Business Segment Information

6 Months Ended

Mar. 31, 2018

Segment Reporting [Abstract]

Business Segment Information

BUSINESS SEGMENT INFORMATION

Our Chief Executive Officer (the Chief Operating Decision Maker) regularly reviews financial information for our two operating segments, Test and Sensors. Test provides testing equipment, systems and services to the ground vehicles, materials and structures sectors. Sensors provides high performance sensors for acceleration, position, vibration, motion, pressure and force measurement. 

In evaluating each segment's performance, our Chief Executive Officer focuses on income from operations. This measure excludes interest income and expense, income taxes and other non-operating items. Corporate expenses, including costs associated with various support functions such as human resources, information technology, legal, finance, and accounting, and general and administrative costs, are allocated to the reportable segments on the basis of revenue. The accounting policies of the reportable segments are the same as those described in Note 1 to the Consolidated Financial Statements found in our Annual Report on Form 10-K for the fiscal year ended September 30, 2017. 

The acquisition of PCB in fiscal year 2016 generated new opportunities to sell between our operating segments. Intersegment revenue is based on standard costs with reasonable mark-ups established between the reportable segments. All significant intersegment amounts are eliminated to arrive at consolidated financial results.

On January 5, 2017, we announced the division of our Test segment into two separate business units, "Materials Test Systems" and "Vehicles and Structures Test Systems." The division of our Test segment will result in us having three operating segments once discrete financial information is made available to our Chief Operating Decision Maker. We will continue to report only the Test and Sensors segments until such time. We continue to evaluate the timing of such implementation.

Financial information by reportable segment is as follows:

	Three Months Ended					Six Months Ended
	March 31, 2018			April 1, 2017		March 31, 2018			April 1, 2017
Revenue
Test	$	110,238		$	123,840	$	228,441		$	254,966
Sensors	81,542			69,584		157,501			137,737
Intersegment eliminations	(457		)	—		(457		)	—
Total revenue	$	191,323		$	193,424	$	385,485		$	392,703
Income from operations
Test	$	3,295		$	6,367	$	8,904		$	18,083
Sensors	13,337			9,045		24,225			7,619
Intersegment eliminations	(22		)	—		(22		)	—
Total income from operations	$	16,610		$	15,412	$	33,107		$	25,702