ESCO (ESE) 10-Q 7 Feb 18 2018 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Dec. 31, 2017	Jan. 31, 2018
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2017
Document Fiscal Year Focus	2,018
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		25,844,866

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Net sales	$ 173,495	$ 146,368
Costs and expenses:
Cost of sales	111,736	92,914
Selling, general and administrative expenses	42,154	33,762
Amortization of intangible assets	4,446	3,649
Interest expense, net	2,185	684
Other expenses (income), net	173	(766)
Total costs and expenses	160,694	130,243
Earnings before income taxes	12,801	16,125
Income tax (benefit) expense	(21,870)	5,398
Net earnings	$ 34,671	$ 10,727
Earnings per share:
Basic - Net earnings	$ 1.34	$ 0.42
Diluted - Net earnings	$ 1.33	$ 0.41

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Net earnings	$ 34,671	$ 10,727
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustments	1,288	(4,363)
Net unrealized gain (loss) on derivative instruments	17	(133)
Total other comprehensive income (loss), net of tax	1,305	(4,496)
Comprehensive income	$ 35,976	$ 6,231

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Current assets:
Cash and cash equivalents	$ 41,600	$ 45,516
Accounts receivable, net	148,502	160,580
Costs and estimated earnings on long-term contracts, less progress billings of $45,134 and $64,099, respectively	39,045	47,286
Inventories	130,579	124,515
Other current assets	13,301	14,895
Total current assets	373,027	392,792
Property, plant and equipment:
Property, plant and equipment, net of accumulated depreciation of $106,791 and $99,650, respectively	132,790	132,748
Intangible assets, net of accumulated amortization of $78,325 and $73,879, respectively	347,578	351,134
Goodwill	378,510	377,879
Other assets	5,843	5,891
Total assets	1,237,748	1,260,444
Current liabilities:
Current maturities of long-term debt	20,000	20,000
Accounts payable	48,766	54,789
Advance payments on long-term contracts, less costs incurred of $53,206 and $59,772, respectively	28,966	22,451
Accrued salaries	21,824	32,259
Current portion of deferred revenue	25,447	28,583
Accrued other expenses	33,029	36,887
Total current liabilities	178,032	194,969
Pension obligations	30,268	30,223
Deferred tax liabilities	57,877	86,378
Other liabilities	24,502	21,956
Long-term debt	240,000	255,000
Total liabilities	530,679	588,526
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 30,468,824 shares, respectively	305	305
Additional paid-in capital	290,984	289,785
Retained earnings	549,322	516,718
Accumulated other comprehensive loss, net of tax	(26,003)	(27,308)
Total stockholders' equity before Treasury Stock	814,608	779,500
Less treasury stock, at cost: 4,632,922 and 4,635,622 common shares, respectively	(107,539)	(107,582)
Total shareholders' equity	707,069	671,918
Total liabilities and shareholders' equity	$ 1,237,748	$ 1,260,444

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Costs and estimated earnings on long-term contracts, progress billings	$ 45,134	$ 64,099
Property, plant and equipment, net of accumulated depreciation	106,791	99,650
Intangible assets, net of accumulated amortization	78,325	73,879
Advance payments on long-term contracts, costs incurred	$ 53,206	$ 59,772
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	30,468,824
Treasury stock, shares	4,632,922	4,635,622

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Cash flows from operating activities:
Net earnings	$ 34,671	$ 10,727
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization	9,226	7,088
Stock compensation expense	1,353	1,437
Changes in assets and liabilities	4,507	(2,053)
Effect of deferred taxes	(28,501)	(1,393)
Change in deferred revenue and costs, net	(3,099)	(333)
Pension contributions	(360)	0
Other	0	263
Net cash provided by operating activities	17,797	15,736
Cash flows from investing activities:
Acquisition of business, net of cash acquired	(233)	(75,000)
Additions to capitalized software	(2,083)	(1,433)
Capital expenditures	(3,606)	(6,989)
Net cash used by investing activities	(5,922)	(83,422)
Cash flows from financing activities:
Proceeds from long-term debt	15,000	90,000
Principal payments on long-term debt	(30,000)	(20,000)
Dividends paid	(2,067)	(2,057)
Other	17	(134)
Net cash (used) provided by financing activities	(17,050)	67,809
Effect of exchange rate changes on cash and cash equivalents	1,259	(2,193)
Net decrease in cash and cash equivalents	(3,916)	(2,070)
Cash and cash equivalents, beginning of period	45,516	53,825
Cash and cash equivalents, end of period	41,600	51,755
Supplemental cash flow information:
Interest paid	2,053	509
Income taxes paid (including state and foreign)	$ 1,025	$ 1,026

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
BASIS OF PRESENTATION	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, 2017. The Company’s results for the three-month periods ended December 31, 2017 are not necessarily indicative of the results for the entire 2018 fiscal year. References to the first quarters of 2018 and 2017 represent the fiscal quarters ended December 31, 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.

EARNINGS PER SHARE (EPS)

EARNINGS PER SHARE (EPS)	3 Months Ended
	Dec. 31, 2017
Earnings Per Share [Abstract]
EARNINGS PER SHARE (EPS)	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. There are no anti-dilutive shares. Three Months 2017 2016 Weighted Average Shares Outstanding - Basic 25,836 25,720 Dilutive Options and Restricted Shares 244 259 Adjusted Shares - Diluted 26,080 25,979

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	3 Months Ended
	Dec. 31, 2017
Share-based Compensation [Abstract]
SHARE-BASED COMPENSATION	SHARE-BASED COMPENSATION The Company provides compensation benefits to certain key employees under several share-based plans providing for performance-accelerated restricted shares (restricted shares), and to non-employee directors under a non-employee directors compensation plan. Performance-Accelerated Restricted Share Awards Compensation expense related to the restricted share awards was $ 1.1 1.2 337,325 Non-Employee Directors Plan Compensation expense related to the non-employee director grants was $ 0.3 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 $ 1.4 1.4 0.4 0.5 5.3 1.3

INVENTORIES

INVENTORIES	3 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
INVENTORIES	INVENTORIES (In thousands) December 31, September 30, Finished goods $ 29,013 28,127 Work in process 46,668 43,750 Raw materials 54,898 52,638 Total inventories $ 130,579 124,515

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS	GOODWILL AND OTHER INTANGIBLE ASSETS (Dollars in thousands) December 31, 2017 September 30, 2017 Goodwill $ 378,510 377,879 Intangible assets with determinable lives: Patents Gross carrying amount $ 928 928 Less accumulated amortization 757 750 Net $ 171 178 Capitalized software Gross carrying amount $ 63,842 63,007 Less accumulated amortization 36,081 34,382 Net $ 27,761 28,625 Customer relationships Gross carrying amount $ 182,266 181,891 Less accumulated amortization 39,922 37,364 Net $ 142,344 144,527 Other Gross carrying amount $ 5,336 5,373 Less accumulated amortization 1,565 1,383 Net $ 3,771 3,990 Intangible assets with indefinite lives: Trade names $ 173,531 173,813 (Dollars in millions) USG Test Filtration Packaging Total Balance as of September 30, 2017 250.2 34.1 73.7 19.9 377.9 Acquisition activity – working capital adj 0.2 - - - 0.2 Foreign currency translation and other - - - 0.4 0.4 Balance as of December 31, 2017 $ 250.4 34.1 73.7 20.3 378.5

BUSINESS SEGMENT INFORMATION

BUSINESS SEGMENT INFORMATION	3 Months Ended
	Dec. 31, 2017
Segment Reporting, Measurement Disclosures [Abstract]
BUSINESS SEGMENT INFORMATION	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 Manufacturing Co. and its affiliate Hi-Tech Metals, Inc. (collectively referred to as 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 Inc. (Morgan Schaffer), and NRG Systems, Inc. (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. z o.o. (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. (In thousands) Three Months 2017 2016 NET SALES Filtration $ 60,035 58,785 Test 37,530 33,827 USG 55,754 35,556 Technical Packaging 20,176 18,200 Consolidated totals $ 173,495 146,368 EBIT Filtration $ 9,645 10,726 Test 2,596 2,425 USG 10,651 9,674 Technical Packaging 965 1,031 Corporate (loss) (8,871) (7,047) Consolidated EBIT 14,986 16,809 Less: Interest expense, net (2,185) (684) Earnings before income taxes $ 12,801 16,125 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 GAAP 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	3 Months Ended
	Dec. 31, 2017
Long-term Debt, Unclassified [Abstract]
DEBT	DEBT (In thousands) December 31, September 30, Total borrowings $ 260,000 275,000 Short-term borrowings and current portion of long-term debt (20,000) (20,000) Total long-term debt, less current portion $ 240,000 255,000 The Company’s existing credit facility (“the Credit Facility”) matures December 21, 2020. The Credit Facility includes a $ 450 250 At December 31, 2017, the Company had approximately $ 181 250 41.6 260 9.0 20.0 The Credit Facility requires, as determined by certain financial ratios, a facility fee ranging from 12.5 27.5 65 2.74 1.61

INCOME TAX EXPENSE

INCOME TAX EXPENSE	3 Months Ended
	Dec. 31, 2017
Income Tax Disclosure [Abstract]
INCOME TAX EXPENSE	8. INCOME TAX EXPENSE Income tax benefit in the first quarter of 2018 was $ 21.9 5.4 170.8 33.5 Tax Cuts and Jobs Act 35.0 24.5 30.3 236.8 2.9 22.8 2.3 18.3 Staff Accounting Bulletin No. 118 (SAB 118) was issued by the SEC effective December 22, 2017. SAB 118 allows registrants to record provisional amounts of the income tax effects of the TCJA where the information necessary to complete the accounting under ASC Topic 740 is not available but the amounts are based on reasonable estimates. SAB 118 permits registrants to record adjustments to its provisional amounts during the measurement period (which cannot exceed one year). The Company was able to determine reasonable estimates of the TCJA income tax effects. However, the Company was unable to complete the accounting under ASC Topic 740 for the change in the value of the Company’s deferred tax assets and liabilities as it needs more time to collect and analyze information primarily related to depreciation expense, pension liability, and percentage of completion revenue recognition. The Company was also unable to complete the accounting under ASC Topic 740 for the income tax effects of subjecting the Company’s cumulative foreign earnings to federal income tax as it needs more time to collect and analyze information to compute the cumulative balance of earnings subject to the tax and the amount of foreign tax credit that is available to offset the tax. Since the TCJA subjected the Company’s cumulative foreign earnings to U.S. tax, repatriation of those earnings generally provides that no additional federal tax will be imposed. However, the permissible amount of repatriation can be restricted by local law and a repatriation can result in tax expense due to local country withholding tax, U.S. state tax, and changes in foreign exchange rates. The Company is evaluating these considerations to determine the amount of its foreign subsidiaries’ cumulative earnings it intends to indefinitely reinvest. The TCJA includes a tax on global intangible low-taxed income (“GILTI”). The Company expects it will be subject to this tax. At its January 10, 2018 meeting, the FASB staff indicated that companies should make and disclose a policy election as to whether they will recognize deferred taxes for basis differences expected to reverse as GILTI or whether they will account for GILTI as period costs if and when incurred. Because there are interpretative questions associated with the approach that involves recognizing deferred taxes, the Company will undertake an evaluation of these questions and make the accounting policy election during the SAB 118 measurement period.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	3 Months Ended
	Dec. 31, 2017
Equity [Abstract]
SHAREHOLDERS’ EQUITY	9. SHAREHOLDERS’ EQUITY Balance at September 30, 2017 $ 671,918 Net earnings 34,671 Other comprehensive income 1,305 Cash dividends (2,067) Stock compensation plans 1,242 Balance at December 31, 2017 $ 707,069

RETIREMENT PLANS

RETIREMENT PLANS	3 Months Ended
	Dec. 31, 2017
Retirement Benefits [Abstract]
RETIREMENT PLANS	10. RETIREMENT PLANS A summary of net periodic benefit expense for the Company’s defined benefit plans for the three-month periods ended December 31, 2017 and 2016 is shown in the following table. Net periodic benefit cost for each period presented is comprised of the following: Three Months (In thousands) 2017 2016 Defined benefit plans Interest cost $ 820 965 Expected return on assets (975) (1,094) Amortization of: Prior service cost - 3 Actuarial loss 549 505 Net periodic benefit cost $ 394 379

DERIVATIVE FINANCIAL INSTRUMENT

DERIVATIVE FINANCIAL INSTRUMENTS	3 Months Ended
	Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
DERIVATIVE FINANCIAL INSTRUMENTS	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. During the first quarter of 2018, the Company entered into three interest rate swaps with a notional amount of $ 150 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, 2017: (In thousands) Notional Fair Float Fix Forward contracts 1,859 GBP (156) Forward contracts 5,250 USD 33 Forward contracts 200 EUR (10) Interest rate swap 150,000 USD (80) 1.51 % 1.80 % Interest rate swap * 150,000 USD 28 N/A 2.09 % Interest rate swap ** 150,000 USD (20) N/A 2.24 % *This swap represents a forward contract and will be effective in November 2018. **This swap represents a forward contract and will be effective in November 2019.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Dec. 31, 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 December 31, 2017 and September 30, 2017 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 and swaps $ - (205) $ - (205) Valuation was based on third party evidence of similarly priced derivative instruments. Nonfinancial Assets and Liabilities The Company’s nonfinancial assets such as property, plant and equipment, and other intangible assets are not measured at fair value on a recurring basis; however they are subject to fair value adjustments in certain circumstances, such as when there is evidence that an impairment may exist. No impairments were recorded during the three-month period ended December 31, 2017.

NEW ACCOUNTING STANDARDS

NEW ACCOUNTING STANDARDS	3 Months Ended
	Dec. 31, 2017
Accounting Changes and Error Corrections [Abstract]
NEW ACCOUNTING STANDARDS	13. NEW ACCOUNTING STANDARDS In March 2017, the FASB issued ASU 2017-07, Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost, Compensation – Retirement Benefits In August 2017, the FASB issued ASU 2017-12, Targeted Improvements to Accounting for Hedge Activities, Derivatives and Hedging 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)	3 Months Ended
	Dec. 31, 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 2017 2016 Weighted Average Shares Outstanding - Basic 25,836 25,720 Dilutive Options and Restricted Shares 244 259 Adjusted Shares - Diluted 26,080 25,979

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Dec. 31, 2017
Inventory Disclosure [Abstract]
Schedule Of Inventories	Inventories consist of the following: (In thousands) December 31, September 30, Finished goods $ 29,013 28,127 Work in process 46,668 43,750 Raw materials 54,898 52,638 Total inventories $ 130,579 124,515

GOODWILL AND OTHER INTANGIBLE22

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Intangible Assets and Goodwill	Included on the Company’s Consolidated Balance Sheets at December 31, 2017 and September 30, 2017 are the following intangible assets gross carrying amounts and accumulated amortization: (Dollars in thousands) December 31, 2017 September 30, 2017 Goodwill $ 378,510 377,879 Intangible assets with determinable lives: Patents Gross carrying amount $ 928 928 Less accumulated amortization 757 750 Net $ 171 178 Capitalized software Gross carrying amount $ 63,842 63,007 Less accumulated amortization 36,081 34,382 Net $ 27,761 28,625 Customer relationships Gross carrying amount $ 182,266 181,891 Less accumulated amortization 39,922 37,364 Net $ 142,344 144,527 Other Gross carrying amount $ 5,336 5,373 Less accumulated amortization 1,565 1,383 Net $ 3,771 3,990 Intangible assets with indefinite lives: Trade names $ 173,531 173,813
Schedule of Goodwill	The changes in the carrying amount of goodwill attributable to each business segment for the three months ended December 31, 2017 is as follows: (Dollars in millions) USG Test Filtration Packaging Total Balance as of September 30, 2017 250.2 34.1 73.7 19.9 377.9 Acquisition activity – working capital adj 0.2 - - - 0.2 Foreign currency translation and other - - - 0.4 0.4 Balance as of December 31, 2017 $ 250.4 34.1 73.7 20.3 378.5

BUSINESS SEGMENT INFORMATION (T

BUSINESS SEGMENT INFORMATION (Tables)	3 Months Ended
	Dec. 31, 2017
Segment Reporting, Measurement Disclosures [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 2017 2016 NET SALES Filtration $ 60,035 58,785 Test 37,530 33,827 USG 55,754 35,556 Technical Packaging 20,176 18,200 Consolidated totals $ 173,495 146,368 EBIT Filtration $ 9,645 10,726 Test 2,596 2,425 USG 10,651 9,674 Technical Packaging 965 1,031 Corporate (loss) (8,871) (7,047) Consolidated EBIT 14,986 16,809 Less: Interest expense, net (2,185) (684) Earnings before income taxes $ 12,801 16,125

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Dec. 31, 2017
Long-term Debt, Unclassified [Abstract]
Schedule Of Debt	The Company’s debt is summarized as follows: (In thousands) December 31, September 30, Total borrowings $ 260,000 275,000 Short-term borrowings and current portion of long-term debt (20,000) (20,000) Total long-term debt, less current portion $ 240,000 255,000

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	3 Months Ended
	Dec. 31, 2017
Equity [Abstract]
Schedule Of Change In Equity	The change in shareholders’ equity for the first three months of 2018 is shown below (in thousands): Balance at September 30, 2017 $ 671,918 Net earnings 34,671 Other comprehensive income 1,305 Cash dividends (2,067) Stock compensation plans 1,242 Balance at December 31, 2017 $ 707,069

RETIREMENT PLANS (Tables)

RETIREMENT PLANS (Tables)	3 Months Ended
	Dec. 31, 2017
Retirement Benefits [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-month periods ended December 31, 2017 and 2016 is shown in the following table. Net periodic benefit cost for each period presented is comprised of the following: Three Months (In thousands) 2017 2016 Defined benefit plans Interest cost $ 820 965 Expected return on assets (975) (1,094) Amortization of: Prior service cost - 3 Actuarial loss 549 505 Net periodic benefit cost $ 394 379

DERIVATIVE FINANCIAL INSTRUME27

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)	3 Months Ended
	Dec. 31, 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 December 31, 2017: (In thousands) Notional Fair Float Fix Forward contracts 1,859 GBP (156) Forward contracts 5,250 USD 33 Forward contracts 200 EUR (10) Interest rate swap 150,000 USD (80) 1.51 % 1.80 % Interest rate swap * 150,000 USD 28 N/A 2.09 % Interest rate swap ** 150,000 USD (20) N/A 2.24 % *This swap represents a forward contract and will be effective in November 2018. **This swap represents a forward contract and will be effective in November 2019.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Dec. 31, 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 December 31, 2017: (In thousands) Level 1 Level 2 Level 3 Total Liabilities: Forward contracts and swaps $ - (205) $ - (205)

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
	Dec. 31, 2017	Dec. 31, 2016
Earning Per Share [Line Items]
Weighted Average Shares Outstanding - Basic	25,836	25,720
Dilutive Options and Restricted Shares	244	259
Adjusted Shares - Diluted	26,080	25,979

SHARE-BASED COMPENSATION (Narra

SHARE-BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Selling, General and Administrative Expenses [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation cost	$ 1.4	$ 1.4
Performance-Accelerated Restricted Share (PARS) Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Pretax compensation expense	$ 1.1	1.2
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares, Beginning Balance	337,325
Non-Employee Directors Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total income tax benefit recognized	$ 0.4	0.5
Pretax compensation expense	0.3	$ 0.2
Total unrecognized compensation cost related to share-based compensation arrangements	$ 5.3
Remaining weighted-average period for recognition of total unrecognized compensation cost	1 year 3 months 18 days

INVENTORIES (Schedule Of Invent

INVENTORIES (Schedule Of Inventories) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Inventory [Line Items]
Finished goods	$ 29,013	$ 28,127
Work in process	46,668	43,750
Raw materials	54,898	52,638
Total inventories	$ 130,579	$ 124,515

GOODWILL AND OTHER INTANGIBLE32

GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule Of Intangible Assets Gross Carrying Amounts And Accumulated Amortization) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Goodwill and Other Intangible Assets [Line Items]
Goodwill	$ 378,510	$ 377,879
Less: accumulated amortization	78,325	73,879
Patents [Member]
Goodwill and Other Intangible Assets [Line Items]
Gross carrying amount	928	928
Less: accumulated amortization	757	750
Net	171	178
Capitalized Software [Member]
Goodwill and Other Intangible Assets [Line Items]
Gross carrying amount	63,842	63,007
Less: accumulated amortization	36,081	34,382
Net	27,761	28,625
Customer relationships [Member]
Goodwill and Other Intangible Assets [Line Items]
Gross carrying amount	182,266	181,891
Less: accumulated amortization	39,922	37,364
Net	142,344	144,527
Other [Member]
Goodwill and Other Intangible Assets [Line Items]
Gross carrying amount	5,336	5,373
Less: accumulated amortization	1,565	1,383
Net	3,771	3,990
Trade names [Member]
Goodwill and Other Intangible Assets [Line Items]
Trade names	$ 173,531	$ 173,813

GOODWILL AND OTHER INTANGIBLE33

GOODWILL AND OTHER INTANGIBLE ASSETS (Schedule Of Changes In The Carrying Amount Of Goodwill Attributable To Business Segment) (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2017USD ($)
Goodwill [Line Items]
Goodwill, Beginning Balance	$ 377,879
Acquisition activity - working capital adj	200
Foreign currency translation and other	400
Goodwill, Ending Balance	378,510
Filtration [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	73,700
Acquisition activity - working capital adj	0
Foreign currency translation and other	0
Goodwill, Ending Balance	73,700
Test [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	34,100
Acquisition activity - working capital adj	0
Foreign currency translation and other	0
Goodwill, Ending Balance	34,100
Utility Solutions [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	250,200
Acquisition activity - working capital adj	200
Foreign currency translation and other	0
Goodwill, Ending Balance	250,400
Technical Packaging [Member]
Goodwill [Line Items]
Goodwill, Beginning Balance	19,900
Acquisition activity - working capital adj	0
Foreign currency translation and other	400
Goodwill, Ending Balance	$ 20,300

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, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
NET SALES	$ 173,495	$ 146,368
Consolidated EBIT	14,986	16,809
Less: Interest expense, net	(2,185)	(684)
Earnings before income taxes	12,801	16,125
Filtration [Member]
Segment Reporting Information [Line Items]
NET SALES	60,035	58,785
Consolidated EBIT	9,645	10,726
Test [Member]
Segment Reporting Information [Line Items]
NET SALES	37,530	33,827
Consolidated EBIT	2,596	2,425
Utility Solutions [Member]
Segment Reporting Information [Line Items]
NET SALES	55,754	35,556
Consolidated EBIT	10,651	9,674
Technical Packaging [Member]
Segment Reporting Information [Line Items]
NET SALES	20,176	18,200
Consolidated EBIT	965	1,031
Corporate (loss) [Member]
Segment Reporting Information [Line Items]
Consolidated EBIT	$ (8,871)	$ (7,047)

DEBT (Schedule Of Debt) (Detail

DEBT (Schedule Of Debt) (Details) - USD ($) $ in Thousands	Dec. 31, 2017	Sep. 30, 2017
Debt Instrument [Line Items]
Total borrowings	$ 260,000	$ 275,000
Short-term borrowings and current portion of long-term debt	(20,000)	(20,000)
Total long-term debt, less current portion	$ 240,000	$ 255,000

DEBT (Narrative) (Details)

DEBT (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016	Sep. 30, 2017	Sep. 30, 2016
Debt Instrument [Line Items]
Available to borrow under the credit facility	$ 181,000
Cash on hand	$ 41,600	$ 51,755	$ 45,516	$ 53,825
Percentage of foreign subsidiaries' share equity	65.00%
Letters of Credit Outstanding, Amount	$ 9,000
Line of Credit Facility, Amount Outstanding	$ 260,000
Weighted average interest rates	2.74%	1.61%
Long-term Debt, Current Maturities	$ 20,000		$ 20,000
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of Credit Facility, Amount Outstanding	450,000
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) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Income Tax Expense [Line Items]
Effective Income Tax Rate Reconciliation, Percent	170.80%	33.50%
Income Tax Expense (Benefit)	$ (21,870)	$ 5,398
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	24.50%	35.00%
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Amount	$ 30,300
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent	236.80%
Effective Income Tax Rate Reconciliation, Tax Settlement, Domestic, Amount	$ 2,900
Effective Income Tax Rate Reconciliation, Tax Settlement, Domestic, Percent	22.80%
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount	$ 2,300
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent	18.30%
Tax Cuts and Jobs Act [Member]
Income Tax Expense [Line Items]
Income Tax Expense (Benefit)	$ 25,100

SHAREHOLDERS' EQUITY (Schedule

SHAREHOLDERS' EQUITY (Schedule Of Change In Equity) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2017	Dec. 31, 2016
Balance	$ 671,918
Net earnings	34,671	$ 10,727
Other comprehensive income	1,305	$ (4,496)
Cash dividends	(2,067)
Stock compensation plans	1,242
Ending Balance	$ 707,069

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, 2017	Dec. 31, 2016
Defined benefit plans
Interest cost	$ 820	$ 965
Expected return on assets	(975)	(1,094)
Amortization of Prior service cost	0	3
Amortization of Actuarial loss	549	505
Net periodic benefit cost	$ 394	$ 379

DERIVATIVE FINANCIAL INSTRUME40

DERIVATIVE FINANCIAL INSTRUMENTS (Schedule of Outstanding Derivative Financial Instruments) (Details) € in Thousands, £ in Thousands, $ in Thousands	Dec. 31, 2017USD ($)		Dec. 31, 2017GBP (£)		Dec. 31, 2017EUR (€)
Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Notional amount	$ 150,000
Fair Value	$ (80)
Float Rate	1.51%		1.51%		1.51%
Fix Rate	1.80%		1.80%		1.80%
Interest Rate Swap one [Member]
Derivatives, Fair Value [Line Items]
Notional amount	$ 150,000	[1]
Fair Value	$ 28	[1]
Float Rate		[1]		[1]		[1]
Fix Rate	2.09%	[1]	2.09%	[1]	2.09%	[1]
Interest Rate Swap Two [Member]
Derivatives, Fair Value [Line Items]
Notional amount	$ 150,000	[2]
Fair Value	$ (20)	[2]
Float Rate		[2]		[2]		[2]
Fix Rate	2.24%	[2]	2.24%	[2]	2.24%	[2]
Forward Contracts [Member]
Derivatives, Fair Value [Line Items]
Notional amount | £			£ 1,859
Fair Value	$ (156)
Forward Contracts One [Member]
Derivatives, Fair Value [Line Items]
Notional amount	5,250
Fair Value	33
Forward Contracts Two [Member]
Derivatives, Fair Value [Line Items]
Notional amount | €					€ 200
Fair Value	$ (10)
[1]	This swap represents a forward contract and will be effective in November 2018.
[2]	This swap represents a forward contract and will be effective in November 2019.

DERIVATIVE FINANCIAL INSTRUME41

DERIVATIVE FINANCIAL INSTRUMENTS (Narrative) (Details) $ in Thousands	Dec. 31, 2017USD ($)
Interest Rate Swap [Member]
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount	$ 150,000

FAIR VALUE MEASUREMENTS (Schedu

FAIR VALUE MEASUREMENTS (Schedule of Fair Value of Financial Instruments) (Details) - Forward Contracts [Member] - Swap [Member] $ in Thousands	Dec. 31, 2017USD ($)
Derivative [Line Items]
Fair Value of Financial Instruments	$ (205)
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	(205)
Fair Value, Inputs, Level 3 [Member]
Derivative [Line Items]
Fair Value of Financial Instruments	$ 0