ESCO (ESE) 10-Q 8 Aug 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Jun. 30, 2017	Jul. 31, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
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		25,833,202

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Net sales	$ 171,189	$ 140,191	$ 478,735	$ 411,954
Costs and expenses:
Cost of sales	108,856	86,602	307,149	254,769
Selling, general and administrative expenses	38,453	31,369	107,104	97,189
Amortization of intangible assets	4,085	2,951	11,548	8,540
Interest expense, net	1,213	320	2,752	917
Other (income) expenses, net	1,160	1,429	(184)	6,436
Total costs and expenses	153,767	122,671	428,369	367,851
Earnings before income taxes	17,422	17,520	50,366	44,103
Income tax expense	4,777	5,992	15,837	15,136
Net earnings	$ 12,645	$ 11,528	$ 34,529	$ 28,967
Earnings per share:
Basic - Net earnings	$ 0.49	$ 0.45	$ 1.34	$ 1.12
Diluted - Net earnings	$ 0.49	$ 0.44	$ 1.33	$ 1.12

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Net earnings	$ 12,645	$ 11,528	$ 34,529	$ 28,967
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	4,796	(1,930)	2,981	(1,730)
Net unrealized gain (loss) on derivative instruments	81	(211)	(23)	(129)
Total other comprehensive income (loss), net of tax	4,877	(2,141)	2,958	(1,859)
Comprehensive income	$ 17,522	$ 9,387	$ 37,487	$ 27,108

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2017	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 48,521	$ 53,825
Accounts receivable, net	135,545	121,486
Costs and estimated earnings on long-term contracts, less progress billings of $59,100 and $31,129, respectively	44,753	28,746
Inventories	130,828	105,542
Other current assets	20,980	13,884
Total current assets	380,627	323,483
Property, plant and equipment, net of accumulated depreciation of $96,510 and $84,454, respectively	130,419	92,405
Intangible assets, net of accumulated amortization of $69,103 and $56,955, respectively	328,545	231,759
Goodwill	365,965	323,616
Other assets	5,901	7,108
Total assets	1,211,457	978,371
Current liabilities:
Current maturities of long-term debt	20,000	20,000
Accounts payable	48,555	42,074
Advance payments on long-term contracts, less costs incurred of $48,114 and $35,266, respectively	22,089	16,187
Accrued salaries	24,797	28,769
Current portion of deferred revenue	31,881	27,212
Accrued other expenses	28,257	23,834
Total current liabilities	175,579	158,076
Pension obligations	38,677	39,842
Deferred tax liabilities	84,184	69,562
Other liabilities	23,428	5,782
Long-term debt	245,000	90,000
Total liabilities	566,868	363,262
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 30,468,824 and 30,364,183 shares, respectively	305	304
Additional paid-in capital	288,623	290,588
Retained earnings	499,611	471,272
Accumulated other comprehensive loss, net of tax	(36,325)	(39,283)
Total stockholders' equity before Treasury Stock	752,214	722,881
Less treasury stock, at cost: 4,638,322 and 4,647,322 common shares, respectively	(107,625)	(107,772)
Total shareholders’ equity	644,589	615,109
Total liabilities and shareholders’ equity	$ 1,211,457	$ 978,371

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Sep. 30, 2016
Costs and estimated earnings on long-term contracts, progress billings	$ 59,100	$ 31,129
Property, plant and equipment, net of accumulated depreciation	96,510	84,454
Intangible assets, net of accumulated amortization	69,103	56,955
Advance payments on long-term contracts, costs incurred	$ 48,114	$ 35,266
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	30,468,824	30,364,183
Treasury stock, shares	4,638,322	4,647,322

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net earnings	$ 34,529	$ 28,967
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	23,023	17,209
Stock compensation expense	4,130	3,652
Changes in assets and liabilities	(24,977)	(21,106)
Effect of deferred taxes	(577)	1,141
Change in deferred revenue and costs, net	4,863	3,029
Pension contributions	(2,317)	0
Other	(5,202)	350
Net cash provided by operating activities	33,472	33,242
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired	(162,268)	(41,308)
Additions to capitalized software	(6,213)	(6,257)
Capital expenditures	(23,055)	(7,812)
Proceeds from sale of land	1,184	0
Proceeds from life insurance	2,307	0
Net cash used by investing activities	(188,045)	(55,377)
Cash flows from financing activities:
Proceeds from long-term debt	213,000	81,458
Principal payments on long-term debt	(58,000)	(45,000)
Dividends paid	(6,190)	(6,191)
Purchases of common stock into treasury	0	(4,303)
Debt issuance costs	0	(1,037)
Other	(21)	(123)
Net cash provided by financing activities	148,789	24,804
Effect of exchange rate changes on cash and cash equivalents	480	(1,538)
Net (decrease) increase in cash and cash equivalents	(5,304)	1,131
Cash and cash equivalents, beginning of period	53,825	39,411
Cash and cash equivalents, end of period	48,521	40,542
Supplemental cash flow information:
Interest paid	2,404	908
Income taxes paid (including state and foreign)	$ 20,421	$ 15,820

BASIS OF PRESENTATION

BASIS OF PRESENTATION	9 Months Ended
	Jun. 30, 2017
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, 2016. The Company’s results for the three and nine-month periods ended June 30, 2017 are not necessarily indicative of the results for the entire 2017 fiscal year. References to the third quarters of 2017 and 2016 represent the fiscal quarters ended June 30, 2017 and 2016, 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.

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
ACQUISITIONS	2. ACQUISITIONS On May 25, 2017, the Company acquired the assets of Morgan Schaffer Inc. (Morgan Schaffer), a global utilities provider located in Montreal, Quebec, Canada, for a purchase price of $48.8 million in cash. Morgan Schaffer, founded in 1965, has annualized sales of approximately $ 25 2.5 5.2 1.7 0.4 3.8 4.8 34.6 3.4 10 On May 8, 2017, the Company acquired NRG Systems, Inc. (NRG), doing business as Renewable NRG Systems, located in Hinesburg, Vermont, for a purchase price of $38.6 million, less cash acquired. NRG, founded in 1982, is the global market leader in the design and manufacture of decision support tools for the renewable energy industry, primarily wind. NRG has annualized sales of approximately $ 45 1.5 4.1 5.1 1.0 9.4 4.1 9.7 7.5 8.1 17.2 14 On November 7, 2016, the Company acquired aerospace suppliers Mayday Manufacturing Co. and its affiliate, Hi-Tech Metals, Inc. (collectively referred to as Mayday), which share a 130,000 75 40 7.4 11.0 16.6 9.5 15.7 30.1 4.8 32.8 20

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)	9 Months Ended
	Jun. 30, 2017
Earnings Per Share [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 Ended June 30, Ended June 30, 2017 2016 2017 2016 Weighted Average Shares Outstanding - Basic 25,815 25,725 25,756 25,777 Dilutive Options and Restricted Shares 210 185 219 185 Adjusted Shares - Diluted 26,025 25,910 25,975 25,962

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Jun. 30, 2017
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 Compensation expense related to the restricted share awards was $ 1.0 3.3 0.8 3.1 335,825 Non-Employee Directors Plan Compensation expense related to the non-employee director grants was $ 0.3 0.8 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 $ 1.3 4.1 1.0 3.7 1.2 2.2 0.4 1.3 7.3 1.8

INVENTORIES

INVENTORIES	9 Months Ended
	Jun. 30, 2017
Inventories [Abstract]
INVENTORIES	5. INVENTORIES June 30, September 30, (In thousands) 2017 2016 Finished goods $ 28,559 19,451 Work in process 46,178 37,922 Raw materials 56,091 48,169 Total inventories $ 130,828 105,542

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	9 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	6. GOODWILL AND OTHER INTANGIBLE ASSETS (Dollars in thousands) June 30, 2017 September 30, 2016 Goodwill $ 365,965 323,616 Intangible assets with determinable lives: Patents Gross carrying amount $ 927 917 Less: accumulated amortization 742 726 Net $ 185 191 Capitalized software Gross carrying amount $ 60,216 54,003 Less: accumulated amortization 32,136 26,737 Net $ 28,080 27,266 Customer relationships Gross carrying amount $ 163,331 111,887 Less: accumulated amortization 35,005 28,633 Net $ 128,325 83,254 Other Gross carrying amount $ 5,255 2,777 Less: accumulated amortization 1,220 859 Net $ 4,035 1,918 Intangible assets with indefinite lives: Trade names $ 167,920 119,128 (Dollars in millions) USG Test Filtration Packaging Total Balance as of September 30, 2016 226.2 34.1 43.9 19.4 323.6 Acquisition activity 12.3 - 30.1 - 42.4 Foreign currency translation and other 0.2 - (0.5) 0.3 - Balance as of June 30, 2017 $ 238.7 34.1 73.5 19.7 366.0

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION	9 Months Ended
	Jun. 30, 2017
Business Segment Information [Abstract]
BUSINESS SEGMENT INFORMATION	7. BUSINESS SEGMENT INFORMATION The Company is organized based on the products and services that it offers, and classifies its business operations in four segments for financial reporting purposes: Filtration/Fluid Flow (Filtration), RF Shielding and Test (Test), Utility Solutions Group (USG) and Technical Packaging. The Filtration segment’s operations consist of PTI Technologies Inc. (PTI), VACCO Industries (VACCO), Crissair, Inc. (Crissair), Westland Technologies Inc. (Westland), and Mayday. 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; manufacture elastomeric-based signature reduction solutions for the U.S. Navy; and manufacture landing gear components for the aerospace and defense industry. 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), Morgan Schaffer, and NRG. 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. Morgan Schaffer provides an integrated offering of dissolved gas analysis, oil testing, and data management solutions for the electric power industry. NRG designs and manufactures decision support tools for the renewable energy industry, primarily wind. The Technical Packaging segment’s operations consist of Thermoform Engineered Quality LLC (TEQ) and Plastique Limited and Plastique Sp. zoo (together, Plastique). The companies within this segment provide innovative solutions to the medical and commercial markets for thermoformed packages and specialty products using a wide variety of thin gauge plastics and pulp. Three Months Nine Months (In thousands) Ended June 30, Ended June 30, 2017 2016 2017 2016 NET SALES Filtration $ 71,179 54,396 198,869 145,758 Test 37,544 36,234 109,738 119,608 USG 42,059 29,121 110,287 93,657 Technical Packaging 20,407 20,440 59,841 52,931 Consolidated totals $ 171,189 140,191 478,735 411,954 EBIT Filtration $ 11,945 12,163 34,296 29,511 Test 4,885 3,744 11,076 8,587 USG 8,477 6,124 25,585 21,581 Technical Packaging 2,433 2,474 5,660 7,035 Corporate (loss) (9,105) (6,665) (23,499) (21,694) Consolidated EBIT 18,635 17,840 53,118 45,020 Less: Interest expense, net (1,213) (320) (2,752) (917) Earnings before income taxes $ 17,422 17,520 50,366 44,103 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. 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	9 Months Ended
	Jun. 30, 2017
Debt [Abstract]
DEBT	8. DEBT June 30, September 30, (In thousands) 2017 2016 Total borrowings $ 265,000 110,000 Short-term borrowings and current portion of long-term debt (20,000) (20,000) Total long-term debt, less current portion $ 245,000 90,000 The Company’s existing credit facility (“the Credit Facility”) matures December 21, 2020. The Credit Facility includes a $ 450 250 At June 30, 2017, the Company had approximately $ 178 250 48.5 265 7.2 20.0 The Credit Facility requires, as determined by certain financial ratios, a facility fee ranging from 12.5 27.5 65 2.11 1.90 1.50 1.58

INCOME TAX EXPENSE

INCOME TAX EXPENSE	9 Months Ended
	Jun. 30, 2017
Income Tax Disclosure [Abstract]
INCOME TAX EXPENSE	9. INCOME TAX EXPENSE The third quarter 2017 effective income tax rate was 27.4 34.2 31.4 34.3 Improvements to Employee Share-Based Payment Accounting 5.1 1.8 The income tax expense in the first nine months of 2016 was unfavorably impacted by a U.K. foreign valuation allowance that increased the year-to-date effective tax rate by 1.5 1.8 1.3 0.5 1.7

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	9 Months Ended
	Jun. 30, 2017
Equity [Abstract]
SHAREHOLDERS’ EQUITY	SHAREHOLDERS’ EQUITY Balance at September 30, 2016 $ 615,109 Net earnings 34,529 Other comprehensive income 2,958 Cash dividends (6,190) Stock compensation plans (1,817) Balance at June 30, 2017 $ 644,589

RETIREMENT PLANS

RETIREMENT PLANS	9 Months Ended
	Jun. 30, 2017
Retirement Plans [Abstract]
RETIREMENT PLANS	11. RETIREMENT 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, 2017 and 2016 is shown in the following table. Net periodic benefit cost for each period presented is comprised of the following: Three Months Nine Months Ended June 30, Ended June 30, (In thousands) 2017 2016 2017 2016 Defined benefit plans Interest cost $ 737 963 2,438 2,888 Expected return on assets (942) (1,093) (2,978) (3,280) Amortization of: Prior service cost - 3 3 10 Actuarial loss 683 486 1,871 1,459 Net periodic benefit cost $ 478 359 1,334 1,077

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	9 Months Ended
	Jun. 30, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	12. 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 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 Plastique. In addition, our Canadian subsidiary Morgan Schaffer enters into foreign exchange contracts to manage foreign currency risk as a portion of their revenue is denominated in U.S. dollars. The Company expects hedging gains or losses to be essentially offset by losses or gains on the related underlying exposures. All derivative instruments are reported in either accrued expenses or other receivables on the balance sheet at fair value. For derivative instruments designated as cash flow hedges, the gain or loss on the derivative is deferred in accumulated other comprehensive income until recognized in earnings with the underlying hedged item. Fair Notional Value (In thousands) amount (US$) Forward contracts 1,859 GBP (238) Forward contracts 4,750 USD 64 Forward contracts 500 EUR (14)

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENTS	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 June 30, 2017 and September 30, 2016 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 contracts $ - (188) $ - (188) 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, 2017.

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS	9 Months Ended
	Jun. 30, 2017
Accounting Changes and Error Corrections [Abstract]
NEW ACCOUNTING STANDARDS	14. NEW ACCOUNTING STANDARDS In March 2016, the FASB issued Accounting Standards Update (ASU) No. 2016-09, Improvements to Employee Share-Based Payment Accounting 5.1 1.8 In February 2016, the FASB issued ASU No. 2016-062, Leases (Topic 842) In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers

EARNINGS PER SHARE (EPS) (Table

EARNINGS PER SHARE (EPS) (Tables)	9 Months Ended
	Jun. 30, 2017
Earnings Per Share [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 Ended June 30, Ended June 30, 2017 2016 2017 2016 Weighted Average Shares Outstanding - Basic 25,815 25,725 25,756 25,777 Dilutive Options and Restricted Shares 210 185 219 185 Adjusted Shares - Diluted 26,025 25,910 25,975 25,962

INVENTORIES (Tables)

INVENTORIES (Tables)	9 Months Ended
	Jun. 30, 2017
Inventories [Abstract]
Schedule Of Inventories	Inventories consist of the following: June 30, September 30, (In thousands) 2017 2016 Finished goods $ 28,559 19,451 Work in process 46,178 37,922 Raw materials 56,091 48,169 Total inventories $ 130,828 105,542

GOODWILL AND OTHER INTANGIBLE23

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill	Included on the Company’s Consolidated Balance Sheets at June 30, 2017 and September 30, 2016 are the following intangible assets gross carrying amounts and accumulated amortization: (Dollars in thousands) June 30, 2017 September 30, 2016 Goodwill $ 365,965 323,616 Intangible assets with determinable lives: Patents Gross carrying amount $ 927 917 Less: accumulated amortization 742 726 Net $ 185 191 Capitalized software Gross carrying amount $ 60,216 54,003 Less: accumulated amortization 32,136 26,737 Net $ 28,080 27,266 Customer relationships Gross carrying amount $ 163,331 111,887 Less: accumulated amortization 35,005 28,633 Net $ 128,325 83,254 Other Gross carrying amount $ 5,255 2,777 Less: accumulated amortization 1,220 859 Net $ 4,035 1,918 Intangible assets with indefinite lives: Trade names $ 167,920 119,128
Schedule of Goodwill	The changes in the carrying amount of goodwill attributable to each business segment for the nine months ended June 30, 2017 is as follows: (Dollars in millions) USG Test Filtration Packaging Total Balance as of September 30, 2016 226.2 34.1 43.9 19.4 323.6 Acquisition activity 12.3 - 30.1 - 42.4 Foreign currency translation and other 0.2 - (0.5) 0.3 - Balance as of June 30, 2017 $ 238.7 34.1 73.5 19.7 366.0

BUSINESS SEGMENT INFORMATION (T

BUSINESS SEGMENT INFORMATION (Tables)	9 Months Ended
	Jun. 30, 2017
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. Three Months Nine Months (In thousands) Ended June 30, Ended June 30, 2017 2016 2017 2016 NET SALES Filtration $ 71,179 54,396 198,869 145,758 Test 37,544 36,234 109,738 119,608 USG 42,059 29,121 110,287 93,657 Technical Packaging 20,407 20,440 59,841 52,931 Consolidated totals $ 171,189 140,191 478,735 411,954 EBIT Filtration $ 11,945 12,163 34,296 29,511 Test 4,885 3,744 11,076 8,587 USG 8,477 6,124 25,585 21,581 Technical Packaging 2,433 2,474 5,660 7,035 Corporate (loss) (9,105) (6,665) (23,499) (21,694) Consolidated EBIT 18,635 17,840 53,118 45,020 Less: Interest expense, net (1,213) (320) (2,752) (917) Earnings before income taxes $ 17,422 17,520 50,366 44,103

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Jun. 30, 2017
Debt [Abstract]
Schedule Of Debt	The Company’s debt is summarized as follows: June 30, September 30, (In thousands) 2017 2016 Total borrowings $ 265,000 110,000 Short-term borrowings and current portion of long-term debt (20,000) (20,000) Total long-term debt, less current portion $ 245,000 90,000

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	9 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Schedule Of Change In Equity	The change in shareholders’ equity for the first nine months of 2017 is shown below (in thousands): Balance at September 30, 2016 $ 615,109 Net earnings 34,529 Other comprehensive income 2,958 Cash dividends (6,190) Stock compensation plans (1,817) Balance at June 30, 2017 $ 644,589

RETIREMENT PLANS (Tables)

RETIREMENT PLANS (Tables)	9 Months Ended
	Jun. 30, 2017
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, 2017 and 2016 is shown in the following table. Net periodic benefit cost for each period presented is comprised of the following: Three Months Nine Months Ended June 30, Ended June 30, (In thousands) 2017 2016 2017 2016 Defined benefit plans Interest cost $ 737 963 2,438 2,888 Expected return on assets (942) (1,093) (2,978) (3,280) Amortization of: Prior service cost - 3 3 10 Actuarial loss 683 486 1,871 1,459 Net periodic benefit cost $ 478 359 1,334 1,077

DERIVATIVE FINANCIAL INSTRUME28

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	9 Months Ended
	Jun. 30, 2017
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, 2017: Fair Notional Value (In thousands) amount (US$) Forward contracts 1,859 GBP (238) Forward contracts 4,750 USD 64 Forward contracts 500 EUR (14)

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Jun. 30, 2017
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, 2017: (In thousands) Level 1 Level 2 Level 3 Total Liabilities: Forward contracts $ - (188) $ - (188)

ACQUISITIONS (Narrative) (Detai

ACQUISITIONS (Narrative) (Details) $ in Thousands	May 08, 2017USD ($)	May 25, 2017USD ($)	Nov. 07, 2016USD ($)ft²	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Sep. 30, 2016USD ($)
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired, Total						$ 162,268	$ 41,308
Goodwill				$ 365,965		365,965		$ 323,616
Revenue, Net				$ 171,189	$ 140,191	$ 478,735	$ 411,954
Customer Relationships [Member]
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life			20 years
Mayday Manufacturing Co [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired, Total			$ 75,000
Goodwill			30,100
Revenue, Net			40,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment, Total			16,600
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities			$ 15,700
Area of Land | ft²			130,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables			$ 7,400
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory			11,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Capital Lease Obligation			9,500
Mayday Manufacturing Co [Member] | Trade Names [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total			4,800
Mayday Manufacturing Co [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill, Total			$ 32,800
Morgan Schaffer Inc [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross		$ 48,800
Goodwill		4,800
Revenue, Net		25,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles		3,400
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment, Total		1,700
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables		2,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory		5,200
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets		400
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable		3,800
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets		$ 34,600
Morgan Schaffer Inc [Member] | Customer Relationships and Developed Technology [Member]
Business Acquisition [Line Items]
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		10 years
NRG Systems Inc [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Net of Cash Acquired, Total	$ 38,600
Goodwill	7,500
Revenue, Net	45,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment, Total	9,400
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables	4,100
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	5,100
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Capital Lease Obligation	9,700
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	1,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable	4,100
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets	8,100
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents	1,500
NRG Systems Inc [Member] | Customer Relationships [Member]
Business Acquisition [Line Items]
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	$ 17,200
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	14 years

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, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earning Per Share [Line Items]
Weighted Average Shares Outstanding - Basic	25,815	25,725	25,756	25,777
Dilutive Options and Restricted Shares	210	185	219	185
Adjusted Shares - Diluted	26,025	25,910	25,975	25,962

SHARE-BASED COMPENSATION (Narra

SHARE-BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
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	$ 4.1	$ 3.7
Performance-Accelerated Restricted Share (PARS) Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pretax compensation expense	$ 1	0.8	$ 3.3	3.1
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Beginning Balance	335,825		335,825
Non-Employee Directors Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total income tax benefit recognized			$ 2.2	1.3
Total share-based compensation cost	$ 1.2	0.4
Pretax compensation expense	0.3	$ 0.2	0.8	$ 0.6
Total unrecognized compensation cost related to share-based compensation arrangements	$ 7.3		$ 7.3
Remaining weighted-average period for recognition of total unrecognized compensation cost			1 year 9 months 18 days

INVENTORIES (Schedule Of Invent

INVENTORIES (Schedule Of Inventories) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Sep. 30, 2016
Inventory [Line Items]
Finished goods	$ 28,559	$ 19,451
Work in process	46,178	37,922
Raw materials	56,091	48,169
Total inventories	$ 130,828	$ 105,542

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, 2017	Sep. 30, 2016
Goodwill and Other Intangible Assets [Line Items]
Goodwill	$ 365,965	$ 323,616
Less: accumulated amortization	69,103	56,955
Patents [Member]
Goodwill and Other Intangible Assets [Line Items]
Gross carrying amount	927	917
Less: accumulated amortization	742	726
Net	185	191
Capitalized Software [Member]
Goodwill and Other Intangible Assets [Line Items]
Gross carrying amount	60,216	54,003
Less: accumulated amortization	32,136	26,737
Net	28,080	27,266
Customer relationships [Member]
Goodwill and Other Intangible Assets [Line Items]
Gross carrying amount	163,331	111,887
Less: accumulated amortization	35,005	28,633
Net	128,325	83,254
Other [Member]
Goodwill and Other Intangible Assets [Line Items]
Gross carrying amount	5,255	2,777
Less: accumulated amortization	1,220	859
Net	4,035	1,918
Trade names [Member]
Goodwill and Other Intangible Assets [Line Items]
Trade names	$ 167,920	$ 119,128

GOODWILL AND OTHER INTANGIBLE35

GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule Of Changes In The Carrying Amount Of Goodwill Attributable To Business Segment) (Details) $ in Thousands	9 Months Ended
	Jun. 30, 2017USD ($)
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 323,616
Acquisition activity	42,400
Foreign currency translation and other	0
Goodwill, Ending Balance	365,965
Utility Solutions [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	226,200
Acquisition activity	12,300
Foreign currency translation and other	200
Goodwill, Ending Balance	238,700
Test [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	34,100
Acquisition activity	0
Foreign currency translation and other	0
Goodwill, Ending Balance	34,100
Filtration [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	43,900
Acquisition activity	30,100
Foreign currency translation and other	(500)
Goodwill, Ending Balance	73,500
Technical Packaging [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	19,400
Acquisition activity	0
Foreign currency translation and other	300
Goodwill, Ending Balance	$ 19,700

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, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
NET SALES	$ 171,189	$ 140,191	$ 478,735	$ 411,954
Consolidated EBIT	18,635	17,840	53,118	45,020
Less: Interest expense, net	(1,213)	(320)	(2,752)	(917)
Earnings before income taxes	17,422	17,520	50,366	44,103
Filtration [Member]
Segment Reporting Information [Line Items]
NET SALES	71,179	54,396	198,869	145,758
Consolidated EBIT	11,945	12,163	34,296	29,511
Test [Member]
Segment Reporting Information [Line Items]
NET SALES	37,544	36,234	109,738	119,608
Consolidated EBIT	4,885	3,744	11,076	8,587
Utility Solutions [Member]
Segment Reporting Information [Line Items]
NET SALES	42,059	29,121	110,287	93,657
Consolidated EBIT	8,477	6,124	25,585	21,581
Technical Packaging [Member]
Segment Reporting Information [Line Items]
NET SALES	20,407	20,440	59,841	52,931
Consolidated EBIT	2,433	2,474	5,660	7,035
Corporate (loss) [Member]
Segment Reporting Information [Line Items]
Consolidated EBIT	$ (9,105)	$ (6,665)	$ (23,499)	$ (21,694)

DEBT (Schedule Of Debt) (Detail

DEBT (Schedule Of Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Sep. 30, 2016
Debt Instrument [Line Items]
Total borrowings	$ 265,000	$ 110,000
Short-term borrowings and current portion of long-term debt	(20,000)	(20,000)
Total long-term debt, less current portion	$ 245,000	$ 90,000

DEBT (Narrative) (Details)

DEBT (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Sep. 30, 2016	Sep. 30, 2015
Debt Instrument [Line Items]
Available to borrow under the credit facility	$ 178,000		$ 178,000
Cash on hand	48,521	$ 40,542	$ 48,521	$ 40,542	$ 53,825	$ 39,411
Percentage of foreign subsidiaries' share equity			65.00%
Letters of Credit Outstanding, Amount	7,200		$ 7,200
Line of Credit Facility, Amount Outstanding	265,000		265,000
Long-term Debt, Current Maturities	20,000		20,000		$ 20,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Amount Outstanding	$ 450,000		$ 450,000
Weighted average interest rates	2.11%	1.50%	1.90%	1.58%
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		$ 250,000
Credit facility fees			27.50%

INCOME TAX EXPENSE (Narrative)

INCOME TAX EXPENSE (Narrative) (Details)	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income Tax Expense [Line Items]
Decrease in effective tax rate	5.10%		1.80%
Increase in effective tax rate				1.70%
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Percent		1.80%		1.80%
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent				1.50%
Effective Income Tax Rate Reconciliation, Percent	27.40%	34.20%	31.40%	34.30%
Effective Income Tax Rate, Return to Provision True-ups, Increase		1.30%		0.50%

SHAREHOLDERS' EQUITY (Schedule

SHAREHOLDERS' EQUITY (Schedule Of Change In Equity) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Balance			$ 615,109
Net earnings	$ 12,645	$ 11,528	34,529	$ 28,967
Other comprehensive income	4,877	$ (2,141)	2,958	$ (1,859)
Cash dividends			(6,190)
Stock compensation plans			(1,817)
Ending Balance	$ 644,589		$ 644,589

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, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Defined benefit plans
Interest cost	$ 737	$ 963	$ 2,438	$ 2,888
Expected return on assets	(942)	(1,093)	(2,978)	(3,280)
Amortization of Prior service cost	0	3	3	10
Amortization of Actuarial loss	683	486	1,871	1,459
Net periodic benefit cost	$ 478	$ 359	$ 1,334	$ 1,077

DERIVATIVE FINANCIAL INSTRUME42

DERIVATIVE FINANCIAL INSTRUMENTS (Schedule of Outstanding Derivative Financial Instruments) (Details) - Jun. 30, 2017 € in Thousands, £ in Thousands, $ in Thousands	USD ($)	GBP (£)	EUR (€)
Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount | £		£ 1,859
Derivative, Fair Value	$ (238)
Forward Contracts One [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount	4,750
Derivative, Fair Value	64
Forward Contracts Two [Member]
Derivatives, Fair Value [Line Items]
Derivative, Notional Amount | €			€ 500
Derivative, Fair Value	$ (14)

FAIR VALUE MEASUREMENTS (Schedu

FAIR VALUE MEASUREMENTS (Schedule of Fair Value of Financial Instruments) (Details) - Forward Contracts [Member] $ in Thousands	Jun. 30, 2017USD ($)
Derivative [Line Items]
Fair Value of Financial Instruments	$ (188)
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	(188)
Fair Value, Inputs, Level 3 [Member]
Derivative [Line Items]
Fair Value of Financial Instruments	$ 0

NEW ACCOUNTING STANDARDS (Narra

NEW ACCOUNTING STANDARDS (Narrative) (Details)	3 Months Ended	9 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Accounting Standards Update 2016-09 [Member]
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent	5.10%	1.80%