0001104659-20-130486 | 10-K | XBRL Viewer

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Document And Entity Information - USD ($)	12 Months Ended
Document And Entity Information - USD ($)	Sep. 30, 2020	Nov. 20, 2020	Mar. 31, 2020
Document And Entity Information
Document Type	10-K
Document Annual Report	true
Document Period End Date	Sep. 30, 2020
Document Transition Report	false
Entity File Number	1-10596
Entity Registrant Name	ESCO Technologies Inc.
Entity Incorporation, State or Country Code	MO
Entity Tax Identification Number	43-1554045
Entity Address, Address Line One	9900A Clayton Road
Entity Address, City or Town	St. Louis
Entity Address, State or Province	MO
Entity Address, Postal Zip Code	63124-1186
City Area Code	314
Local Phone Number	213-7200
Title of 12(b) Security	Common Stock, par value $0.01 per share
Trading Symbol	ESE
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 1,926,000,000
Entity Common Stock, Shares Outstanding		26,037,714
Entity Central Index Key	0000866706
Current Fiscal Year End Date	--09-30
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Voluntary Filers	No

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS
Total revenues	$ 732,915	$ 726,044	$ 683,650
Costs and expenses:
Cost of sales	457,418	437,998	419,713
Selling, general and administrative expenses	159,490	162,734	153,065
Amortization of intangible assets	21,812	18,492	17,262
Interest expense, net	6,730	8,092	8,798
Pension plan termination charge	40,600
Other expenses, net	7,122	851	3,721
Total costs and expenses	693,172	628,167	602,559
Earnings before income tax	39,743	97,877	81,091
Income tax expense (benefit)	14,278	20,388	(5,170)
Net earnings from continuing operations	25,465	77,489	86,261
(Loss) earnings from discontinued operations, net of tax expense of $269, $789 and $1,060 in 2020, 2019 and 2018, respectively	(601)	3,550	5,875
Gain on sale from discontinued operations, net of tax expense of $23,232	77,116
Net earnings from discontinued operations	76,515	3,550	5,875
Net earnings	$ 101,980	$ 81,039	$ 92,136
Earnings per share:
Basic - Continuing operations	$ 0.98	$ 2.99	$ 3.33
Basic - Discontinued operations	2.94	0.13	0.23
Basic - Net earnings	3.92	3.12	3.56
Diluted - Continuing operations	0.97	2.97	3.31
Diluted - Discontinued operations	2.93	0.13	0.23
Diluted - Net earnings	$ 3.90	$ 3.10	$ 3.54
Average common shares outstanding (in thousands):
Basic	26,010	25,946	25,874
Diluted	26,135	26,097	26,058

CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF OPERATIONS
Discontinued Operation, Tax Effect of Income (Loss) from Discontinued Operation During Phase-out Period	$ 269	$ 789	$ 1,060
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation	$ 23,232

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
Net earnings	$ 101,980	$ 81,039	$ 92,136
Other comprehensive (loss) income, net of tax:
Foreign currency translation adjustments	3,172	(6,474)	(2,254)
Pension plan termination	40,600
Amortization of prior service costs and actuarial losses	(3,455)	(6,066)	(2,003)
Net unrealized gain on derivative instruments		94	37
Total other comprehensive (loss) income, net of tax	40,317	(12,446)	(4,220)
Comprehensive income	$ 142,297	$ 68,593	$ 87,916

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Current assets:
Cash and cash equivalents	$ 52,560	$ 61,808
Accounts receivable, less allowance for doubtful accounts of $1,995 and $1,505 in 2020 and 2019, respectively	144,082	158,715
Contract assets, net	96,746	110,211
Inventories, net	136,189	124,956
Other current assets	17,053	14,190
Assets of discontinued operations - current		25,314
Total current assets	446,630	495,194
Property, plant and equipment:
Land and land improvements	9,657	8,101
Buildings and leasehold improvements	98,636	83,255
Machinery and equipment	153,718	136,881
Construction in progress	8,393	9,983
Property, Plant and Equipment, Gross	270,404	238,220
Less accumulated depreciation and amortization	(130,534)	(110,377)
Net property, plant and equipment	139,870	127,843
Intangible assets, net	346,632	381,605
Goodwill	408,063	390,256
Operating lease assets	21,390
Other assets	10,938	4,445
Assets of discontinued operations - other		67,377
Total Assets	1,373,523	1,466,720
Current liabilities:
Current maturities of long-term debt and short-term borrowings	22,368	20,000
Accounts payable	50,525	63,800
Contract liabilities, net	100,551	81,177
Accrued salaries	32,149	37,194
Accrued other expenses	50,436	37,947
Liabilities of discontinued operations - current		11,517
Total current liabilities	256,029	251,635
Pension obligations	2,481	22,682
Deferred tax liabilities	60,938	60,856
Other liabilities	52,480	36,326
Long-term debt	40,000	265,000
Liabilities of discontinued operations - other		3,999
Total liabilities	411,928	640,498
Shareholders' equity:
Preferred stock, par value $.01 per share, authorized 10,000,000 shares
Common stock, par value $.01 per share, authorized 50,000,000 shares; issued 30,645,625 and 30,596,940 shares in 2020 and 2019, respectively	306	306
Additional paid-in capital	293,682	292,408
Retained earnings	778,398	684,741
Accumulated other comprehensive loss, net of tax	(3,657)	(43,974)
Total stockholders' equity before treasury stock	1,068,729	933,481
Less treasury stock, at cost (4,615,627 and 4,623,958 common shares in 2019 and 2018, respectively)	(107,134)	(107,259)
Total shareholders' equity	961,595	826,222
Total Liabilities and Shareholders' Equity	$ 1,373,523	$ 1,466,720

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
CONSOLIDATED BALANCE SHEETS
Allowance for Doubtful Accounts Receivable, Current	$ 1,995	$ 1,505
Preferred Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Common Stock, Shares Authorized	50,000,000	50,000,000
Common stock, shares issued	30,645,625	30,596,940
Treasury stock, shares	4,607,911	4,615,627

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands	Common Stock [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Common Stock [Member]	Additional Paid-In Capital [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive income (loss) [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Accumulated Other Comprehensive income (loss) [Member]	Treasury Stock [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Treasury Stock [Member]	Cumulative Effect, Period of Adoption, Adjustment [Member]	Total
Beginning Balance at Sep. 30, 2017		$ 305		$ 289,785		$ 516,718		$ (27,308)		$ (107,582)		$ 671,918
Balance (in shares) at Sep. 30, 2017		30,469
Comprehensive income (loss):
Net earnings		$ 0		0		92,136		0		0		92,136
Translation adjustments, net of tax		0		0		0		(2,254)		0		(2,254)
Amortization of prior service costs and actuarial losses		0		0		0		(2,003)		0		(2,003)
Forward exchange contracts, net of tax		0		0		0		37		0		37
Cash dividends declared		0		0		(8,278)		0		0		(8,278)
Reclassification from accumulated other comprehensive loss as a result of the adoption of new accounting standard ASU 2018-02						(6,261)		0		0		(6,261)
Stock options and stock compensation plans, net of tax		$ 0		1,405		0		0		188		1,593
Stock options and stock compensation plans, net of tax (in shares)		66
Ending Balance at Sep. 30, 2018		$ 305		291,190		606,837		(31,528)		(107,394)		759,410
Ending Balance (in shares) at Sep. 30, 2018		30,535
Comprehensive income (loss):
Net earnings		$ 0		0		81,039		0		0		81,039
Translation adjustments, net of tax		0		0		0		(6,474)		0		(6,474)
Amortization of prior service costs and actuarial losses		0		0		0		(6,066)		0		(6,066)
Forward exchange contracts, net of tax		0		0		0		94		0		94
Cash dividends declared		0		0		(8,302)		0		0		(8,302)
Stock options and stock compensation plans, net of tax		$ 1		1,218		0		0		135		1,354
Stock options and stock compensation plans, net of tax (in shares)		62
Ending Balance at Sep. 30, 2019		$ 306		292,408		684,741		(43,974)		(107,259)		826,222
Ending Balance (in shares) at Sep. 30, 2019		30,597
Comprehensive income (loss):
Adoption of new accounting standard ASU 2014-09	$ 0		$ 0		$ (5,167)		$ 0		$ 0		$ (5,167)
Net earnings		$ 0		0		101,980		0		0		101,980
Translation adjustments, net of tax		0		0		0		3,172		0		3,172
Amortization of prior service costs and actuarial losses												(3,455)
Cash dividends declared		0		0		(8,323)		0		0		(8,323)
Stock options and stock compensation plans, net of tax		$ 0		1,274		0		0		125		1,399
Stock options and stock compensation plans, net of tax (in shares)		49
Pension termination and net unrecognized actuarial loss, net of tax		$ 0		0		0		(37,145)		0		(37,145)
Ending Balance at Sep. 30, 2020		$ 306		$ 293,682		$ 778,398		$ (3,657)		$ (107,134)		$ 961,595
Ending Balance (in shares) at Sep. 30, 2020		30,646

CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax	$ 0	$ 0	$ 0
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax		1,817	(1,326)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Tax		$ (22)	$ (41)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax	$ 1,161
Common Stock, Dividends, Per Share, Declared	$ 0.32	$ 0.32	$ 0.32
Adjustment to Additional Paid in Capital, Income Tax Effect from Share-based Compensation, Net	$ 0	$ 0	$ 0

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities:
Net earnings	$ 101,980	$ 81,039	$ 92,136
Adjustments to reconcile net earnings to net cash provided by operating activities:
Net earnings from discontinued operations, net of tax	(76,515)	(3,550)	(5,875)
Depreciation and amortization	41,338	35,995	33,690
Stock compensation expense	5,550	5,088	5,029
Changes in assets and liabilities	23,793	(6,649)	(9,552)
Change in property, plant and equipment from gain on building sale		(8,922)
Effect of deferred taxes on tax provision	(2,562)	61	(21,031)
Pension contributions	(25,650)	(2,500)	(9,951)
Pension plan termination charge	40,600
Net cash provided by operating activities - continuing operations	108,534	100,562	84,446
Net cash (used) provided by discontinued operations	(26,254)	4,575	8,813
Net cash provided by operating activities	82,280	105,137	93,259
Cash flows from investing activities:
Acquisition of businesses, net of cash acquired		(95,840)	(9,813)
Capital expenditures	(32,108)	(24,229)	(15,243)
Additions to capitalized software	(9,023)	(8,374)	(9,573)
Proceeds from sale of building and land		17,201
Net cash used by investing activities - continuing operations	(41,131)	(111,242)	(34,629)
Net cash provided (used) by investing activities - discontinued operations	182,084	(13,903)	(6,978)
Net cash provided (used) by investing activities	140,953	(125,145)	(41,607)
Cash flows from financing activities:
Proceeds from long-term debt	12,368	130,000	55,000
Principal payments on long-term debt	(235,000)	(65,000)	(110,000)
Dividends paid	(8,323)	(8,302)	(8,278)
Debt issuance costs		(1,071)
Other	(3,125)	(3,371)	(3,078)
Net cash provided (used) by financing activities - continuing operations	(234,080)	52,256	(66,356)
Net cash used by financing activities - discontinued operations	(2,140)	(2,472)	(1,922)
Net cash provided (used) by financing activities	(236,220)	49,784	(68,278)
Effect of exchange rate changes on cash and cash equivalents	3,739	1,555	1,587
Net increase (decrease) in cash and cash equivalents	(9,248)	31,331	(15,039)
Cash and cash equivalents at beginning of year	61,808	30,477	45,516
Cash and cash equivalents at end of year	52,560	61,808	30,477
Changes in assets and liabilities:
Accounts receivable, net	14,633	(8,722)	(340)
Contract assets	13,465	(57,177)	(5,748)
Inventories	(11,233)	7,109	(9,440)
Other assets and liabilities	(6,615)	7,708	1,334
Accounts payable	(13,275)	10,716	7,932
Contract liabilities	19,374	32,142	(1,999)
Accrued expenses	7,444	1,575	(1,291)
Changes in assets and liabilities	23,793	(6,649)	(9,552)
Supplemental cash flow information:
Interest paid	5,869	8,076	8,540
Income taxes paid (including state & foreign)	$ 37,714	$ 26,084	$ 8,789

Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2020

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

A. Principles of Consolidation

The Consolidated Financial Statements include the accounts of ESCO Technologies Inc. (ESCO) and its wholly owned subsidiaries (the Company). All significant intercompany transactions and accounts have been eliminated in consolidation.

B. Basis of Presentation

The Company’s fiscal year ends on September 30. Throughout the Consolidated Financial Statements, unless the context indicates otherwise, references to a year (for example 2020) refer to the Company’s fiscal year ending on September 30 of that year.

The Company's former Technical Packaging segment is reflected as discontinued operations in the Consolidated Financial Statements and related notes for all periods presented, in accordance with accounting principles generally accepted in the United States of America (GAAP). Prior period amounts have been reclassified to conform to the current period presentation. See Note 2.

The Company accounts for shipping and handling costs on a gross basis and they are included in net sales. The Company accounts for taxes collected from customers and remitted to governmental authorities on a net basis and they are excluded from net sales.

C. Nature of Operations

The Company is organized based on the products and services it offers and classifies its business operations in segments for financial reporting purposes. Under the current organization structure, the Company has three segments for financial reporting purposes: Aerospace & Defense, Utility Solutions Group (USG), and RF Shielding and Test (Test).

Aerospace & Defense: The companies within this segment primarily design and manufacture specialty filtration products, including hydraulic filter elements and fluid control devices used in commercial aerospace applications; unique filter mechanisms used in micro-propulsion devices for satellites; custom designed filters for manned aircraft and submarines; products and systems to reduce vibration and/or acoustic signatures and otherwise reduce or obscure a vessel’s signature, and other communications, sealing, surface control and hydrodynamic related applications to enhance U.S. Navy maritime survivability; precision-tolerance machined components for the aerospace and defense industry; and metal processing services.

USG: The companies within this segment provide diagnostic testing solutions that enable electric power grid operators to assess the integrity of high-voltage power delivery equipment, as well as decision support tools for the renewable energy industry, primarily wind and solar.

Test: ETS-Lindgren Inc. provides its customers with the ability to identify, measure and contain magnetic, electromagnetic and acoustic energy.

D. Use of Estimates

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.

E. Revenue Recognition

On October 1, 2018, we adopted ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606). Significant changes to our policies resulting from the adoption are provided below. We adopted ASC 606 using the modified retrospective transition method applied to contracts that were not substantially complete at the end of fiscal year 2018. We recorded a $5.2 million adjustment to increase retained earnings to reflect the cumulative impact of adopting this standard at the beginning of fiscal year 2019, primarily related to certain long-term contracts in our Aerospace & Defense and Technical Packaging segments that converted to the cost-to-cost method for revenue recognition. The comparative information has not been restated and is reported under the accounting standards in effect for those periods.

Revenue Recognition

Revenue is recognized when control of the goods or services promised under the contract is transferred to the customer either at a point in time (e.g., upon delivery) or over time (e.g., as we perform under the contract). We account for a contract when it has approval and commitment from both parties, the rights and payment terms of the parties are identified, the contract has commercial substance and collectability of consideration is probable. Contracts are reviewed to determine whether there is one or multiple performance obligations. A performance obligation is a promise to transfer a distinct good or service to a customer and represents the unit of accounting for revenue recognition. For contracts with multiple performance obligations, the expected consideration, or the transaction price, is allocated to each performance obligation identified in the contract based on the relative standalone selling price of each performance obligation. Revenue is then recognized for the transaction price allocated to the performance obligation when control of the promised goods or services underlying the performance obligation is transferred.

Payment terms with customers vary by the type and location of the customer and the products or services offered. The Company does not adjust the promised amount of consideration for the effects of significant financing components based on the expectation that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Arrangements with customers that include payment terms extending beyond one year are not significant.

Aerospace & Defense: Within the Aerospace & Defense segment, approximately 45% of revenues (approximately 22% of consolidated revenues) are recognized at a point in time when products are shipped (when control of the goods transfers) to unaffiliated customers. The related contracts are with commercial and military customers and have a single performance obligation as there is only one good promised or the promise to transfer the goods or services is not distinct or separately identifiable from other promises in the contract. The transaction price for these contracts reflects our estimate of returns, rebates and discounts, which are based on historical, current and forecasted information to determine the expected amount to which the Company will be entitled in exchange for transferring the promised goods or services to the customer. The realization of variable consideration occurs within a short period of time from product delivery; therefore, the time value of money effect is not significant. Amounts billed to customers for shipping and handling are included in the transaction price as the related activities are performed prior to customer obtaining control of the products. They generally are not treated as separate performance obligations as these costs fulfill a promise to transfer the product to the customer and are expensed in selling, general, and other costs in the period they are incurred. Taxes collected from customers and remitted to government authorities are recorded on a net basis. We primarily provide standard warranty programs for products in our commercial businesses for periods that typically range from one to two years. These assurance-type programs typically cannot be purchased separately and do not meet the criteria to be considered a performance obligation.

Approximately 55% of the segment’s revenues (approximately 26% of consolidated revenues) are accounted for over time as the product does not have an alternative use and the Company has an enforceable right to payment for costs incurred plus a reasonable margin or the inventory is owned by the customer. The related contracts are primarily cost-plus or fixed price contracts related to the design, development and manufacture of complex fluid control products, quiet valves, manifolds, shock and vibration dampening, thermal insulation and systems primarily for the commercial aerospace and military (U.S. Government) markets. The contracts may contain multiple products, which are capable of being distinct as the customer could benefit from each product on its own or together with other readily available resources. Each product is separately identifiable from the other products in the contract. Therefore, each product is distinct in context of the contract and will be accounted for as a separate performance obligation. Our contracts are frequently modified for changes in contract specifications and requirements. Most of our contract modifications are for products that are not distinct from the existing contract and are accounted for as part of that existing contract.

Contracts with the U.S. Government generally contain clauses that provide lien rights to work-in-process along with clauses that allow the customer to unilaterally terminate the contract for convenience, pay us for costs incurred plus a reasonable profit and take control of any work-in-process. Due to the continuous transfer of control to the U.S. Government, we recognize revenue over the time that we perform under the contract.

Selecting the method to measure progress towards completion for the commercial and military contracts requires judgment and is based on the nature of the products or service to be provided. We generally use the cost-to-cost method to measure progress for our Aerospace & Defense segment contracts, as the rate at which costs are incurred to fulfill a contract best depicts the transfer of control to the customer. Under this measure, the extent of progress towards completion is measured based on the ratio of costs incurred to date to the estimated costs at completion of the performance obligation, and revenue is recorded proportionally as costs are incurred based on an estimated profit margin.

The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions regarding variable consideration as applicable. Certain of our long-term contracts contain incentive fees that can increase the transaction price. These variable amounts generally are awarded upon achievement of certain performance metrics, program milestones or cost targets and can be based upon customer discretion. We include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Our estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of our anticipated performance and all other information that is reasonably available to us.

Total contract cost is estimated utilizing current contract specifications and expected engineering requirements. Contract costs typically are incurred over a period of several months to one or more years, and the estimation of these costs requires judgment. Our cost estimation process is based on the professional knowledge and experience of engineers and program managers along with finance professionals. We review and update our projections of costs quarterly or more frequently when circumstances significantly change.

Under the typical payment terms of our long term fixed price contracts, the customer pays us either performance-based or progress payments. Performance-based payments represent interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments are interim payments of costs incurred as the work progresses. Because of the timing difference of revenue recognition and customer billing, these contracts will often result in revenue recognized in excess of billings and billings in excess of costs incurred, which we present as contract assets and contract liabilities, respectively, in the Consolidated Balance Sheets. Amounts billed and due from our customers are classified in Accounts receivable, net. For short term fixed price and cost-type contracts, we are generally paid within a short period of time.

For contracts where revenue is recognized over time, we generally recognize changes in estimated contract revenues, costs and profits using the cumulative catch-up method of accounting. This method recognizes the cumulative effect of changes on current and prior periods with the impact of the change from inception-to-date recorded in the current period. We have net revenue recognized in the current year from performance obligations satisfied in the prior year due to changes in our estimated costs to complete the related performance obligations. Anticipated losses on contracts are recognized in full in the period in which the losses become probable and estimable.

USG: Within the USG segment, approximately 75% of revenues (approximately 20% of consolidated revenues) are recognized at a point in time when products are shipped (when control of the goods transfers) to unaffiliated customers. The related contracts are with commercial customers. The contracts may contain multiple products which are capable of being distinct as the customer could benefit from each product on its own or together with other readily available resources. Each product is separately identifiable from the other products in the contract. Therefore, each product is distinct in context of the contract and is accounted for as a separate performance obligation. The transaction price for these contracts reflects our estimate of variable consideration in the form of returns, rebates and discounts, which are based on historical, current and forecasted information to determine the expected amount to which the Company will be entitled in exchange for transferring the promised goods or services to the customer. The realization of variable consideration occurs within a short period of time from product delivery; therefore, the time value of money effect is not significant. Amounts billed to customers for shipping and handling are included in the transaction price as the related activities are performed prior to customer obtaining control of the products. They generally are not treated as separate performance obligations as these costs fulfill a promise to transfer the product to the customer and are expensed in selling, general, and other costs in the period they are incurred. Taxes collected from customers and remitted to government authorities are recorded on a net basis. We primarily provide standard warranty programs for products in our commercial businesses for periods that typically range from one to two years. These assurance-type programs typically cannot be purchased separately and do not meet the criteria to be considered a performance obligation.

Approximately 25% of the segment’s revenues (approximately 7% of consolidated revenues) are recognized over time as services are performed. The services accounted for under this method include an obligation to provide testing services using hardware and embedded software, software maintenance, training, lab testing, and consulting services. The related contracts contain a bundle of goods and services that are integrated in the context of the contract. Therefore, the goods and services are not distinct and the Company has a single performance obligation. Selecting the method to measure progress towards completion for these contracts requires judgment and is based on the nature of the products and service to be provided. We will recognize revenue as a series of distinct services based on each day of providing services (straight-line over the contract term) for our USG segment contracts. The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions regarding variable consideration as applicable. Under the typical payment terms of our service contracts, the customer pays us in advance of when services are performed. Because of the timing difference of revenue recognition and customer payment, which is typically

received upon commencement of the contract, these contracts result in deferred revenue, which we present as contract liabilities, in the Consolidated Balance Sheets.

Included in this category, approximately 10% of the segment’s revenues (approximately 2% of consolidated revenues) are recognized based on the terms of the software contract. For contracts that transfer a software license to the customer, revenue will be recognized at a point in time. These type of software contracts represent a right to use the software, or a functional license, in which revenue should be recognized upon transfer of the license. For contracts in software as a service (SaaS) arrangements, revenue will be recognized over time. The customer receives and consumes the benefits of the SaaS arrangement through access to the system which is for a stated period. We will recognize revenue based on each day of providing access (straight-line over the contract term). The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions regarding variable consideration as applicable. Under the typical payment terms of our software contracts, the customer pays us in advance of when services are performed. Because of the timing difference of revenue recognition and customer payment, these contracts result in deferred revenue, which we present as contract liabilities, in the Consolidated Balance Sheets.

Test: Within the Test segment, approximately 18% of revenues (approximately 5% of consolidated revenues) are recognized at a point in time when products such as, antennas and probes are shipped (when control of the goods transfers) to unaffiliated customers. The related contracts are with commercial customers. The contracts may contain multiple products which are capable of being distinct as the customer could benefit from each product on its own or together with other readily available resources. Each product is separately identifiable from the other products in the contract. Therefore, each product is distinct in context of the contract and will be accounted for as a separate performance obligation. The transaction price for these contracts reflects our estimate of variable consideration in the form of returns, rebates and discounts, which are based on historical, current and forecasted information to determine the expected amount to which the Company will be entitled in exchange for transferring the promised goods or services to the customer. The realization of variable consideration occurs within a short period of time from product delivery; therefore, the time value of money effect is not significant. Amounts billed to customers for shipping and handling are included in the transaction price as the related activities are performed prior to customer obtaining control of the products. They generally are not treated as separate performance obligations as these costs fulfill a promise to transfer the product to the customer and are expensed in selling, general, and other costs in the period they are incurred. Taxes collected from customers and remitted to government authorities are recorded on a net basis. We primarily provide standard warranty programs for products in our commercial businesses for periods that typically range from one to two years. These assurance-type programs typically cannot be purchased separately and do not meet the criteria to be considered a performance obligation.

Approximately 82% of the segment’s revenues (approximately 20% of consolidated revenues) are recorded over time as the product does not have an alternative use and the Company has an enforceable right to payment for costs incurred plus a reasonable margin. Products accounted for under this guidance include the construction and installation of test chambers to a buyer’s specifications that provide its customers with the ability to measure and contain magnetic, electromagnetic and acoustic energy. The goods and services related to each installed test chamber are not distinct due to the significant amount of integration provided and each installed chamber is accounted for as a single performance obligation. Selecting the method to measure progress towards completion for these contracts requires judgment and is based on the nature of the products and service to be provided. We use milestones to measure progress for our Test segment contracts because it best depicts the transfer of control to the customer that occurs as we incur costs on our contracts. For arrangements that are accounted for under this guidance, the Company estimates profit as the difference between total revenue and total estimated cost of a contract and recognizes these revenues and costs based primarily on contract milestones. The transaction price for our contracts represents our best estimate of the consideration we will receive and includes assumptions regarding variable consideration as applicable.

Total contract cost is estimated utilizing current contract specifications and expected engineering requirements. Contract costs typically are incurred over a period of several months to a year, and the estimation of these costs requires judgment. Our cost estimation process is based on the professional knowledge and experience of engineers and program managers along with finance professionals. We review and update our projections of costs quarterly or more frequently when circumstances significantly change.

Under the typical payment terms of our fixed price contracts, the customer pays us either performance-based or progress payments. Performance-based payments represent interim payments based on quantifiable measures of performance or on the achievement of specified events or milestones. Progress payments are interim payments of costs incurred as the work progresses. Because of the timing difference of revenue recognition and customer billing, these contracts result in revenue recognized in excess of billings and billings in excess of costs incurred, which we present as contract assets and contract liabilities, respectively, in the Consolidated Balance Sheets. Amounts billed and due from our customers are classified in Accounts receivable, net.

Contract Assets and Liabilities

Contract assets arise from contracts when revenue is recognized over time and the amount of revenue recognized, including our estimate of variable consideration that has been included in the transaction price, exceeds the amount billed to the customer. These amounts are included in contract assets until the right to payment is no longer conditional on events other than the passage of time. These contract assets are reclassified to receivables when the right to consideration becomes unconditional. Contract liabilities include deposits, deferred revenue, upfront payments and billings in excess of revenue recognized. Liabilities for customer rebates and discounts are included in other current liabilities in the accompanying balance sheet.

See the further discussion of the Company’s revenue recognition in Note 17 below.

Prior to Adoption of ASC 606

Prior to October 1, 2018, Management recognized revenue consistent with ASC 605. The Aerospace & Defense segment was most impacted by the change in the timing of revenue recognition. Under ASC 605, in 2018 the Aerospace & Defense segment recognized 85% of revenues upon delivery of products (when title and risk of ownership transfers) and when the other general conditions to revenue recognition (collectability of revenues is probable, there is evidence of an arrangement, fees are fixed and determinable) were met, and 15% of revenues under percentage-of-completion. The change to recording more revenue over time as costs are incurred at the Aerospace & Defense segment is the result of the products not having an alternative use and the Company having an enforceable right to payment for costs incurred plus a reasonable margin or the inventory is owned by the customer.

The timing of revenue recognition under ASC 605 and ASC 606 was similar for the USG and Test segments. In 2018, the USG segment recognized 25% of revenues under percentage-of-completion and 75% of revenues when products were delivered or services performed (when title and risk of ownership transfers) and when the other general conditions to revenue recognition (collectability of revenues is probable, there is evidence of an arrangement, fees are fixed and determinable) were met. In 2018, the Test segment recognized 75% of revenues under percentage-of-completion and 25% of revenues when products were delivered or services performed (when title and risk of ownership transfers).

F. Cash and Cash Equivalents

Cash equivalents include temporary investments that are readily convertible into cash, such as money market funds, with original maturities of three months or less.

G. Accounts Receivable

Accounts receivable have been reduced by an allowance for amounts that the Company estimates are uncollectible in the future. This estimated allowance is based on Management’s evaluation of the financial condition of the customer and historical write-off experience.

H. Inventories

Inventories are valued at the lower of cost (first-in, first-out) or market value. Inventories are regularly reviewed for excess quantities and obsolescence based upon historical experience, specific identification of discontinued items, future demand, and market conditions. Inventories under long-term contracts reflect accumulated production costs, factory overhead, initial tooling and other related costs less the portion of such costs charged to cost of sales.

I. Property, Plant and Equipment

Property, plant and equipment are recorded at cost. Depreciation and amortization are computed primarily on a straight-line basis over the estimated useful lives of the assets: buildings, 10-40 years; machinery and equipment, 3-10 years; and office furniture and equipment, 3-10 years. Leasehold improvements are amortized over the remaining term of the applicable lease or their estimated useful lives, whichever is shorter. Long-lived tangible assets are reviewed for impairment whenever events or changes in business circumstances indicate the carrying value of the assets may not be recoverable. Impairment losses are recognized based on fair value.

J. Leases

The Company’s lease agreements primarily relate to office space, manufacturing facilities, and machinery and equipment. The Company determines at lease inception whether an arrangement that provides control over the use of an asset is a lease. The Company recognizes at lease commencement a right-of-use (ROU) asset and lease liability based on the present value of the future lease payments over the lease term. The Company has elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less. Certain of the Company’s leases include options to extend the term of the lease for up to 20 years. When it is reasonably certain that the Company will exercise the option, Management includes the impact of the option in the lease term for purposes of determining total future lease payments. As most of the Company’s lease agreements do not explicitly state the discount rate implicit in the lease, Management uses the Company’s incremental borrowing rate on the commencement date to calculate the present value of future payments based on the tenor of each arrangement.

K. Goodwill and Other Long-Lived Intangible Assets

Goodwill represents the excess of purchase price over the fair value of net identifiable assets acquired in business acquisitions. Management annually reviews goodwill and other long-lived assets with indefinite useful lives for impairment or whenever events or changes in circumstances indicate the carrying amount may be less than fair value. If the Company determines that the carrying value of the long-lived asset or reporting unit is less than fair value, a permanent impairment charge is recorded for the amount by which the carrying value of the long-lived asset exceeds its fair value. Fair value of the Company’s reporting units is measured based on a discounted cash flow method using a discount rate determined by Management to be commensurate with the risk inherent in each of our reporting units’ current business models. Fair value for trade names is determined using a generally accepted valuation method based on an income approach called the relief from royalty method. During 2020, the revenue softness in the Company’s Aerospace & Defense segment as well as its USG segment due to the COVID-19 pandemic led management to perform a quantitative impairment analysis, which included a detailed calculation of the fair value of its trade names and reporting units related to certain reporting units within these segments. The results of these impairment analyses indicated that the fair values of the trade names and reporting units are not less than their carrying values. The Company’s estimates of discounted cash flows to derive the fair value were measured in accordance with ASC 350, Intangibles – Goodwill and Other. The Company is using estimates of discounted cash flows that may change, and if they change negatively it could result in the need to write down those assets to fair value.

Other intangible assets represent costs allocated to identifiable intangible assets, principally customer relationships, capitalized software, patents, trademarks, and technology rights. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives to their estimated residual values, and are reviewed for impairment whenever events or changes in business circumstances indicate the carrying value of the assets may not be recoverable.

See Note 4 regarding goodwill and other intangible assets activity.

L. Capitalized Software

The costs incurred for the development of computer software that will be sold, leased, or otherwise marketed are charged to expense when incurred as research and development until technological feasibility has been established for the product. Technological feasibility is typically established upon completion of a detailed program design. Costs incurred after this point are capitalized on a project-by-project basis. Capitalized costs consist of internal and external development costs. Upon general release of the product to customers, the Company ceases capitalization and begins amortization, which is calculated on a project-by-project basis as the greater of (1) the ratio of current gross revenues for a product to the total of current and anticipated future gross revenues for the product or (2) the straight-line method over the estimated economic life of the product. The Company generally amortizes the software development costs over a three-to-seven year period based upon the estimated future economic life of the product. Factors considered in determining the estimated future economic life of the product include anticipated future revenues, and changes in software and hardware technologies. Management annually reviews the carrying values of capitalized costs for impairment or whenever events or changes in circumstances indicate the carrying amount may not be recoverable. If expected cash flows are insufficient to recover the carrying amount of the asset, then an impairment loss is recognized to state the asset at its net realizable value.

M. Income Taxes

Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Deferred tax assets may be reduced by a valuation allowance if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company regularly reviews its deferred tax assets for recoverability and establishes a valuation allowance when Management believes it is more likely than not such assets will not be recovered, taking into consideration historical operating results, expectations of future earnings, tax planning strategies, and the expected timing of the reversals of existing temporary differences.

N. Research and Development Costs

Company-sponsored research and development costs include research and development and bid and proposal efforts related to the Company’s products and services. Company-sponsored product development costs are charged to expense when incurred. Customer-sponsored research and development costs incurred pursuant to contracts are accounted for similarly to other program costs. Customer-sponsored research and development costs refer to certain situations whereby customers provide funding to support specific contractually defined research and development costs. Total Company and customer-sponsored research and development expenses were approximately $13.3 million, $12.1 million and $10.9 million for 2020, 2019 and 2018, respectively. These expense amounts exclude certain engineering costs primarily associated with product line extensions, modifications and maintenance, which amounted to approximately $16.1 million, $15.8 million and $13.1 million for 2020, 2019 and 2018, respectively.

O. Foreign Currency Translation

The financial statements of the Company’s foreign operations are translated into U.S. dollars in accordance with FASB ASC Topic 830, Foreign Currency Matters. The resulting translation adjustments are recorded as a separate component of accumulated other comprehensive income.

P. Earnings Per Share

Basic earnings per share is calculated using the weighted average number of common shares outstanding during the period. Diluted earnings per share 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 using the treasury stock method. There are no anti-dilutive shares.

The number of shares used in the calculation of earnings per share for each year presented is as follows:


(in thousands)	2020	2019	2018
Weighted Average Shares Outstanding - Basic	26,010	25,946	25,874
Performance-Accelerated Restricted Stock	125	151	184
Shares - Diluted	26,135	26,097	26,058

Q. Share-Based Compensation

The Company provides compensation benefits to certain key employees under several share-based plans providing for employee stock options and/or performance-accelerated restricted shares (restricted shares), and to non-employee directors under a non-employee directors compensation plan. Share-based payment expense is measured at the grant date based on the fair value of the award and is recognized on a straight-line basis over the requisite service period (generally the vesting period of the award).

R. Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss of $(3.7) million at September 30, 2020 consisted of currency translation adjustments. Accumulated other comprehensive loss of $(44.0) million at September 30, 2019 consisted of $(37.0) million related to the pension net actuarial loss; and $(7.0) million related to currency translation adjustments.

S. Derivative Financial Instruments

All derivative financial instruments are reported on the balance sheet at fair value. The accounting for changes in fair value of a derivative instrument depends on whether it has been designated and qualifies as a hedge and on the type of hedge. For each derivative instrument designated as a cash flow hedge, the effective portion of the gain or loss on the derivative is deferred in accumulated other comprehensive income until recognized in earnings with the underlying hedged item. For each derivative instrument designated as a fair value hedge, the gain or loss on the derivative and the offsetting gain or loss on the hedged item are recognized immediately in earnings. Regardless of type, a fully effective hedge will result in no net earnings impact while the derivative is outstanding. To the extent that any hedge is ineffective at offsetting cash flow or fair value changes in the underlying hedged item, there could be a net earnings impact.

T. Fair Value Measurements

Fair value is defined as the price at which an asset could be exchanged in a current transaction between knowledgeable, willing parties or the amount that would be paid to transfer a liability to a new obligor, not the amount that would be paid to settle the liability with the creditor. Where available, fair value is based on observable market prices or parameters or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation techniques involve some level of Management estimation and judgment, the degree of which is dependent on the price transparency for the instruments or market and the instruments’ complexity.

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 September 30, 2020 using available market information or other appropriate valuation methodologies. The carrying amounts of cash and cash equivalents, receivables, inventories, payables and other current assets and liabilities approximate fair value because of the short maturity of those instruments. The carrying amounts due under the revolving credit facility approximate fair value as the interest on outstanding borrowings is calculated at a spread over the London Interbank Offered Rate (LIBOR) or based on the prime rate, at the Company’s election.

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 2020.

U. New Accounting Standards

In February 2016, the FASB issued ASU No. 2016-062, “Leases” (ASU 2016-02) which supersedes ASC 840, “Leases” and creates a new topic, ASC 842, “Leases.” Subsequent to the issuance of ASU 2016-02, ASC 842 was amended by various updates that amend and clarify the impact and implementation of the aforementioned update. Effective October 1, 2019, the Company adopted these updates using the optional transition method. These updates require lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a term greater than 12 months on its balance sheet. Upon initial application, the provisions of these updates are required to be applied using the modified retrospective method which requires retrospective adoption to each prior reporting period presented with the cumulative effect of adoption recorded to the earliest reporting period presented. An optional transition method can be utilized which requires retrospective adoption beginning on the date of adoption with the cumulative effect of initially applying these updates recognized at the date of initial adoption. The standard also provided several optional practical expedients for use in transition. The Company elected to use what the FASB has deemed the “package of practical expedients,” which allowed the Company not to reassess previous conclusions regarding lease identification, lease classification and the accounting treatment for initial direct costs. These updates also expand the required quantitative and qualitative disclosures surrounding leases. The adoption resulted in the addition of “right of use” assets of approximately $20 million and lease liabilities of approximately $23 million in the Consolidated Balance Sheet, with no significant change to the Consolidated Statements of Operations or Cash Flows. Refer to Note 16 for further discussion.

Technical Packaging Divesture

12 Months Ended

Sep. 30, 2020

Technical Packaging Divestiture

Technical Packaging Divestiture

2. Technical Packaging Divestiture

On December 31, 2019, pursuant to an Equity Purchase Agreement entered into on November 15, 2019, the Company completed the sale of its Technical Packaging business segment, consisting of the Company's wholly-owned subsidiaries Thermoform Engineered Quality LLC, Plastique Ltd. and Plastique sp. z o.o. (the "Technical Packaging Business"), to Sonoco Plastics, Inc. and Sonoco Holdings, Inc. ("Buyers"), two wholly-owned subsidiaries of Sonoco Products Company (NYSE:SON). 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. Results of operations, financial position and cash flows for the Technical Packaging business are reflected as discontinued operations in the Consolidated Financial Statements and related notes for all periods presented.

Net sales from the Technical Packaging business were $16.5 million, $86.9 million and $87.9 million in 2020, 2019 and 2018, respectively. Pretax (loss) earnings from the Technical Packaging business was $(0.3) million, $4.3 million and $6.9 million in 2020, 2019 and 2018, respectively. The Company received net proceeds from the sale of approximately $184 million and recorded a $76.5 million after-tax gain on the sale in 2020. The Company finalized the working capital adjustment and paid $0.2 million to the buyer during the third quarter of 2020.

The major classes of assets and liabilities of the Technical Packaging business included in the Consolidated Balance Sheet at September 30, 2019 are shown below (in millions).


	September 30, 2019
Assets:
Accounts receivable, net	$	15.7
Contract assets, net		5.1
Inventories		3.9
Other current assets		0.6
Current assets		25.3
Property, plant & equipment, net		33.6
Intangible assets, net		11.4
Goodwill		19.0
Other assets		3.4
Total assets	$	92.7
Liabilities:
Accounts payable	$	7.6
Accrued expenses and other current liabilities		3.9
Current liabilities		11.5
Other liabilities		4.0
Total liabilities	$	15.5

Acquisitions

12 Months Ended

Sep. 30, 2020

Acquisitions

Acquisitions

3. Acquisitions

2019

On July 2, 2019 the Company acquired Globe Composite Solutions, LLC, for a purchase price of approximately $95 million, net of cash acquired. Globe, based in Stoughton, Massachusetts, is a well-established, vertically integrated supplier of mission-critical composite-based products and solutions for navy, defense, and industrial customers, Globe has annualized sales of approximately $37 million. Since the date of acquisition, the operating results for Globe have been included in the Company’s Aerospace & Defense segment. Based on the purchase price allocation, the Company recorded approximately $3.5 million of accounts receivable, $3.5 million of inventory, $6.3 million of property, plant and equipment, $10.5 million of accounts payable, accrued expenses and advance payments, $28.5 million of goodwill, $3.7 million of tradenames and $59.7 million of amortizable intangible assets consisting mainly of $56.7 million of customer relationships with a weighted average life of 20 years and $2.8 million of customer contract assets. The acquired goodwill relates to excess value associated with the opportunities to expand the services and markets that the Company can offer to its customers. The Company estimates approximately $25 million of the goodwill will be deductible for tax purposes.

2018

On March 14, 2018, the Company acquired the assets of Manta Test Systems Inc. (Manta), a North American utility solutions provider located in Mississauga, Ontario, Canada, for a purchase price of $9.5 million in cash. Since the date of acquisition, the operating results for Manta have been included as a product line of Doble within the Company’s USG segment. Based on the purchase price allocation, the Company recorded approximately $0.4 million of accounts receivable, $1.1 million of inventory, $0.2 million of property, plant and equipment, $0.4 million of accounts payable and accrued expenses, $3.5 million of goodwill, $1.2 million of tradenames and $3.5 million of amortizable intangible assets consisting of customer relationships with a weighted average life of 13 years.

All of the Company’s acquisitions have been accounted for using the purchase method of accounting, and accordingly, the respective purchase prices were allocated to the assets (including intangible assets) acquired and liabilities assumed based on estimated fair values at the date of acquisition. The financial results from these acquisitions have been included in the Company’s financial statements from the date of acquisition.

The goodwill recorded for the Globe acquisition mentioned above is deductible for U.S. Federal and state income tax purposes. The goodwill recorded for the Manta acquisition is deductible for Canadian income tax purposes.

Goodwill and Other Intangible Assets

12 Months Ended

Sep. 30, 2020

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

4. Goodwill and Other Intangible Assets

Included on the Company’s Consolidated Balance Sheets at September 30, 2020 and 2019 are the following intangible assets gross carrying amounts and accumulated amortization:


(Dollars in thousands)	2020		2019
Goodwill	$	408,063	390,256

Intangible assets with determinable lives:
Patents
Gross carrying amount	$	2,092	1,945
Less: accumulated amortization		858	748
Net	$	1,234	1,197

Capitalized software
Gross carrying amount	$	84,888	78,962
Less: accumulated amortization		57,302	48,530
Net	$	27,586	30,432

Customer Relationships
Gross carrying amount	$	227,178	227,225
Less: accumulated amortization		67,643	55,326
Net	$	159,535	171,899

Other
Gross carrying amount	$	5,156	5,441
Less: accumulated amortization		3,260	2,645
Net	$	1,896	2,796
Intangible assets with indefinite lives:
Trade names	$	156,381	175,281

The Company performed its annual evaluation of goodwill and intangible assets for impairment during the fourth quarter of 2020 and concluded no impairment existed at September 30, 2020 and there are no accumulated impairment losses as of September 30, 2020.

The changes in the carrying amount of goodwill attributable to each business segment for 2020 and 2019 are as follows:


	Aerospace &
(Dollars in millions)	Defense		Test		USG	Total
Balance as of September 30, 2018		73.7		34.1	254.1	361.9
Acquisition activity and other		28.5		—	(0.1)	28.4
Balance as of September 30, 2019		102.2		34.1	254.0	390.3
Out-of-period adjustment		—		—	18.0	18.0
Foreign currency translation and other		(0.1)		—	(0.1)	(0.2)
Balance as of September 30, 2020	$	102.1		34.1	271.9	408.1

As of September 30, 2020, the Company reclassified $18.0 million from Morgan Schaffer’s tradename to goodwill to correct a misclassification that originated in the original accounting for the acquisition in fiscal 2017. Management has determined that the effect of this misclassification was not material to the current or any prior periods and it had no impact on the Company’s total assets, results of operations or cash flows for any period.

Amortization expense related to intangible assets with determinable lives was $21.8 million, $18.5 million and $17.3 million in 2020, 2019 and 2018, respectively. Patents are amortized over the life of the patents, generally 17 years. Capitalized software is amortized over the estimated useful life of the software, generally three to seven years. Customer relationships are generally amortized over

fifteen to twenty years. Intangible asset amortization for fiscal years 2021 through 2025 is estimated at approximately $21 million per year.

Accounts Receivable

12 Months Ended

Sep. 30, 2020

Accounts Receivable

Accounts Receivable

5. Accounts Receivable

Accounts receivable, net of the allowance for doubtful accounts, from continuing operations consist of the following at September 30, 2020 and 2019:


(Dollars in thousands)	2020		2019
Commercial	$	121,924	137,553
U.S. Government and prime contractors		22,158	21,162
Total	$	144,082	158,715

Inventories, Net

12 Months Ended

Sep. 30, 2020

Inventories, Net

Inventories, Net

6. Inventories, Net

Inventories, net, from continuing operations consist of the following at September 30, 2020 and 2019:


(Dollars in thousands)	2020		2019
Finished goods	$	28,471	23,550
Work in process		30,183	26,407
Raw materials		77,535	74,999
Total	$	136,189	124,956

Related Parties

12 Months Ended

Sep. 30, 2020

Related Parties

Related Parties

7. Related Parties

One of the Company’s directors is a former officer at a customer of the Company’s subsidiary Doble. Doble sells products, rents equipment and provides testing services to the customer in the ordinary course of Doble’s business. The total amount of these sales were approximately $2.8 million, $3.3 million and $2.1 million during fiscal 2020, 2019 and 2018, respectively. All transactions between Doble and the customer are intended to be and have been consistent with Doble’s normal commercial terms offered to its customers, and the Company’s Board of Directors has determined that the relationship between the Company and the customer is not material and did not impair either the Company’s or the director’s independence.

Income Tax Expense

12 Months Ended

Sep. 30, 2020

Income Tax Expense

Income Tax Expense

8. Income Tax Expense

Total income tax expense (benefit) for the years ended September 30, 2020, 2019 and 2018 was allocated to income tax expense as follows:


(Dollars in thousands)	2020		2019	2018
Income tax expense (benefit) from continuing operations	$	14,278	20,388	(5,170)
Income tax expense from discontinued operations		23,501	789	1,060
Total income tax expense (benefit)	$	37,779	21,177	(4,110)

The components of income from continuing operations before income taxes for 2020, 2019 and 2018 consisted of the following:


(Dollars in thousands)	2020		2019	2018
United States	$	27,288	87,150	74,028
Foreign		12,455	10,727	7,063
Total income before income taxes	$	39,743	97,877	81,091

The principal components of income tax expense (benefit) from continuing operations for 2020, 2019 and 2018 consist of:


(Dollars in thousands)	2020		2019	2018
Federal:
Current	$	10,982	13,888	7,663
Deferred		1,507	250	(22,329)
State and local:
Current		2,042	3,039	1,885
Deferred		(905)	98	2,899
Foreign:
Current		2,875	2,439	2,208
Deferred		(2,223)	674	2,504
Total	$	14,278	20,388	(5,170)

The actual income tax expense (benefit) from continuing operations for 2020, 2019 and 2018 differs from the expected tax expense for those years (computed by applying the U.S. Federal corporate statutory rate) as follows:


	2020		2019		2018
Federal corporate statutory rate	21.0	%	21.0	%	24.5	%
State and local, net of Federal benefits	2.3		3.2		2.9
Foreign	(1.1)		0.6		0.8
Research credit	(3.4)		(0.8)		(1.6)
Domestic production deduction	—		—		(1.1)
Change in uncertain tax positions	—		(0.1)		(0.1)
Executive compensation	1.5		0.3		(0.1)
Valuation allowance	(6.3)		(2.4)		3.0
GILTI and FDII	0.4		(0.6)		—
Tax reform – impact on U.S. deferred tax assets and liabilities	—		(0.3)		(39.3)
Tax reform – transition tax	—		(0.1)		1.6
Tax reform – taxes related to foreign unremitted earnings	—		—		3.0
Pension plan termination charge	21.4		—		—
Other, net	0.1		—		—
Effective income tax rate	35.9	%	20.8	%	(6.4)	%

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at September 30, 2020 and 2019 are presented below:


(Dollars in thousands)	2020		2019
Deferred tax assets:
Inventories	$	4,998	4,800
Pension and other postretirement benefits		842	5,533
Timing differences related to revenue recognition		4,722	—
Lease liabilities		5,220	—
Net operating and capital loss carryforwards — domestic		563	602
Net operating loss carryforward — foreign		3,678	3,766
Other compensation-related costs and other cost accruals		8,953	7,764
State credit carryforward		2,366	1,914
Total deferred tax assets		31,342	24,379

Deferred tax liabilities:
Timing differences related to revenue recognition		—	(1,805)
ROU assets		(5,220)	—
Goodwill		(7,878)	(1,450)
Acquisition assets		(52,682)	(58,547)
Depreciation, software amortization		(21,283)	(18,288)
Net deferred tax liabilities before valuation allowance		(55,721)	(55,711)
Less valuation allowance		(1,932)	(4,504)
Net deferred tax liabilities	$	(57,653)	(60,215)

The Company has a foreign net operating loss (NOL) carryforward of $14.0 million at September 30, 2020, which reflects tax loss carryforwards in Germany, South Africa, Canada, India and the United Kingdom. Approximately $13.8 million of the tax loss carryforwards have no expiration date while the remaining $0.2 million will expire between 2028 and 2038. The Company has deferred tax assets related to state NOL carryforwards of $0.6 million at September 30, 2020 which expire between 2025 and 2040. The Company also has net state research and other credit carryforwards of $2.4 million of which $1.7 million expires between 2023 and 2035. The remaining $0.7 million does not have an expiration date.

The valuation allowance for deferred tax assets as of September 30, 2020 and 2019 was $1.9 million and $4.5 million, respectively. The net change in the total valuation allowance for each of the years ended September 30, 2020 and 2019 was a decrease of $2.6 million and a decrease of $2.6 million, respectively.The Company has established a valuation allowance against state credit carryforwards of $0.6 million and $0.4 million at September 30, 2020 and 2019, respectively. In addition, the Company has established a valuation allowance against state NOL carryforwards that are not expected to be realized in future periods of $0.5 million and $0.6 million at September 30, 2020 and 2019, respectively. Lastly, the Company has established a valuation allowance against certain NOL carryforwards in foreign jurisdictions which may not be realized in future periods of $0.8 million and $3.6 million at September 30, 2020 and 2019, respectively.

On December 22, 2017, the U.S. government enacted the Tax Cuts and Jobs Act, which made comprehensive changes to U.S. federal income tax laws by moving from a global to a modified territorial tax regime. As a result, cash repatriated to the U.S. is generally no longer subject to U.S. federal income tax. No provision is made for foreign withholding or any applicable U.S. income taxes on the undistributed earnings of non-U.S. subsidiaries where these earnings are considered indefinitely invested or otherwise retained for continuing international operations. Determination of the amount of taxes that might be paid on these undistributed earnings if eventually remitted is not practicable.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References + Details

Debt

12 Months Ended

Sep. 30, 2020

Debt

Debt

9. Debt

Debt consists of the following at September 30, 2020 and 2019:


(Dollars in thousands)	2020		2019
Revolving credit facility, including current portion	$	62,368	285,000
Current portion of long-term debt and short-term borrowings		(22,368)	(20,000)
Total long-term debt, less current portion	$	40,000	265,000

The Credit Facility includes a $500 million revolving line of credit as well as provisions allowing for an increase of the commitment amount by an additional $250 million, if necessary, with the consent of the lenders. The bank syndication supporting the facility is comprised of a diverse group of eight banks led by JP Morgan Chase Bank, N.A., as Administrative Agent. The Credit Facility matures September 27, 2024.

Interest on borrowings under the Credit Facility is calculated at a spread over either the London Interbank Offered Rate (LIBOR), the New York Federal Reserve Bank Rate or the prime rate, depending on various factors. The Credit Facility also requires a facility fee ranging from 10 to 25 basis points per annum on the unused portion. The interest rate spreads and the facility fee are subject to increase or decrease depending on the Company's leverage ratio.

The Credit Facility is secured by the unlimited guaranty of the Company's direct and indirect material U.S. subsidiaries and the pledge of 100% of the equity interests of its direct and indirect material foreign subsidiaries. The financial covenants of the Credit Facility include a leverage ratio and an interest coverage ratio. As of September 30, 2020, the Company was in compliance with all covenants.

At September 30, 2020, the Company had approximately $430 million available to borrow under the Credit Facility, plus the $250 million increase option subject to the lenders’ consent, in addition to $52.6 million cash on hand. The Company classified $20 million as the current portion of long-term debt as of September 30, 2020, as the Company intends to repay this amount within the next twelve months; however, the Company has no contractual obligation to repay such amount during the next twelve months. In addition, the Company had $2.4 million of short-term borrowings at its foreign locations outstanding as of September 30, 2020.

During 2020 and 2019, the maximum aggregate short-term borrowings at any month-end were $281 million and $308 million, respectively, and the average aggregate short-term borrowings outstanding based on month-end balances were $175.6 million and $236.4 million, respectively. The weighted average interest rates were 3.20%, 3.21% and 3.03% for 2020, 2019 and 2018, respectively. As of September 30, 2020, the interest rate on the Company's debt was 1.09%. The letters of credit issued and outstanding under the Credit Facility totaled $9.9 million and $8.2 million at September 30, 2020 and 2019, respectively.

Capital Stock

12 Months Ended

Sep. 30, 2020

Capital Stock

Capital Stock

10. Capital Stock

The 30,645,625 and 30,596,940 common shares as presented in the accompanying Consolidated Balance Sheets at September 30, 2020 and 2019 represent the actual number of shares issued at the respective dates. The Company held 4,607,911 and 4,615,627 common shares in treasury at September 30, 2020 and 2019, respectively.

In August 2012, the Company’s Board of Directors authorized a common stock repurchase program under which the Company may repurchase shares of its stock from time to time in its discretion, in the open market or otherwise, up to a maximum total repurchase amount of $100 million (or such lesser amount as may be permitted under the Company’s bank credit agreements). This program has been repeatedly extended by the Company’s Board of Directors and is currently scheduled to expire September 30, 2021. There were no share repurchases in 2020, 2019 or 2018. At September 30, 2020, approximately $50.4 million remained available for repurchases under the program.

Share-Based Compensation

12 Months Ended

Sep. 30, 2020

Share-Based Compensation

Share-Based Compensation

11. Share-Based Compensation

The Company provides compensation benefits to certain key employees under several share-based plans providing for performance-accelerated restricted share unit (PARS) awards, and to non-employee directors under a non-employee directors compensation plan. The Company has no stock options currently outstanding. As of September 30, 2020, the Company's equity compensation plans had a total of 782,412 shares authorized and available for future issuance.

Performance-Accelerated Restricted Share Unit (PARS) Awards

A PARS award represents the right to receive a specified number of shares of Company common stock if and when the award vests. A PARS award is not stock and does not give the recipient any rights as a shareholder until it vests and is paid out in shares of stock. PARS awards currently outstanding have a five-year vesting period, with accelerated vesting if certain targets based on market conditions are achieved. In these cases, if it is probable that the performance condition will be met, the Company recognizes compensation cost on a straight-line basis over the shorter performance period; otherwise, it will recognize compensation cost over the longer service period. Compensation cost for the outstanding PARS awards is being recognized over the shorter performance period, as it is probable the performance condition will be met. The PARS award grants were valued at the stock price on the date of grant. Pretax compensation expense related to the PARS awards for continuing operations was $4.3 million, $4.0 million and $3.9 million for 2020, 2019 and 2018, respectively.

The following summary presents information regarding outstanding PARS awards as of the specified dates, and changes during the specified periods:


	FY 2020			FY 2019			FY 2018
		Estimated			Estimated			Estimated
		Weighted			Weighted			Weighted
	Shares	Avg. Price		Shares	Avg. Price		Shares	Avg. Price
Nonvested at October 1,	281,004	$	59.72	315,544	$	47.23	335,825	$	40.35
Granted	45,723		74.80	84,862		74.77	104,320		56.06
Vested	(89,822)		50.51	(113,402)		37.00	(121,301)		35.59
Cancelled	(16,605)		60.48	(6,000)		45.20	(3,300)		53.86
Nonvested at September 30,	220,300	$	66.55	281,004	$	59.72	315,544	$	47.23

Compensation Plan for Non-Employee Directors

Through the first quarter of 2018, the Company's Compensation Plan for Non-Employee Directors provided to each non-employee director a retainer of 900 common shares per quarter. Beginning in the second quarter of 2018, the quarterly retainer was replaced by an annual retainer of Company stock having a grant date market value of $180,000. Non-employee director grants were valued at the NYSE closing price of the Company’s stock on the date of grant and were issued from the Company’s treasury stock. Compensation expense related to the non-employee director grants was $1.3 million, $1.1 million and $1.1 million for 2020, 2019 and 2018, respectively.

Total Share-Based Compensation

The total share-based compensation cost that has been recognized in results of operations and included within SG&A from continuing operations was $5.6 million, $5.1 million and $5.0 million for 2020, 2019 and 2018, respectively. The total income tax benefit recognized in results of operations for share-based compensation arrangements was $1.2 million, $1.1 million and $1.3 million for 2020, 2019 and 2018, respectively. As of September 30, 2020, there was $8.2 million of total unrecognized compensation cost related to share-based compensation arrangements. That cost is expected to be recognized over a weighted-average period of 2.0 years.

Retirement and Other Benefit Plans

12 Months Ended

Sep. 30, 2020

Retirement and Other Benefit Plans

Retirement and Other Benefit Plans

12. Retirement and Other Benefit Plans

Formerly, substantially all domestic employees were covered by a defined benefit pension plan (the Plan) maintained by the Company. The Plan was frozen in 2003 and no additional benefits have been accrued since that date. On November 14, 2019, the Company’s Board of Directors approved a resolution to terminate the Plan effective as of February 29, 2020. In connection with the termination, the Company contributed $25.7 million of cash to the Plan during the fourth quarter of 2020, settled approximately $32.4 million of Plan liabilities during the fourth quarter of 2020 through lump-sum payments from existing plan assets to eligible participants who elected to receive them; and recorded approximately $40.6 million of charges associated with these settlements. During 2020, the Company settled approximately $69.1 million of Plan liabilities by entering into an agreement to purchase annuities from Massachusetts Mutual Life Insurance Company (MassMutual). This agreement covered active and former employees and their beneficiaries, with MassMutual assuming the future annuity payments for these individuals.

Substantially all domestic employees are covered by a defined contribution plan maintained by the Company. In addition, the Company offers unfunded post-retirement pre-Medicare health insurance benefits to a small number of eligible retirees and employees. The Company formerly provided unfunded post-retirement life insurance to qualifying retired employees who retired before 2005, but ceased providing this coverage on July 31, 2020. The Company currently provides unfunded Medicare supplement coverage to a small number of retired employees, but will cease providing this coverage on December 31, 2020.

The Company used a measurement date of September 30 for its pension and other postretirement benefit plans. The Company had an accrued benefit liability of $0.2 million and $0.6 million at September 30, 2020 and 2019, respectively, related to its other postretirement benefit obligations. All other information related to its postretirement benefit plans is not considered material to the Company’s results of operations or financial condition.

The following tables provide a reconciliation of the changes in the pension plans and fair value of assets over the two-year period ended September 30, 2020, and a statement of the funded status as of September 30, 2020 and 2019:


(Dollars in millions)
Reconciliation of benefit obligation	2020		2019
Net benefit obligation at beginning of year	$	100.1	89.8
Interest cost		3.0	3.7
Actuarial loss		6.9	11.3
Gross benefits paid		(4.8)	(4.7)
Settlements		(102.4)	—
Net benefit obligation at end of year	$	2.8	100.1


(Dollars in millions)
Reconciliation of fair value of plan assets	2020		2019
Fair value of plan assets at beginning of year	$	77.2	73.3
Actual return on plan assets		3.6	5.9
Employer contributions		26.4	2.7
Gross benefits paid		(4.8)	(4.7)
Settlements		(102.4)	—
Fair value of plan assets at end of year	$	—	77.2


(Dollars in millions)
Funded Status	2020		2019
Funded status at end of year	$	(2.8)	(22.9)
Accrued benefit cost		(2.8)	(22.9)

Amounts recognized in the Balance Sheet consist of:
Current liability		(0.3)	(0.2)
Noncurrent liability		(2.5)	(22.7)
Accumulated other comprehensive loss (before tax effect)		0.7	49.6

Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss		0.7	49.6

Accumulated other comprehensive loss (before tax effect)	$	0.7	49.6

The following table provides the components of net periodic benefit cost for the plans for 2020, 2019 and 2018:


(Dollars in millions)	2020		2019	2018
Service cost	$	—	—	—
Interest cost		3.0	3.7	3.4
Expected return on plan assets		(4.2)	(4.4)	(3.8)
Settlements		53.6	—	—
Net actuarial loss		2.8	2.1	2.3
Net periodic benefit cost		55.2	1.4	1.9
Defined contribution plans		7.4	6.8	6.6
Total	$	62.6	8.2	8.5

The discount rate used in measuring the Company’s pension obligations was developed by matching yields of actual high-quality corporate bonds to expected future pension plan cash flows (benefit payments). Over 400 Aa-rated, non-callable bonds with a wide range of maturities were used in the analysis. After using the bond yields to determine the present value of the plan cash flows, a single representative rate that resulted in the same present value was developed. The expected long-term rate of return on plan assets assumption was determined by reviewing the actual investment return of the plans since inception and evaluating those returns in relation to expectations of various investment organizations to determine whether long-term future returns are expected to differ significantly from the past.

Expected Cash Flows

Information about the expected cash flows for the other postretirement benefit plans follows:


	Other
(Dollars in millions)	Benefits
Expected Benefit Payments:
2021	$	0.2
2022		0.2
2023		0.3
2024		0.2
2025		0.2
2026‑2030	$	0.9

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Derivative Financial Instruments

12 Months Ended

Sep. 30, 2020

Derivative Financial Instruments

Derivative Financial Instruments

13. 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. In 2018, the Company entered into three interest rate swaps with a notional amount of $150 million to hedge its exposure to variability in future LIBOR-based interest payments on variable rate debt. The interest rate swaps entered into during 2018 were not designated as cash flow hedges and therefore the gain or loss on the derivative is reflected in earnings each period. The final interest rate swap was settled during September 2020; therefore there are no outstanding interest rate swaps as of September 30, 2020.

The Company’s 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. The amounts ultimately recognized may differ for open positions, which remain subject to ongoing market price fluctuations until settlement. All derivative instruments are reported in either accrued expenses or other assets 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.

The following is a summary of the notional transaction amounts and fair values for the Company’s outstanding derivative financial instruments as of September 30, 2020.


	Notional Amount		Fair Value
(In thousands)	(Currency)		(US$)
Forward contracts	4,250	USD	(6)

Fair Value of Financial Instruments

The Company’s forward contracts are classified within Level 2 of the valuation hierarchy in accordance with ASC 825, as presented below as of September 30, 2020:


(In thousands)	Level 1		Level 2	Level 3	Total
Asset:
Forward contracts	$	—	(6)	—	(6)

Valuation was based on third party evidence of similarly priced derivative instruments. There are no master netting arrangements with financial parties.

Business Segment Information

12 Months Ended

Sep. 30, 2020

Business Segment Information

Business Segment Information

14. Business Segment Information

The Company is organized based on the products and services it offers and classifies its continuing business operations in three reportable segments for financial reporting purposes: Aerospace & Defense (formerly called Filtration/Fluid Flow), Utility Solutions Group (USG) and RF Shielding and Test (Test). The former Technical Packaging segment was divested in December 2019 and has been reflected as discontinued operations for 2020.

The Aerospace & Defense segment’s operations consist of PTI Technologies Inc. (PTI), VACCO Industries (VACCO), Crissair, Inc. (Crissair), Mayday Manufacturing Co. (Mayday), Hi-Tech Metals, Inc. (Hi-Tech), Westland Technologies, Inc. (Westland), and Globe Composite Solutions, LLC (Globe).The companies within this segment primarily design and manufacture specialty filtration and naval products, including hydraulic filter elements and fluid control devices used in aerospace and defense applications, unique filter mechanisms used in micro-propulsion devices for satellites and custom designed filters for manned aircraft and submarines, products and systems to reduce vibration and/or acoustic signatures and otherwise reduce or obscure a vessel’s signature, and other communications, sealing, surface control and hydrodynamic related applications to enhance U.S. Navy maritime survivability; precision-tolerance machined components for the aerospace and defense industry; and metal processing services.

The USG segment’s operations consist of Doble Engineering Company and related subsidiaries including Morgan Schaffer (collectively, Doble), and NRG Systems, Inc. (NRG). Doble is an industry leader in the development, manufacture and delivery of diagnostic testing and data management solutions that enable electric power grid operators to assess the integrity of high-voltage power delivery equipment. NRG designs and manufactures decision support tools for the renewable energy industry, primarily wind and solar.

The Test segment's operations consist of ETS-Lindgren Inc. and related subsidiaries (ETS-Lindgren). ETS-Lindgren is an industry leader in providing its customers with the ability to identify, measure and contain magnetic, electromagnetic and acoustic energy. ETS-Lindgren also manufactures radio frequency shielding products and components used by manufacturers of medical equipment, communications systems, electronic products, and shielded rooms for high-security data processing and secure communication.

Accounting policies of the segments are the same as those described in the summary of significant accounting policies in Note 1 to the Consolidated Financial Statements. The operating units within each reporting segment have been aggregated because of similar economic characteristics and meet the other aggregation criteria of FASB ASC 280.

The Company evaluates the performance of its operating units based on EBIT, which is defined as earnings before interest and taxes. EBIT on a consolidated basis is a non-GAAP financial measure; see “Non-GAAP Financial Measures” in Item 7, “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” Intersegment sales and transfers are not significant. Segment assets consist primarily of customer receivables, inventories, capitalized software and fixed assets directly associated with

the production processes of the segment. Segment depreciation and amortization is based upon the direct assets listed above. The tables below are presented on the basis of continuing operations and exclude discontinued operations.

Net Sales


(Dollars in millions)
Year ended September 30,	2020		2019	2018
Aerospace & Defense	$	354.3	325.7	286.8
USG		191.7	211.9	214.0
Test		186.9	188.4	182.9
Consolidated totals	$	732.9	726.0	683.7

One customer exceeded 10% of sales in 2020 and no customer exceeded 10% of sales in 2019.

EBIT


(Dollars in millions)
Year ended September 30,	2020		2019	2018
Aerospace & Defense	$	73.2	70.1	58.7
USG		24.4	52.2	43.2
Test		27.2	25.6	23.8
Reconciliation to consolidated totals (Corporate)		(78.3)	(41.9)	(35.8)
Consolidated EBIT		46.5	106.0	89.9
Less: interest expense		(6.7)	(8.1)	(8.8)
Earnings before income tax	$	39.8	97.9	81.1

Identifiable Assets


(Dollars in millions)
Year ended September 30,	2020		2019
Aerospace & Defense	$	279.5	260.3
USG		144.8	146.3
Test		153.0	154.2
Corporate – goodwill		408.1	390.3
Corporate – other assets		388.1	422.9
Assets from discontinued operations		–	92.7
Consolidated totals	$	1,373.5	1,466.7

Corporate other assets consist primarily of deferred taxes, acquired intangible assets and cash balances.

Capital Expenditures


(Dollars in millions)
Year ended September 30,	2020		2019	2018
Aerospace & Defense	$	15.9	11.7	7.0
USG		12.4	8.5	5.2
Test		3.6	4.0	3.0
Corporate		0.2	—	—
Consolidated totals	$	32.1	24.2	15.2

In addition to the above amounts, the Company incurred expenditures for capitalized software of $9.0 million, $8.4 million and $9.5 million in 2020, 2019 and 2018, respectively.

Depreciation and Amortization


(Dollars in millions)
Year ended September 30,	2020		2019	2018
Aerospace & Defense	$	9.4	8.3	7.6
USG		14.4	11.3	11.0
Test		5.0	5.1	4.5
Corporate		12.5	11.3	10.6
Consolidated totals	$	41.3	36.0	33.7

Depreciation expense of property, plant and equipment was $19.5 million, $16.5 million and $15.4 million for 2020, 2019 and 2018, respectively.

Geographic Information

Net Sales


(Dollars in millions)
Year ended September 30,	2020		2019	2018
United States	$	531.9	537.2	495.8
Asia		96.3	86.2	92.6
Europe		51.3	45.0	41.3
Canada		31.7	33.0	30.2
India		10.3	11.7	9.4
Other		11.4	12.9	14.4
Consolidated totals	$	732.9	726.0	683.7

Long-Lived Assets


(Dollars in millions)
Year ended September 30,	2020		2019
United States	$	131.5	120.7
Mexico		3.1	1.8
Other		5.3	5.3
Consolidated totals	$	139.9	127.8

Net sales are attributed to countries based on location of customer. Long-lived assets are attributed to countries based on location of the asset.

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599

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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

+ Details

Commitments and Contingencies

12 Months Ended

Sep. 30, 2020

Commitments and Contingencies

Commitments and Contingencies

15. Commitments and Contingencies

At September 30, 2020, the Company had $9.9 million in letters of credit outstanding as guarantees of contract performance. As a normal incident of the businesses in which the Company is engaged, various claims, charges and litigation are asserted or commenced from time to time against the Company. Additionally, the Company is currently involved in various stages of investigation and remediation relating to environmental matters. It is the opinion of Management that the aggregate costs involved in the resolution of these matters, and final judgments, if any, which might be rendered against the Company are adequately accrued, are covered by insurance or are not likely to have a material adverse effect on the Company’s results from continuing operations, capital expenditures or competitive position.

Leases

12 Months Ended

Sep. 30, 2020

Leases

Leases

16. Leases

As described in Note 3, effective October 1, 2019, the Company adopted ASC 842, Leases. The Company determines at lease inception whether an arrangement that provides control over the use of an asset is a lease. The Company recognizes at lease commencement a right-of-use (ROU) asset and lease liability based on the present value of the future lease payments over the lease term. The Company has elected not to recognize a ROU asset and lease liability for leases with terms of 12 months or less. Certain of

the Company’s leases include options to extend the term of the lease for up to 20 years. When it is reasonably certain that the Company will exercise the option, Management includes the impact of the option in the lease term for purposes of determining total future lease payments. As most of the Company’s lease agreements do not explicitly state the discount rate implicit in the lease, Management uses the Company’s incremental borrowing rate on the commencement date to calculate the present value of future payments based on the tenor of each arrangement.

The Company’s leases for real estate commonly include escalating payments. These variable lease payments are included in the calculation of the ROU asset and lease liability. In addition to the present value of the future lease payments, the calculation of the ROU asset also includes any deferred rent, lease pre-payments and initial direct costs of obtaining the lease.

In addition to the base rent, real estate leases typically contain provisions for common-area maintenance and other similar services, which are considered non-lease components for accounting purposes. Non-lease components are excluded from our ROU assets and lease liabilities and expensed as incurred.

The Company’s leases are for office space, manufacturing facilities, and machinery and equipment.

The components of lease costs are shown below:


	Year Ended
(Dollars in thousands)	September 30, 2020
Finance lease cost:
Amortization of right-of-use assets	$	2,056
Interest on lease liabilities		971
Operating lease cost		5,284
Total lease cost	$	8,311

Additional information related to leases is shown below:


	Year Ended
	September 30,
(Dollars in thousands)	2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,223
Operating cash flows from finance leases		971
Financing cash flows from finance leases		1,547

Right-of-use assets obtained in exchange for operating lease liabilities	$	26,244

Weighted-average remaining lease term:
Operating leases		6.00	years
Finance leases		12.53	years
Weighted-average discount rate:
Operating leases		3.09	%
Finance leases		4.30	%

The following is a reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets, presented on our Consolidated Balance Sheet on September 30, 2020:


(Dollars in thousands)	Operating		Finance
Years Ending September 30:	Leases		Leases
2021	$	5,614		2,930
2022		4,985		3,011
2023		3,984		3,094
2024		2,438		3,177
2025 and thereafter		6,984		28,323
Total minimum lease payments		24,005		40,535
Less: amounts representing interest		2,211		10,270
Present value of net minimum lease payments	$	21,794		30,265
Less: current portion of lease obligations		5,009		1,937
Non-current portion of lease obligations		16,785		28,328

ROU assets	$	21,390		26,164

Operating and finance lease liabilities are included in the Consolidated Balance Sheet in accrued other expenses (current portion) and other liabilities (long-term portion). Operating lease ROU assets are included as a caption on the Consolidated Balance Sheet and finance lease ROU assets are included in Property, plant and equipment on the Consolidated Balance sheets.

As the Company has not restated prior-year information for the adoption of ASC 842, the following presents the Company's future minimum lease payments for operating and capital leases under ASC 840 for continuing operations as of September 30, 2019:


(Dollars in thousands)	Operating		Finance
Years Ending September 30:	Leases		Leases
2020	$	5,574	2,518
2021		4,558	2,930
2022		3,950	3,012
2023		3,270	3,094
2024 and thereafter		8,443	31,499
Total minimum lease payments	$	25,795	43,053
Less: amounts representing interest		*	11,241
Present value of net minimum lease payments		*	31,812
Less: Current portion of lease obligations		*	1,832
Non-current portion of lease obligations		*	29,980

* Not applicable for operating leases

Revenues

12 Months Ended

Sep. 30, 2020

Revenues

Revenues

17. Revenues

(a)	Disaggregation of Revenues

Our revenues by customer type, geographic location, and revenue recognition method for the year ended September 30, 2020 are presented in the table below as the Company deems it best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors. The table below also includes a reconciliation of the disaggregated revenue within our reportable segments.

Year Ended September 30, 2020

Aerospace

(In thousands)

& Defense

USG

Test

Total

Customer type:

Commercial

169,484

184,906

158,420

512,810

Government

184,836

6,797

28,472

220,105

Total revenues

354,320

191,703

186,892

732,915

Geographic location:

United States

305,155

134,601

92,105

531,861

International

49,165

57,102

94,787

201,054

Total revenues

354,320

191,703

186,892

732,915

Revenue recognition method:

Point in time

160,402

144,192

33,482

338,076

Over time

193,918

47,511

153,410

394,839

Total revenues

354,320

191,703

186,892

732,915

(b)	Remaining Performance Obligations

Our remaining performance obligations, which is the equivalent of our backlog, represent the expected transaction price allocated to our contracts that we expect to recognize as revenue in future periods when we perform under the contracts. These remaining obligations include amounts that have been formally appropriated under contracts with the U.S. Government, and exclude unexercised contract options and potential orders under ordering-type contracts such as Indefinite Delivery, Indefinite Quantity contracts. At September 30, 2020, we had $517.4 million in remaining performance obligations of which we expect to recognize revenues of 73% in the next twelve months.

(c)	Contract assets and liabilities

Assets and liabilities related to our contracts with customers are reported on a contract-by-contract basis at the end of each reporting period. At September 30, 2020, contract assets and liabilities totaled $96.7 million and $100.6 million, respectively. Upon adoption of ASC 606 on October 1, 2018, contract assets and liabilities related to our contracts with customers were $87 million and $51 million, respectively. During 2020, we recognized approximately $54 million in revenues that were included in the contract liabilities balance at the adoption date.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI http://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2003/role/disclosureRef
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Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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-Subparagraph (e)
-URI http://asc.fasb.org/extlink&oid=121604090&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-SubTopic 10
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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+ Details

Quarterly Financial Information (Unaudited)

12 Months Ended

Sep. 30, 2020

Quarterly Financial Information (Unaudited)

Quarterly Financial Information (Unaudited)

18. Quarterly Financial Information (Unaudited)


	First		Second	Third	Fourth
(Dollars in thousands, except per share amounts)	Quarter		Quarter	Quarter	Quarter
2020

Net sales	$	171,728	180,492	172,665	208,030
Net earnings (loss) from continuing operations		10,764	17,822	18,687	(21,808)
Net earnings from discontinued operations		76,013	—	—	502
Net earnings (loss)		86,777	17,822	18,687	(21,306)

Basic earnings per share:
Net earnings (loss) from continuing operations	$	0.41	0.69	0.72	(0.84)
Net earnings from discontinued operations		2.93	—	—	0.02
Net earnings (loss)		3.34	0.69	0.72	(0.82)

Diluted earnings per share:
Net earnings (loss) from continuing operations	$	0.41	0.68	0.72	(0.83)
Net earnings from discontinued operations		2.91	—	—	0.02
Net earnings (loss)	$	3.32	0.68	0.72	(0.81)

Dividends declared per common share	$	0.08	0.08	0.08	0.08

Common stock price per share:
High	$	93.21	107.10	94.24	95.60
Low		74.16	62.64	68.09	78.30

2019

Net sales	$	163,365	171,243	178,259	213,177
Net earnings from continuing operations		17,350	17,822	19,045	23,272
Net (loss) earnings from discontinued operations		(33)	975	1,022	1,586
Net earnings		17,317	18,797	20,067	24,858

Basic earnings per share:
Net earnings from continuing operations		0.67	0.69	0.73	0.90
Net earnings from discontinued operations		—	0.04	0.04	0.06
Net earnings	$	0.67	0.73	0.77	0.96

Diluted earnings per share:
Net earnings from continuing operations		0.66	0.68	0.73	0.89
Net earnings from discontinued operations		—	0.04	0.04	0.06
Net earnings	$	0.66	0.72	0.77	0.95

Dividends declared per common share	$	0.08	0.08	0.08	0.08

Common stock price per share:
High	$	71.47	71.29	82.70	85.86
Low		59.00	62.91	67.43	73.04

See Note 2 for discussion of divestiture activity.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2020

Summary of Significant Accounting Policies

Principles of Consolidation

A. Principles of Consolidation

Basis of Presentation

B. Basis of Presentation

Nature of Operations

C. Nature of Operations

Test: ETS-Lindgren Inc. provides its customers with the ability to identify, measure and contain magnetic, electromagnetic and acoustic energy.

Use of Estimates

D. Use of Estimates

Revenue Recognition

E. Revenue Recognition

Revenue Recognition

received upon commencement of the contract, these contracts result in deferred revenue, which we present as contract liabilities, in the Consolidated Balance Sheets.

Total contract cost is estimated utilizing current contract specifications and expected engineering requirements. Contract costs typically are incurred over a period of several months to a year, and the estimation of these costs requires judgment. Our cost estimation process is based on the professional knowledge and experience of engineers and program managers along with finance professionals. We review and update our projections of costs quarterly or more frequently when circumstances significantly change.

Contract Assets and Liabilities

See the further discussion of the Company’s revenue recognition in Note 17 below.

Prior to Adoption of ASC 606

Cash and Cash Equivalents

F. Cash and Cash Equivalents

Cash equivalents include temporary investments that are readily convertible into cash, such as money market funds, with original maturities of three months or less.

Accounts Receivable

G. Accounts Receivable

Inventories

H. Inventories

Property, Plant and Equipment

I. Property, Plant and Equipment

Leases

J. Leases

Goodwill and Other Long-Lived Assets

K. Goodwill and Other Long-Lived Intangible Assets

See Note 4 regarding goodwill and other intangible assets activity.

Capitalized Software

L. Capitalized Software

Income Taxes

M. Income Taxes

Research and Development Costs

N. Research and Development Costs

Foreign Currency Translation

O. Foreign Currency Translation

Earnings Per Share

P. Earnings Per Share

issuable upon the assumed exercise of dilutive common share options and vesting of performance-accelerated restricted shares using the treasury stock method. There are no anti-dilutive shares.

The number of shares used in the calculation of earnings per share for each year presented is as follows:


(in thousands)	2020	2019	2018
Weighted Average Shares Outstanding - Basic	26,010	25,946	25,874
Performance-Accelerated Restricted Stock	125	151	184
Shares - Diluted	26,135	26,097	26,058

Share-Based Compensation

Q. Share-Based Compensation

Accumulated Other Comprehensive Loss

R. Accumulated Other Comprehensive Loss

Derivative Financial Instruments

S. Derivative Financial Instruments

Fair Value Measurements

T. Fair Value Measurements

Level 1 – Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 3 – Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

Financial Assets and Liabilities

Nonfinancial Assets and Liabilities

New Accounting Standards

U. New Accounting Standards

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2020

Summary of Significant Accounting Policies

Schedule of number of shares used in calculation of earnings per share


(in thousands)	2020	2019	2018
Weighted Average Shares Outstanding - Basic	26,010	25,946	25,874
Performance-Accelerated Restricted Stock	125	151	184
Shares - Diluted	26,135	26,097	26,058

Technical Packaging Divestiture (Tables)

12 Months Ended

Sep. 30, 2020

Technical Packaging Divestiture

Schedule of major classes of the Technical Packaging business assets and liabilities held for sale

The major classes of assets and liabilities of the Technical Packaging business included in the Consolidated Balance Sheet at September 30, 2019 are shown below (in millions).


	September 30, 2019
Assets:
Accounts receivable, net	$	15.7
Contract assets, net		5.1
Inventories		3.9
Other current assets		0.6
Current assets		25.3
Property, plant & equipment, net		33.6
Intangible assets, net		11.4
Goodwill		19.0
Other assets		3.4
Total assets	$	92.7
Liabilities:
Accounts payable	$	7.6
Accrued expenses and other current liabilities		3.9
Current liabilities		11.5
Other liabilities		4.0
Total liabilities	$	15.5

- Definition

Tabular disclosure of information related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component.

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+ Details

Goodwill and Other Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2020

Goodwill and Other Intangible Assets

Schedule of goodwill and intangible assets

Included on the Company’s Consolidated Balance Sheets at September 30, 2020 and 2019 are the following intangible assets gross carrying amounts and accumulated amortization:


(Dollars in thousands)	2020		2019
Goodwill	$	408,063	390,256

Intangible assets with determinable lives:
Patents
Gross carrying amount	$	2,092	1,945
Less: accumulated amortization		858	748
Net	$	1,234	1,197

Capitalized software
Gross carrying amount	$	84,888	78,962
Less: accumulated amortization		57,302	48,530
Net	$	27,586	30,432

Customer Relationships
Gross carrying amount	$	227,178	227,225
Less: accumulated amortization		67,643	55,326
Net	$	159,535	171,899

Other
Gross carrying amount	$	5,156	5,441
Less: accumulated amortization		3,260	2,645
Net	$	1,896	2,796
Intangible assets with indefinite lives:
Trade names	$	156,381	175,281

Schedule of carrying amount of goodwill attributable to each business segment

The changes in the carrying amount of goodwill attributable to each business segment for 2020 and 2019 are as follows:


	Aerospace &
(Dollars in millions)	Defense		Test		USG	Total
Balance as of September 30, 2018		73.7		34.1	254.1	361.9
Acquisition activity and other		28.5		—	(0.1)	28.4
Balance as of September 30, 2019		102.2		34.1	254.0	390.3
Out-of-period adjustment		—		—	18.0	18.0
Foreign currency translation and other		(0.1)		—	(0.1)	(0.2)
Balance as of September 30, 2020	$	102.1		34.1	271.9	408.1

Accounts Receivable (Tables)

12 Months Ended

Sep. 30, 2020

Accounts Receivable

Schedule of Accounts, Notes, Loans and Financing Receivable

Accounts receivable, net of the allowance for doubtful accounts, from continuing operations consist of the following at September 30, 2020 and 2019:


(Dollars in thousands)	2020		2019
Commercial	$	121,924	137,553
U.S. Government and prime contractors		22,158	21,162
Total	$	144,082	158,715

Inventories, Net (Tables)

12 Months Ended

Sep. 30, 2020

Inventories, Net

Schedule of inventories

Inventories, net, from continuing operations consist of the following at September 30, 2020 and 2019:


(Dollars in thousands)	2020		2019
Finished goods	$	28,471	23,550
Work in process		30,183	26,407
Raw materials		77,535	74,999
Total	$	136,189	124,956

Income Tax Expense (Tables)

12 Months Ended

Sep. 30, 2020

Income Tax Expense

Components Of Income From Continuing Operations Before Income Taxes

Total income tax expense (benefit) for the years ended September 30, 2020, 2019 and 2018 was allocated to income tax expense as follows:


(Dollars in thousands)	2020		2019	2018
Income tax expense (benefit) from continuing operations	$	14,278	20,388	(5,170)
Income tax expense from discontinued operations		23,501	789	1,060
Total income tax expense (benefit)	$	37,779	21,177	(4,110)

The components of income from continuing operations before income taxes for 2020, 2019 and 2018 consisted of the following:


(Dollars in thousands)	2020		2019	2018
United States	$	27,288	87,150	74,028
Foreign		12,455	10,727	7,063
Total income before income taxes	$	39,743	97,877	81,091

Principal Components Of Income Tax Expense (Benefit) From Continuing Operations

The principal components of income tax expense (benefit) from continuing operations for 2020, 2019 and 2018 consist of:


(Dollars in thousands)	2020		2019	2018
Federal:
Current	$	10,982	13,888	7,663
Deferred		1,507	250	(22,329)
State and local:
Current		2,042	3,039	1,885
Deferred		(905)	98	2,899
Foreign:
Current		2,875	2,439	2,208
Deferred		(2,223)	674	2,504
Total	$	14,278	20,388	(5,170)

Schedule Of Actual Income Tax Expense (Benefit) From Continuing Operations


	2020		2019		2018
Federal corporate statutory rate	21.0	%	21.0	%	24.5	%
State and local, net of Federal benefits	2.3		3.2		2.9
Foreign	(1.1)		0.6		0.8
Research credit	(3.4)		(0.8)		(1.6)
Domestic production deduction	—		—		(1.1)
Change in uncertain tax positions	—		(0.1)		(0.1)
Executive compensation	1.5		0.3		(0.1)
Valuation allowance	(6.3)		(2.4)		3.0
GILTI and FDII	0.4		(0.6)		—
Tax reform – impact on U.S. deferred tax assets and liabilities	—		(0.3)		(39.3)
Tax reform – transition tax	—		(0.1)		1.6
Tax reform – taxes related to foreign unremitted earnings	—		—		3.0
Pension plan termination charge	21.4		—		—
Other, net	0.1		—		—
Effective income tax rate	35.9	%	20.8	%	(6.4)	%

Tax Effects Of Temporary Differences That Give Rise To Significant Portions Of The Deferred Tax Assets And Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at September 30, 2020 and 2019 are presented below:


(Dollars in thousands)	2020		2019
Deferred tax assets:
Inventories	$	4,998	4,800
Pension and other postretirement benefits		842	5,533
Timing differences related to revenue recognition		4,722	—
Lease liabilities		5,220	—
Net operating and capital loss carryforwards — domestic		563	602
Net operating loss carryforward — foreign		3,678	3,766
Other compensation-related costs and other cost accruals		8,953	7,764
State credit carryforward		2,366	1,914
Total deferred tax assets		31,342	24,379

Deferred tax liabilities:
Timing differences related to revenue recognition		—	(1,805)
ROU assets		(5,220)	—
Goodwill		(7,878)	(1,450)
Acquisition assets		(52,682)	(58,547)
Depreciation, software amortization		(21,283)	(18,288)
Net deferred tax liabilities before valuation allowance		(55,721)	(55,711)
Less valuation allowance		(1,932)	(4,504)
Net deferred tax liabilities	$	(57,653)	(60,215)

Debt (Tables)

12 Months Ended

Sep. 30, 2020

Debt

Schedule of debt

Debt consists of the following at September 30, 2020 and 2019:


(Dollars in thousands)	2020		2019
Revolving credit facility, including current portion	$	62,368	285,000
Current portion of long-term debt and short-term borrowings		(22,368)	(20,000)
Total long-term debt, less current portion	$	40,000	265,000

Share-Based Compensation (Tables)

12 Months Ended

Sep. 30, 2020

Share-Based Compensation

Schedule Of Outstanding Restricted Share Awards

The following summary presents information regarding outstanding PARS awards as of the specified dates, and changes during the specified periods:


	FY 2020			FY 2019			FY 2018
		Estimated			Estimated			Estimated
		Weighted			Weighted			Weighted
	Shares	Avg. Price		Shares	Avg. Price		Shares	Avg. Price
Nonvested at October 1,	281,004	$	59.72	315,544	$	47.23	335,825	$	40.35
Granted	45,723		74.80	84,862		74.77	104,320		56.06
Vested	(89,822)		50.51	(113,402)		37.00	(121,301)		35.59
Cancelled	(16,605)		60.48	(6,000)		45.20	(3,300)		53.86
Nonvested at September 30,	220,300	$	66.55	281,004	$	59.72	315,544	$	47.23

Retirement and Other Benefit Plans (Tables)

12 Months Ended

Sep. 30, 2020

Retirement and Other Benefit Plans

Schedule Of Reconciliation Of Benefit Obligation


(Dollars in millions)
Reconciliation of benefit obligation	2020		2019
Net benefit obligation at beginning of year	$	100.1	89.8
Interest cost		3.0	3.7
Actuarial loss		6.9	11.3
Gross benefits paid		(4.8)	(4.7)
Settlements		(102.4)	—
Net benefit obligation at end of year	$	2.8	100.1

Schedule Of Reconciliation Of Fair Value Of Plan Assets


(Dollars in millions)
Reconciliation of fair value of plan assets	2020		2019
Fair value of plan assets at beginning of year	$	77.2	73.3
Actual return on plan assets		3.6	5.9
Employer contributions		26.4	2.7
Gross benefits paid		(4.8)	(4.7)
Settlements		(102.4)	—
Fair value of plan assets at end of year	$	—	77.2

Schedule Of Funded Status


(Dollars in millions)
Funded Status	2020		2019
Funded status at end of year	$	(2.8)	(22.9)
Accrued benefit cost		(2.8)	(22.9)

Amounts recognized in the Balance Sheet consist of:
Current liability		(0.3)	(0.2)
Noncurrent liability		(2.5)	(22.7)
Accumulated other comprehensive loss (before tax effect)		0.7	49.6

Amounts recognized in accumulated other comprehensive loss consist of:
Net actuarial loss		0.7	49.6

Accumulated other comprehensive loss (before tax effect)	$	0.7	49.6

Schedule of components of net periodic benefit cost

The following table provides the components of net periodic benefit cost for the plans for 2020, 2019 and 2018:


(Dollars in millions)	2020		2019	2018
Service cost	$	—	—	—
Interest cost		3.0	3.7	3.4
Expected return on plan assets		(4.2)	(4.4)	(3.8)
Settlements		53.6	—	—
Net actuarial loss		2.8	2.1	2.3
Net periodic benefit cost		55.2	1.4	1.9
Defined contribution plans		7.4	6.8	6.6
Total	$	62.6	8.2	8.5

Schedule Of Expected Benefit Payments

Information about the expected cash flows for the other postretirement benefit plans follows:


	Other
(Dollars in millions)	Benefits
Expected Benefit Payments:
2021	$	0.2
2022		0.2
2023		0.3
2024		0.2
2025		0.2
2026‑2030	$	0.9

Derivative Financial Instruments (Tables)

12 Months Ended

Sep. 30, 2020

Derivative Financial Instruments

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 as of September 30, 2020.


	Notional Amount		Fair Value
(In thousands)	(Currency)		(US$)
Forward contracts	4,250	USD	(6)

Schedule of fair value of financial instruments

The Company’s forward contracts are classified within Level 2 of the valuation hierarchy in accordance with ASC 825, as presented below as of September 30, 2020:


(In thousands)	Level 1		Level 2	Level 3	Total
Asset:
Forward contracts	$	—	(6)	—	(6)

Business Segment Information (Tables)

12 Months Ended

Sep. 30, 2020

Business Segment Information

Schedule of Net Sales and Earnings Before Income Tax

Net Sales


(Dollars in millions)
Year ended September 30,	2020		2019	2018
Aerospace & Defense	$	354.3	325.7	286.8
USG		191.7	211.9	214.0
Test		186.9	188.4	182.9
Consolidated totals	$	732.9	726.0	683.7

One customer exceeded 10% of sales in 2020 and no customer exceeded 10% of sales in 2019.

EBIT


(Dollars in millions)
Year ended September 30,	2020		2019	2018
Aerospace & Defense	$	73.2	70.1	58.7
USG		24.4	52.2	43.2
Test		27.2	25.6	23.8
Reconciliation to consolidated totals (Corporate)		(78.3)	(41.9)	(35.8)
Consolidated EBIT		46.5	106.0	89.9
Less: interest expense		(6.7)	(8.1)	(8.8)
Earnings before income tax	$	39.8	97.9	81.1

Schedule of Identifiable Assets

Identifiable Assets


(Dollars in millions)
Year ended September 30,	2020		2019
Aerospace & Defense	$	279.5	260.3
USG		144.8	146.3
Test		153.0	154.2
Corporate – goodwill		408.1	390.3
Corporate – other assets		388.1	422.9
Assets from discontinued operations		–	92.7
Consolidated totals	$	1,373.5	1,466.7

Schedule of Capital Expenditures

Capital Expenditures


(Dollars in millions)
Year ended September 30,	2020		2019	2018
Aerospace & Defense	$	15.9	11.7	7.0
USG		12.4	8.5	5.2
Test		3.6	4.0	3.0
Corporate		0.2	—	—
Consolidated totals	$	32.1	24.2	15.2

Schedule of Depreciation and Amortization

Depreciation and Amortization


(Dollars in millions)
Year ended September 30,	2020		2019	2018
Aerospace & Defense	$	9.4	8.3	7.6
USG		14.4	11.3	11.0
Test		5.0	5.1	4.5
Corporate		12.5	11.3	10.6
Consolidated totals	$	41.3	36.0	33.7

Schedule of Geographic Information Net Sale

Geographic Information

Net Sales


(Dollars in millions)
Year ended September 30,	2020		2019	2018
United States	$	531.9	537.2	495.8
Asia		96.3	86.2	92.6
Europe		51.3	45.0	41.3
Canada		31.7	33.0	30.2
India		10.3	11.7	9.4
Other		11.4	12.9	14.4
Consolidated totals	$	732.9	726.0	683.7

Schedule of Geographic Information Long-Lived Assets

Long-Lived Assets


(Dollars in millions)
Year ended September 30,	2020		2019
United States	$	131.5	120.7
Mexico		3.1	1.8
Other		5.3	5.3
Consolidated totals	$	139.9	127.8

Leases (Tables)

12 Months Ended

Sep. 30, 2020

Leases

Schedule of component of lease costs


	Year Ended
(Dollars in thousands)	September 30, 2020
Finance lease cost:
Amortization of right-of-use assets	$	2,056
Interest on lease liabilities		971
Operating lease cost		5,284
Total lease cost	$	8,311

Schedule of additional information related to leases


	Year Ended
	September 30,
(Dollars in thousands)	2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	5,223
Operating cash flows from finance leases		971
Financing cash flows from finance leases		1,547

Right-of-use assets obtained in exchange for operating lease liabilities	$	26,244

Weighted-average remaining lease term:
Operating leases		6.00	years
Finance leases		12.53	years
Weighted-average discount rate:
Operating leases		3.09	%
Finance leases		4.30	%

Schedule of reconciliation of future undiscounted cashflows to operating and finance lease liabilities and related ROU assets


(Dollars in thousands)	Operating		Finance
Years Ending September 30:	Leases		Leases
2021	$	5,614		2,930
2022		4,985		3,011
2023		3,984		3,094
2024		2,438		3,177
2025 and thereafter		6,984		28,323
Total minimum lease payments		24,005		40,535
Less: amounts representing interest		2,211		10,270
Present value of net minimum lease payments	$	21,794		30,265
Less: current portion of lease obligations		5,009		1,937
Non-current portion of lease obligations		16,785		28,328

ROU assets	$	21,390		26,164

Schedule of future minimum lease payments for operating and capital leases under ASC 840


(Dollars in thousands)	Operating		Finance
Years Ending September 30:	Leases		Leases
2020	$	5,574	2,518
2021		4,558	2,930
2022		3,950	3,012
2023		3,270	3,094
2024 and thereafter		8,443	31,499
Total minimum lease payments	$	25,795	43,053
Less: amounts representing interest		*	11,241
Present value of net minimum lease payments		*	31,812
Less: Current portion of lease obligations		*	1,832
Non-current portion of lease obligations		*	29,980

* Not applicable for operating leases

Revenues (Tables)

12 Months Ended

Sep. 30, 2020

Revenues

Schedule of disaggregation of revenue by reportable segment

Year Ended September 30, 2020

Aerospace

(In thousands)

& Defense

USG

Test

Total

Customer type:

Commercial

169,484

184,906

158,420

512,810

Government

184,836

6,797

28,472

220,105

Total revenues

354,320

191,703

186,892

732,915

Geographic location:

United States

305,155

134,601

92,105

531,861

International

49,165

57,102

94,787

201,054

Total revenues

354,320

191,703

186,892

732,915

Revenue recognition method:

Point in time

160,402

144,192

33,482

338,076

Over time

193,918

47,511

153,410

394,839

Total revenues

354,320

191,703

186,892

732,915

Quarterly Financial Information (Unaudited) (Tables)

12 Months Ended

Sep. 30, 2020

Quarterly Financial Information (Unaudited)

Schedule of Quarterly Financial Information


	First		Second	Third	Fourth
(Dollars in thousands, except per share amounts)	Quarter		Quarter	Quarter	Quarter
2020

Net sales	$	171,728	180,492	172,665	208,030
Net earnings (loss) from continuing operations		10,764	17,822	18,687	(21,808)
Net earnings from discontinued operations		76,013	—	—	502
Net earnings (loss)		86,777	17,822	18,687	(21,306)

Basic earnings per share:
Net earnings (loss) from continuing operations	$	0.41	0.69	0.72	(0.84)
Net earnings from discontinued operations		2.93	—	—	0.02
Net earnings (loss)		3.34	0.69	0.72	(0.82)

Diluted earnings per share:
Net earnings (loss) from continuing operations	$	0.41	0.68	0.72	(0.83)
Net earnings from discontinued operations		2.91	—	—	0.02
Net earnings (loss)	$	3.32	0.68	0.72	(0.81)

Dividends declared per common share	$	0.08	0.08	0.08	0.08

Common stock price per share:
High	$	93.21	107.10	94.24	95.60
Low		74.16	62.64	68.09	78.30

2019

Net sales	$	163,365	171,243	178,259	213,177
Net earnings from continuing operations		17,350	17,822	19,045	23,272
Net (loss) earnings from discontinued operations		(33)	975	1,022	1,586
Net earnings		17,317	18,797	20,067	24,858

Basic earnings per share:
Net earnings from continuing operations		0.67	0.69	0.73	0.90
Net earnings from discontinued operations		—	0.04	0.04	0.06
Net earnings	$	0.67	0.73	0.77	0.96

Diluted earnings per share:
Net earnings from continuing operations		0.66	0.68	0.73	0.89
Net earnings from discontinued operations		—	0.04	0.04	0.06
Net earnings	$	0.66	0.72	0.77	0.95

Dividends declared per common share	$	0.08	0.08	0.08	0.08

Common stock price per share:
High	$	71.47	71.29	82.70	85.86
Low		59.00	62.91	67.43	73.04

Summary of Significant Accounting Policies Calculation Of Earnings Per Share (Details) - shares shares in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Summary of Significant Accounting Policies
Weighted Average Shares Outstanding - Basic	26,010	25,946	25,874
Performance-Accelerated Restricted Stock	125	151	184
Shares - Diluted	26,135	26,097	26,058

Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2020 USD ($)	Sep. 30, 2020 USD ($) segment	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Oct. 01, 2019 USD ($)
Number of reportable segments \| segment		3
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (3,657)	$ (3,657)	$ (43,974)
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax			(37,000)
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	(3,700)	(3,700)	(7,000)
Research and Development Expense		13,300	12,100	$ 10,900
Asset Impairment Charges	0	$ 0
Warranty period		12 months
Operating lease assets	$ 21,390	$ 21,390			$ 20,000
Operating lease liabilities	us-gaap:OperatingLeaseLiabilityCurrent us-gaap:OperatingLeaseLiabilityNoncurrent	us-gaap:OperatingLeaseLiabilityCurrent us-gaap:OperatingLeaseLiabilityNoncurrent			us-gaap:OperatingLeaseLiability
Option to extend		true
Maintenance [Member]
Cost of Goods and Services Sold		$ 16,100	$ 15,800	$ 13,100
Maximum
Lease term	20 years	20 years
Maximum \| Building [Member]
Property, Plant and Equipment, Useful Life		40 years
Maximum \| Machinery and Equipment [Member]
Property, Plant and Equipment, Useful Life		10 years
Maximum \| Office Furniture And Equipment [Member]
Property, Plant and Equipment, Useful Life		10 years
Minimum \| Building [Member]
Property, Plant and Equipment, Useful Life		10 years
Minimum \| Machinery and Equipment [Member]
Property, Plant and Equipment, Useful Life		3 years
Minimum \| Office Furniture And Equipment [Member]
Property, Plant and Equipment, Useful Life		3 years
USG
Percentage of segment revenues recognized when services are performed or when products are delivered		75.00%
Percentage of consolidated revenues recognized when services are performed or when products are delivered		20.00%
Revenue recognized when products were delivered or services performed under ASC 605 (as a percent)				75.00%
Revenue recognized using percentage of completion method under ASC 605 (as a percent)				25.00%
Percentage Of Segment Revenues Recognized On Straight Line Basis		25.00%
Percentage Of Consolidated Revenues Recognized On Straight Line Basis		7.00%
Aerospace & Defense
Percentage of segment revenues recognized when services are performed or when products are delivered		45.00%
Percentage of consolidated revenues recognized when services are performed or when products are delivered		22.00%
Percentage Of Segment Revenues Recognized Over Time, Costs Incurred Plus Margin	55.00%	55.00%
Percentage Of Consolidated Revenues Recognized Over Time, Costs Incurred Plus Margin	26.00%	26.00%
Revenue recognized when products were delivered or services performed under ASC 605 (as a percent)				85.00%
Revenue recognized using percentage of completion method under ASC 605 (as a percent)				15.00%
Test
Percentage of segment revenues recognized when services are performed or when products are delivered		18.00%
Percentage of consolidated revenues recognized when services are performed or when products are delivered		5.00%
Percentage of segment revenues recorded under percentage of completion method		82.00%
Percentage of consolidated revenues recorded under percentage of completion method		20.00%
Revenue recognized when products were delivered or services performed under ASC 605 (as a percent)				25.00%
Revenue recognized using percentage of completion method under ASC 605 (as a percent)				75.00%
Software Contract
Percentage of segment revenues recognized when services are performed or when products are delivered		10.00%
Percentage of consolidated revenues recognized when services are performed or when products are delivered		2.00%
Software Development \| Maximum
Property, Plant and Equipment, Useful Life		7 years
Software Development \| Minimum
Property, Plant and Equipment, Useful Life		3 years

Summary of Significant Accounting Policies - Revenue Recognition (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Impact due to new accounting pronouncements
Adjustment to increase retained earnings	$ 778,398	$ 684,741
Effect of the adoption of ASC 606 \| ASU 2014-09
Impact due to new accounting pronouncements
Adjustment to increase retained earnings		$ 5,200

Technical Packaging Divestiture (Details) $ in Thousands	3 Months Ended		12 Months Ended
Technical Packaging Divestiture (Details) $ in Thousands	Jun. 30, 2020 USD ($)	Dec. 31, 2019 item	Sep. 30, 2020 USD ($)	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)
Technical Packaging Divestiture
After-tax gain on the sale of business			$ 77,116
working capital adjustment	$ 200
Assets:
Current assets				$ 25,314
Liabilities:
Current liabilities				11,517
Other liabilities				3,999
Technical Packaging Business \| Disposed of by Sale
Technical Packaging Divestiture
Net sales			16,500	86,900	$ 87,900
Pretax (loss) earnings			(300)	4,300	$ 6,900
Proceeds from sale of discontinued operations			184,000
After-tax gain on the sale of business			$ 76,500
Assets:
Accounts receivable, net				15,700
Contract assets, net				5,100
Inventories				3,900
Other current assets				600
Current assets				25,300
Property, plant & equipment, net				33,600
Intangible assets, net				11,400
Goodwill				19,000
Other assets				3,400
Total assets				92,700
Liabilities:
Accounts payable				7,600
Accrued expenses and other current liabilities				3,900
Current liabilities				11,500
Other liabilities				4,000
Total liabilities				$ 15,500
Technical Packaging Business \| Sonoco Products Company \| Disposed of by Sale
Technical Packaging Divestiture
Number of wholly-owned subsidiaries of the buyers \| item		2

Acquisitions (Details) - USD ($) $ in Thousands			12 Months Ended
Acquisitions (Details) - USD ($) $ in Thousands	Jul. 02, 2019	Mar. 14, 2018	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2020
Business Acquisition [Line Items]
Purchase price, net of cash acquired			$ 95,840	$ 9,813
Deferred Tax Liabilities, Goodwill			1,450		$ 7,878
Goodwill			$ 390,256	$ 361,900	$ 408,063
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	$ 28,500
Manta Test Systems Inc [Member]
Business Acquisition [Line Items]
Payments to Acquire Businesses, Gross		$ 9,500
Goodwill		3,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Buildings		3,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment		200
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables		400
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory		$ 1,100
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life		13 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable		$ 400
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets		$ 1,200
Globe Composite Solutions, LLC [Member]
Business Acquisition [Line Items]
Purchase price, net of cash acquired	95,000
Revenues	37,000
Deferred Tax Liabilities, Goodwill	25,000
Customer contract assets	2,800
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Buildings	56,700
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles	59,700
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment	6,300
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables	3,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	$ 3,500
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	20 years
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable	$ 10,500
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets	$ 3,700

Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Goodwill and Other Intangible Assets
Goodwill	$ 408,063	$ 390,256	$ 361,900
Patents
Goodwill and Other Intangible Assets
Gross carrying amount	2,092	1,945
Less: accumulated amortization	858	748
Net	1,234	1,197
Capitalized software
Goodwill and Other Intangible Assets
Gross carrying amount	84,888	78,962
Less: accumulated amortization	57,302	48,530
Net	27,586	30,432
Customer Relationships
Goodwill and Other Intangible Assets
Gross carrying amount	227,178	227,225
Less: accumulated amortization	67,643	55,326
Net	159,535	171,899
Other
Goodwill and Other Intangible Assets
Gross carrying amount	5,156	5,441
Less: accumulated amortization	3,260	2,645
Net	1,896	2,796
Trade names
Goodwill and Other Intangible Assets
Intangible assets with indefinite lives	$ 156,381	$ 175,281

Goodwill and Other Intangible Assets - Changes in carrying amount of goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Changes in goodwill
Goodwill, Beginning Balance	$ 390,256	$ 361,900
Acquisition activity and other		(28,400)
Out-of-period adjustment	18,000
Foreign currency translation and other	(200)
Goodwill, Ending Balance	408,063	390,256
Aerospace & Defense
Changes in goodwill
Goodwill, Beginning Balance	102,200	73,700
Acquisition activity and other		(28,500)
Foreign currency translation and other	(100)
Goodwill, Ending Balance	102,100	102,200
USG
Changes in goodwill
Goodwill, Beginning Balance	254,000	254,100
Acquisition activity and other		(100)
Out-of-period adjustment	18,000
Foreign currency translation and other	(100)
Goodwill, Ending Balance	271,900	254,000
Test
Changes in goodwill
Goodwill, Beginning Balance	34,100	34,100
Acquisition activity and other		0
Out-of-period adjustment	0
Foreign currency translation and other	0
Goodwill, Ending Balance	$ 34,100	$ 34,100

Goodwill and Other Intangible Assets - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Finite-Lived Intangible Assets [Line Items]
Amortization expense related to intangible assets		$ 21,812	$ 18,492	$ 17,262
Asset Impairment Charges	$ 0	0
Estimated intangible asset amortization for 2021	21,000	21,000
Estimated intangible asset amortization for 2022	21,000	21,000
Estimated intangible asset amortization for 2023	21,000	21,000
Estimated intangible asset amortization for 2024	21,000	21,000
Estimated intangible asset amortization for 2025	$ 21,000	$ 21,000
Customer Relationships \| Maximum
Finite-Lived Intangible Assets [Line Items]
Expected remaining useful life		20 years
Customer Relationships \| Minimum
Finite-Lived Intangible Assets [Line Items]
Expected remaining useful life		15 years
Patents
Finite-Lived Intangible Assets [Line Items]
Expected remaining useful life		17 years
Capitalized software \| Maximum
Finite-Lived Intangible Assets [Line Items]
Expected remaining useful life		7 years
Capitalized software \| Minimum
Finite-Lived Intangible Assets [Line Items]
Expected remaining useful life		3 years

Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Accounts Receivable
Accounts receivable, Total	$ 144,082	$ 158,715
Commercial
Accounts Receivable
Accounts receivable, Total	121,924	137,553
U.S. Government and prime contractors
Accounts Receivable
Accounts receivable, Total	$ 22,158	$ 21,162

Inventories, Net (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Inventories, Net
Finished goods	$ 28,471	$ 23,550
Work in process	30,183	26,407
Raw materials	77,535	74,999
Total inventories	$ 136,189	$ 124,956

Related Parties (Details) - USD ($) $ in Millions	12 Months Ended
Related Parties (Details) - USD ($) $ in Millions	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Related Parties
Revenue from Related Parties	$ 2.8	$ 3.3	$ 2.1

Income Tax Expense - Total Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Income Tax Expense
Income tax expense (benefit) from continuing operations	$ 14,278	$ 20,388	$ (5,170)
Income tax expense from discontinued operations	23,501	789	1,060
Total income tax expense (benefit)	$ 37,779	$ 21,177	$ (4,110)

- Definition

Amount of tax expense (benefit) related to a discontinued operation. Includes, but is not limited to, tax expense (benefit) related to income (loss) from operations during the phase-out period, tax expense (benefit) related to gain (loss) on disposal, tax expense (benefit) related to gain (loss) for reversal of write-down (write-down) to fair value, less cost to sell, and tax expense (benefit) related to adjustments of a prior period gain (loss) on disposal.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3B
-URI http://asc.fasb.org/extlink&oid=109222160&loc=SL51721525-107759

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 20
-Section 45
-Paragraph 2
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=120385591&loc=d3e38679-109324

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=109222160&loc=d3e1012-107759

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
-Paragraph 1
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=109222650&loc=d3e1361-107760

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 45
-Paragraph 3A
-URI http://asc.fasb.org/extlink&oid=109222160&loc=SL51721523-107759

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
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-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721675-107760

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 205
-SubTopic 20
-Section 50
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-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=109222650&loc=SL51721673-107760

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32672-109319

+ Details

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Tax Expense - Components Of Income From Continuing Operations Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Income Tax Expense
United States	$ 27,288	$ 87,150	$ 74,028
Foreign	12,455	10,727	7,063
Total income before income taxes	$ 39,743	$ 97,877	$ 81,091

Income Tax Expense - Principal Components Of Income Tax Expense (Benefit) From Continuing Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Income Tax Expense
Federal, Current	$ 10,982	$ 13,888	$ 7,663
Federal, Deferred	1,507	250	(22,329)
State and local, Current	2,042	3,039	1,885
State and local, Deferred	(905)	98	2,899
Foreign, Current	2,875	2,439	2,208
Foreign, Deferred	(2,223)	674	2,504
Income Tax Expense (Benefit), Total	$ 14,278	$ 20,388	$ (5,170)

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Income Tax Expense - Schedule Of Actual Income Tax Expense (Benefit) From Continuing Operations (Details)	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Income Tax Expense
Federal corporate statutory rate	21.00%	21.00%	24.50%
State and local, net of Federal benefits	2.30%	3.20%	2.90%
Foreign	(1.10%)	0.60%	0.80%
Research credit	(3.40%)	(0.80%)	(1.60%)
Domestic production deduction	0.00%	0.00%	(1.10%)
Change in uncertain tax positions	0.00%	(0.10%)	(0.10%)
Executive compensation	1.50%	0.30%	(0.10%)
Valuation allowance	(6.30%)	(2.40%)	3.00%
GILTI and FDII	0.40%	(0.60%)	0.00%
Tax reform - impact on U.S. deferred tax assets and liabilities	0.00%	(0.30%)	(39.30%)
Tax reform - transition tax	0.00%	(0.10%)	1.60%
Tax reform - taxes related to foreign unremitted earnings	0.00%	0.00%	3.00%
Pension plan termination charge	21.40%	0.00%	0.00%
Other, net	0.10%	0.00%	0.00%
Effective income tax rate	35.90%	20.80%	(6.40%)

Income Tax Expense - Tax Effects Of Temporary Differences That Give Rise To Significant Portions Of The Deferred Tax Assets And Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Deferred tax assets:
Inventories	$ 4,998	$ 4,800
Pension and other postretirement benefits	842	5,533
Timing differences related to revenue recognition	4,722	0
Lease liabilities	5,220	0
Net operating and capital loss carryforwards - domestic	563	602
Net operating loss carryforward - foreign	3,678	3,766
Other compensation-related costs and other cost accruals	8,953	7,764
State credit carryforward	2,366	1,914
Total deferred tax assets	31,342	24,379
Deferred tax liabilities:
Timing differences related to revenue recognition	0	(1,805)
ROU assets	5,220	0
Goodwill	(7,878)	(1,450)
Acquisition assets	(52,682)	(58,547)
Depreciation, software amortization	(21,283)	(18,288)
Net deferred tax liabilities before valuation allowance	55,721	55,711
Less valuation allowance	(1,932)	(4,504)
Net deferred tax liabilities	$ (57,653)	$ (60,215)

Income Tax Expense - Additional information (Details) - USD ($)	1 Months Ended	12 Months Ended
	Dec. 22, 2017	Sep. 30, 2020	Sep. 30, 2019
Income Tax Expense [Line Items]
Operating Loss Carryforwards, Valuation Allowance		$ 500,000	$ 600,000
Net operating loss carryforward - foreign		3,678,000	3,766,000
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration		13,800,000
Deferred Tax Assets, Operating Loss Carryforwards, Subject to Expiration		200,000
Deferred Tax Assets, Operating Loss Carryforwards, State and Local		600,000
Deferred Tax Assets, Tax Credit Carryforwards, Research		2,400,000
State Research And Other Credit Carryforwards, With Expiration Date		1,700,000
State Research And Other Credit Carry Forwards Without Expiration Date		700,000
Deferred Tax Assets, Valuation Allowance		1,932,000	4,504,000
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount		2,600,000	2,600,000
Foreign Valuation Allowance
Income Tax Expense [Line Items]
Operating Loss Carryforwards, Valuation Allowance		800,000	3,600,000
State and Local Jurisdiction
Income Tax Expense [Line Items]
Operating Loss Carryforwards, Valuation Allowance		600,000	$ 400,000
Net operating loss carryforward - foreign		$ 14,000,000.0
Tax Cuts And Jobs Act
Income Tax Expense [Line Items]
Effective Income Taxes Foreign Withholding Taxes	$ 0

Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Debt
Revolving credit facility, including current portion	$ 62,368	$ 285,000
Current portion of long-term debt and short-term borrowings	(22,368)	(20,000)
Total long-term debt, less current portion	$ 40,000	$ 265,000

Debt - Additional information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Debt
Available to borrow under the credit facility	$ 430,000
Cash on hand	52,560	$ 61,808
Letters of Credit Outstanding, Amount	9,900	8,200
Maximum aggregate short-term borrowings at any month-end	281,000	308,000
Average aggregate short-term borrowings outstanding	$ 175,600	$ 236,400
Debt instrument interest rate	1.09%
Weighted average interest rates	3.20%	3.21%	3.03%
Equity interests in direct and indirect material foreign subsidiaries, pledged as collateral (as a percent)	100.00%
Long-term Debt, Current Maturities	$ 20,000
Short term borrowings outstanding in foreign locations	2,400
Revolving Credit Facility
Debt
Line of Credit Facility, Amount Outstanding	500,000
Line of Credit Facility, Commitment Fee Amount	250,000
Maximum
Debt
Incremental term loan	$ 250,000

Capital Stock (Details) - USD ($) $ in Millions	12 Months Ended
Capital Stock (Details) - USD ($) $ in Millions	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Capital Stock
Common shares as presented in the accompanying Consolidated Balance Sheets	30,645,625	30,596,940
Common shares in treasury	4,607,911	4,615,627
Board of Directors authorized an expanded stock repurchase program	$ 100.0
Stock repurchases during period, shares	0	0	0
Stock repurchase program, remaining authorized repurchase amount	$ 50.4

Share-Based Compensation - Schedule Of Outstanding Restricted Share Awards (Details) - $ / shares	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Share-Based Compensation
Outstanding restricted share awards, Nonvested at October 1,	281,004	315,544	335,825
Outstanding restricted share awards, Granted, Shares	45,723	84,862	104,320
Outstanding restricted share awards, Vested, Shares	(89,822)	(113,402)	(121,301)
Outstanding restricted share awards, Cancelled, Shares	(16,605)	(6,000)	(3,300)
Outstanding restricted share awards, Nonvested at September 30,	220,300	281,004	315,544
Outstanding restricted share awards, Nonvested at October 1, Weighted Avg. Price	$ 59.72	$ 47.23	$ 40.35
Outstanding restricted share awards, Granted, Weighted Avg. Price	74.80	74.77	56.06
Outstanding restricted share awards, Vested, Weighted Avg. Price	50.51	37.00	35.59
Outstanding restricted share awards, Cancelled, Weighted Avg. Price	60.48	45.20	53.86
Outstanding restricted share awards, Nonvested at September 30, Weighted Avg. Price	$ 66.55	$ 59.72	$ 47.23

Share-Based Compensation - Additional information (Details) - USD ($)	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Share-Based Compensation
Non-employee director retainer common shares per quarter			900
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant	782,412
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost			$ 180,000
Performance-Accelerated Restricted Share Awards
Share-Based Compensation
Stock options outstanding	0
Vesting period	5 years
Pretax compensation expense	$ 4,300,000	$ 4,000,000.0	3,900,000
Compensation Plan for Non-Employee Directors
Share-Based Compensation
Pretax compensation expense	1,300,000	1,100,000	1,100,000
Total share-based compensation cost	1,200,000
Total income tax benefit recognized		1,100,000	1,300,000
Total unrecognized compensation cost related to share-based compensation arrangements	$ 8,200,000
Remaining weighted-average period for recognition of total unrecognized compensation cost	2 years
Compensation Plan for Non-Employee Directors \| Selling, general and administrative expenses
Share-Based Compensation
Total share-based compensation cost	$ 5,600,000	$ 5,100,000	$ 5,000,000.0

Retirement and Other Benefit Plans - Schedule Of Reconciliation Of Benefit Obligation (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Retirement and Other Benefit Plans
Net benefit obligation at beginning of year	$ 100.1	$ 89.8
Interest cost	3.0	3.7	$ 3.4
Actuarial loss	6.9	11.3
Gross benefits paid	(4.8)	(4.7)
Settlements	(102.4)	0.0
Net benefit obligation at end of year	$ 2.8	$ 100.1	$ 89.8

Retirement and Other Benefit Plans - Schedule Of Reconciliation Of Fair Value Of Plan Assets (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Retirement and Other Benefit Plans
Fair value of plan assets at beginning of year		$ 77.2	$ 73.3
Actual return on plan assets		3.6	5.9
Employer contributions	$ 25.7	26.4	2.7
Gross benefits paid		(4.8)	(4.7)
Settlements		(102.4)	0.0
Fair value of plan assets at end of year	$ 0.0	$ 0.0	$ 77.2

- Definition

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

- Definition

Amount of asset segregated and restricted to provide benefit under defined benefit plan. Asset includes, but is not limited to, stock, bond, other investment, earning from investment, and contribution by employer and employee.

+ References + Details

Retirement and Other Benefit Plans - Schedule Of Funded Status (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Retirement and Other Benefit Plans
Funded status at end of year	$ (2,800)	$ (22,900)
Accrued benefit cost	(2,800)	(22,900)
Current liability	(300)	(200)
Noncurrent liability	(2,481)	(22,682)
Accumulated other comprehensive (income)/loss (before tax effect)	700	49,600
Net actuarial loss	700	49,600
Accumulated other comprehensive (income)/loss (before tax effect)	$ 700	$ 49,600

Retirement and Other Benefit Plans - Schedule Of Net periodic benefit cost (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Retirement and Other Benefit Plans
Service cost	$ 0.0	$ 0.0	$ 0.0
Interest cost	3.0	3.7	3.4
Expected return on plan assets	(4.2)	(4.4)	(3.8)
Settlements	53.6	0.0	0.0
Net actuarial loss	2.8	2.1	2.3
Net periodic benefit cost	55.2	1.4	1.9
Defined contribution plans	7.4	6.8	6.6
Total	$ 62.6	$ 8.2	$ 8.5

Retirement and Other Benefit Plans - Schedule Of Expected Benefit Payments (Details) - Other Benefits $ in Millions	Sep. 30, 2020 USD ($)
Expected Benefit Payments:
2021	$ 0.2
2022	0.2
2023	0.3
2024	0.2
2025	0.2
2026-2030	$ 0.9

Retirement and Other Benefit Plans - Additional information (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2020	Sep. 30, 2019
Retirement and Other Benefit Plans
Defined Benefit Plan Before Adoption Of Sfas 158 Recognition Provision Accrued Benefit Liability	$ 200	$ 200	$ 600
Plan liabilities settled	32,400
Charges associated with these settlements	40,600	40,600
Plan liabilities settled by entering into an agreement to purchase annuities from Massachusetts Mutual Life Insurance Company		69,100
Cash contributed to the plan	$ 25,700	$ 26,400	$ 2,700

- Definition

Amount of contribution received by defined benefit plan from employer which increases plan assets.

+ References + Details

Derivative Financial Instruments - Outstanding derivative financial instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2018
Interest rate swap
DERIVATIVE FINANCIAL INSTRUMENTS
Notional amount		$ 150,000
Forward contracts
DERIVATIVE FINANCIAL INSTRUMENTS
Notional amount	$ 4,250
Fair Value	$ (6)

Derivative Financial Instruments - Derivative liabilities at fair value (Details) - Forward contracts $ in Thousands	Sep. 30, 2020 USD ($)
Fair Value of Financial Instruments	$ (6)
Level 1
Fair Value of Financial Instruments	0
Level 2
Fair Value of Financial Instruments	(6)
Level 3
Fair Value of Financial Instruments	$ 0

Derivative Financial Instruments - Additional Information (Details) - Interest rate swap $ in Millions	Sep. 30, 2018 USD ($) item
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, Notional Amount \| $	$ 150
Derivative, Number of Instruments Held \| item	3

Business Segment Information - Net Sales And Earnings Before Income Tax (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Segment Reporting Information [Line Items]
Net Sales	$ 208,030	$ 172,665	$ 180,492	$ 171,728	$ 213,177	$ 178,259	$ 171,243	$ 163,365	$ 732,915	$ 726,044	$ 683,650
Consolidated EBIT									46,500	106,000	89,900
Less: interest expense									(6,730)	(8,092)	(8,798)
Earnings before income taxes									39,743	97,877	81,091
Corporate
Segment Reporting Information [Line Items]
Consolidated EBIT									(78,300)	(41,900)	(35,800)
Aerospace & Defense
Segment Reporting Information [Line Items]
Net Sales									354,320	325,700	286,800
Consolidated EBIT									73,200	70,100	58,700
USG
Segment Reporting Information [Line Items]
Net Sales									191,703	211,900	214,000
Consolidated EBIT									24,400	52,200	43,200
Test
Segment Reporting Information [Line Items]
Net Sales									186,892	188,400	182,900
Consolidated EBIT									$ 27,200	$ 25,600	$ 23,800

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-Paragraph 1
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-URI http://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Business Segment Information - Identifiable Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Identifiable Assets	$ 1,373,523	$ 1,466,720
Goodwill	408,063	390,256	$ 361,900
Assets from discontinued operations		67,377
Corporate
Goodwill	408,100	390,300
Other assets	388,100	422,900
Segment reconciling items
Assets from discontinued operations		92,700
Aerospace & Defense
Identifiable Assets	279,500	260,300
USG
Identifiable Assets	144,800	146,300
Goodwill	271,900	254,000	254,100
Test
Identifiable Assets	153,000	154,200
Goodwill	$ 34,100	$ 34,100	$ 34,100

- Definition

Sum of the carrying amounts as of the balance sheet date of all assets that are recognized. Assets are probable future economic benefits obtained or controlled by an entity as a result of past transactions or events.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
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-Name Accounting Standards Codification
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-Name Accounting Standards Codification
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8906-108599

+ Details

- Definition

Amount classified as assets attributable to disposal group held for sale or disposed of, expected to be disposed of after one year or the normal operating cycle, if longer.

+ References + Details

Business Segment Information - Capital Expenditures (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Capital Expenditures	$ 32,108	$ 24,229	$ 15,243
Corporate
Capital Expenditures	200	0	0
Aerospace & Defense
Capital Expenditures	15,900	11,700	7,000
USG
Capital Expenditures	12,400	8,500	5,200
Test
Capital Expenditures	$ 3,600	$ 4,000	$ 3,000

Business Segment Information - Depreciation And Amortization (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Depreciation and Amortization	$ 41,338	$ 35,995	$ 33,690
Corporate
Depreciation and Amortization	12,500	11,300	10,600
Aerospace & Defense
Depreciation and Amortization	9,400	8,300	7,600
USG
Depreciation and Amortization	14,400	11,300	11,000
Test
Depreciation and Amortization	$ 5,000	$ 5,100	$ 4,500

Business Segment Information - Geographic Information Net Sales (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Net Sales	$ 208,030	$ 172,665	$ 180,492	$ 171,728	$ 213,177	$ 178,259	$ 171,243	$ 163,365	$ 732,915	$ 726,044	$ 683,650
United States
Net Sales									531,861	537,200	495,800
Asia
Net Sales									96,300	86,200	92,600
Europe
Net Sales									51,300	45,000	41,300
Canada
Net Sales									31,700	33,000	30,200
India
Net Sales									10,300	11,700	9,400
Other
Net Sales									$ 11,400	$ 12,900	$ 14,400

- Definition

+ References

+ Details

Business Segment Information - Geographic Information Long-Lived Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019
Long-Lived Assets	$ 139,870	$ 127,843
United States
Long-Lived Assets	131,500	120,700
Mexico
Long-Lived Assets	3,100	1,800
Other
Long-Lived Assets	$ 5,300	$ 5,300

Business Segment Information - Additional Information (Details) $ in Millions	12 Months Ended
	Sep. 30, 2020 USD ($) customer segment	Sep. 30, 2019 USD ($) customer	Sep. 30, 2018 USD ($)
Number of reportable segments \| segment	3
Percentage of Sale of Customer Maximum	10.00%	10.00%
Capitalized Computer Software, Period Increase (Decrease)	$ 9.0	$ 8.4	$ 9.5
Customer concentration \| Sales
Number of customers who exceeded 10% of sales \| customer	1	0
Property, Plant and Equipment
Depreciation	$ 19.5	$ 16.5	$ 15.4

Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions	Sep. 30, 2020	Sep. 30, 2019
Commitments and Contingencies
Letters of Credit Outstanding, Amount	$ 9.9	$ 8.2

Leases - Components of lease costs (Details) $ in Thousands	12 Months Ended
Leases - Components of lease costs (Details) $ in Thousands	Sep. 30, 2020 USD ($)
Lessee, Lease, Description [Line Items]
Option to extend	true
Finance lease cost
Amortization of right-of-use assets	$ 2,056
Interest on lease liabilities	971
Operating lease cost	5,284
Total lease costs	$ 8,311
Maximum
Lessee, Lease, Description [Line Items]
Lease term	20 years

Leases - Additional information related to leases (Details) $ in Thousands	12 Months Ended
	Sep. 30, 2020 USD ($)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$ 5,223
Operating cash flows from finance leases	971
Financing cash flows from finance leases	1,547
Right-of-use assets obtained in exchange for lease liabilities
Right-of-use assets obtained in exchange for operating lease liabilities	$ 26,244
Weighted-average remaining lease term
Operating leases	6 years
Finance leases	12 years 6 months 10 days
Weighted-average discount rate
Operating leases	3.09%
Finance leases	4.30%

Leases - Reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Oct. 01, 2019
Operating leases
2021	$ 5,614
2022	4,985
2023	3,984
2024	2,438
2025 and thereafter	6,984
Total minimum lease payments	24,005
Less: amounts representing interest	2,211
Present value of net minimum lease payments	21,794
Less: current portion of lease obligations	5,009
Non-current portion of lease obligations	16,785
ROU assets	21,390	$ 20,000
Finance leases
2021	2,930
2022	3,011
2023	3,094
2024	3,177
2025 and thereafter	28,323
Total minimum lease payments	40,535
Less: amounts representing interest	10,270
Present value of net minimum lease payments	30,265
Less: Current portion of lease obligations	1,937
Non-current portion of lease obligations	28,328
ROU assets	$ 26,164
Location of operating lease liabilities included on Consolidated Balance Sheets	us-gaap:OperatingLeaseLiabilityCurrent us-gaap:OperatingLeaseLiabilityNoncurrent	us-gaap:OperatingLeaseLiability

Leases - Future minimum lease payments for operating and capital leases under ASC 840 (Details) $ in Thousands	Sep. 30, 2019 USD ($)
Operating leases
2020	$ 5,574
2021	4,558
2022	3,950
2023	3,270
2024 and thereafter	8,443
Total minimum lease payments	25,795
Finance leases
2020	2,518
2021	2,930
2022	3,012
2023	3,094
2024 and thereafter	31,499
Total minimum lease payments	43,053
Less: amounts representing interest	11,241
Present value of net minimum lease payments	31,812
Less: Current portion of lease obligations	1,832
Non-current portion of lease obligations	$ 29,980

Revenues - Disaggregation of Revenues (Details) - USD ($) $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Disaggregation of revenues
Total revenues	$ 208,030	$ 172,665	$ 180,492	$ 171,728	$ 213,177	$ 178,259	$ 171,243	$ 163,365	$ 732,915	$ 726,044	$ 683,650
Point in time
Disaggregation of revenues
Total revenues									338,076
Over time
Disaggregation of revenues
Total revenues									394,839
United States
Disaggregation of revenues
Total revenues									531,861	537,200	495,800
International
Disaggregation of revenues
Total revenues									201,054
Commercial
Disaggregation of revenues
Total revenues									512,810
Government
Disaggregation of revenues
Total revenues									220,105
Aerospace & Defense
Disaggregation of revenues
Total revenues									354,320	325,700	286,800
Aerospace & Defense \| Point in time
Disaggregation of revenues
Total revenues									160,402
Aerospace & Defense \| Over time
Disaggregation of revenues
Total revenues									193,918
Aerospace & Defense \| United States
Disaggregation of revenues
Total revenues									305,155
Aerospace & Defense \| International
Disaggregation of revenues
Total revenues									49,165
Aerospace & Defense \| Commercial
Disaggregation of revenues
Total revenues									169,484
Aerospace & Defense \| Government
Disaggregation of revenues
Total revenues									184,836
USG
Disaggregation of revenues
Total revenues									191,703	211,900	214,000
USG \| Point in time
Disaggregation of revenues
Total revenues									144,192
USG \| Over time
Disaggregation of revenues
Total revenues									47,511
USG \| United States
Disaggregation of revenues
Total revenues									134,601
USG \| International
Disaggregation of revenues
Total revenues									57,102
USG \| Commercial
Disaggregation of revenues
Total revenues									184,906
USG \| Government
Disaggregation of revenues
Total revenues									6,797
Test
Disaggregation of revenues
Total revenues									186,892	$ 188,400	$ 182,900
Test \| Point in time
Disaggregation of revenues
Total revenues									33,482
Test \| Over time
Disaggregation of revenues
Total revenues									153,410
Test \| United States
Disaggregation of revenues
Total revenues									92,105
Test \| International
Disaggregation of revenues
Total revenues									94,787
Test \| Commercial
Disaggregation of revenues
Total revenues									158,420
Test \| Government
Disaggregation of revenues
Total revenues									$ 28,472

Revenues - Remaining Performance Obligations (Details) $ in Millions	Sep. 30, 2020 USD ($)
Remaining Performance Obligations
Revenue, Remaining Performance Obligation, Amount	$ 517.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01
Remaining Performance Obligations
Percentage of remaining performance obligation expected to be recognized as of June 30, 2019	73.00%
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	12 months

Revenues - Contract assets and liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2020	Oct. 01, 2018
Revenues
Contract with Customer, Asset, Net	$ 96.7	$ 87.0
Contract with Customer, Liability	100.6	$ 51.0
Contract with Customer, Liability, Revenue Recognized	$ 54.0

Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended								12 Months Ended
	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2018
Quarterly Financial Information (Unaudited)
Net sales	$ 208,030	$ 172,665	$ 180,492	$ 171,728	$ 213,177	$ 178,259	$ 171,243	$ 163,365	$ 732,915	$ 726,044	$ 683,650
Net earnings (loss) from continuing operations	(21,808)	18,687	17,822	10,764	23,272	19,045	17,822	17,350	25,465	77,489	86,261
Net earnings from discontinued operations	502			76,013	1,586	1,022	975	(33)	(601)	3,550	5,875
Net earnings	$ (21,306)	$ 18,687	$ 17,822	$ 86,777	$ 24,858	$ 20,067	$ 18,797	$ 17,317	$ 101,980	$ 81,039	$ 92,136
Basic earnings per share:
Net earnings (loss) from continuing operations	$ (0.84)	$ 0.72	$ 0.69	$ 0.41	$ 0.90	$ 0.73	$ 0.69	$ 0.67	$ 0.98	$ 2.99	$ 3.33
Net earnings from discontinued operations	0.02			2.93	0.06	0.04	0.04		2.94	0.13	0.23
Basic - Net earnings	(0.82)	0.72	0.69	3.34	0.96	0.77	0.73	0.67	3.92	3.12	3.56
Diluted earnings per share:
Net earnings (loss) from continuing operations	(0.83)	0.72	0.68	0.41	0.89	0.73	0.68	0.66	0.97	2.97	3.31
Net earnings from discontinued operations	0.02			2.91	0.06	0.04	0.04		2.93	0.13	0.23
Net earnings (loss) - Diluted	(0.81)	0.72	0.68	3.32	0.95	0.77	0.72	0.66	3.90	3.10	3.54
Dividends declared per common share	0.08	0.08	0.08	0.08	0.08	0.08	0.08	0.08	$ 0.32	$ 0.32	$ 0.32
Common Stock per share:
High	95.60	94.24	107.10	93.21	85.86	82.70	71.29	71.47
Low	$ 78.30	$ 68.09	$ 62.64	$ 74.16	$ 73.04	$ 67.43	$ 62.91	$ 59.00