UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(MARK ONE)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2021


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ______ TO ______

COMMISSION FILE NUMBER 1-10596

ESCO TECHNOLOGIES INC.

(Exact name of registrant as specified in its charter)

MISSOURI	43-1554045
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

9900A CLAYTON ROAD
ST. LOUIS, MISSOURI	63124-1186
(Address of principal executive offices)	(Zip Code)

(314) 213-7200

(Registrant’s telephone number, including area code)

Securities registered pursuant to section 12(b) of the Act:

		Name of each exchange
Title of each class	Trading Symbol(s)	on which registered
Common Stock, par value $0.01 per share	ESE	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class		Shares outstanding at April 30, 2021
Common stock, $.01 par value per share		26,040,884

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands, except per share amounts)


	Three Months Ended
	March 31,
	2021		2020

Net sales	$	166,644	180,492
Costs and expenses:
Cost of sales		103,113	113,242
Selling, general and administrative expenses		38,746	39,982
Amortization of intangible assets		4,917	5,220
Interest expense, net		432	1,320
Other (income) expenses, net		(1,903)	703
Total costs and expenses		145,305	160,467

Earnings before income taxes		21,339	20,025
Income tax expense		5,025	2,203
Net earnings	$	16,314	17,822

Earnings per share:
Basic -
Net earnings		0.63	0.69

Diluted -
Net earnings	$	0.62	0.68

See accompanying notes to consolidated financial statements.

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands, except per share amounts)


	Six Months Ended
	March 31,
	2021		2020

Net sales	$	329,593		352,220
Costs and expenses:
Cost of sales		201,890		219,969
Selling, general and administrative expenses		79,746		82,087
Amortization of intangible assets		9,865		11,030
Interest expense, net		973		3,741
Other (income) expenses, net		(1,880)		998
Total costs and expenses		290,594		317,825

Earnings before income taxes		38,999		34,395
Income tax expense		8,999		5,809
Earnings from continuing operations		30,000		28,586
Loss from discontinued operations, net of tax expense of $269		—		(601)
Gain on sale of discontinued operations, net of tax expense of $23,734		—		76,614
Earnings from discontinued operations		—		76,013

Net earnings	$	30,000		104,599

Earnings per share:
Basic — Continuing operations	$	1.15		1.10
— Discontinued operations		—		2.93
— Net earnings	$	1.15		4.03

Diluted — Continuing operations	$	1.15		1.09
— Discontinued operations		—		2.91
— Net earnings	$	1.15		4.00

See accompanying notes to consolidated financial statements.

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Dollars in thousands)


	March 31,		September 30,
	2021		2020
ASSETS
Current assets:
Cash and cash equivalents	$	45,653		52,560
Accounts receivable, net		124,580		144,082
Contract assets		95,002		96,746
Inventories, net		145,342		136,189
Other current assets		17,523		17,053
Total current assets		428,100		446,630
Property, plant and equipment, net of accumulated depreciation of $140,784 and $130,534, respectively		143,401		139,870
Intangible assets, net of accumulated amortization of $138,928 and $129,063, respectively		345,261		346,632
Goodwill		411,661		408,063
Operating lease assets		18,929		21,390
Other assets		10,050		10,938
Total assets	$	1,357,402		1,373,523

LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
Current maturities of long-term debt and short-term borrowings	$	20,000		22,368
Accounts payable		47,091		50,525
Contract liabilities		106,622		100,551
Accrued salaries		28,740		32,149
Accrued other expenses		44,130		50,436
Total current liabilities		246,583		256,029
Deferred tax liabilities		59,949		60,938
Non-current operating lease liabilities		14,501		16,785
Other liabilities		39,362		38,176
Long-term debt		2,000		40,000
Total liabilities		362,395		411,928
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 30,645,625 shares, respectively		306		306
Additional paid-in capital		295,796		293,682
Retained earnings		804,231		778,398
Accumulated other comprehensive income (loss), net of tax		1,808		(3,657)
		1,102,141		1,068,729
Less treasury stock, at cost: 4,607,911 and 4,607,911 common shares, respectively		(107,134)		(107,134)
Total shareholders’ equity		995,007		961,595
Total liabilities and shareholders’ equity	$	1,357,402		1,373,523

See accompanying notes to consolidated financial statements.

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)


	Six Months Ended
	March 31,
	2021		2020
Cash flows from operating activities:
Net earnings	$	30,000	104,599
Earnings from discontinued operations		—	(76,013)
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation and amortization		20,115	20,583
Stock compensation expense		2,745	2,896
Changes in assets and liabilities		7,401	(16,247)
Gain on sale of building and land		(1,950)	—
Effect of deferred taxes		(989)	834
Net cash provided by operating activities – continuing operations		57,322	36,652
Net cash used by operating activities – discontinued operations		—	(14,622)
Net cash provided by operating activities		57,322	22,030
Cash flows from investing activities:
Acquisition of business, net of cash acquired		(6,684)	—
Proceeds from sale of building and land		1,950	—
Additions to capitalized software		(3,973)	(4,280)
Capital expenditures		(13,153)	(21,211)
Net cash used by investing activities – continuing operations		(21,860)	(25,491)
Proceeds from sale of discontinued operations		—	183,997
Capital expenditures – discontinued operations		—	(1,728)
Net cash provided by investing activities – discontinued operations		—	182,269
Net cash (used) provided by investing activities		(21,860)	156,778
Cash flows from financing activities:
Proceeds from long-term debt and short-term borrowings		34,000	10,000
Principal payments on long-term debt and short-term borrowings		(74,368)	(145,000)
Dividends paid		(4,167)	(4,156)
Net cash used by financing activities – continuing operations		(44,535)	(139,156)
Net cash used by financing activities – discontinued operations		—	(2,140)
Net cash used by financing activities		(44,535)	(141,296)
Effect of exchange rate changes on cash and cash equivalents		2,166	875
Net (decrease) increase in cash and cash equivalents		(6,907)	38,387
Cash and cash equivalents, beginning of period		52,560	61,808
Cash and cash equivalents, end of period	$	45,653	100,195

Supplemental cash flow information:
Interest paid	$	281	3,477
Income taxes paid (including state and foreign)		14,047	23,098

See accompanying notes to consolidated financial statements.

ESCO TECHNOLOGIES INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

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). As a result of the pension plan termination referenced in the fourth quarter of 2020, certain prior year amounts have been reclassified to conform with the current year presentation. 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, 2020.

The Company’s results for the three-month period ended March 31, 2021 are not necessarily indicative of the results for the entire 2021 fiscal year. References to the second quarters of 2021 and 2020 represent the fiscal quarters ended March 31, 2021 and 2020, 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.

2. 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,
	2021	2020	2021	2020
Weighted Average Shares Outstanding — Basic	26,038	25,988	26,038	25,985
Dilutive Options and Restricted Shares	163	100	154	141
Adjusted Shares — Diluted	26,201	26,088	26,192	26,126

3. 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 $2.1 million for the three and six-month periods ended March 31, 2021, respectively, and $1.1 million and $2.3 million for the corresponding periods in 2020. There were 220,430 non-vested shares outstanding as of March 31, 2021.

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, 2021, respectively, and $0.3 million and $0.6 million for the corresponding periods in 2020.

The total share-based compensation cost that has been recognized in the results of operations and included within selling, general and administrative expenses (SG&A) was $1.4 million and $2.7 million for the three and six-month periods ended March 31, 2021, respectively, and $1.5 million and $2.9 million for the corresponding periods in 2020. 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, 2021, respectively, and $0.3 million and $0.7 million for the corresponding periods in

2020. As of March 31, 2021, there was $6.1 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 1.5 years.

4. INVENTORIES

Inventories, net, from continuing operations consist of the following:


	March 31,		September 30,
(In thousands)	2021		2020
Finished goods	$	29,363	28,471
Work in process		37,905	30,183
Raw materials		78,074	77,535
Total inventories	$	145,342	136,189

5. GOODWILL AND OTHER INTANGIBLE ASSETS

Included on the Company’s Consolidated Balance Sheets at March 31, 2021 and September 30, 2020 are the following intangible assets gross carrying amounts and accumulated amortization from continuing operations:


	March 31,		September 30,
(Dollars in thousands)	2021		2020
Goodwill	$	411,661	408,063

Intangible assets with determinable lives:
Patents
Gross carrying amount	$	2,136	2,092
Less: accumulated amortization		915	858
Net	$	1,221	1,234

Capitalized software
Gross carrying amount	$	88,862	84,888
Less: accumulated amortization		60,563	57,302
Net	$	28,299	27,586

Customer relationships
Gross carrying amount	$	229,322	227,178
Less: accumulated amortization		73,864	67,643
Net	$	155,458	159,535

Other
Gross carrying amount	$	5,356	5,156
Less: accumulated amortization		3,586	3,260
Net	$	1,770	1,896
Intangible assets with indefinite lives:
Trade names	$	158,513	156,381

The changes in the carrying amount of goodwill attributable to each business segment for the six months ended March 31, 2021 is as follows on a continuing operations basis:


				Aerospace
(Dollars in millions)	USG		Test	& Defense	Total
Balance as of September 30, 2020		271.9	34.1	102.1	408.1
Acquisition activity		—	—	2.5	2.5
Foreign currency translation		1.1	—	—	1.1
Balance as of March 31, 2021	$	273.0	34.1	104.6	411.7

The economic uncertainty, changes in the propensity for the general public to travel by air, and reductions in demand for commercial aircraft as a result of the COVID-19 pandemic have adversely impacted net sales and operating results in certain of the Aerospace and Defense reporting units. There were no impairment charges incurred for the three and six-month periods ended March 31, 2021, however, the fair value of the Mayday reporting unit exceeded carrying value by less than 10%. At March 31, 2021, we had $30 million of goodwill recorded for Mayday.

6. 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, Utility Solutions Group (USG), and RF Shielding and Test (Test). 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, fluid control 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 primarily of Doble Engineering Company and Morgan Schaffer Ltd. (together Doble), and NRG Systems, Inc. (NRG). Doble is an industry leader in the development, manufacture and delivery of diagnostic testing 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 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.

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 March 31,
(In thousands)	2021		2020	2021	2020
NET SALES
Aerospace & Defense	$	83,278	95,124	150,169	172,635
USG		39,555	43,768	94,095	96,602
Test		43,811	41,600	85,329	82,983
Consolidated totals	$	166,644	180,492	329,593	352,220

EBIT
Aerospace & Defense	$	18,196	21,736	27,576	34,249
USG		6,725	4,866	19,456	14,153
Test		5,688	5,651	11,030	10,307
Corporate (loss)		(8,838)	(10,908)	(18,090)	(20,573)
Consolidated EBIT		21,771	21,345	39,972	38,136
Less: Interest expense		(432)	(1,320)	(973)	(3,741)
Earnings before income taxes	$	21,339	20,025	38,999	34,395

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.

7. DEBT

The Company’s debt is summarized as follows:


	March 31,		September 30,
(In thousands)	2021		2020
Total borrowings	$	22,000	62,368
Current portion of long-term debt and short-term borrowings		(20,000)	(22,368)
Total long-term debt, less current portion	$	2,000	40,000

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, 2021, the Company had approximately $468 million available to borrow under the Credit Facility, plus the $250 million increase option, subject to lender approval, in addition to $45.7 million cash on hand. The Company classified $20.0 million as the current portion of long-term debt as of March 31, 2021, 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 $10.4 million at March 31, 2021.

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 1.27% and 1.40% for the three and six- month periods ending March 31, 2021, respectively, and 3.24% and 3.21% for the three and six-month periods ending March 31, 2020. As of March 31, 2021, the Company was in compliance with all covenants.

8. INCOME TAX EXPENSE

The second quarter 2021 effective income tax rate from continuing operations was 23.5% compared to 11.0% in the second quarter of 2020. The effective income tax rate in the first six months of 2021 was 23.1% compared to 16.9% for the first six months of 2020. Income tax expense in the second quarter of 2021 was unfavorably impacted by a change in our estimate of the fiscal 2020 research credit increasing the second quarter and year-to-date effective tax rate by 0.6% and 0.3%, respectively. 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 2020 and year-to-date effective tax rate by 14.3% and 8.2%, respectively.

9. 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,
	2021	2020	2021	2020

Common stock
Beginning balance	306	306	306	306
Stock plans	—	—	—	—
Ending balance	306	306	306	306

Additional paid-in-capital
Beginning balance	294,735	293,056	293,682	292,408
Stock plans	1,061	1,731	2,114	2,379
Ending balance	295,796	294,787	295,796	294,787

Retained earnings
Beginning balance	790,000	769,439	778,398	684,741
Net earnings common stockholders	16,314	17,822	30,000	104,599
Dividends paid	(2,083)	(2,077)	(4,167)	(4,156)
Ending balance	804,231	785,184	804,231	785,184

Accumulated other comprehensive income (loss)
Beginning balance	1,692	(40,051)	(3,657)	(43,974)
Foreign currency translation	116	(6,885)	5,465	(2,962)
Ending balance	1,808	(46,936)	1,808	(46,936)

Treasury stock
Beginning balance	(107,134)	(107,259)	(107,134)	(107,259)
Issued under stock plans	—	125	—	125
Ending balance	(107,134)	(107,134)	(107,134)	(107,134)

Total equity	995,007	926,207	995,007	926,207

10. 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, 2021 and September 30, 2020 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, 2021:


(In thousands)	Level 1		Level 2		Level 3	Total
Assets (Liabilities):
Forward contracts	$	—	141	$	—	141

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, 2021.

11. REVENUES

Disaggregation of Revenues

Revenues by customer type, geographic location, and revenue recognition method for the three and six-month periods ended March 31, 2021 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 tables below also include a reconciliation of the disaggregated revenue within each reportable segment on a continuing operations basis.


Three months ended March 31, 2021	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	33,973	$	38,549	$	39,305	$	111,827
U.S. Government		49,305		1,006		4,506		54,817
Total revenues	$	83,278	$	39,555	$	43,811	$	166,644

Geographic location:
United States	$	73,037	$	27,445	$	22,965	$	123,447
International		10,241		12,110		20,846		43,197
Total revenues	$	83,278	$	39,555	$	43,811	$	166,644

Revenue recognition method:
Point in time	$	37,127	$	27,563	$	9,248	$	73,938
Over time		46,151		11,992		34,563		92,706
Total revenues	$	83,278	$	39,555	$	43,811	$	166,644


Six months ended March 31, 2021	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	62,114	$	92,414	$	76,027	$	230,555
U.S. Government		88,055		1,681		9,302		99,038
Total revenues	$	150,169	$	94,095	$	85,329	$	329,593

Geographic location:
United States	$	130,849	$	64,490	$	46,231	$	241,570
International		19,320		29,605		39,098		88,023
Total revenues	$	150,169	$	94,095	$	85,329	$	329,593

Revenue recognition method:
Point in time	$	64,000	$	69,931	$	18,116	$	152,047
Over time		86,169		24,164		67,213		177,546
Total revenues	$	150,169	$	94,095	$	85,329	$	329,593

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.


Three months ended March 31, 2020	Aerospace
(In thousands)	& Defense		USG		Test		Total
Customer type:
Commercial	$	51,550	$	43,736	$	33,952	$	129,238
U.S. Government		43,574		32		7,648		51,254
Total revenues	$	95,124	$	43,768	$	41,600	$	180,492

Geographic location:
United States	$	81,458	$	28,706	$	25,121	$	135,285
International		13,666		15,062		16,479		45,207
Total revenues	$	95,124	$	43,768	$	41,600	$	180,492

Revenue recognition method:
Point in time	$	46,610	$	32,209	$	8,009	$	86,828
Over time		48,514		11,559		33,591		93,664
Total revenues	$	95,124	$	43,768	$	41,600	$	180,492

Six months ended March 31, 2020

Aerospace

(In thousands)

& Defense

USG

Test

Total

Customer type:

Commercial

93,417