Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 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 $0.01 per share | |
Trading Symbol | ESE | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 26,037,248 | |
Entity Central Index Key | 0000866706 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
Net sales | $ 180,492 | $ 171,243 | $ 352,220 | $ 334,608 |
Costs and expenses: | ||||
Cost of sales | 113,242 | 103,547 | 219,969 | 206,001 |
Selling, general and administrative expenses | 39,982 | 39,327 | 82,087 | 77,867 |
Amortization of intangible assets | 5,220 | 4,371 | 11,030 | 8,771 |
Interest expense, net | 1,320 | 1,853 | 3,741 | 3,708 |
Other expenses (income), net | 703 | 2,022 | 998 | (5,357) |
Total costs and expenses | 160,467 | 151,120 | 317,825 | 290,990 |
Earnings before income taxes | 20,025 | 20,123 | 34,395 | 43,618 |
Income tax expense | 2,203 | 2,301 | 5,809 | 8,446 |
Earnings from continuing operations | 17,822 | 17,822 | 28,586 | 35,172 |
Earnings from discontinued operations, net of tax expense of $257 | 975 | (601) | 942 | |
Gain on sale of discontinued operations | 76,614 | |||
Earnings from discontinued operations | 975 | 76,013 | 942 | |
Net earnings | $ 17,822 | $ 18,797 | $ 104,599 | $ 36,114 |
Earnings per share: | ||||
Basic - Continuing operations | $ 0.69 | $ 0.69 | $ 1.10 | $ 1.36 |
Basic - Discontinued operations | 0 | 0.04 | 2.93 | 0.04 |
Basic - Net earnings | 0.69 | 0.73 | 4.03 | 1.40 |
Diluted - Continuing operations | 0.68 | 0.68 | 1.09 | 1.34 |
Diluted - Discontinued operations | 0 | 0.04 | 2.91 | 0.04 |
Diluted - Net earnings | $ 0.68 | $ 0.72 | $ 4 | $ 1.38 |
CONSOLIDATED STATEMENTS OF OP_2
CONSOLIDATED STATEMENTS OF OPERATIONS (Paranthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
(Loss) earnings from discontinued operations, net of tax expense | $ 257 | $ 269 | $ 52 |
Gain on sale of discontinued operations, tax expense | $ 23,734 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net earnings | $ 17,822 | $ 18,797 | $ 104,599 | $ 36,114 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustments | (6,885) | 677 | (2,962) | (3,852) |
Net unrealized gain on derivative instruments | 126 | 100 | ||
Total other comprehensive income (loss), net of tax | (6,885) | 803 | (2,962) | (3,752) |
Comprehensive income | $ 10,937 | $ 19,600 | $ 101,637 | $ 32,362 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 100,195 | $ 61,808 |
Accounts receivable, net | 157,050 | 158,715 |
Contract assets | 96,100 | 110,211 |
Inventories, net | 141,027 | 124,956 |
Other current assets | 17,228 | 14,190 |
Assets of discontinued operations - current | 25,314 | |
Total current assets | 511,600 | 495,194 |
Property, plant and equipment, net of accumulated depreciation of $122,204 and $113,520, respectively | 139,248 | 127,843 |
Intangible assets, net of accumulated amortization of $118,277 and $107,247, respectively | 371,779 | 381,605 |
Goodwill | 389,630 | 390,256 |
Operating lease assets | 18,901 | |
Other assets | 10,421 | 4,445 |
Assets of discontinued operations - other | 67,377 | |
Total assets | 1,441,579 | 1,466,720 |
Current liabilities: | ||
Current maturities of long-term debt | 20,000 | 20,000 |
Accounts payable | 53,617 | 63,800 |
Contract liabilities | 95,382 | 81,177 |
Accrued salaries | 27,062 | 37,194 |
Accrued other expenses | 54,968 | 37,947 |
Liabilities of discontinued operations - current | 11,517 | |
Total current liabilities | 251,029 | 251,635 |
Pension obligations | 22,861 | 22,682 |
Deferred tax liabilities | 61,690 | 60,856 |
Non-current operating lease liabilities | 15,010 | |
Other liabilities | 34,782 | 36,326 |
Long-term debt | 130,000 | 265,000 |
Liabilities of discontinued operations - other | 3,999 | |
Total liabilities | 515,372 | 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 30,596,940 and | 306 | 306 |
Additional paid-in capital | 294,787 | 292,408 |
Retained earnings | 785,184 | 684,741 |
Accumulated other comprehensive loss, net of tax | (46,936) | (43,974) |
Total stockholders' equity before treasury stock | 1,033,341 | 933,481 |
Less treasury stock, at cost: 4,607,911 and 4,615,627 common shares, respectively | (107,134) | (107,259) |
Total shareholders' equity | 926,207 | 826,222 |
Total liabilities and shareholders' equity | $ 1,441,579 | $ 1,466,720 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
CONSOLIDATED BALANCE SHEETS | ||
Accumulated depreciation | $ 122,204 | $ 113,520 |
Accumulated amortization | $ 118,277 | $ 107,247 |
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 | 30,596,940 | 30,596,940 |
Treasury stock, shares | 4,607,911 | 4,615,627 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net earnings | $ 104,599 | $ 36,114 |
Earnings from discontinued operations | (76,013) | (942) |
Adjustments to reconcile net earnings to net cash provided by operating activities: | ||
Depreciation and amortization | 20,583 | 16,837 |
Stock compensation expense | 2,896 | 2,557 |
Changes in assets and liabilities | (16,247) | (28,124) |
Change in property, plant and equipment due to gain on sale of building | (8,922) | |
Pension contributions | (833) | |
Effect of deferred taxes | 834 | (1,431) |
Net cash provided by operating activities - continuing operations | 36,652 | 15,256 |
Net cash (used) provided by operating activities - discontinued operations | (14,622) | 1,736 |
Net cash provided by operating activities | 22,030 | 16,992 |
Cash flows from investing activities: | ||
Proceeds from sale of building and land | 17,201 | |
Additions to capitalized software | (4,280) | (4,494) |
Capital expenditures | (21,211) | (10,127) |
Net cash (used) provided by investing activities - continuing operations | (25,491) | 2,580 |
Proceeds from sale of discontinued operations | 183,997 | |
Capital expenditures - discontinued operations | (1,728) | (7,298) |
Net cash provided (used) by investing activities - discontinued operations | 182,269 | (7,298) |
Net cash provided (used) by investing activities | 156,778 | (4,718) |
Cash flows from financing activities: | ||
Proceeds from long-term debt and short-term borrowings | 10,000 | 23,000 |
Principal payments on long-term debt | (145,000) | (26,000) |
Dividends paid | (4,156) | (4,146) |
Other | 370 | |
Net cash used by financing activities - continuing operations | (139,156) | (6,776) |
Net cash (used) provided by financing activities - discontinued operations | (2,140) | 1,091 |
Net cash (used) by financing activities | (141,296) | (5,685) |
Effect of exchange rate changes on cash and cash equivalents | 875 | (2,111) |
Net increase in cash and cash equivalents | 38,387 | 4,478 |
Cash and cash equivalents, beginning of period | 61,808 | 30,477 |
Cash and cash equivalents, end of period | 100,195 | 34,955 |
Supplemental cash flow information: | ||
Interest paid | 3,477 | 3,594 |
Income taxes paid (including state and foreign) | $ 23,098 | $ 13,450 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Mar. 31, 2020 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION The accompanying consolidated financial statements, in the opinion of management, include all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results for the interim periods presented. The consolidated financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all the disclosures required for annual financial statements by accounting principles generally accepted in the United States of America (GAAP). For further information, refer to the consolidated financial statements and related notes included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2019. Certain 2019 amounts have been reclassified to conform with the 2020 presentation. The Company’s results for the three-month period ended March 31, 2020 are not necessarily indicative of the results for the entire 2020 fiscal year. References to the second quarters of 2020 and 2019 represent the fiscal quarters ended March 31, 2020 and 2019, respectively. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities. Actual results could differ from those estimates. Beginning in the first quarter of 2020, Management has renamed the Filtration / Fluid Flow (Filtration) segment as Aerospace & Defense (A&D) to better reflect the composition of the segment’s products, end markets and customer characteristics. The A&D’s segment’s individual legal and operating entities, historical financial results, and management structure are unchanged from what was formerly presented as Filtration. |
TECHNICAL PACKAGING DIVESTITURE
TECHNICAL PACKAGING DIVESTITURE | 6 Months Ended |
Mar. 31, 2020 | |
TECHNICAL PACKAGING DIVESTITURE | |
TECHNICAL PACKAGING DIVESTITURE | 2. TECHNICAL PACKAGING DIVESTITURE On December 31, 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, pursuant to the Equity Purchase Agreement entered into on November 15, 2019. 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 is reflected as discontinued operations in the consolidated financial statements and related notes for all periods presented. Net sales from the Technical Packaging business were zero and $16.5 million in the second quarter and first six months of 2020, respectively, compared to $22.7 million and $41.9 million in the corresponding periods of 2019. The Company received net proceeds from the sale of approximately $184 million and recorded a $76.6 million after-tax gain on the sale in the first quarter of 2020. The Company expects to finalize the working capital adjustment 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 |
ACCOUNTING STANDARDS UPDATE
ACCOUNTING STANDARDS UPDATE | 6 Months Ended |
Mar. 31, 2020 | |
ACCOUNTING STANDARDS UPDATE | |
ACCOUNTING STANDARDS UPDATE | 3. ACCOUNTING STANDARDS UPDATE In February 2016, the FASB issued ASU No. 2016-062, " Leases Leases Leases in the |
EARNINGS PER SHARE (EPS)
EARNINGS PER SHARE (EPS) | 6 Months Ended |
Mar. 31, 2020 | |
EARNINGS PER SHARE (EPS) | |
EARNINGS PER SHARE (EPS) | 4. EARNINGS PER SHARE (EPS) Basic EPS is calculated using the weighted average number of common shares outstanding during the period. Diluted EPS is calculated using the weighted average number of common shares outstanding during the period plus shares issuable upon the assumed exercise of dilutive common share options and vesting of performance-accelerated restricted shares (restricted shares) by using the treasury stock method. The number of shares used in the calculation of earnings per share for each period presented is as follows (in thousands): Three Months Six Months Ended March 31, Ended March 31, 2020 2019 2020 2019 Weighted Average Shares Outstanding - Basic 25,988 25,918 25,985 25,915 Dilutive Options and Restricted Shares 100 118 141 163 Adjusted Shares - Diluted 26,088 26,036 26,126 26,078 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Mar. 31, 2020 | |
SHARE-BASED COMPENSATION | |
SHARE-BASED COMPENSATION | 5. SHARE-BASED COMPENSATION The Company provides compensation benefits to certain key employees under several share-based plans providing for performance-accelerated restricted shares (restricted shares), and to non-employee directors under a non-employee directors compensation plan. Performance-Accelerated Restricted Share Awards Compensation expense related to the restricted share awards was $1.1 million and $2.3 million for the three and six-month periods ended March 31, 2020, respectively, and $0.9 million and $2.0 million for the corresponding periods in 2019. There were 175,577 non-vested shares outstanding as of March 31, 2020. Non-Employee Directors Plan Compensation expense related to the non-employee director grants was $0.3 million and $0.6 million for the three and six-month periods ended March 31, 2020, respectively, and $0.3 million and $0.5 million for the corresponding periods in 2019. The total share-based compensation cost that has been recognized in the results of operations and included within selling, general and administrative expenses (SG&A) was $1.5 million and $2.9 million for the three and six-month periods ended March 31, 2020, respectively, and $1.2 million and $2.6 million for the corresponding periods in 2019. The total income tax benefit recognized in results of operations for share-based compensation arrangements was $0.3 million and $0.7 million for the three and six-month periods ended March 31, 2020, respectively, and $0.3 million and $0.6 million for the corresponding periods in 2019. As of March 31, 2020, there was $6.8 million of total unrecognized compensation cost related to share-based compensation arrangements. That cost is expected to be recognized over a remaining weighted-average period of 2.1 years. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Mar. 31, 2020 | |
INVENTORIES | |
INVENTORIES | 6. INVENTORIES Inventories, net, from continuing operations consist of the following: March 31, September 30, (In thousands) 2020 2019 Finished goods $ 23,898 23,550 Work in process 39,768 26,407 Raw materials 77,361 74,999 Total inventories $ 141,027 124,956 |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Mar. 31, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
GOODWILL AND OTHER INTANGIBLE ASSETS | 7. GOODWILL AND OTHER INTANGIBLE ASSETS Included on the Company’s Consolidated Balance Sheets at March 31, 2020 and September 30, 2019 are the following intangible assets gross carrying amounts and accumulated amortization from continuing operations: March 31, September 30, (Dollars in thousands) 2020 2019 Goodwill $ 389,630 390,256 Intangible assets with determinable lives: Patents Gross carrying amount $ 2,067 1,945 Less: accumulated amortization 806 748 Net $ 1,261 1,197 Capitalized software Gross carrying amount $ 83,243 78,962 Less: accumulated amortization 53,034 48,530 Net $ 30,209 30,432 Customer relationships Gross carrying amount $ 226,946 227,225 Less: accumulated amortization 61,486 55,326 Net $ 165,460 171,899 Other Gross carrying amount $ 5,081 5,441 Less: accumulated amortization 2,953 2,645 Net $ 2,128 2,796 Intangible assets with indefinite lives: Trade names $ 172,721 175,281 The changes in the carrying amount of goodwill attributable to each business segment for the six months ended March 31, 2020 is as follows on a continuing operations basis: Aerospace (Dollars in millions) USG Test & Defense Total Balance as of September 30, 2019 254.0 34.1 102.2 390.3 Foreign currency translation (0.6) (0.1) — (0.7) Balance as of March 31, 2020 $ 253.4 34.0 102.2 389.6 |
BUSINESS SEGMENT INFORMATION
BUSINESS SEGMENT INFORMATION | 6 Months Ended |
Mar. 31, 2020 | |
BUSINESS SEGMENT INFORMATION | |
BUSINESS SEGMENT INFORMATION | 8. BUSINESS SEGMENT INFORMATION The Company is organized based on the products and services that it offers, and classifies its continuing business operations in three reportable segments for financial reporting purposes: Aerospace & Defense (formerly called Filtration/Fluid Flow), RF Shielding and Test (Test), and Utility Solutions Group (USG). The Aerospace & Defense segment’s operations consist of PTI Technologies Inc. (PTI), VACCO Industries (VACCO), Crissair, Inc. (Crissair), Westland Technologies Inc. (Westland), Mayday Manufacturing Co. and its affiliate Hi-Tech Metals, Inc. (collectively referred to as Mayday) 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 commercial aerospace 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 Test segment’s operations consist primarily of ETS-Lindgren Inc. (ETS-Lindgren). ETS-Lindgren is an industry leader in providing its customers with the ability to identify, measure and contain magnetic, electromagnetic and acoustic energy. 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. The USG segment’s operations consist primarily of Doble Engineering Company (Doble), Morgan Schaffer Inc. (Morgan Schaffer), and NRG Systems, Inc. (NRG). Doble provides high-end, intelligent, diagnostic test and data management solutions for the electric power delivery industry and is a leading supplier of partial discharge testing instruments used to assess the integrity of high voltage power delivery equipment. Morgan Schaffer provides an integrated offering of dissolved gas analysis, oil testing, and data management solutions for the electric power industry. NRG designs and manufactures decision support tools for the renewable energy industry, primarily wind. Management evaluates and measures the performance of its reportable segments based on “Net Sales” and “EBIT”, which are detailed in the table below. EBIT is defined as earnings from continuing operations before interest and taxes. The table below is presented on the basis of continuing operations and excludes discontinued operations. Three Months Six Months Ended March 31, Ended September 30, (In thousands) 2020 2019 2020 2019 NET SALES Aerospace & Defense $ 95,124 79,478 172,635 145,702 Test 41,600 42,875 82,983 84,161 USG 43,768 48,890 96,602 104,745 Consolidated totals $ 180,492 171,243 352,220 334,608 EBIT Aerospace & Defense $ 21,736 17,443 34,249 28,053 Test 5,651 5,554 10,307 8,864 USG 4,866 8,767 14,153 30,313 Corporate (loss) (10,908) (9,788) (20,573) (19,904) Consolidated EBIT 21,345 21,976 38,136 47,326 Less: Interest expense (1,320) (1,853) (3,741) (3,708) Earnings before income taxes $ 20,025 20,123 34,395 43,618 Non-GAAP Financial Measures The financial measure “EBIT” is presented in the above table and elsewhere in this Report. EBIT on a consolidated basis is a non-GAAP financial measure. Management believes that EBIT is useful in assessing the operational profitability of the Company’s business segments because it excludes interest and taxes, which are generally accounted for across the entire Company on a consolidated basis. EBIT is also one of the measures used by management in determining resource allocations within the Company as well as incentive compensation. A reconciliation of EBIT to net earnings from continuing operations is set forth in Item 2, Management’s Discussion and Analysis of Financial Condition and Results of Operations – EBIT. The Company believes that the presentation of EBIT provides important supplemental information to investors to facilitate comparisons with other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results. However, the Company’s non-GAAP financial measures may not be comparable to other companies’ non-GAAP financial performance measures. Furthermore, the use of non-GAAP financial measures is not intended to replace any measures of performance determined in accordance with GAAP. |
DEBT
DEBT | 6 Months Ended |
Mar. 31, 2020 | |
DEBT | |
DEBT | 9. DEBT The Company’s debt is summarized as follows: March 31, September 30, (In thousands) 2020 2019 Total borrowings $ 150,000 285,000 Current portion of long-term debt (20,000) (20,000) Total long-term debt, less current portion $ 130,000 265,000 On September 27, 2019, the Company entered into a new five-year credit facility (“the Credit Facility”), modifying its previous credit facility which would have matured December 21, 2020. The Credit Facility includes a $500 million revolving line of credit as well as provisions allowing for the increase of the credit facility 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. At March 31, 2020, the Company had approximately $341 million available to borrow under the Credit Facility, plus the $250 million increase option, subject to lender approval, in addition to $100.2 million cash on hand. The Company classified $20.0 million as the current portion of long-term debt as of March 31, 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. The letters of credit issued and outstanding under the Credit Facility totaled $9.8 million at March 31, 2020. 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 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. The weighted average interest rates were 3.24% and 3.21 % for the three and six-month periods ending March 31, 2020, respectively , and 3.20% and 3.23% for the three and six-month periods ending March 31, 2019. As of March 31, 2020, the Company was in compliance with all covenants. |
INCOME TAX EXPENSE
INCOME TAX EXPENSE | 6 Months Ended |
Mar. 31, 2020 | |
INCOME TAX EXPENSE | |
INCOME TAX EXPENSE | 10. INCOME TAX EXPENSE The second quarter 2020 effective income tax rate from continuing operations was 11.0% compared to 11.4% in the second quarter of 2019. The effective income tax rate in the first six months of 2020 was 16.9% compared to 19.4% for the first six months of 2019. The income tax expense in the second quarter of 2020 was favorably impacted by the release of a valuation allowance of $2.8 million for foreign net operating losses decreasing the second quarter and year-to-date effective tax rate by 14.3% and 8.2%, respectively. The income tax expense in the second quarter and first six months of 2019 was favorably impacted by tax planning strategies to increase the foreign tax credits claimed retrospectively. The Company reduced the valuation allowance for excess foreign tax credits by $2.3 million and recorded an amended return receivable of $0.2 million, which favorably impacted the 2019 second quarter and year-to-date effective tax rate by 12.9% and 5.9%, respectively. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 6 Months Ended |
Mar. 31, 2020 | |
SHAREHOLDERS' EQUITY | |
SHAREHOLDERS' EQUITY | 11. SHAREHOLDERS’ EQUITY The change in shareholders’ equity for the first three and six months of 2020 and 2019 is shown below (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Common stock Beginning balance 306 305 306 305 Stock plans — — — — Ending balance 306 305 306 305 Additional paid-in-capital Beginning balance 293,056 292,293 292,408 291,190 Stock plans 1,731 1,319 2,379 2,422 Ending balance 294,787 293,612 294,787 293,612 Retained earnings Beginning balance 769,439 627,670 684,741 606,837 Net earnings common stockholders 17,822 18,797 104,599 36,114 Dividends paid (2,077) (2,074) (4,156) (4,147) Adoption of accounting standards updates — (1,375) — 4,214 Ending balance 785,184 643,018 785,184 643,018 Accumulated other comprehensive income (loss) Beginning balance (40,051) (36,083) (43,974) (31,528) Foreign currency translation (6,885) 677 (2,962) (3,853) Pension — — — — Forward exchange contracts — 126 — 101 Ending balance (46,936) (35,280) (46,936) (35,280) Treasury stock Beginning balance (107,259) (107,394) (107,259) (107,394) Issued under stock plans 125 135 125 135 Ending balance (107,134) (107,259) (107,134) (107,259) Total equity 926,207 794,396 926,207 794,396 |
RETIREMENT PLANS
RETIREMENT PLANS | 6 Months Ended |
Mar. 31, 2020 | |
RETIREMENT PLANS | |
RETIREMENT PLANS | 12. RETIREMENT PLANS A summary of net periodic benefit expense for the Company’s defined benefit plans for the three and six-month periods ended March 31, 2020 and 2019 is shown in the following table. Net periodic benefit cost for each period presented is comprised of the following: Three Months Six Months Ended March 31, Ended March 31, (In thousands) 2020 2019 2020 2019 Defined benefit plans Interest cost $ 824 875 1,648 1,750 Expected return on assets (1,041) (1,086) (2,082) (2,172) Amortization of: Prior service cost — — — — Actuarial loss 543 487 1,087 974 Net periodic benefit cost $ 326 276 653 552 |
DERIVATIVE FINANCIAL INSTRUMENT
DERIVATIVE FINANCIAL INSTRUMENTS | 6 Months Ended |
Mar. 31, 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 $150 million to hedge some of its exposure to variability in future LIBOR-based interest payments on variable rate debt, of which one swap is outstanding as of March 31, 2020. In addition, the Company’s Canadian subsidiary Morgan Schaffer enters into foreign exchange contracts to manage foreign currency risk as a portion of their revenue is denominated in U.S. dollars. The Company expects hedging gains or losses to be essentially offset by losses or gains on the related underlying exposures. The amounts ultimately recognized may differ for open positions, which remain subject to ongoing market price fluctuations until settlement. All derivative instruments are reported in either accrued expenses or other assets on the balance sheet at fair value. For derivative instruments designated as cash flow hedges, the gain or loss on the derivative is deferred in accumulated other comprehensive income until recognized in earnings with the underlying hedged item. The interest rate swaps entered into during 2018 were not designated as cash flow hedges and, therefore, the gain or loss on the derivative is reflected in earnings each period. The following is a summary of the notional transaction amounts and fair values for the Company’s outstanding derivative financial instruments by risk category and instrument type as of March 31, 2020: Fair Notional Value Fix (In thousands) amount (US$) Rate Forward contracts 6,250 USD (381) Interest rate swap 150,000 USD (1,997) 2.24 % |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
FAIR VALUE MEASUREMENTS | 14. FAIR VALUE MEASUREMENTS The accounting guidance establishes a three-level hierarchy for disclosure of fair value measurements, based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date, as follows: ● Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. ● Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. ● Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. Financial Assets and Liabilities The Company has estimated the fair value of its financial instruments as of March 31, 2020 and September 30, 2019 using available market information or other appropriate valuation methodologies. The carrying amounts of cash and cash equivalents, receivables, inventories, payables, debt and other current assets and liabilities approximate fair value because of the short maturity of those instruments. Fair Value of Financial Instruments The Company’s forward contracts and interest rate swaps are classified within Level 2 of the valuation hierarchy in accordance with FASB Accounting Standards Codification (ASC) 825, as presented below as of March 31, 2020: (In thousands) Level 1 Level 2 Level 3 Total Assets (Liabilities): Forward contracts and interest rate swaps $ — (2,378) $ — (2,378) Valuation was based on third party evidence of similarly priced derivative instruments. Nonfinancial Assets and Liabilities The Company’s nonfinancial assets such as property, plant and equipment, and other intangible assets are not measured at fair value on a recurring basis; however they are subject to fair value adjustments in certain circumstances, such as when there is evidence that an impairment may exist. No impairments were recorded during the three and six-month periods ended March 31, 2020. |
REVENUES
REVENUES | 6 Months Ended |
Mar. 31, 2020 | |
REVENUES | |
REVENUES | 15. REVENUES Disaggregation of Revenues Revenues by customer type, geographic location, and revenue recognition method for the three and six-month periods ended March 31, 2020 are presented in the tables 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 include a reconciliation of the disaggregated revenue within each reportable segment on a continuing operations basis. Three months ended March 31, 2020 Aerospace (In thousands) & Defense Test USG Total Customer type: Commercial $ 51,550 $ 33,952 $ 43,736 $ 129,238 U.S. Government 43,574 7,648 32 51,254 Total revenues $ 95,124 $ 41,600 $ 43,768 $ 180,492 Geographic location: United States $ 81,458 $ 25,121 $ 28,706 $ 135,285 International 13,666 16,479 15,062 45,207 Total revenues $ 95,124 $ 41,600 $ 43,768 $ 180,492 Revenue recognition method: Point in time $ 46,610 $ 8,009 $ 32,209 $ 86,828 Over time 48,514 33,591 11,559 93,664 Total revenues $ 95,124 $ 41,600 $ 43,768 $ 180,492 Six months ended March 31, 2020 Aerospace (In thousands) & Defense Test USG Total Customer type: Commercial $ 93,417 $ 69,194 $ 95,971 $ 258,582 U.S. Government 79,218 13,789 631 93,638 Total revenues $ 172,635 $ 82,983 $ 96,602 $ 352,220 Geographic location: United States $ 146,164 $ 49,959 $ 63,665 $ 259,788 International 26,471 33,024 32,937 92,432 Total revenues $ 172,635 $ 82,983 $ 96,602 $ 352,220 Revenue recognition method: Point in time $ 82,897 $ 17,019 $ 72,524 $ 172,440 Over time 89,738 65,964 24,078 179,780 Total revenues $ 172,635 $ 82,983 $ 96,602 $ 352,220 Remaining Performance Obligations Remaining performance obligations, which is the equivalent of backlog, represent the expected transaction price allocated to contracts that the Company expects to recognize as revenue in future periods when the Company performs 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 March 31, 2020, the Company had $565 million in remaining performance obligations of which the Company expects to recognize revenues of approximately 68% in the next twelve months. Contract assets and liabilities Assets and liabilities related to contracts with customers are reported on a contract-by-contract basis at the end of each reporting period. At March 31, 2020, contract assets and liabilities totaled $96.1 million and $95.4 million, respectively. During the first six months of 2020, the Company recognized approximately $36.4 million in revenues that were included in the contract liabilities balance at the adoption date. |
LEASES
LEASES | 6 Months Ended |
Mar. 31, 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: Three Months Six Months Ended Ended March 31, March 31, (Dollars in thousands) 2020 2020 Finance lease cost Amortization of right-of-use assets $ 622 $ 1,245 Interest on lease liabilities 323 651 Operating lease cost 1,402 2,750 Total lease costs $ 2,347 $ 4,646 Additional information related to leases are shown below: Three Months Six Months Ended Ended March 31, September 30, (Dollars in thousands) 2020 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,380 $ 2,717 Operating cash flows from finance leases 198 335 Financing cash flows from finance leases 376 727 Right-of-use assets obtained in exchange for lease liabilities Operating leases $ 1,566 $ 22,268 Weighted-average remaining lease term Operating leases 6.37 years Finance leases 12.97 years Weighted-average discount rate Operating leases 3.14 % Finance leases 4.29 % 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 March 31, 2020: (Dollars in thousands) Operating Finance Years Ending September 30: Leases Leases 2020 (excluding the six months ended March 31, 2020) $ 2,667 1,455 2021 4,696 2,930 2022 4,036 3,011 2023 3,090 3,094 2024 and thereafter 6,931 31,481 Total minimum lease payments 21,420 41,971 Less: amounts representing interest 2,202 10,821 Present value of net minimum lease payments $ 19,218 31,150 Less: current portion of lease obligations 4,208 1,902 Non-current portion of lease obligations 15,010 29,248 ROU assets $ 18,901 28,072 Operating lease liabilities are included in the Consolidated Balance Sheet in accrued accrued caption Property 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 |
TECHNICAL PACKAGING DIVESTITU_2
TECHNICAL PACKAGING DIVESTITURE (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
TECHNICAL PACKAGING DIVESTITURE | |
Schedule of major classes of the Technical Packaging business assets and liabilities held for sale | 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 |
EARNINGS PER SHARE (EPS) (Table
EARNINGS PER SHARE (EPS) (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
EARNINGS PER SHARE (EPS) | |
Schedule of weighted average number of shares used in the calculation of earnings per share | Three Months Six Months Ended March 31, Ended March 31, 2020 2019 2020 2019 Weighted Average Shares Outstanding - Basic 25,988 25,918 25,985 25,915 Dilutive Options and Restricted Shares 100 118 141 163 Adjusted Shares - Diluted 26,088 26,036 26,126 26,078 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
INVENTORIES | |
Schedule of inventories | March 31, September 30, (In thousands) 2020 2019 Finished goods $ 23,898 23,550 Work in process 39,768 26,407 Raw materials 77,361 74,999 Total inventories $ 141,027 124,956 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
GOODWILL AND OTHER INTANGIBLE ASSETS | |
Schedule of goodwill and intangible assets | March 31, September 30, (Dollars in thousands) 2020 2019 Goodwill $ 389,630 390,256 Intangible assets with determinable lives: Patents Gross carrying amount $ 2,067 1,945 Less: accumulated amortization 806 748 Net $ 1,261 1,197 Capitalized software Gross carrying amount $ 83,243 78,962 Less: accumulated amortization 53,034 48,530 Net $ 30,209 30,432 Customer relationships Gross carrying amount $ 226,946 227,225 Less: accumulated amortization 61,486 55,326 Net $ 165,460 171,899 Other Gross carrying amount $ 5,081 5,441 Less: accumulated amortization 2,953 2,645 Net $ 2,128 2,796 Intangible assets with indefinite lives: Trade names $ 172,721 175,281 |
Schedule of carrying amount of goodwill attributable to each business segment | Aerospace (Dollars in millions) USG Test & Defense Total Balance as of September 30, 2019 254.0 34.1 102.2 390.3 Foreign currency translation (0.6) (0.1) — (0.7) Balance as of March 31, 2020 $ 253.4 34.0 102.2 389.6 |
BUSINESS SEGMENT INFORMATION (T
BUSINESS SEGMENT INFORMATION (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
BUSINESS SEGMENT INFORMATION | |
Schedule of Net Sales and Earnings Before Income Tax | Three Months Six Months Ended March 31, Ended September 30, (In thousands) 2020 2019 2020 2019 NET SALES Aerospace & Defense $ 95,124 79,478 172,635 145,702 Test 41,600 42,875 82,983 84,161 USG 43,768 48,890 96,602 104,745 Consolidated totals $ 180,492 171,243 352,220 334,608 EBIT Aerospace & Defense $ 21,736 17,443 34,249 28,053 Test 5,651 5,554 10,307 8,864 USG 4,866 8,767 14,153 30,313 Corporate (loss) (10,908) (9,788) (20,573) (19,904) Consolidated EBIT 21,345 21,976 38,136 47,326 Less: Interest expense (1,320) (1,853) (3,741) (3,708) Earnings before income taxes $ 20,025 20,123 34,395 43,618 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
DEBT | |
Schedule of debt | March 31, September 30, (In thousands) 2020 2019 Total borrowings $ 150,000 285,000 Current portion of long-term debt (20,000) (20,000) Total long-term debt, less current portion $ 130,000 265,000 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
SHAREHOLDERS' EQUITY | |
Schedule of change in shareholders' equity | The change in shareholders’ equity for the first three and six months of 2020 and 2019 is shown below (in thousands): Three Months Ended March 31, Six Months Ended March 31, 2020 2019 2020 2019 Common stock Beginning balance 306 305 306 305 Stock plans — — — — Ending balance 306 305 306 305 Additional paid-in-capital Beginning balance 293,056 292,293 292,408 291,190 Stock plans 1,731 1,319 2,379 2,422 Ending balance 294,787 293,612 294,787 293,612 Retained earnings Beginning balance 769,439 627,670 684,741 606,837 Net earnings common stockholders 17,822 18,797 104,599 36,114 Dividends paid (2,077) (2,074) (4,156) (4,147) Adoption of accounting standards updates — (1,375) — 4,214 Ending balance 785,184 643,018 785,184 643,018 Accumulated other comprehensive income (loss) Beginning balance (40,051) (36,083) (43,974) (31,528) Foreign currency translation (6,885) 677 (2,962) (3,853) Pension — — — — Forward exchange contracts — 126 — 101 Ending balance (46,936) (35,280) (46,936) (35,280) Treasury stock Beginning balance (107,259) (107,394) (107,259) (107,394) Issued under stock plans 125 135 125 135 Ending balance (107,134) (107,259) (107,134) (107,259) Total equity 926,207 794,396 926,207 794,396 |
RETIREMENT PLANS (Tables)
RETIREMENT PLANS (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
RETIREMENT PLANS | |
Schedule of components of net periodic benefit cost | Three Months Six Months Ended March 31, Ended March 31, (In thousands) 2020 2019 2020 2019 Defined benefit plans Interest cost $ 824 875 1,648 1,750 Expected return on assets (1,041) (1,086) (2,082) (2,172) Amortization of: Prior service cost — — — — Actuarial loss 543 487 1,087 974 Net periodic benefit cost $ 326 276 653 552 |
DERIVATIVE FINANCIAL INSTRUME_2
DERIVATIVE FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Schedule of outstanding derivative financial instruments | Fair Notional Value Fix (In thousands) amount (US$) Rate Forward contracts 6,250 USD (381) Interest rate swap 150,000 USD (1,997) 2.24 % |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
FAIR VALUE MEASUREMENTS | |
Schedule of fair value of financial instruments | The Company’s forward contracts and interest rate swaps are classified within Level 2 of the valuation hierarchy in accordance with FASB Accounting Standards Codification (ASC) 825, as presented below as of March 31, 2020: (In thousands) Level 1 Level 2 Level 3 Total Assets (Liabilities): Forward contracts and interest rate swaps $ — (2,378) $ — (2,378) |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
REVENUES | |
Schedule of disaggregation of revenue by reportable segment | Three months ended March 31, 2020 Aerospace (In thousands) & Defense Test USG Total Customer type: Commercial $ 51,550 $ 33,952 $ 43,736 $ 129,238 U.S. Government 43,574 7,648 32 51,254 Total revenues $ 95,124 $ 41,600 $ 43,768 $ 180,492 Geographic location: United States $ 81,458 $ 25,121 $ 28,706 $ 135,285 International 13,666 16,479 15,062 45,207 Total revenues $ 95,124 $ 41,600 $ 43,768 $ 180,492 Revenue recognition method: Point in time $ 46,610 $ 8,009 $ 32,209 $ 86,828 Over time 48,514 33,591 11,559 93,664 Total revenues $ 95,124 $ 41,600 $ 43,768 $ 180,492 Six months ended March 31, 2020 Aerospace (In thousands) & Defense Test USG Total Customer type: Commercial $ 93,417 $ 69,194 $ 95,971 $ 258,582 U.S. Government 79,218 13,789 631 93,638 Total revenues $ 172,635 $ 82,983 $ 96,602 $ 352,220 Geographic location: United States $ 146,164 $ 49,959 $ 63,665 $ 259,788 International 26,471 33,024 32,937 92,432 Total revenues $ 172,635 $ 82,983 $ 96,602 $ 352,220 Revenue recognition method: Point in time $ 82,897 $ 17,019 $ 72,524 $ 172,440 Over time 89,738 65,964 24,078 179,780 Total revenues $ 172,635 $ 82,983 $ 96,602 $ 352,220 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Mar. 31, 2020 | |
LEASES | |
Schedule of components of lease costs | Three Months Six Months Ended Ended March 31, March 31, (Dollars in thousands) 2020 2020 Finance lease cost Amortization of right-of-use assets $ 622 $ 1,245 Interest on lease liabilities 323 651 Operating lease cost 1,402 2,750 Total lease costs $ 2,347 $ 4,646 |
Schedule of additional information related to leases | Three Months Six Months Ended Ended March 31, September 30, (Dollars in thousands) 2020 2020 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 1,380 $ 2,717 Operating cash flows from finance leases 198 335 Financing cash flows from finance leases 376 727 Right-of-use assets obtained in exchange for lease liabilities Operating leases $ 1,566 $ 22,268 Weighted-average remaining lease term Operating leases 6.37 years Finance leases 12.97 years Weighted-average discount rate Operating leases 3.14 % Finance leases 4.29 % |
Schedule of reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets | (Dollars in thousands) Operating Finance Years Ending September 30: Leases Leases 2020 (excluding the six months ended March 31, 2020) $ 2,667 1,455 2021 4,696 2,930 2022 4,036 3,011 2023 3,090 3,094 2024 and thereafter 6,931 31,481 Total minimum lease payments 21,420 41,971 Less: amounts representing interest 2,202 10,821 Present value of net minimum lease payments $ 19,218 31,150 Less: current portion of lease obligations 4,208 1,902 Non-current portion of lease obligations 15,010 29,248 ROU assets $ 18,901 28,072 |
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 |
TECHNICAL PACKAGING DIVESTITU_3
TECHNICAL PACKAGING DIVESTITURE (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($)item | Mar. 31, 2019USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2019USD ($) | |
TECHNICAL PACKAGING DIVESTITURE | ||||||
Net proceeds from sale of discontinued operations | $ 183,997 | |||||
After-tax gain on the sale of business | 76,614 | |||||
Assets: | ||||||
Current assets | $ 25,314 | |||||
Liabilities: | ||||||
Current liabilities | 11,517 | |||||
Other liabilities | 3,999 | |||||
Disposed of by Sale | Technical Packaging Business | ||||||
TECHNICAL PACKAGING DIVESTITURE | ||||||
Net sales | $ 0 | $ 22,700 | $ 16,500 | $ 41,900 | ||
Net proceeds from sale of discontinued operations | $ 184,000 | |||||
After-tax gain on the sale of business | $ 76,600 | |||||
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 | |||||
Disposed of by Sale | Technical Packaging Business | Sonoco Products Company | ||||||
TECHNICAL PACKAGING DIVESTITURE | ||||||
Number of wholly-owned subsidiaries of the buyers | item | 2 |
ACCOUNTING STANDARDS UPDATE (De
ACCOUNTING STANDARDS UPDATE (Details) $ in Thousands | Mar. 31, 2020USD ($) |
ACCOUNTING STANDARDS UPDATE | |
Right-of-use assets | $ 18,901 |
Right-of-use liabilities | 15,010 |
Restatement adjustment | Lease Standard | |
ACCOUNTING STANDARDS UPDATE | |
Right-of-use assets | 20,000 |
Right-of-use liabilities | $ 20,000 |
EARNINGS PER SHARE (EPS) (Detai
EARNINGS PER SHARE (EPS) (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
EARNINGS PER SHARE (EPS) | ||||
Weighted Average Shares Outstanding - Basic | 25,988 | 25,918 | 25,985 | 25,915 |
Dilutive Options and Restricted Shares | 100 | 118 | 141 | 163 |
Adjusted Shares - Diluted | 26,088 | 26,036 | 26,126 | 26,078 |
SHARE-BASED COMPENSATION (Detai
SHARE-BASED COMPENSATION (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Selling, general and administrative expenses | ||||
SHARE-BASED COMPENSATION | ||||
Total share-based compensation cost | $ 1.5 | $ 1.2 | $ 2.9 | $ 2.6 |
Performance-Accelerated Restricted Share Awards | ||||
SHARE-BASED COMPENSATION | ||||
Pretax compensation expense | $ 1.1 | 0.9 | $ 2.3 | 2 |
Non-vested shares | 175,577 | 175,577 | ||
Non-Employee Directors Plan | ||||
SHARE-BASED COMPENSATION | ||||
Pretax compensation expense | $ 0.3 | 0.3 | $ 0.6 | 0.5 |
Total income tax benefit recognized | 0.3 | $ 0.3 | 0.7 | $ 0.6 |
Total unrecognized compensation cost related to share-based compensation arrangements | $ 6.8 | $ 6.8 | ||
Remaining weighted-average period for recognition of total unrecognized compensation cost | 2 years 1 month 6 days |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
INVENTORIES | ||
Finished goods | $ 23,898 | $ 23,550 |
Work in process | 39,768 | 26,407 |
Raw materials | 77,361 | 74,999 |
Total inventories | $ 141,027 | $ 124,956 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Goodwill | $ 389,630 | $ 390,256 |
Less: accumulated amortization | 118,277 | 107,247 |
Patents | ||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Gross carrying amount | 2,067 | 1,945 |
Less: accumulated amortization | 806 | 748 |
Net | 1,261 | 1,197 |
Capitalized software | ||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Gross carrying amount | 83,243 | 78,962 |
Less: accumulated amortization | 53,034 | 48,530 |
Net | 30,209 | 30,432 |
Customer relationships | ||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Gross carrying amount | 226,946 | 227,225 |
Less: accumulated amortization | 61,486 | 55,326 |
Net | 165,460 | 171,899 |
Other | ||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Gross carrying amount | 5,081 | 5,441 |
Less: accumulated amortization | 2,953 | 2,645 |
Net | 2,128 | 2,796 |
Trade names | ||
GOODWILL AND OTHER INTANGIBLE ASSETS | ||
Trade names | $ 172,721 | $ 175,281 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Changes in carrying amount of goodwill (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2020USD ($) | |
Changes in goodwill | |
Goodwill, Beginning Balance | $ 390,256 |
Foreign currency translation | (700) |
Goodwill, Ending Balance | 389,630 |
USG | |
Changes in goodwill | |
Goodwill, Beginning Balance | 254,000 |
Foreign currency translation | (600) |
Goodwill, Ending Balance | 253,400 |
Test | |
Changes in goodwill | |
Goodwill, Beginning Balance | 34,100 |
Foreign currency translation | (100) |
Goodwill, Ending Balance | 34,000 |
Aerospace & Defense | |
Changes in goodwill | |
Goodwill, Beginning Balance | 102,200 |
Goodwill, Ending Balance | $ 102,200 |
BUSINESS SEGMENT INFORMATION (D
BUSINESS SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
BUSINESS SEGMENT INFORMATION | ||||
NET SALES | $ 180,492 | $ 171,243 | $ 352,220 | $ 334,608 |
Consolidated EBIT | 21,345 | 21,976 | 38,136 | 47,326 |
Less: Interest expense | (1,320) | (1,853) | (3,741) | (3,708) |
Earnings before income taxes | 20,025 | 20,123 | 34,395 | 43,618 |
Aerospace & Defense | ||||
BUSINESS SEGMENT INFORMATION | ||||
NET SALES | 95,124 | 79,478 | 172,635 | 145,702 |
Consolidated EBIT | 21,736 | 17,443 | 34,249 | 28,053 |
Test | ||||
BUSINESS SEGMENT INFORMATION | ||||
NET SALES | 41,600 | 42,875 | 82,983 | 84,161 |
Consolidated EBIT | 5,651 | 5,554 | 10,307 | 8,864 |
USG | ||||
BUSINESS SEGMENT INFORMATION | ||||
NET SALES | 43,768 | 48,890 | 96,602 | 104,745 |
Consolidated EBIT | 4,866 | 8,767 | 14,153 | 30,313 |
Corporate (loss) | ||||
BUSINESS SEGMENT INFORMATION | ||||
Consolidated EBIT | $ (10,908) | $ (9,788) | $ (20,573) | $ (19,904) |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Sep. 30, 2019 |
DEBT | ||
Total borrowings | $ 150,000 | $ 285,000 |
Current portion of long-term debt | (20,000) | (20,000) |
Total long-term debt, less current portion | $ 130,000 | $ 265,000 |
DEBT - Additional information (
DEBT - Additional information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Sep. 30, 2019 | |
DEBT | |||||
Available to borrow under the credit facility | $ 341,000 | $ 341,000 | |||
Cash on hand | 100,195 | 100,195 | $ 61,808 | ||
Letters of Credit Outstanding, Amount | $ 9,800 | $ 9,800 | |||
Equity interests in direct and indirect material foreign subsidiaries, pledged as collateral (as a percent) | 100.00% | 100.00% | |||
Weighted average interest rates | 3.24% | 3.20% | 3.21% | 3.23% | |
Long-term Debt, Current Maturities | $ 20,000 | $ 20,000 | |||
Revolving Credit Facility | |||||
DEBT | |||||
Line of Credit Facility, Amount Outstanding | 500,000 | 500,000 | |||
Line of Credit Facility, Commitment Fee Amount | 250,000 | ||||
Maximum | |||||
DEBT | |||||
Incremental term loan | $ 250,000 | $ 250,000 |
INCOME TAX EXPENSE (Details)
INCOME TAX EXPENSE (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
INCOME TAX EXPENSE | ||||
Effective income tax rate | 11.00% | 11.40% | 16.90% | 19.40% |
Increase (decrease) in valuation allowance (as a percent) | (14.30%) | 12.90% | (8.20%) | 5.90% |
Reduction in valuation allowance for excess foreign tax credits | $ 2.8 | $ 2.3 | ||
Amended return receivable | $ 0.2 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Changes in shareholder's equity | ||||
Beginning Balance | $ 826,222 | |||
Net earnings common stockholders | $ 17,822 | $ 18,797 | 104,599 | $ 36,114 |
Ending Balance | 926,207 | 794,396 | 926,207 | 794,396 |
Common Stock | ||||
Changes in shareholder's equity | ||||
Beginning Balance | 306 | 305 | 306 | 305 |
Ending Balance | 306 | 305 | 306 | 305 |
Common Stock Including Additional Paid in Capital | ||||
Changes in shareholder's equity | ||||
Beginning Balance | 293,056 | 292,293 | 292,408 | 291,190 |
Stock compensation plans | 1,731 | 1,319 | 2,379 | 2,422 |
Ending Balance | 294,787 | 293,612 | 294,787 | 293,612 |
Retained Earnings | ||||
Changes in shareholder's equity | ||||
Beginning Balance | 769,439 | 627,670 | 684,741 | 606,837 |
Net earnings common stockholders | 17,822 | 18,797 | 104,599 | 36,114 |
Dividends paid | (2,077) | (2,074) | (4,156) | (4,147) |
Adoption of accounting standards updates | (1,375) | 4,214 | ||
Ending Balance | 785,184 | 643,018 | 785,184 | 643,018 |
Accumulated other comprehensive income (loss) | ||||
Changes in shareholder's equity | ||||
Beginning Balance | (40,051) | (36,083) | (43,974) | (31,528) |
Foreign currency translation | (6,885) | 677 | (2,962) | (3,853) |
Forward exchange contracts | 126 | 101 | ||
Ending Balance | (46,936) | (35,280) | (46,936) | (35,280) |
Treasury Stock | ||||
Changes in shareholder's equity | ||||
Beginning Balance | (107,259) | (107,394) | (107,259) | (107,394) |
Issued under stock plans | 125 | 135 | 125 | 135 |
Ending Balance | $ (107,134) | $ (107,259) | $ (107,134) | $ (107,259) |
RETIREMENT PLANS (Details)
RETIREMENT PLANS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
RETIREMENT PLANS | ||||
Interest cost | $ 824 | $ 875 | $ 1,648 | $ 1,750 |
Expected return on assets | (1,041) | (1,086) | (2,082) | (2,172) |
Actuarial loss | (543) | (487) | (1,087) | (974) |
Net periodic benefit cost | $ 326 | $ 276 | $ 653 | $ 552 |
DERIVATIVE FINANCIAL INSTRUME_3
DERIVATIVE FINANCIAL INSTRUMENTS (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Interest rate swap | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Notional amount | $ 150,000 |
Fair Value | $ (1,997) |
Fix Rate | 2.24% |
Forward contracts | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Notional amount | $ 6,250 |
Fair Value | $ (381) |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - Forward contracts and interest rate swaps $ in Thousands | Mar. 31, 2020USD ($) |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Fair Value of Financial Instruments | $ (2,378) |
Level 2 | |
DERIVATIVE FINANCIAL INSTRUMENTS | |
Fair Value of Financial Instruments | $ (2,378) |
REVENUES - Disaggregation of Re
REVENUES - Disaggregation of Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of revenues | ||||
Total revenues | $ 180,492 | $ 171,243 | $ 352,220 | $ 334,608 |
Point in time | ||||
Disaggregation of revenues | ||||
Total revenues | 86,828 | 172,440 | ||
Over time | ||||
Disaggregation of revenues | ||||
Total revenues | 93,664 | 179,780 | ||
United States | ||||
Disaggregation of revenues | ||||
Total revenues | 135,285 | 259,788 | ||
International | ||||
Disaggregation of revenues | ||||
Total revenues | 45,207 | 92,432 | ||
Commercial | ||||
Disaggregation of revenues | ||||
Total revenues | 129,238 | 258,582 | ||
U.S. Government | ||||
Disaggregation of revenues | ||||
Total revenues | 51,254 | 93,638 | ||
Aerospace & Defense | ||||
Disaggregation of revenues | ||||
Total revenues | 95,124 | 79,478 | 172,635 | 145,702 |
Aerospace & Defense | Point in time | ||||
Disaggregation of revenues | ||||
Total revenues | 46,610 | 82,897 | ||
Aerospace & Defense | Over time | ||||
Disaggregation of revenues | ||||
Total revenues | 48,514 | 89,738 | ||
Aerospace & Defense | United States | ||||
Disaggregation of revenues | ||||
Total revenues | 81,458 | 146,164 | ||
Aerospace & Defense | International | ||||
Disaggregation of revenues | ||||
Total revenues | 13,666 | 26,471 | ||
Aerospace & Defense | Commercial | ||||
Disaggregation of revenues | ||||
Total revenues | 51,550 | 93,417 | ||
Aerospace & Defense | U.S. Government | ||||
Disaggregation of revenues | ||||
Total revenues | 43,574 | 79,218 | ||
Test | ||||
Disaggregation of revenues | ||||
Total revenues | 41,600 | 42,875 | 82,983 | 84,161 |
Test | Point in time | ||||
Disaggregation of revenues | ||||
Total revenues | 8,009 | 17,019 | ||
Test | Over time | ||||
Disaggregation of revenues | ||||
Total revenues | 33,591 | 65,964 | ||
Test | United States | ||||
Disaggregation of revenues | ||||
Total revenues | 25,121 | 49,959 | ||
Test | International | ||||
Disaggregation of revenues | ||||
Total revenues | 16,479 | 33,024 | ||
Test | Commercial | ||||
Disaggregation of revenues | ||||
Total revenues | 33,952 | 69,194 | ||
Test | U.S. Government | ||||
Disaggregation of revenues | ||||
Total revenues | 7,648 | 13,789 | ||
USG | ||||
Disaggregation of revenues | ||||
Total revenues | 43,768 | $ 48,890 | 96,602 | $ 104,745 |
USG | Point in time | ||||
Disaggregation of revenues | ||||
Total revenues | 32,209 | 72,524 | ||
USG | Over time | ||||
Disaggregation of revenues | ||||
Total revenues | 11,559 | 24,078 | ||
USG | United States | ||||
Disaggregation of revenues | ||||
Total revenues | 28,706 | 63,665 | ||
USG | International | ||||
Disaggregation of revenues | ||||
Total revenues | 15,062 | 32,937 | ||
USG | Commercial | ||||
Disaggregation of revenues | ||||
Total revenues | 43,736 | 95,971 | ||
USG | U.S. Government | ||||
Disaggregation of revenues | ||||
Total revenues | $ 32 | $ 631 |
REVENUES - Remaining Performanc
REVENUES - Remaining Performance Obligations (Details) $ in Millions | Mar. 31, 2020USD ($) |
Remaining Performance Obligations | |
Revenue, Remaining Performance Obligation, Amount | $ 565 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 | |
Remaining Performance Obligations | |
Percentage of remaining performance obligation expected to be recognized | 68.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
REVENUES - Contract assets and
REVENUES - Contract assets and liabilities (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2020USD ($) | |
REVENUES | |
Contract with Customer, Asset, Net | $ 96.1 |
Contract with Customer, Liability | 95.4 |
Contract with Customer, Liability, Revenue Recognized | $ 36.4 |
LEASES - Components of lease co
LEASES - Components of lease costs (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | |
Leases | ||
Option to extend | true | |
Finance lease cost | ||
Amortization of right-of-use assets | $ 622 | $ 1,245 |
Interest on lease liabilities | 323 | 651 |
Operating lease cost | 1,402 | 2,750 |
Total lease costs | $ 2,347 | $ 4,646 |
Maximum | ||
Leases | ||
Lease term | 20 years | 20 years |
LEASES - Additional information
LEASES - Additional information related to leases (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Mar. 31, 2020USD ($) | Mar. 31, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | ||
Operating cash flows from operating leases | $ 1,380 | $ 2,717 |
Operating cash flows from finance leases | 198 | 335 |
Financing cash flows from finance leases | 376 | 727 |
Right-of-use assets obtained in exchange for lease liabilities | ||
Operating leases | $ 1,566 | $ 22,268 |
Weighted-average remaining lease term | ||
Operating leases | 6 years 4 months 13 days | 6 years 4 months 13 days |
Finance leases | 12 years 11 months 19 days | 12 years 11 months 19 days |
Weighted-average discount rate | ||
Operating leases | 3.14% | 3.14% |
Finance leases | 4.29% | 4.29% |
LEASES - Reconciliation of futu
LEASES - Reconciliation of future undiscounted cash flows to the operating and finance lease liabilities, and the related ROU assets (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Operating leases | |
2020 (excluding the six months ended March 31, 2020) | $ 2,667 |
2021 | 4,696 |
2022 | 4,036 |
2023 | 3,090 |
2024 and thereafter | 6,931 |
Total minimum lease payments | 21,420 |
Less: amounts representing interest | 2,202 |
Present value of net minimum lease payments | 19,218 |
Less: Current portion of lease obligations | 4,208 |
Non-current portion of lease obligations | 15,010 |
ROU assets | 18,901 |
Finance leases | |
2020 (excluding the six months ended March 31, 2020) | 1,455 |
2021 | 2,930 |
2022 | 3,011 |
2023 | 3,094 |
2024 and thereafter | 31,481 |
Total minimum lease payments | 41,971 |
Less: amounts representing interest | 10,821 |
Present value of net minimum lease payments | 31,150 |
Less: Current portion of lease obligations | 1,902 |
Non-current portion of lease obligations | 29,248 |
ROU assets | $ 28,072 |
Location of operating lease liabilities included on Consolidated Balance Sheets | us-gaap:OtherAccruedLiabilitiesCurrent us-gaap:OperatingLeaseLiabilityNoncurrent |
Location of finance lease liabilities included on Consolidated Balance Sheets | us-gaap:OtherAccruedLiabilitiesCurrent us-gaap:OtherLiabilitiesNoncurrent |
Location of operating lease ROU assets included on Consolidated Balance Sheets | us-gaap:OperatingLeaseRightOfUseAsset |
Location of finance lease ROU assets included on Consolidated Balance Sheets | us-gaap:PropertyPlantAndEquipmentNet |
LEASES - Future minimum lease p
LEASES - Future minimum lease payments for operating and capital leases under ASC 840 (Details) $ in Thousands | Sep. 30, 2019USD ($) |
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 |