

FAIR VALUE MEASUREMENTS (Schedule of Fair Value of Financial Instruments) (Details) - Forward Contracts [Member] $ in Thousands	Jun. 30, 2016USD ($)
Derivative [Line Items]
Fair Value of Financial Instruments	$ 224
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	224
Fair Value, Inputs, Level 3 [Member]
Derivative [Line Items]
Fair Value of Financial Instruments	$ 0