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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Jun. 30, 2014	Jul. 31, 2014
Document And Entity Information [Line Items]
Entity Registrant Name	POWELL INDUSTRIES INC
Entity Central Index Key	0000080420
Document Type	10-Q
Document Period End Date	Jun. 30, 2014
Amendment Flag	false
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		12,014,693

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2014	Sep. 30, 2013
Current Assets:
Cash and cash equivalents	$ 87,763	$ 107,411
Accounts receivable, less allowance for doubtful accounts of $1,144 and $572, respectively	116,342	112,074
Costs and estimated earnings in excess of billings on uncompleted contracts	83,999	79,420
Inventories	28,709	28,963
Income taxes receivable	2,650	3,022
Deferred income taxes	6,115	4,490
Prepaid expenses	3,838	5,893
Other current assets	4,957	658
Current assets held for sale		15,409
Total Current Assets	334,373	357,340
Property, plant and equipment, net	147,824	144,495
Goodwill	1,003	1,003
Intangible assets, net	2,056	11,612
Deferred income taxes	10,320	9,016
Other assets	8,106	7,293
Long-term receivable (Note D)	4,667
Long-term assets held for sale		144
Total Assets	508,349	530,903
Current Liabilities:
Current maturities of long-term debt and capital lease obligations	400	416
Income taxes payable	3,155	4,647
Accounts payable	47,056	55,528
Accrued salaries, bonuses and commissions	22,388	25,799
Billings in excess of costs and estimated earnings on uncompleted contracts	34,254	48,334
Accrued product warranty	4,755	5,282
Other accrued expenses	6,258	10,209
Deferred credit-short term (Note D)	2,029
Current liabilities held for sale		17,848
Total Current Liabilities	120,295	168,063
Long-term debt and capital lease obligations, net of current maturities	2,800	3,200
Deferred compensation	4,282	3,480
Postretirement benefit obligation and other long-term liabilities	784	730
Deferred credit-long term (Note D)	5,073
Long-term liabilities held for sale		204
Total Liabilities	133,234	175,677
Commitments and Contingencies (Note F)
Stockholders' Equity:
Preferred stock, par value $.01; 5,000,000 shares authorized; none issued
Common stock, par value $.01; 30,000,000 shares authorized; 12,014,693 and11,970,967 shares issued and outstanding, respectively	120	119
Additional paid-in capital	45,607	43,193
Retained earnings	331,786	313,987
Accumulated other comprehensive loss	(2,398)	(2,073)
Total Stockholders' Equity	375,115	355,226
Total Liabilities and Stockholders' Equity	$ 508,349	$ 530,903

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2014	Sep. 30, 2013
Allowance for doubtful accounts	$ 1,144	$ 572
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	12,014,693	11,970,967
Common stock, shares outstanding	12,014,693	11,970,967

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
CONSOLIDATED STATEMENTS OF OPERATIONS [Abstract]
Revenues	$ 150,800	$ 171,733	$ 484,967	$ 464,633
Cost of goods sold	121,158	135,140	385,239	366,094
Gross profit	29,642	36,593	99,728	98,539
Selling, general and administrative expenses	23,024	20,234	66,750	60,477
Research and development expenses	1,791	2,107	5,787	5,671
Amortization of intangible assets	122	415	658	1,243
Restructuring and relocation expenses		1,717		1,717
Operating income	4,705	12,120	26,533	29,431
Other income	(507)		(1,014)	(1,709)
Interest expense	36	47	141	151
Interest income	(4)	(7)	(10)	(28)
Income from continuing operations before income taxes	5,180	12,080	27,416	31,017
Income tax provision	2,233	2,997	10,226	8,211
Income from continuing operations	2,947	9,083	17,190	22,806
Income from discontinued operations, net of tax (Note I)		222	9,604	702
Net income	$ 2,947	$ 9,305	$ 26,794	$ 23,508
Earnings per share:
Continuing operations	$ 0.25	$ 0.76	$ 1.43	$ 1.91
Discontinued operations		0.02	0.80	0.06
Basic earnings per share	0.25	0.78	2.23	1.97
Continuing operations	0.24	0.76	1.43	1.90
Discontinued operations		0.02	0.80	0.06
Diluted earnings per share	$ 0.24	$ 0.78	$ 2.23	$ 1.96
Weighted average shares:
Basic	12,015	11,941	12,004	11,932
Diluted	12,075	12,016	12,063	12,007
Dividends per share	$ 0.25		$ 0.75

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Consolidated Statement of Comprehensive Income (Loss) [Abstract]
Net income	$ 2,947	$ 9,305	$ 26,794	$ 23,508
Foreign currency translation adjustment	2,711	(1,801)	(325)	(3,672)
Comprehensive income	$ 5,658	$ 7,504	$ 26,469	$ 19,836

- Definition

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

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Net Income
-URI http://asc.fasb.org/extlink&oid=6518256

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-URI http://asc.fasb.org/extlink&oid=31042434&loc=d3e3602-108585

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.19)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 225
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03.18)
-URI http://asc.fasb.org/extlink&oid=26872669&loc=d3e20235-122688

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 225
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04.22)
-URI http://asc.fasb.org/extlink&oid=6879464&loc=d3e573970-122913

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Other Comprehensive Income
-URI http://asc.fasb.org/extlink&oid=6519514

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=28358780&loc=d3e565-108580

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 03
-Paragraph 19
-Article 5

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Paragraph 20
-Article 9

+ Details

Consolidated Statement of Stockholders' Equity - 9 months ended Jun. 30, 2014 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income/(Loss)
Balance at Sep. 30, 2013	$ 355,226	$ 119	$ 43,193	$ 313,987	$ (2,073)
Balance, shares at Sep. 30, 2013		11,971
Net income	26,794			26,794
Foreign currency translation adjustments	(325)				(325)
Stock-based compensation, net of tax of $451	2,414		2,414
Stock-based compensation, shares		28
Issuance of restricted stock	1	$ 1
Issuance of restricted stock, shares		16
Dividends paid	(8,995)			(8,995)
Balance at Jun. 30, 2014	$ 375,115	$ 120	$ 45,607	$ 331,786	$ (2,398)
Balance, shares at Jun. 30, 2014		12,015

- Definition

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

+ References

+ Details

Consolidated Statement of Stockholders' Equity (Parenthetical) $ in Thousands	9 Months Ended
	Jun. 30, 2014 USD ($)
Statement Of Stockholders Equity [Abstract]
Stock-based compensation, tax	$ 451

Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013
Operating Activities:
Net income	$ 26,794	$ 23,508
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	7,770	6,523
Amortization	658	1,252
Gain on sale of discontinued operations, net of tax	(8,563)
Stock-based compensation	2,865	3,247
Bad debt expense/(recovery)	616	(310)
Deferred income tax benefit	(2,682)	(287)
Gain on amended supply agreement	(1,014)
Cash received from amended supply agreement	10,000
Changes in operating assets and liabilities:
Accounts receivable, net	(11,598)	12,777
Costs and billings in excess of estimates on uncompleted contracts	(16,658)	42,692
Inventories	347	1,976
Prepaid expenses and other current assets	335	(2,216)
Accounts payable and income taxes payable	(16,650)	6,763
Accrued liabilities	(8,769)	(6,035)
Other, net	1,936	(1,224)
Net cash provided by (used in) operating activities	(14,613)	88,666
Investing Activities:
Proceeds from sale of property, plant and equipment	118	711
Proceeds from sale of Transdyn	14,819
Purchases of property, plant and equipment	(11,296)	(53,728)
Net cash provided by (used in) investing activities	3,641	(53,017)
Financing Activities:
Payments on industrial development revenue bonds	(400)	(400)
Taxes on stock-based compensation	(451)
Dividends paid	(8,995)
Payments on short-term and other financing	(16)	(316)
Net cash used in financing activities	(9,862)	(716)
Net increase (decrease) in cash and cash equivalents	(20,834)	34,933
Effect of exchange rate changes on cash and cash equivalents	1,186	(108)
Cash and cash equivalents, beginning of period	107,411	90,040
Cash and cash equivalents, end of period	$ 87,763	$ 124,865

Overview and Summary of Significant Accounting Policies

9 Months Ended

Jun. 30, 2014

Overview and Summary of Significant Accounting Policies

A. OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Overview

Powell Industries, Inc. (we, us, our, Powell or the Company) was incorporated in the state of Delaware in 2004 as a successor to a Nevada company incorporated in 1968. The Nevada corporation was the successor to a company founded by William E. Powell in 1947, which merged into the Company in 1977. Our major subsidiaries, all of which are wholly-owned, include: Powell Electrical Systems, Inc.; Powell Industries International, B.V.; Powell (UK) Limited (formerly Switchgear & Instrumentation Limited) and Powell Canada Inc.

We develop, design, manufacture and service custom engineered-to-order equipment and systems for the management and control of electrical energy. Headquartered in Houston, Texas, we serve the transportation, energy, industrial and utility industries.

Basis of Presentation

These unaudited condensed consolidated financial statements include the accounts of Powell and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP), have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations and cash flows with respect to the interim consolidated financial statements have been included. The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. We believe that these financial statements contain all adjustments necessary so that they are not misleading. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP.

As discussed in Note I, on January 15, 2014, we sold our wholly-owned subsidiary Transdyn Inc. (Transdyn). We reclassified the assets and liabilities of Transdyn as held for sale within the accompanying condensed consolidated balance sheet as of September 30, 2013 and presented the results of these operations as income from discontinued operations, net of tax, for each of the accompanying condensed consolidated statements of operations. While this sale did not result in a material disposition of assets or material reduction to income before income taxes relative to Powell’s consolidated financial statements, the revenues, gross profit, income before income taxes and assets of Transdyn comprised a significant majority of those respective amounts previously reported in our Process Control Systems business segment. As we previously only reported two business segments, Electrical Power Products and Process Control Systems, we have removed the presentation of segments in our Notes to Condensed Consolidated Financial Statements.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Powell and its subsidiaries included in Powell’s Annual Report on Form 10-K for the year ended September 30, 2013, which was filed with the Securities and Exchange Commission (SEC) on December 4, 2013.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying footnotes. The most significant estimates used in our financial statements affect revenue and cost recognition for construction contracts, the allowance for doubtful accounts, provision for excess and obsolete inventory, goodwill and other intangible assets, self-insurance, warranty accruals and income taxes. The amounts recorded for insurance claims, warranties, legal, income taxes and other contingent liabilities require judgments regarding the amount of expenses that will ultimately be incurred. We base our estimates on historical experience and on various other assumptions, as well as the specific circumstances surrounding these contingent liabilities, in evaluating the amount of liability that should be recorded. Estimates may change as new events occur, additional information becomes available or operating environments change. Actual results may differ from our estimates.

New Accounting Standards

In March 2013, the FASB issued accounting guidance to resolve the diversity in practice for accounting for the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of real estate or conveyance of oil and gas mineral rights) within a foreign entity. This guidance is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013, which would be our fiscal year ending September 30, 2015. We do not expect this guidance to have a material impact on our consolidated financial position or results of operations.

In July 2013, the FASB issued accounting guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, which would be our fiscal year ended September 30, 2015. This guidance should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of this guidance is not expected to have a significant impact on our consolidated financial position or results of operations.

In April 2014, the FASB issued an amendment to the financial reporting of discontinued operations. The amendments in this update change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations that have a major effect on the organization’s operations and financial results should be presented as discontinued operations. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization’s results from continuing operations. The amendments in this update are effective in the first quarter of 2015, which would be our fiscal year end September 30, 2016. Early adoption is permitted for disposals that have not been previously reported as discontinued operations.

In May 2014, the FASB issued a new standard on revenue recognition that supersedes previously issued revenue recognition guidance. This standard provides a five-step approach to be applied to all contracts with customers and requires expanded disclosures about the nature, amount, timing and uncertainty of revenue (and the related cash flows) arising from customer contracts, significant judgments and changes in judgments used in applying the revenue model and the assets recognized from costs incurred to obtain or fulfill a contract. This new standard is effective for us beginning in fiscal year 2018. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method therefore we are evaluating the effect that this new guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

Earnings Per Share

9 Months Ended

Jun. 30, 2014

Earnings Per Share

B. EARNINGS PER SHARE

We compute basic earnings per share by dividing net income by the weighted average number of common shares outstanding during the period. Diluted earnings per common and potential common share includes the weighted average of additional shares associated with the incremental effect of dilutive restrictive stock units, as prescribed by the FASB guidance on earnings per share.

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Numerator:
Income from continuing operations		2,947		9,083		17,190		22,806
Income from discontinued operations		-		222		9,604		702
Net income	$	2,947	$	9,305	$	26,794	$	23,508
Denominator:
Weighted average basic shares		12,015		11,941		12,004		11,932
Dilutive effect of restricted stock units		60		75		59		75
Weighted average diluted shares with assumed conversions		12,075		12,016		12,063		12,007
Net earnings per share:
Continuing operations	$	0.25	$	0.76	$	1.43	$	1.91
Discontinued operations		—		0.02		0.80		0.06
Basic earnings per share	$	0.25	$	0.78	$	2.23	$	1.97

Continuing operations	$	0.24	$	0.76	$	1.43	$	1.90
Discontinued operations		—		0.02		0.80		0.06
Diluted earnings per share	$	0.24	$	0.78	$	2.23	$	1.96

Detail of Selected Balance Sheet Accounts

9 Months Ended

Jun. 30, 2014

Detail of Selected Balance Sheet Accounts

C. DETAIL OF SELECTED BALANCE SHEET ACCOUNTS

Allowance for Doubtful Accounts

Activity in our allowance for doubtful accounts receivable consisted of the following (in thousands):

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Balance at beginning of period	$	501		$	818		$	572		$	1,297
Bad debt expense/(recovery)		676			20			616			(310	)
Uncollectible accounts written off, net of recoveries		(38	)		(19	)		(46	)		(156	)
Change in foreign currency translation		5			(2	)		2			(14	)
Balance at end of period	$	1,144		$	817		$	1,144		$	817

Inventories:

The components of inventories are summarized below (in thousands):

	June 30,			September 30,
	2014			2013
Raw materials, parts and subassemblies	$	31,484		$	30,077
Work-in-progress		1,551			3,818
Provision for excess and obsolete inventory		(4,326	)		(4,932	)
Total inventories	$	28,709		$	28,963

Cost and Estimated Earnings on Uncompleted Contracts

The components of costs and estimated earnings and related amounts billed on uncompleted contracts are summarized below (in thousands):

	June 30,			September 30,
	2014			2013
Costs incurred on uncompleted contracts	$	709,561		$	618,570
Estimated earnings		182,506			159,962
		892,067			778,532
Less: Billings to date		(842,322	)		(747,446	)
Net underbilled position	$	49,745		$	31,086

Included in the accompanying balance sheets under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts – underbilled	$	83,999		$	79,420
Billings in excess of costs and estimated earnings on uncompleted contracts – overbilled		(34,254	)		(48,334	)
Net underbilled position	$	49,745		$	31,086

Warranty Accrual

Activity in our product warranty accrual consisted of the following (in thousands):

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Balance at beginning of period	$	4,833		$	5,109		$	5,282		$	5,548
Increase to warranty expense		884			430			2,390			2,048
Deduction for warranty charges		(1,023	)		(874	)		(2,949	)		(2,849	)
Increase (decrease) due to foreign currency translations		61			(10	)		32			(92	)
Balance at end of period	$	4,755		$	4,655		$	4,755		$	4,655

Intangible Assets

9 Months Ended

Jun. 30, 2014

Intangible Assets

D. INTANGIBLE ASSETS

Intangible assets balances, subject to amortization, at June 30, 2014 and September 30, 2013 consisted of the following (in thousands):

	June 30, 2014							September 30, 2013
	Gross					Net		Gross					Net
	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	Value		Amortization			Value		Value		Amortization			Value
Purchased technology	$	11,749	$	(9,795	)	$	1,954	$	11,749	$	(9,489	)	$	2,260
Trade name		1,136		(1,034	)		102		1,136		(967	)		169
Supply agreement		—		—			—		17,580		(8,397	)		9,183
Total	$	12,885	$	(10,829	)	$	2,056	$	30,465	$	(18,853	)	$	11,612

Amortization of intangible assets recorded for the nine months ended June 30, 2014 and 2013 was $0.7 million and $1.2 million, respectively.

On August 7, 2006, we purchased certain assets related to the manufacturing of ANSI medium-voltage switchgear and circuit breaker business from General Electric Company (GE). In connection with the acquisition, we entered into a 15 year supply agreement with GE pursuant to which GE would purchase from the Company all of its requirements for ANSI medium-voltage switchgear and circuit breakers and other related equipment and components (the Products) In connection with the acquisition, we recorded an intangible asset related to this supply agreement. On December 30, 2013, the Company and GE amended the supply agreement to allow GE to manufacture similar Products for sale immediately and allow GE to begin purchasing Products from other suppliers beginning December 31, 2014. In return, GE paid us $10 million upon execution of the amended supply agreement and agreed to pay an additional $7 million over three years, subject to certain conditions. We have $2.3 million recorded in other current assets and the remaining $4.7 million is recorded as a long-term receivable. We wrote off the intangible asset related to the original supply agreement and recorded a deferred credit in the amount of $8.1 million, the amount by which the total proceeds from GE exceeded the unamortized balance of our intangible asset. We are amortizing this deferred credit over the four year life of the agreement and have recognized the $1.0 million gain in other income in the first nine months of fiscal year 2014.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Long-Term Debt

9 Months Ended

Jun. 30, 2014

Long-Term Debt

E. LONG-TERM DEBT

Long-term debt consisted of the following (in thousands):

	June 30,			September 30,
	2014			2013
Industrial development revenue bonds	$	3,200		$	3,600
Capital lease obligations		—			16
Subtotal long-term debt and capital lease obligations		3,200			3,616
Less current portion		(400	)		(416	)
Total long-term debt and capital lease obligations	$	2,800		$	3,200

US Revolver

In fiscal year 2014, we amended and restated our existing credit agreement (Amended Credit Agreement) with a major domestic bank. We entered into this Amended Credit Agreement to, among other things, allow for the payment of dividends and to extend the expiration date of the facility. The Amended Credit Agreement provides for a $75.0 million revolving credit facility (U.S. Revolver). Obligations are collateralized by the stock of certain of our subsidiaries.

The interest rate for amounts outstanding under the Amended Credit Agreement for the U.S. Revolver is a floating rate based upon the higher of the Federal Funds Rate plus 0.5%, the bank’s prime rate, or the Eurocurrency rate plus 1.00%. Once the applicable rate is determined, a margin ranging up to 1.75%, as determined by our consolidated leverage ratio, is added to the applicable rate.

The U.S. Revolver provides for the issuance of letters of credit which reduce the amounts that may be borrowed under this revolver. The amount available under the U.S. Revolver was reduced by $21.1 million for our outstanding letters of credit at June 30, 2014.

There were no borrowings outstanding under the U.S. Revolver as of June 30, 2014. Amounts available under the U.S. Revolver were $53.9 million at June 30, 2014. The U.S. Revolver expires on December 31, 2018.

The Amended Credit Agreement contains certain restrictive and maintenance-type covenants, such as restrictions on the amount of capital expenditures allowed. It also contains financial covenants defining various financial measures and the levels of these measures with which we must comply, as well as a “material adverse change” clause. A “material adverse change” is defined as a material change in our operations, business, properties, liabilities or condition (financial or otherwise) or a material impairment of our ability to perform our obligations under our credit agreements.

The Amended Credit Agreement is collateralized by a pledge of 100% of the voting capital stock of each of our domestic subsidiaries and 66% of the voting capital stock of each non-domestic subsidiary, excluding Powell Canada. The Amended Credit Agreement provides for customary events of default and carries cross-default provisions with other existing debt agreements. If an event of default (as defined in the Amended Credit Agreement) occurs and is continuing, on the terms and subject to the conditions set forth in the Amended Credit Agreement, amounts outstanding under the Amended Credit Agreement may be accelerated and may become immediately due and payable. As of June 30, 2014, we were in compliance with all of the financial covenants of the Amended Credit Agreement.

Canadian Revolver

We have a $9.4 million credit agreement with a major international bank in Canada (the Canadian Revolver) to provide working capital support and letters of credit for our operations in Canada. The Canadian Revolver provides for the issuance of letters of credit which reduce the amounts that may be borrowed under this revolver. The amount available under the Canadian Revolver was reduced by $0.1 million for an outstanding letter of credit at June 30, 2014.

There were no borrowings outstanding under the Canadian Revolver as of June 30, 2014. Amounts available under the Canadian Revolver were $9.3 million at June 30, 2014. The Canadian Revolver expires on February 28, 2015. The interest rate for amounts outstanding under the Canadian Revolver is a floating interest rate based upon either the Canadian Prime Rate, or the lender’s Bankers’ Acceptance Rate. Once the applicable rate is determined, a margin of 0.50% to 1.75%, as determined by our consolidated leverage ratio, is added to the applicable rate.

The principal financial covenants are consistent with those described in our Amended Credit Agreement. The Canadian Revolver contains a “material adverse effect” clause. A “material adverse effect” is defined as a material change in the operations of Powell or Powell Canada in relation to our financial condition, property, business operations, expected net cash flows, liabilities or capitalization.

The Canadian Revolver is secured by the assets of our Canadian operations and provides for customary events of default and carries cross-default provisions with our existing debt agreements. If an event of default (as defined in the Canadian Revolver) occurs and is continuing, per the terms and subject to the conditions set forth in the Canadian Revolver, amounts outstanding under the Canadian Revolver may be accelerated and may become immediately due and payable. As of June 30, 2014, we were in compliance with all of the financial covenants of the Canadian Revolver.

Industrial Development Revenue Bonds

We borrowed $8.0 million in October 2001 through a loan agreement funded with proceeds from tax-exempt industrial development revenue bonds (Bonds). These Bonds were issued by the Illinois Development Finance Authority and were used for the completion of our Northlake, Illinois facility. Pursuant to the Bond issuance, a reimbursement agreement between us and a major domestic bank required an issuance by the bank of an irrevocable direct-pay letter of credit (Bond LC), as collateral, to the Bonds’ trustee to guarantee payment of the Bonds’ principal and interest when due. The Bond LC is subject to both early termination and extension provisions customary to such agreements, as well as various covenants, for which we were in compliance at June 30, 2014. While the Bonds mature in 2021, the reimbursement agreement requires annual redemptions of $0.4 million that commenced on October 25, 2002. A sinking fund is used for the redemption of the Bonds. At June 30, 2014, the balance in the restricted sinking fund was approximately $0.3 million and was recorded in cash and cash equivalents. The Bonds bear interest at a floating rate determined weekly by the Bonds’ remarketing agent, which was the underwriter for the Bonds and is an affiliate of the bank. This interest rate was 0.25% as of June 30, 2014.

Commitments and Contingencies

9 Months Ended

Jun. 30, 2014

Commitments and Contingencies

F. COMMITMENTS AND CONTINGENCIES

Long-Term Debt

See Note E herein for discussion of our long-term debt.

Letters of Credit and Bonds

Certain customers require us to post bank letter of credit guarantees or performance bonds issued by a surety. These guarantees and performance bonds assure that we will perform under the terms of our contract. In the event of default, the counterparty may demand payment from the bank under a letter of credit or performance by the surety under a performance bond. To date, there have been no significant expenses related to either letters of credit or performance bonds for the periods reported. We were contingently liable for secured and unsecured letters of credit of $21.2 million as of June 30, 2014. We also had performance and maintenance bonds totaling $330.2 million that were outstanding, with additional bonding capacity of $269.8 million available, at June 30, 2014.

We have an $8.5 million facility agreement (Facility Agreement) between Powell (UK) Limited and a large international bank. This Facility Agreement provides Powell (UK) the ability to enter into various guarantees, such as forward exchange contracts, currency options and performance bonds. At June 30, 2014, we had outstanding guarantees totaling $3.7 million under this Facility Agreement. Amounts available under this Facility Agreement were $4.8 million as of June 30, 2014.

The Facility Agreement provides for financial covenants and customary events of default, and carries cross-default provisions with our Amended Credit Facility. If an event of default (as defined in the Facility Agreement) occurs and is continuing, per the terms and subject to the conditions set forth in the Facility Agreement, obligations outstanding under the Facility Agreement may be accelerated and may become or be declared immediately due and payable. As of June 30, 2014, we were in compliance with all of the financial covenants of the Facility Agreement.

Litigation

We are involved in various legal proceedings, claims and other disputes arising in the ordinary course of business which, in general, are subject to uncertainties and the outcomes are not predictable. Although we can give no assurance about the outcome of pending or threatened litigation and the effect such outcomes may have on us, management believes that any ultimate liability resulting from the outcome of such proceedings, to the extent not otherwise provided or covered by insurance, will not have a material adverse effect on our consolidated financial position or results of operations or liquidity.

Stock-Based Compensation

9 Months Ended

Jun. 30, 2014

Stock-Based Compensation

G. STOCK-BASED COMPENSATION

Refer to our Annual Report on Form 10-K for the fiscal year ended September 30, 2013 for a full description of our existing stock-based compensation plans.

On February 26, 2014, our stockholders approved and adopted at the Annual Meeting of Stockholders the 2014 Equity Incentive Plan (the 2014 Plan). Persons eligible to receive awards under the 2014 Plan include our officers and employees. The 2014 Plan authorizes stock options, stock appreciation rights, restricted stock, restricted stock units and performance-based awards, as well as certain other awards. We have reserved 750,000 shares of common stock for issuance under the 2014 Plan. No further awards will be made under the 1992 Stock Option Plan or the 2006 Equity Compensation Plan.

We issue restricted stock units (RSUs) to certain officers and key employees of the Company. The RSUs vest over a three-year period from their date of issuance. The fair value of the RSUs is based on the closing price of our common stock as reported on the NASDAQ Global Market (NASDAQ) on the grant dates. Typically, sixty-percent of the actual amount of the RSUs are earned based on the cumulative earnings as reported relative to the three-year performance cycle which begins October 1 of the year granted, and ranges from 0% to 150% of the target RSUs granted and the remaining of the RSUs are time-based and vest over a three-year period. At June 30, 2014, there were 132,282 RSUs outstanding. The RSUs do not have voting rights and the shares of common stock underlying the RSUs are not issued until they vest.

RSU activity (number of shares) is summarized below:

	Number of		Weighted
	Restricted		Average
	Stock		Fair Value
	Units		Per Share
Outstanding at September 30, 2013		81,555	$	38.66
Granted		57,200		60.47
Vested		(5,973)		61.79
Forfeited		(500)		60.32
Outstanding at June 30, 2014		132,282	$	46.97

During the nine months ended June 30, 2014 and 2013, we recorded compensation expense of $2.0 million and $2.2 million, respectively, related to the RSUs.

On February 26, 2014, our stockholders approved and adopted at the Annual Meeting of Stockholders the 2014 Non-Employee Director Equity Incentive Plan (the 2014 Director Plan). Persons eligible to receive awards under the 2014 Director Plan are non-employee directors of the Board. The 2014 Director Plan authorizes stock options, stock appreciation rights, restricted stock, restricted stock units, as well as certain other awards. We have reserved 150,000 shares of common stock for issuance under the 2014 Director Plan. No further awards will be made under the Non-Employee Director Restricted Stock Plan or the Non-Employee Director Stock Option Plan. In February 2014, 16,000 shares of restricted stock were issued to such directors at a price of $66.15 per share under the 2014 Director Plan. The annual restricted stock grants vest 50% per year over a two-year period on each anniversary of the grant date.

During the nine months ended June 30, 2014 and 2013, we recorded compensation expense of $0.9 million and $1.0 million, respectively, related to restricted stock grants.

Fair Value Measurements

9 Months Ended

Jun. 30, 2014

Fair Value Measurements

H. FAIR VALUE MEASUREMENTS

We measure certain financial assets and liabilities at fair value. Fair value is defined as an “exit price” which represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants as of the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in valuing an asset or liability. The accounting guidance requires the use of valuation techniques to measure fair value that maximize the use of observable inputs and minimize the use of unobservable inputs. As a basis for considering such assumptions and inputs, a fair value hierarchy has been established which identifies and prioritizes three levels of inputs to be used in measuring fair value.

The three levels of the fair value hierarchy are as follows:

Level 1 — Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 — Inputs other than the quoted prices in active markets that are observable either directly or indirectly, including: quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Unobservable inputs that are supported by little or no market data and require the reporting entity to develop its own assumptions.

The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2014 (in thousands):

	Fair Value Measurements at June 30, 2014
	Quoted Prices in		Significant Other
	Active Markets for		Observable		Significant
	Identical Assets		Inputs		Unobservable Inputs		Fair Value at
	(Level 1)		(Level 2)		(Level 3)		June 30, 2014
Assets:
Cash equivalents	$	10,434	$	—	$	—	$	10,434
Total	$	10,434	$	—	$	—	$	10,434

The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013 (in thousands):

	Fair Value Measurements at September 30, 2013
	Quoted Prices in		Significant Other
	Active Markets for		Observable		Significant
	Identical Assets		Inputs		Unobservable Inputs		Fair Value at
	(Level 1)		(Level 2)		(Level 3)		September 30, 2013
Assets:
Cash equivalents	$	10,531	$	—	$	—	$	10,531
Total	$	10,531	$	—	$	—	$	10,531

Cash equivalents, primarily funds held in money market savings instruments, are reported at their current carrying value which approximates fair value due to the short-term nature of these instruments and are included in cash and cash equivalents in our Condensed Consolidated Balance Sheets.

Fair Value of Other Financial Instruments

Fair value guidance requires certain fair value disclosures, such as those on our long-term debt, to be presented in both interim and annual reports. The estimated fair value amounts of financial instruments have been determined using available market information and valuation methodologies described below.

Industrial Development Revenue Bond ─ The fair value of our long-term debt depends primarily on the coupon rate of our industrial development revenue bonds. The carrying value of our long-term debt at June 30, 2014 approximates fair value based on the current coupon rate of the bonds, which is reset weekly, and is classified as a Level 2 input in the fair value measurement hierarchy as there is an active market for the trading of these industrial development revenue bonds.

There were no transfers between levels within the fair value measurement hierarchy during the nine months ended June 30, 2014.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Discontinued Operations

9 Months Ended

Jun. 30, 2014

Discontinued Operations

I.	DISCONTINUED OPERATIONS

On January 15, 2014, we sold our wholly-owned subsidiary Transdyn to a global provider of electronic toll collection systems, headquartered in Vienna, Austria. The purchase price from the sale of this subsidiary totaled $16.0 million, of which we received cash of $14.4 million. The remaining $1.6 million was placed into an escrow account until April 2015, to be released subject to certain contingent obligations, and was recorded to other assets. We received additional cash of $0.4 million after the final working capital adjustment was calculated in March 2014. We recorded a gain on this transaction of $8.6 million, net of tax, which has been included in income from discontinued operations for the nine months ended June 30, 2014 in the accompanying condensed consolidated statements of operations. Transdyn’s results were previously reflected in the Process Control Systems business segment.

We reclassified the assets and liabilities of Transdyn as held for sale within the accompanying condensed consolidated balance sheets as of September 30, 2013 and presented the results of these operations as income from discontinued operations, net of tax, for each of the accompanying condensed consolidated statements of operations.

Summary comparative financial results of discontinued operations were as follows (in thousands):

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Revenues	$	—	$	7,786	$	13,923	$	22,743
Income from discontinued operations, net of tax of $0, $206, $633 and $652, respectively		—		222		1,041		702
Gain on sale of discontinued operations, net of tax of $0, $0, $5,218 and $0, respectively		—		—		8,563		—
Net income from discontinued operations, net of tax	$	—	$	222	$	9,604	$	702
Earnings per share information:
Basic	$	—	$	0.02	$	0.80	$	0.06
Diluted	$	—	$	0.02	$	0.80	$	0.06

The following table presents the assets and liabilities of Transdyn as of September 30, 2013 (in thousands):


	September 30, 2013
Current assets:
Cash and cash equivalents	$	337
Accounts receivable		7,346
Contracts in progress		7,201
Inventories		20
Prepaid expenses and other current assets		505
Current assets held for sale	$	15,409
Long-term assets:
Property, plant and equipment, net	$	93
Other assets		51
Long-term assets held for sale	$	144

Current liabilities:
Accounts payable	$	2,973
Accrued salaries, bonuses and commissions		1,675
Billings in excess of cost		11,867
Other accrued expenses and liabilities		1,333
Current liabilities held for sale	$	17,848

Long-term liabilities:
Long-term liabilities held for sale	$	204

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

+ References

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+ Details

Income Taxes

9 Months Ended

Jun. 30, 2014

Income Taxes


J. INCOME TAXES

	The calculation of the effective tax rate is as follows (in thousands):

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Income from continuing operations before income taxes	$	5,180		$	12,080		$	27,416		$	31,017

Income tax provision		2,233			2,997			10,226			8,211

Income from continuing operations	$	2,947		$	9,083		$	17,190		$	22,806

Effective tax rate		43	%		25	%		37	%		27	%

Our provision for income taxes for continuing operations was $2.2 million in the third quarter of fiscal year 2014, compared to $3.0 million in the third quarter of fiscal year 2013. The effective tax rate for the third quarter of fiscal year 2014 was 43.1% which is above the combined U.S. federal and state statutory rates primarily due to discrete tax items recognized during the quarter as well as the nondeductibility of certain executive compensation costs. The effective tax rate for the third quarter of fiscal year 2013 was 24.8% and was favorably impacted by the utilization of loss carryforwards on Canadian income and the retroactive availability of the Federal Research and Development Tax Credit.

Our provision for income taxes for continuing operations was $10.2 million for the nine months ended June 30, 2014, compared to $8.2 million for the nine months ended June 30, 2013. The effective tax rate for nine months ended June 30, 2014 was 37.3% which approximates the combined U.S. federal and state statutory rates as the majority of our income is attributable to the U.S. The effective tax rate for the nine months ended June 30, 2013 was 26.5% and was favorably impacted by the utilization of loss carryforwards on Canadian income as well as the extension of the Federal Research and Development Tax Credit.

Overview and Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Jun. 30, 2014
Overview	Overview Powell Industries, Inc. (we, us, our, Powell or the Company) was incorporated in the state of Delaware in 2004 as a successor to a Nevada company incorporated in 1968. The Nevada corporation was the successor to a company founded by William E. Powell in 1947, which merged into the Company in 1977. Our major subsidiaries, all of which are wholly-owned, include: Powell Electrical Systems, Inc.; Powell Industries International, B.V.; Powell (UK) Limited (formerly Switchgear & Instrumentation Limited) and Powell Canada Inc. We develop, design, manufacture and service custom engineered-to-order equipment and systems for the management and control of electrical energy. Headquartered in Houston, Texas, we serve the transportation, energy, industrial and utility industries.
Basis of Presentation	Basis of Presentation These unaudited condensed consolidated financial statements include the accounts of Powell and its wholly-owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. These unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X for interim financial information. Certain information and footnote disclosures, normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP), have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to fairly state the financial position, results of operations and cash flows with respect to the interim consolidated financial statements have been included. The results of operations for the interim periods are not necessarily indicative of the results for the entire fiscal year. We believe that these financial statements contain all adjustments necessary so that they are not misleading. The year-end balance sheet data was derived from audited financial statements, but does not include all disclosures required by U.S. GAAP. As discussed in Note I, on January 15, 2014, we sold our wholly-owned subsidiary Transdyn Inc. (Transdyn). We reclassified the assets and liabilities of Transdyn as held for sale within the accompanying condensed consolidated balance sheet as of September 30, 2013 and presented the results of these operations as income from discontinued operations, net of tax, for each of the accompanying condensed consolidated statements of operations. While this sale did not result in a material disposition of assets or material reduction to income before income taxes relative to Powell’s consolidated financial statements, the revenues, gross profit, income before income taxes and assets of Transdyn comprised a significant majority of those respective amounts previously reported in our Process Control Systems business segment. As we previously only reported two business segments, Electrical Power Products and Process Control Systems, we have removed the presentation of segments in our Notes to Condensed Consolidated Financial Statements. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto of Powell and its subsidiaries included in Powell’s Annual Report on Form 10-K for the year ended September 30, 2013, which was filed with the Securities and Exchange Commission (SEC) on December 4, 2013.
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying footnotes. The most significant estimates used in our financial statements affect revenue and cost recognition for construction contracts, the allowance for doubtful accounts, provision for excess and obsolete inventory, goodwill and other intangible assets, self-insurance, warranty accruals and income taxes. The amounts recorded for insurance claims, warranties, legal, income taxes and other contingent liabilities require judgments regarding the amount of expenses that will ultimately be incurred. We base our estimates on historical experience and on various other assumptions, as well as the specific circumstances surrounding these contingent liabilities, in evaluating the amount of liability that should be recorded. Estimates may change as new events occur, additional information becomes available or operating environments change. Actual results may differ from our estimates.
New Accounting Standards	New Accounting Standards In March 2013, the FASB issued accounting guidance to resolve the diversity in practice for accounting for the release of the cumulative translation adjustment into net income when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business (other than a sale of real estate or conveyance of oil and gas mineral rights) within a foreign entity. This guidance is effective prospectively for fiscal years (and interim reporting periods within those years) beginning after December 15, 2013, which would be our fiscal year ending September 30, 2015. We do not expect this guidance to have a material impact on our consolidated financial position or results of operations. In July 2013, the FASB issued accounting guidance on the presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The guidance states that an unrecognized tax benefit, or a portion of an unrecognized tax benefit, should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. This guidance is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013, which would be our fiscal year ended September 30, 2015. This guidance should be applied prospectively to all unrecognized tax benefits that exist at the effective date. Retrospective application is permitted. The adoption of this guidance is not expected to have a significant impact on our consolidated financial position or results of operations. In April 2014, the FASB issued an amendment to the financial reporting of discontinued operations. The amendments in this update change the criteria for reporting discontinued operations while enhancing disclosures in this area. It also addresses sources of confusion and inconsistent application related to financial reporting of discontinued operations guidance in U.S. GAAP. Under the new guidance, only disposals representing a strategic shift in operations that have a major effect on the organization’s operations and financial results should be presented as discontinued operations. Examples include a disposal of a major geographic area, a major line of business, or a major equity method investment. In addition, the new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. The new guidance also requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. This disclosure will provide users with information about the ongoing trends in a reporting organization’s results from continuing operations. The amendments in this update are effective in the first quarter of 2015, which would be our fiscal year end September 30, 2016. Early adoption is permitted for disposals that have not been previously reported as discontinued operations. In May 2014, the FASB issued a new standard on revenue recognition that supersedes previously issued revenue recognition guidance. This standard provides a five-step approach to be applied to all contracts with customers and requires expanded disclosures about the nature, amount, timing and uncertainty of revenue (and the related cash flows) arising from customer contracts, significant judgments and changes in judgments used in applying the revenue model and the assets recognized from costs incurred to obtain or fulfill a contract. This new standard is effective for us beginning in fiscal year 2018. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method therefore we are evaluating the effect that this new guidance will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method nor have we determined the effect of the standard on our ongoing financial reporting.

Earnings Per Share (Tables)

9 Months Ended

Jun. 30, 2014

Computation of Basic and Diluted Earnings Per Share

The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share data):

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Numerator:
Income from continuing operations		2,947		9,083		17,190		22,806
Income from discontinued operations		-		222		9,604		702
Net income	$	2,947	$	9,305	$	26,794	$	23,508
Denominator:
Weighted average basic shares		12,015		11,941		12,004		11,932
Dilutive effect of restricted stock units		60		75		59		75
Weighted average diluted shares with assumed conversions		12,075		12,016		12,063		12,007
Net earnings per share:
Continuing operations	$	0.25	$	0.76	$	1.43	$	1.91
Discontinued operations		—		0.02		0.80		0.06
Basic earnings per share	$	0.25	$	0.78	$	2.23	$	1.97

Continuing operations	$	0.24	$	0.76	$	1.43	$	1.90
Discontinued operations		—		0.02		0.80		0.06
Diluted earnings per share	$	0.24	$	0.78	$	2.23	$	1.96

Detail of Selected Balance Sheet Accounts (Tables)

9 Months Ended

Jun. 30, 2014

Activity in Allowance for Doubtful Accounts

Activity in our allowance for doubtful accounts receivable consisted of the following (in thousands):

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Balance at beginning of period	$	501		$	818		$	572		$	1,297
Bad debt expense/(recovery)		676			20			616			(310	)
Uncollectible accounts written off, net of recoveries		(38	)		(19	)		(46	)		(156	)
Change in foreign currency translation		5			(2	)		2			(14	)
Balance at end of period	$	1,144		$	817		$	1,144		$	817

Components of Inventories

The components of inventories are summarized below (in thousands):

	June 30,			September 30,
	2014			2013
Raw materials, parts and subassemblies	$	31,484		$	30,077
Work-in-progress		1,551			3,818
Provision for excess and obsolete inventory		(4,326	)		(4,932	)
Total inventories	$	28,709		$	28,963

Cost and Estimated Earnings on Uncompleted Contracts

The components of costs and estimated earnings and related amounts billed on uncompleted contracts are summarized below (in thousands):

	June 30,			September 30,
	2014			2013
Costs incurred on uncompleted contracts	$	709,561		$	618,570
Estimated earnings		182,506			159,962
		892,067			778,532
Less: Billings to date		(842,322	)		(747,446	)
Net underbilled position	$	49,745		$	31,086

Included in the accompanying balance sheets under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts – underbilled	$	83,999		$	79,420
Billings in excess of costs and estimated earnings on uncompleted contracts – overbilled		(34,254	)		(48,334	)
Net underbilled position	$	49,745		$	31,086

Activity in Product Warranty Accrual

Activity in our product warranty accrual consisted of the following (in thousands):

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Balance at beginning of period	$	4,833		$	5,109		$	5,282		$	5,548
Increase to warranty expense		884			430			2,390			2,048
Deduction for warranty charges		(1,023	)		(874	)		(2,949	)		(2,849	)
Increase (decrease) due to foreign currency translations		61			(10	)		32			(92	)
Balance at end of period	$	4,755		$	4,655		$	4,755		$	4,655

Intangible Assets (Tables)

9 Months Ended

Jun. 30, 2014

Schedule of Intangible Assets Subject to Amortization

Intangible assets balances, subject to amortization, at June 30, 2014 and September 30, 2013 consisted of the following (in thousands):

	June 30, 2014							September 30, 2013
	Gross					Net		Gross					Net
	Carrying		Accumulated			Carrying		Carrying		Accumulated			Carrying
	Value		Amortization			Value		Value		Amortization			Value
Purchased technology	$	11,749	$	(9,795	)	$	1,954	$	11,749	$	(9,489	)	$	2,260
Trade name		1,136		(1,034	)		102		1,136		(967	)		169
Supply agreement		—		—			—		17,580		(8,397	)		9,183
Total	$	12,885	$	(10,829	)	$	2,056	$	30,465	$	(18,853	)	$	11,612

Long-Term Debt (Tables)

9 Months Ended

Jun. 30, 2014

Components of Long-Term Debt

Long-term debt consisted of the following (in thousands):

	June 30,			September 30,
	2014			2013
Industrial development revenue bonds	$	3,200		$	3,600
Capital lease obligations		—			16
Subtotal long-term debt and capital lease obligations		3,200			3,616
Less current portion		(400	)		(416	)
Total long-term debt and capital lease obligations	$	2,800		$	3,200

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6584090&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6451184&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 22
-Article 5

+ Details

Stock-Based Compensation (Tables)

9 Months Ended

Jun. 30, 2014

Schedule of Restricted Stock Units Activity

RSU activity (number of shares) is summarized below:

	Number of		Weighted
	Restricted		Average
	Stock		Fair Value
	Units		Per Share
Outstanding at September 30, 2013		81,555	$	38.66
Granted		57,200		60.47
Vested		(5,973)		61.79
Forfeited		(500)		60.32
Outstanding at June 30, 2014		132,282	$	46.97

Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2014

Fair Value of Assets Measured on Recurring Basis

The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2014 (in thousands):

	Fair Value Measurements at June 30, 2014
	Quoted Prices in		Significant Other
	Active Markets for		Observable		Significant
	Identical Assets		Inputs		Unobservable Inputs		Fair Value at
	(Level 1)		(Level 2)		(Level 3)		June 30, 2014
Assets:
Cash equivalents	$	10,434	$	—	$	—	$	10,434
Total	$	10,434	$	—	$	—	$	10,434

The following table summarizes the fair value of our assets and liabilities that were accounted for at fair value on a recurring basis as of September 30, 2013 (in thousands):

	Fair Value Measurements at September 30, 2013
	Quoted Prices in		Significant Other
	Active Markets for		Observable		Significant
	Identical Assets		Inputs		Unobservable Inputs		Fair Value at
	(Level 1)		(Level 2)		(Level 3)		September 30, 2013
Assets:
Cash equivalents	$	10,531	$	—	$	—	$	10,531
Total	$	10,531	$	—	$	—	$	10,531

Discontinued Operations (Tables)

9 Months Ended

Jun. 30, 2014

Income Statements

Schedule of Discontinued Operations

Summary comparative financial results of discontinued operations were as follows (in thousands):

	Three Months Ended				Nine Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Revenues	$	—	$	7,786	$	13,923	$	22,743
Income from discontinued operations, net of tax of $0, $206, $633 and $652, respectively		—		222		1,041		702
Gain on sale of discontinued operations, net of tax of $0, $0, $5,218 and $0, respectively		—		—		8,563		—
Net income from discontinued operations, net of tax	$	—	$	222	$	9,604	$	702
Earnings per share information:
Basic	$	—	$	0.02	$	0.80	$	0.06
Diluted	$	—	$	0.02	$	0.80	$	0.06

Balance Sheets

Schedule of Discontinued Operations

The following table presents the assets and liabilities of Transdyn as of September 30, 2013 (in thousands):


	September 30, 2013
Current assets:
Cash and cash equivalents	$	337
Accounts receivable		7,346
Contracts in progress		7,201
Inventories		20
Prepaid expenses and other current assets		505
Current assets held for sale	$	15,409
Long-term assets:
Property, plant and equipment, net	$	93
Other assets		51
Long-term assets held for sale	$	144

Current liabilities:
Accounts payable	$	2,973
Accrued salaries, bonuses and commissions		1,675
Billings in excess of cost		11,867
Other accrued expenses and liabilities		1,333
Current liabilities held for sale	$	17,848

Long-term liabilities:
Long-term liabilities held for sale	$	204

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References + Details

Income Taxes (Tables)

9 Months Ended

Jun. 30, 2014

Schedule of Effective Tax Rate

The calculation of the effective tax rate is as follows (in thousands):

	Three Months Ended						Nine Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Income from continuing operations before income taxes	$	5,180		$	12,080		$	27,416		$	31,017

Income tax provision		2,233			2,997			10,226			8,211

Income from continuing operations	$	2,947		$	9,083		$	17,190		$	22,806

Effective tax rate		43	%		25	%		37	%		27	%

Earnings Per Share (Computation of Basic and Diluted Earnings per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Numerator:
Income from continuing operations	$ 2,947	$ 9,083	$ 17,190	$ 22,806
Income from discontinued operations		222	9,604	702
Net income	$ 2,947	$ 9,305	$ 26,794	$ 23,508
Denominator:
Weighted average basic shares	12,015	11,941	12,004	11,932
Dilutive effect of restricted stock units	60	75	59	75
Weighted average diluted shares with assumed conversions	12,075	12,016	12,063	12,007
Net earnings per share:
Continuing operations	$ 0.25	$ 0.76	$ 1.43	$ 1.91
Discontinued operations		0.02	0.80	0.06
Basic earnings per share	0.25	0.78	2.23	1.97
Continuing operations	0.24	0.76	1.43	1.90
Discontinued operations		0.02	0.80	0.06
Diluted earnings per share	$ 0.24	$ 0.78	$ 2.23	$ 1.96

Detail of Selected Balance Sheet Accounts (Activity in Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Detail of Selected Balance Sheet Accounts [Abstract]
Balance at beginning of period	$ 501	$ 818	$ 572	$ 1,297
Bad debt expense/(recovery)	676	20	616	(310)
Uncollectible accounts written off, net of recoveries	(38)	(19)	(46)	(156)
Change in foreign currency translation	5	(2)	2	(14)
Balance at end of period	$ 1,144	$ 817	$ 1,144	$ 817

Detail of Selected Balance Sheet Accounts (Components of Inventories) (Details) - USD ($) $ in Thousands	Jun. 30, 2014	Sep. 30, 2013
Detail of Selected Balance Sheet Accounts [Abstract]
Raw materials, parts and subassemblies	$ 31,484	$ 30,077
Work-in-progress	1,551	3,818
Provision for excess and obsolete inventory	(4,326)	(4,932)
Total inventories	$ 28,709	$ 28,963

Detail of Selected Balance Sheet Accounts (Cost and Estimated Earnings on Uncompleted Contracts) (Details) - USD ($) $ in Thousands	Jun. 30, 2014	Sep. 30, 2013
Detail of Selected Balance Sheet Accounts [Abstract]
Costs incurred on uncompleted contracts	$ 709,561	$ 618,570
Estimated earnings	182,506	159,962
Total	892,067	778,532
Less: Billings to date	(842,322)	(747,446)
Net underbilled position	49,745	31,086
Included in the accompanying balance sheets under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts – underbilled	83,999	79,420
Billings in excess of costs and estimated earnings on uncompleted contracts – overbilled	(34,254)	(48,334)
Net underbilled position	$ 49,745	$ 31,086

Detail of Selected Balance Sheet Accounts (Activity in Product Warranty Accrual) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Detail of Selected Balance Sheet Accounts [Abstract]
Balance at beginning of period	$ 4,833	$ 5,109	$ 5,282	$ 5,548
Increase to warranty expense	884	430	2,390	2,048
Deduction for warranty charges	(1,023)	(874)	(2,949)	(2,849)
Increase (decrease) due to foreign currency translations	61	(10)	32	(92)
Balance at end of period	$ 4,755	$ 4,655	$ 4,755	$ 4,655

Intangible Assets (Schedule of Intangible Assets Subject to Amortization) (Details) - USD ($) $ in Thousands	Jun. 30, 2014	Sep. 30, 2013
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 12,885	$ 30,465
Accumulated Amortization	(10,829)	(18,853)
Net Carrying Value	2,056	11,612
Purchased Technology
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	11,749	11,749
Accumulated Amortization	(9,795)	(9,489)
Net Carrying Value	1,954	2,260
Trade Name
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	1,136	1,136
Accumulated Amortization	(1,034)	(967)
Net Carrying Value	$ 102	169
Supply Agreement
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value		17,580
Accumulated Amortization		(8,397)
Net Carrying Value		$ 9,183

Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013	Sep. 30, 2013
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 122	$ 415	$ 658	$ 1,243
Cash received from amended supply agreement			10,000
Other current assets	4,957		4,957		$ 658
Long term receivable	4,667		$ 4,667
Deferred credit amortization period			4 years
Gain on amended supply agreement			$ 1,014
Supply Agreement
Finite Lived Intangible Assets [Line Items]
Useful life of intangible assets			15 years
General Electric Company
Finite Lived Intangible Assets [Line Items]
Additional amount paid on execution of agreement			$ 7,000
Acquired finite-lived intangible assets, period			3 years
Other current assets	2,300		$ 2,300
Deferred credit	$ 8,100		$ 8,100

Long-Term Debt (Components of Long-Term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2014	Sep. 30, 2013
Long-Term Debt [Abstract]
Industrial development revenue bonds	$ 3,200	$ 3,600
Capital lease obligations		16
Subtotal long-term debt and capital lease obligations	3,200	3,616
Less current portion	(400)	(416)
Long-term debt and capital lease obligations, net of current maturities	$ 2,800	$ 3,200

Long Term Debt (Narrative) (Details) - USD ($)	9 Months Ended
Long Term Debt (Narrative) (Details) - USD ($)	Jun. 30, 2014	Oct. 31, 2001
Line Of Credit Facility [Line Items]
Balance in the restricted sinking fund	$ 300,000
U.S. Revolver
Line Of Credit Facility [Line Items]
Revolving credit facility	$ 75,000,000
Revolving credit interest rate	The interest rate for amounts outstanding under the Amended Credit Agreement for the U.S. Revolver is a floating rate based upon the higher of the Federal Funds Rate plus 0.5%, the bank’s prime rate, or the Eurocurrency rate plus 1.00%.
Outstanding letters of credit	$ 21,100,000
Amount of credit facility remaining borrowing capacity	$ 53,900,000
Credit facility expiration date	Dec. 31, 2018
Percentage of voting capital stock pledged as collateral	100.00%
Non-domestic subsidiaries of voting capital stock	66.00%
U.S. Revolver \| Maximum
Line Of Credit Facility [Line Items]
Margin	1.75%
U.S. Revolver \| Federal Funds Rate
Line Of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
U.S. Revolver \| Eurocurrency Rate
Line Of Credit Facility [Line Items]
Basis spread on variable rate	1.00%
Canadian Revolver
Line Of Credit Facility [Line Items]
Outstanding letters of credit	$ 100,000
Amount of credit facility remaining borrowing capacity	$ 9,300,000
Credit facility expiration date	Feb. 28, 2015
Revolving credit facility, current borrowing capacity	$ 9,400,000
Canadian Revolver \| Maximum
Line Of Credit Facility [Line Items]
Margin	1.75%
Canadian Revolver \| Minimum
Line Of Credit Facility [Line Items]
Margin	0.50%
Industrial Development Revenue Bonds
Line Of Credit Facility [Line Items]
Borrowings		$ 8,000,000
Reimbursement agreement requires annual redemptions	$ 400,000
Interest rate	0.25%

Commitments and Contingencies (Narrative) (Details) $ in Millions	Jun. 30, 2014 USD ($)
Guarantee Obligations [Line Items]
Additional bonding capacity	$ 269.8
Financial Standby Letter of Credit
Guarantee Obligations [Line Items]
Guarantee liability	21.2
Performance Guarantee
Guarantee Obligations [Line Items]
Guarantee liability	330.2
Powell (UK) Limited
Guarantee Obligations [Line Items]
Guarantee liability	3.7
Revolving credit facility	8.5
Amount of credit facility remaining borrowing capacity	$ 4.8

Stock Based Compensation (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended	3 Months Ended		9 Months Ended
	Feb. 28, 2014	Jun. 30, 2014	Dec. 31, 2013	Jun. 30, 2014	Jun. 30, 2013	Feb. 26, 2014	Sep. 30, 2013
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			3 years
Unvested restricted stock outstanding		132,282		132,282			81,555
Compensation expense				$ 2.0	$ 2.2
Restricted Stock Units (RSUs) \| Performance Based Restricted Stock Unit
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Actual amount of RSUs earned based on cumulative earnings			60.00%
Performance cycle			3 years
Restricted Stock Units (RSUs) \| Time Based Restricted Stock Unit
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period			3 years
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation expense				$ 0.9	$ 1.0
Minimum \| Restricted Stock Units (RSUs) \| Performance Based Restricted Stock Unit
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Target RSUs granted range			0.00%
Maximum \| Restricted Stock Units (RSUs) \| Performance Based Restricted Stock Unit
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Target RSUs granted range			150.00%
2014 Equity Incentive Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, capital shares reserved for future issuance						750,000
2014 Director Plan
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Common stock, capital shares reserved for future issuance						150,000
2014 Non-Employee Director Equity Incentive Plan \| Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period		2 years
Shares issued under the plan	16,000
Shares issued, price per share	$ 66.15
Vesting percentage per year		50.00%

Stock-Based Compensation (Schedule of Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs)	9 Months Ended
	Jun. 30, 2014 $ / shares shares
Stock-Based Compensation [Abstract]
Outstanding Beginning Balance, Number of Restricted Stock Units \| shares	81,555
Granted, Number of Restricted Stock Units \| shares	57,200
Vested, Number of Restricted Stock Units \| shares	(5,973)
Forfeited, Number of Restricted Stock Units \| shares	(500)
Outstanding Ending balance, Number of Restricted Stock Units \| shares	132,282
Outstanding Beginning Balance, Weighted Average Fair Value Per Share \| $ / shares	$ 38.66
Granted, Weighted Average Fair Value Per Share \| $ / shares	60.47
Vested, Weighted Average Fair Value Per Share \| $ / shares	61.79
Forfeited, Weighted Average Fair Value Per Share \| $ / shares	60.32
Outstanding Ending balance, Weighted Average Fair Value Per Share \| $ / shares	$ 46.97

Fair Value Measurements (Fair Value of Assets Measured on Recurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2014	Sep. 30, 2013
Assets:
Cash equivalents	$ 10,434	$ 10,531
Total	10,434	10,531
Quoted Prices in Active Markets for Identical Assets (Level 1)
Assets:
Cash equivalents	10,434	10,531
Total	$ 10,434	$ 10,531

Fair Value Measurements (Narrative) (Details)	9 Months Ended
Fair Value Measurements (Narrative) (Details)	Jun. 30, 2014 USD ($)
Defined Benefit Plan Disclosure [Line Items]
Transfers between measurement levels	$ 0

Discontinued Operations (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended		9 Months Ended
	Mar. 31, 2014	Jan. 15, 2014	Jun. 30, 2014
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Purchase price from the sale of Transdyn, Inc		$ 16,000
Cash received from sale of subsidiary		14,400
Escrow cash		$ 1,600
Additional working capital adjustment	$ 400
Gain on sale of discontinued operations, net of tax			$ 8,563

Discontinued Operations (Schedule of Operating Results) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	9 Months Ended
	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Revenues	$ 7,786	$ 13,923	$ 22,743
Income from discontinued operations, net of tax of $0, $206, $633 and $652, respectively	222	1,041	702
Gain on sale of discontinued operations, net of tax of $0, $0, $5,218 and $0, respectively		8,563
Net income from discontinued operations, net of tax	$ 222	$ 9,604	$ 702
Earnings per share information:
Basic	$ 0.02	$ 0.80	$ 0.06
Diluted	$ 0.02	$ 0.80	$ 0.06

Discontinued Operations (Schedule of Operating Results) (Parenthetical) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Statement Balance Sheet And Additional Disclosures By Disposal Groups Including Discontinued Operations [Line Items]
Income from discontinued operations, net of tax	$ 0	$ 206	$ 633	$ 652
Gain on sale of discontinued operations, net of tax	$ 0	$ 0	$ 5,218	$ 0

Discontinued Operations (Schedule of Assets and Liabilities) (Details) $ in Thousands	Sep. 30, 2013 USD ($)
Current assets:
Cash and cash equivalents	$ 337
Accounts receivable	7,346
Contracts in progress	7,201
Inventories	20
Prepaid expenses and other current assets	505
Current assets held for sale	15,409
Long-term assets:
Property, plant and equipment, net	93
Other assets	51
Long-term assets held for sale	144
Current liabilities:
Accounts payable	2,973
Accrued salaries, bonuses and commissions	1,675
Billings in excess of cost	11,867
Other accrued expenses and liabilities	1,333
Current liabilities held for sale	17,848
Long-term liabilities:
Long-term liabilities held for sale	$ 204

Income Taxes (Schedule of Effective Tax Rate) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Tax Contingency [Line Items]
Income from continuing operations before income taxes	$ 5,180	$ 12,080	$ 27,416	$ 31,017
Income tax provision	2,233	2,997	10,226	8,211
Income from continuing operations	$ 2,947	$ 9,083	$ 17,190	$ 22,806
Effective tax rate	43.10%	24.80%	37.30%	26.50%

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2014	Jun. 30, 2013	Jun. 30, 2014	Jun. 30, 2013
Income Tax Contingency [Line Items]
Income tax provision	$ 2,233	$ 2,997	$ 10,226	$ 8,211
Effective tax rate	43.10%	24.80%	37.30%	26.50%