REVENUES

6 Months Ended

Mar. 31, 2019

Revenue Recognition and Deferred Revenue [Abstract]

REVENUES

14. REVENUES

 Disaggregation of Revenues

Our revenues by customer type, geographic location, and revenue recognition method for the three and six-month periods ended March 31, 2019 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.

Three Months Ended March 31, 2019 (In thousands)	Filtration		Test		USG		Technical Packaging		Total
Customer type:
Commercial	$	46,325	$	37,451	$	47,551	$	22,630	$	153,957
Government		33,153		5,424		1,339		76		39,992
Total revenues	$	79,478	$	42,875	$	48,890	$	22,706	$	193,949
Geographic location:
United States	$	66,068	$	26,694	$	33,798	$	11,457	$	138,017
International		13,410		16,181		15,092		11,249		55,932
Total revenues	$	79,478	$	42,875	$	48,890	$	22,706	$	193,949
Revenue recognition method:
Point in time	$	42,400	$	12,166	$	36,874	$	-	$	91,440
Over time		37,078		30,709		12,016		22,706		102,509
Total revenues	$	79,478	$	42,875	$	48,890	$	22,706	$	193,949

Six Months Ended March 31, 2019 (In thousands)	Filtration		Test		USG		Technical Packaging		Total
Customer type:
Commercial	$	83,546	$	73,688	$	102,206	$	41,744	$	301,184
Government		62,156		10,473		2,539		194		75,362
Total revenues	$	145,702	$	84,161	$	104,745	$	41,938	$	376,546
Geographic location:
United States	$	120,833	$	55,148	$	73,879	$	21,306	$	271,166
International		24,869		29,013		30,866		20,632		105,380
Total revenues	$	145,702	$	84,161	$	104,745	$	41,938	$	376,546
Revenue recognition method:
Point in time	$	74,214	$	22,608	$	81,107	$	-	$	177,929
Over time		71,488		61,553		23,638		41,938		198,617
Total revenues	$	145,702	$	84,161	$	104,745	$	41,938	$	376,546

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 March 31, 2019, we had $436.1 million in remaining performance obligations of which we expect to recognize revenues of 83% in the next twelve months.

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 March 31, 2019, contract assets and liabilities totaled $100.5 million and $55.5 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 the first six months of 2019, we recognized approximately $30 million in revenues that were included in the contract liabilities balance at the adoption date.

Reconciliation of ASC 606 to Prior Accounting Standards

The amount by which each financial statement line item is affected in 2019 as a result of applying the new accounting standard as discussed in Note 2 is presented below:

	March 31, 2019
(In thousands)	As Reported		Effect of the adoption of ASC 606			Under Prior Accounting
Consolidated Balance Sheets
Contract assets (1)	$	100,540	$	(39,565	)	$	60,975
Inventories		124,493		34,692			159,185
Total current assets		435,959		(4,874	)		431,085
Total assets		1,293,963		(4,874	)		1,289,089
Contract liabilities (2)		55,453		1,754			57,207
Total current liabilities		201,945		1,754			203,699
Deferred tax liabilities		62,938		(1,122	)		61,816
Total liabilities		499,567		631			500,198
Retained earnings		643,018		(5,505	)		637,513
Total shareholders’ equity		794,396		(5,505	)		788,891
Total liabilities and shareholders’ equity	$	1,293,963		(4,874	)		1,289,089

(1) Previously “cost and estimated earnings on long-term contracts”

(2) Previously “advance payments on long-term contracts” and “current portion of deferred revenue”

	Three Months Ended March 31, 2019
(In thousands, except per share amounts)	As Reported		Effect of the adoption of ASC 606			Under Prior Accounting
Consolidated Statements of Operations
Net sales	$	193,949	$	(2,879	)	$	191,070
Cost of sales		121,946		(3,719	)		118,227
Total costs and expenses		172,594		(3,719	)		168,875
Earnings before income tax		21,355		839			22,194
Income tax expense (benefit)		2,558		117			2,675
Net earnings		18,797		723			19,520
Earnings per share:
Basic:
Net earnings	$	0.73	$	0.02		$	0.75
Diluted:
Net earnings	$	0.72	$	0.03		$	0.75
Consolidated Statements of Comprehensive Income
Net earnings	$	18,797	$	723		$	19,520
Comprehensive income		19,600		723			20,323

	Six Months Ended March 31, 2019
(In thousands, except per share amounts)	As Reported			Effect of the adoption of ASC 606			Under Prior Accounting
Consolidated Statements of Operations
Net sales	$	376,546		$	(5,779	)	$	370,767
Cost of sales		240,854			(6,981	)		233,873
Total costs and expenses		331,934			(6,981	)		324,953
Earnings before income tax		44,612			1,201			45,813
Income tax expense (benefit)		8,498			228			8,726
Net earnings		36,114			973			37,087
Earnings per share:
Basic:
Net earnings	$	1.39		$	0.04		$	1.43
Diluted:
Net earnings	$	1.38		$	0.04		$	1.42
Consolidated Statements of Comprehensive Income
Net earnings	$	36,114		$	973		$	37,087
Comprehensive income		32,363			973			33,336
Consolidated Statements of Cash flows
Net earnings	$	36,114		$	973		$	37,087
Adjustments to reconcile net earnings to net cash provided by operating activities:
Change in assets and liabilities	$	(28,847	)		(973	)	$	(29,820	)
Net cash provided by operating activities		16,992			-			16,992