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Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Dec. 31, 2016	Feb. 03, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	POWELL INDUSTRIES INC
Entity Central Index Key	0000080420
Document Type	10-Q
Document Period End Date	Dec. 31, 2016
Amendment Flag	false
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q1
Current Fiscal Year End Date	--09-30
Entity Filer Category	Accelerated Filer
Trading Symbol	powl
Entity Common Stock, Shares Outstanding		11,411,638

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Current Assets:
Cash and cash equivalents	$ 80,582	$ 97,720
Short-term investments	14,874	0
Accounts receivable, less allowance for doubtful accounts of $664 and $811	88,487	101,048
Costs and estimated earnings in excess of billings on uncompleted contracts	59,951	66,106
Inventories	23,976	26,521
Income taxes receivable	3,066	1,713
Deferred income taxes	4,347	4,006
Prepaid expenses	3,830	4,569
Other current assets	2,608	2,457
Total Current Assets	281,721	304,140
Property, plant and equipment, net	141,450	144,977
Goodwill and intangible assets, net	1,971	2,059
Other assets	11,850	11,340
Total Assets	436,992	462,516
Current Liabilities:
Current maturities of long-term debt	400	400
Income taxes payable	1,477	1,459
Accounts payable	32,670	34,985
Accrued salaries, bonuses and commissions	12,295	22,550
Billings in excess of costs and estimated earnings on uncompleted contracts	40,208	43,974
Accrued product warranty	4,230	4,639
Other accrued expenses	5,266	8,212
Deferred credit ─ short term (Note D)	2,029	2,029
Total Current Liabilities	98,575	118,248
Long-term debt, net of current maturities	1,600	2,000
Deferred compensation	4,815	4,840
Deferred income taxes	472	138
Other long-term liabilities	1,479	1,466
Deferred credit ─ long term (Note D)	0	507
Total Liabilities	106,941	127,199
Commitments and Contingencies (Note F)
Stockholders' Equity:
Preferred stock, par value $.01; 5,000,000 shares authorized; none issued	0	0
Common stock, par value $.01; 30,000,000 shares authorized; 12,217,656 and 12,199,511 shares issued, respectively	122	122
Additional paid-in capital	52,614	52,003
Retained earnings	328,693	331,959
Treasury stock, 806,018 shares at cost	(24,999)	(24,999)
Accumulated other comprehensive loss	(26,379)	(23,768)
Total Stockholders' Equity	330,051	335,317
Total Liabilities and Stockholders' Equity	$ 436,992	$ 462,516

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 664	$ 811
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	0	0
Common stock, par value ( in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares issued	12,217,656	12,199,511
Treasury stock, shares	806,018	806,018

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Statement [Abstract]
Revenues	$ 110,341	$ 149,977
Cost of goods sold	95,342	126,827
Gross profit	14,999	23,150
Selling, general and administrative expenses	15,698	19,400
Research and development expenses	1,469	1,854
Amortization of intangible assets	88	88
Restructuring and separation expenses	0	3,797
Operating loss	(2,256)	(1,989)
Other income	(507)	(507)
Interest expense	34	24
Interest income	(42)	0
Loss before income taxes	(1,741)	(1,506)
Income tax benefit	(1,441)	(1,047)
Net loss	$ (300)	$ (459)
Loss per share:
Basic (in dollars per share)	$ (0.03)	$ (0.04)
Diluted (in dollars per share)	$ (0.03)	$ (0.04)
Weighted average shares:
Basic (in shares)	11,438	11,395
Diluted (in shares)	11,438	11,395
Dividends per share (in dollars per share)	$ 0.26	$ 0.26

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Consolidated Statement of Comprehensive Loss [Abstract]
Net loss	$ (300)	$ (459)
Foreign currency translation adjustments	(2,611)	(2,538)
Comprehensive loss	$ (2,911)	$ (2,997)

Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - 3 months ended Dec. 31, 2016 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings	Treasury Stock	Accumulated Other Comprehensive Loss
Balance at Sep. 30, 2016	$ 335,317	$ 122	$ 52,003	$ 331,959	$ (24,999)	$ (23,768)
Balance, shares at Sep. 30, 2016		12,199			806
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net loss	(300)			(300)
Foreign currency translation adjustments	(2,611)					(2,611)
Stock-based compensation	1,009		1,009
Stock-based compensation, shares		19
Shares withheld in lieu of employee tax withholding	(398)		(398)
Issuance of restricted stock	0	$ 0
Issuance of restricted stock, shares		0
Dividends paid	(2,966)			(2,966)
Balance at Dec. 31, 2016	$ 330,051	$ 122	$ 52,614	$ 328,693	$ (24,999)	$ (26,379)
Balance, shares at Dec. 31, 2016		12,218			806

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Operating Activities:
Net loss	$ (300)	$ (459)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	3,063	3,196
Amortization	88	88
Stock-based compensation	1,009	2,343
Bad debt expense (recovery)	(113)	248
Deferred income tax expense	(7)	48
Gain on amended supply agreement	(507)	(507)
Changes in operating assets and liabilities:
Accounts receivable, net	12,234	18,603
Costs and billings in excess of estimated earnings on uncompleted contracts	2,236	6,921
Inventories	2,444	(1,478)
Prepaid expenses and other current assets	(799)	(1,522)
Accounts payable and income taxes payable	(2,051)	(1,874)
Accrued liabilities	(13,398)	(1,898)
Other, net	(525)	356
Net cash provided by operating activities	3,374	24,065
Investing Activities:
Proceeds from sale of property, plant and equipment	0	12
Increase in short-term investments	(14,874)
Purchases of property, plant and equipment	(928)	(629)
Net cash used in investing activities	(15,802)	(617)
Financing Activities:
Payments on industrial development revenue bonds	(400)	(400)
Shares withheld in lieu of employee tax withholding	(398)	(795)
Purchase of treasury shares	0	(3,740)
Dividends paid	(2,966)	(2,992)
Net cash used in financing activities	(3,764)	(7,927)
Net increase (decrease) in cash and cash equivalents	(16,192)	15,521
Effect of exchange rate changes on cash and cash equivalents	(946)	(166)
Cash and cash equivalents, beginning of period	97,720	43,569
Cash and cash equivalents, end of period	$ 80,582	$ 58,924

OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2016
Accounting Policies [Abstract]
OVERVIEW AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	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 (UK) Limited; Powell Canada Inc. and Powell Industries International, B.V. We develop, design, manufacture and service custom-engineered equipment and systems for the distribution, control and monitoring of electrical energy. Headquartered in Houston, Texas, we serve the oil and gas refining, offshore oil and gas production, petrochemical, pipeline, terminal, mining and metals, light rail traction power, electric utility, pulp and paper and other industrial markets. 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 condensed 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. 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, 2016, which was filed with the Securities and Exchange Commission (SEC) on December 7, 2016. References to Fiscal 2017, Fiscal 2016 and Fiscal 2015 used throughout this report shall mean our fiscal years ended September 30, 2017, 2016 and 2015, respectively. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying footnotes. The most significant estimates used in our condensed consolidated financial statements affect revenue and cost recognition for construction contracts, the allowance for doubtful accounts, provision for excess and obsolete inventory, self-insurance, warranty accruals, liquidated damages and income taxes. The amounts recorded for insurance claims, warranties, legal, liquidated damages, 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. Additionally, the recognition of deferred tax assets requires estimates related to future income and other assumptions regarding timing and future profitability. 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 May 2014, the Financial Accounting Standards Board (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 guidance is now effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which would be our fiscal year ending September 30, 2019. The standard permits the use of either the full retrospective or modified retrospective 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. In August 2014, the FASB issued guidance to address the diversity in practice in determining when there is substantial doubt about an entity’s ability to continue as a going concern and when and how an entity must disclose certain relevant conditions and events. This update requires an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern for a period of one year after the date that the financial statements are issued (or available to be issued). If such conditions or events exist, an entity should disclose that there is substantial doubt about the entity’s ability to continue as a going concern for a period of one year after the date that the financial statements are issued (or available to be issued), along with the principal conditions or events that raise substantial doubt, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations and management’s plans that are intended to mitigate those conditions or events. This guidance impacts the disclosure and presentation of any substantial doubt about our ability to continue as a going concern, if such substantial doubt were to exist. This guidance is effective for our first quarter ended December 31, 2016 and does not have an impact on disclosures in our condensed consolidated financial statements. In November 2015, the FASB issued an amendment to the topic regarding income taxes which requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in the statement of financial position. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. Deferred tax liabilities and assets that are not related to an asset or liability for financial reporting are classified according to the expected reversal date of the temporary difference. To simplify the presentation of deferred income taxes, the amendments require that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This amendment is effective for annual reporting periods beginning after December 15, 2016, which would be our fiscal year ending September 30, 2018. We have no plans for early adoption. The adoption of this guidance is not expected to have a material impact on our consolidated financial position or results of operations. In February 2016, the FASB issued a new topic on leases which requires lessees to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. This would be our fiscal year ending September 30, 2020. We are currently evaluating the impact of our pending adoption of the new standard, but do not expect it to have a material impact on our consolidated financial position or results of operations. In March 2016, the FASB issued new guidance on stock-based compensation, which includes amendments to existing guidance for employee share-based payment accounting. We elected to early adopt this new guidance in the first quarter of Fiscal 2017. Beginning with this quarter, stock-based compensation excess tax benefits or deficiencies are reflected in the Condensed Consolidated Statement of Operations as a component of income taxes, whereas they were previously recorded in additional paid in capital in the Condensed Consolidated Statement of Stockholders’ Equity. Additionally, we will now present excess tax benefits as an operating activity in the Condensed Consolidated Statements of Cash Flows, and prior periods will be adjusted accordingly. Finally, we will continue to account for forfeitures as they occur, rather than estimate expected forfeitures.

EARNINGS PER SHARE

3 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

EARNINGS PER SHARE

We compute basic earnings per share by dividing net income (loss) 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 restricted stock and restricted stock units, as prescribed by the FASB guidance on earnings per share.

The following table reconciles basic and diluted weighted average shares used in the computation of earnings per share (in thousands, except per share data):



	Three months ended December 31,
	2016			2015
Numerator:
Net loss	$	(300	)	$	(459	)
Denominator:
Weighted average basic shares	11,438			11,395
Dilutive effect of restricted stock units	—			—
Weighted average diluted shares with assumed conversions	11,438			11,395
Net loss per share:
Basic	$	(0.03	)	$	(0.04	)
Diluted	$	(0.03	)	$	(0.04	)

For the quarters ended December 31, 2016 and 2015, we incurred net losses and therefore all potential common shares were deemed to be anti-dilutive.

DETAIL OF SELECTED BALANCE SHEET ACCOUNTS

3 Months Ended

Dec. 31, 2016

Disclosure Text Block Supplement [Abstract]

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 December 31,
	2016			2015
Balance at beginning of period	$	811		$	746
Bad debt expense (recovery)	(113		)	248
Uncollectible accounts written off, net of recoveries	(28		)	26
Change due to foreign currency translation	(6		)	(10		)
Balance at end of period	$	664		$	1,010

Inventories:

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



	December 31, 2016		September 30, 2016
Raw materials, parts and subassemblies, net	$	23,161	$	25,525
Work-in-progress	815		996
Total inventories	$	23,976	$	26,521

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):



	December 31, 2016			September 30, 2016
Costs incurred on uncompleted contracts	$	1,090,422		$	1,088,921
Estimated earnings	350,185			350,125
	1,440,607			1,439,046
Less: Billings to date	(1,420,864		)	(1,416,914		)
Net underbilled position	$	19,743		$	22,132
Included in the accompanying balance sheets under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts – underbilled	$	59,951		$	66,106
Billings in excess of costs and estimated earnings on uncompleted contracts – overbilled	(40,208		)	(43,974		)
Net underbilled position	$	19,743		$	22,132

Warranty Accrual

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



	Three months ended December 31,
	2016			2015
Balance at beginning of period	$	4,639		$	4,930
Increase to warranty expense	370			1,326
Deduction for warranty charges	(725		)	(1,100		)
Change due to foreign currency translation	(54		)	(51		)
Balance at end of period	$	4,230		$	5,105

GOODWILL AND INTANGIBLE ASSETS

3 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

Our intangible assets consist of goodwill, which is not being amortized, and purchased technology, which is amortized over its estimated useful life. Intangible assets balances, subject to amortization, at December 31, 2016 and September 30, 2016 consisted of the following (in thousands):



	December 31, 2016							September 30, 2016
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Purchased technology	$	11,749	$	(10,782	)	$	967	$	11,749	$	(10,693	)	$	1,056

Amortization of intangible assets was $0.1 million for the three months ended December 31, 2016 and 2015.

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 us all of their 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, we and GE amended the supply agreement to allow GE to manufacture similar Products for sale immediately and allow them 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, beginning March 2015. As of December 31, 2016, the remaining balance of $2.3 million is classified as other current assets. We wrote off the intangible asset related to the original supply agreement and recorded a deferred credit in the amount of $8.1 million at December 31, 2013, the amount by which the 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 gains in other income of $0.5 million for the three months ended December 31, 2016 and 2015.

- 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

3 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

LONG-TERM DEBT

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



	December 31 2016			September 30 2016
Industrial development revenue bonds	$	2,000		$	2,400
Less current portion	(400		)	(400		)
Total long-term debt and capital lease obligations	$	1,600		$	2,000

U.S. Revolver

We have a $75.0 million revolving credit facility (U.S. Revolver) to provide working capital support and letters of credit. The interest rate for amounts outstanding under 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 $20.3 million for our outstanding letters of credit at December 31, 2016.

There were no borrowings outstanding under the U.S. Revolver as of December 31, 2016. Amounts available under the U.S. Revolver were $54.7 million at December 31, 2016. The U.S. Revolver expires on December 31, 2018.

The U.S. Revolver 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 U.S. Revolver is collateralized by a pledge of 100% of the voting capital stock of each of our domestic subsidiaries and 65% of the voting capital stock of each non-domestic subsidiary, excluding Powell Canada Inc. The U.S. Revolver 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 U.S. Revolver) occurs and is continuing, on the terms and subject to the conditions set forth in the U.S. Revolver, amounts outstanding under the U.S. Revolver may be accelerated and may become immediately due and payable. As of December 31, 2016, we were in compliance with all of the financial covenants of the U.S. Revolver.

Canadian Revolver

We have a $7.4 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. There were no outstanding letters of credit under the Canadian Revolver at December 31, 2016. 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.

There were no borrowings outstanding under the Canadian Revolver as of December 31, 2016 and amounts available under the Canadian Revolver were $7.4 million at December 31, 2016. The Canadian Revolver expires on March 31, 2018.

The principal financial covenants are consistent with those described in our U.S. Revolver. 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 Inc. 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 December 31, 2016, 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 December 31, 2016. 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. 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 0.90% as of December 31, 2016.

COMMITMENTS AND CONTINGENCIES	3 Months Ended
COMMITMENTS AND CONTINGENCIES	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES Long-Term Debt See Note E herein for discussion of our long-term debt. Letters of Credit and Surety Bonds Certain customers require us to post bank letter of credit guarantees or surety bonds. These guarantees and surety 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 bond. To date, there have been no significant expenses related to either letters of credit or surety bonds for the periods reported. We were contingently liable for secured and unsecured letters of credit of $20.3 million as of December 31, 2016. We also had surety bonds totaling $229.4 million that were outstanding, with additional bonding capacity of $520.6 million available, at December 31, 2016. We have a $6.2 million facility agreement (Facility Agreement) between Powell (UK) Limited and a large international bank. This Facility Agreement provides Powell (UK) Limited the ability to enter into bank guarantees as well as forward exchange contracts and currency options. At December 31, 2016, we had outstanding guarantees totaling $4.8 million under this Facility Agreement and amounts available under this Facility Agreement were $1.4 million. This facility expires in May 2017. The Facility Agreement provides for financial covenants and customary events of default, and carries cross-default provisions with our U.S. Revolver. 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 therein, obligations outstanding under the Facility Agreement may be accelerated and may become or be declared immediately due and payable. As of December 31, 2016, 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 from our commercial operations, projects, employees and other matters which, in general, are subject to uncertainties and in which the outcomes are not predictable. Although we can give no assurances about the resolution of pending claims, litigation or other disputes 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. Liquidated Damages Certain of our customer contracts have schedule and performance obligation clauses that, if we fail to meet them, could require us to pay liquidated damages. Each individual contract defines the conditions under which the customer may make a claim against us. As of December 31, 2016, our exposure to possible liquidated damages was $2.7 million, of which approximately $1.7 million is probable. Based on our actual or projected failure to meet these various contractual commitments, $1.5 million has been recorded as a reduction to revenue. We will attempt to obtain change orders, contract extensions or accelerate project completion which may resolve the potential for any unaccrued liquidated damage. Should we fail to achieve relief on some or all of these contractual obligations, we could be required to pay additional liquidated damages, which could negatively impact our future operating results.

STOCK-BASED COMPENSATION

3 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK-BASED COMPENSATION

Refer to our Annual Report on Form 10-K for the fiscal year ended September 30, 2016 for a full description of our existing stock-based compensation plans.

Restricted Stock Units

We issue restricted stock units (RSUs) to certain officers and key employees of the Company. The fair value of the RSUs is based on the closing price of our common stock as reported on the NASDAQ Global Market on the grant dates. These grants vest over a three-year period from their date of issuance. Sixty percent of the grant is time-based and vests over a three-year period on each anniversary of the grant date, based on continued employment. The remaining forty percent of the grant will be earned based on the three-year earnings performance of the Company following the grant date. At December 31, 2016, there were 193,537 RSUs outstanding. The RSUs do not have voting rights but do receive dividend equivalents upon vesting; additionally, the shares of common stock underlying the RSUs are not considered issued and outstanding until vested and common stock is issued.

RSU activity (number of shares) for the three months ended December 31, 2016 is summarized below:



	Number of Restricted Stock Units		Weighted Average Fair Value Per Share
Outstanding at September 30, 2016	159,988		$	43.12
Granted	61,100		39.65
Vested	(27,551	)	39.08
Outstanding at December 31, 2016	193,537		$	42.60

During the three months ended December 31, 2016 and 2015, we recorded compensation expense of $0.9 million and $2.1 million, respectively, related to the RSUs. The higher compensation expense recorded in the three months ended December 31, 2015 was primarily due to the departure of our former Chief Executive Officer in December 2015 which included the accelerated vesting of 60,909 shares.

Restricted Stock

Restricted stock grants vest equally over their respective vesting period on each anniversary of the grant date and compensation expense is recognized over their respective vesting periods based on the price per share on the grant date. During the first quarter of Fiscal 2017 and Fiscal 2016, there was no restricted stock granted.

During the three months ended December 31, 2016 and 2015, we recorded compensation expense of $0.1 million and $0.2 million, respectively, related to restricted stock grants.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

FAIR VALUE MEASUREMENTS

3 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

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 December 31, 2016 (in thousands):



	Fair Value Measurements at December 31, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at December 31, 2016
Assets:
Cash equivalents	$	23,110	$	—	$	—	$	23,110
Short-term investments	14,874		—		—		14,874
Deferred compensation	—		5,703		—		5,703
Liabilities:
Deferred compensation	—		4,441		—		4,441

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, 2016 (in thousands):



	Fair Value Measurements at September 30, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at September 30, 2016
Assets:
Cash equivalents	$	435	$	—	$	—	$	435
Deferred compensation	1,643		4,130		—		5,773
Liabilities:
Deferred compensation	—		4,449		—		4,449

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 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.

Deferred Compensation – We hold investments in an irrevocable Rabbi Trust for our deferred compensation plan. These assets include both mutual fund investments and company-owned life insurance policies. Under the plan, participants designate investment options to serve as the basis for measurement of the notional value of their accounts. The fair values of the underlying securities of these funds are based on quoted market prices and are categorized as Level 1 in the fair value measurement hierarchy. The company-owned life insurance policies are valued at cash surrender value and are therefore categorized as Level 2 in the fair value measurement hierarchy.

Industrial Development Revenue Bonds– 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 December 31, 2016, approximates fair value based on the current coupon rate of the bonds, which is reset weekly. It 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 three months ended December 31, 2016.

- 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

INCOME TAXES

3 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

INCOME TAXES

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



	Three months ended December 31,
	2016			2015
Loss before income taxes	$	(1,741	)	$	(1,506	)

Income tax benefit	(1,441		)	(1,047		)

Net loss	$	(300	)	$	(459	)

Effective tax rate	83		%	70		%



	Three months ended December 31,
	2016		2015
Statutory rate	35	%	35	%
Foreign valuation allowance	15		(11	)
Research and development credit	22		45
State income taxes, net of federal benefit	2		3
Rate differential and other	9		(2	)
Effective tax rate	83	%	70	%

We recorded an income tax benefit of $1.4 million for the three months ended December 31, 2016, compared to an income tax benefit of $1.0 million for the three months ended December 31, 2015. Our income tax benefit reflects an effective tax rate on the pre-tax loss of 83% for the three months ended December 31, 2016 compared to 70% for the three months ended December 31, 2015. The effective tax rates for the first quarter of Fiscal 2017 and 2016 were favorably impacted by the lower tax rate in the United Kingdom, the relative amounts of income/loss recognized in various jurisdictions, as well as the utilization of net operating loss carryforwards in Canada that are fully reserved with a valuation allowance. We also completed an IRS audit during the first quarter of Fiscal 2017 which favorably impacted the effective tax rate due to the release of a $0.3 million FIN 48 reserve relating to the Research and Development Tax Credit (R&D Tax Credit). The effective tax rate for the three months ended December 31, 2015 was also favorably impacted by a discrete item of $0.8 million related to the retroactive reinstatement of the R&D Tax Credit to January 31, 2016.

RESTRUCTURING AND SEPARATION COSTS	3 Months Ended
RESTRUCTURING AND SEPARATION COSTS	Dec. 31, 2016
Restructuring and Related Activities [Abstract]
RESTRUCTURING AND SEPARATION COSTS	RESTRUCTURING AND SEPARATION COSTS We did not incur any restructuring or separation costs in the first quarter of Fiscal 2017, however in the first quarter of Fiscal 2016, we incurred $3.8 million of separation costs related to the departure of our former Chief Executive Officer in December 2015. This included stock-based compensation, as well as future cash payments.

Overview and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
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 (UK) Limited; Powell Canada Inc. and Powell Industries International, B.V. We develop, design, manufacture and service custom-engineered equipment and systems for the distribution, control and monitoring of electrical energy. Headquartered in Houston, Texas, we serve the oil and gas refining, offshore oil and gas production, petrochemical, pipeline, terminal, mining and metals, light rail traction power, electric utility, pulp and paper and other industrial markets.
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 condensed 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. 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, 2016, which was filed with the Securities and Exchange Commission (SEC) on December 7, 2016. References to Fiscal 2017, Fiscal 2016 and Fiscal 2015 used throughout this report shall mean our fiscal years ended September 30, 2017, 2016 and 2015, respectively.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the condensed consolidated financial statements and accompanying footnotes. The most significant estimates used in our condensed consolidated financial statements affect revenue and cost recognition for construction contracts, the allowance for doubtful accounts, provision for excess and obsolete inventory, self-insurance, warranty accruals, liquidated damages and income taxes. The amounts recorded for insurance claims, warranties, legal, liquidated damages, 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. Additionally, the recognition of deferred tax assets requires estimates related to future income and other assumptions regarding timing and future profitability. 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 May 2014, the Financial Accounting Standards Board (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 guidance is now effective for fiscal years, and interim periods within those years, beginning after December 15, 2017, which would be our fiscal year ending September 30, 2019. The standard permits the use of either the full retrospective or modified retrospective 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. In August 2014, the FASB issued guidance to address the diversity in practice in determining when there is substantial doubt about an entity’s ability to continue as a going concern and when and how an entity must disclose certain relevant conditions and events. This update requires an entity to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern for a period of one year after the date that the financial statements are issued (or available to be issued). If such conditions or events exist, an entity should disclose that there is substantial doubt about the entity’s ability to continue as a going concern for a period of one year after the date that the financial statements are issued (or available to be issued), along with the principal conditions or events that raise substantial doubt, management’s evaluation of the significance of those conditions or events in relation to the entity’s ability to meet its obligations and management’s plans that are intended to mitigate those conditions or events. This guidance impacts the disclosure and presentation of any substantial doubt about our ability to continue as a going concern, if such substantial doubt were to exist. This guidance is effective for our first quarter ended December 31, 2016 and does not have an impact on disclosures in our condensed consolidated financial statements. In November 2015, the FASB issued an amendment to the topic regarding income taxes which requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in the statement of financial position. Deferred tax liabilities and assets are classified as current or noncurrent based on the classification of the related asset or liability for financial reporting. Deferred tax liabilities and assets that are not related to an asset or liability for financial reporting are classified according to the expected reversal date of the temporary difference. To simplify the presentation of deferred income taxes, the amendments require that deferred income tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This amendment is effective for annual reporting periods beginning after December 15, 2016, which would be our fiscal year ending September 30, 2018. We have no plans for early adoption. The adoption of this guidance is not expected to have a material impact on our consolidated financial position or results of operations. In February 2016, the FASB issued a new topic on leases which requires lessees to recognize lease assets and lease liabilities on the balance sheet for all leases with terms longer than twelve months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. This would be our fiscal year ending September 30, 2020. We are currently evaluating the impact of our pending adoption of the new standard, but do not expect it to have a material impact on our consolidated financial position or results of operations. In March 2016, the FASB issued new guidance on stock-based compensation, which includes amendments to existing guidance for employee share-based payment accounting. We elected to early adopt this new guidance in the first quarter of Fiscal 2017. Beginning with this quarter, stock-based compensation excess tax benefits or deficiencies are reflected in the Condensed Consolidated Statement of Operations as a component of income taxes, whereas they were previously recorded in additional paid in capital in the Condensed Consolidated Statement of Stockholders’ Equity. Additionally, we will now present excess tax benefits as an operating activity in the Condensed Consolidated Statements of Cash Flows, and prior periods will be adjusted accordingly. Finally, we will continue to account for forfeitures as they occur, rather than estimate expected forfeitures.

Earnings Per Share (Tables)

3 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

Computation of Basic and Diluted Earnings Per Share

The following table reconciles basic and diluted weighted average shares used in the computation of earnings per share (in thousands, except per share data):



	Three months ended December 31,
	2016			2015
Numerator:
Net loss	$	(300	)	$	(459	)
Denominator:
Weighted average basic shares	11,438			11,395
Dilutive effect of restricted stock units	—			—
Weighted average diluted shares with assumed conversions	11,438			11,395
Net loss per share:
Basic	$	(0.03	)	$	(0.04	)
Diluted	$	(0.03	)	$	(0.04	)

Detail of Selected Balance Sheet Accounts (Tables)

3 Months Ended

Dec. 31, 2016

Disclosure Text Block Supplement [Abstract]

Activity in allowance for doubtful accounts

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



	Three months ended December 31,
	2016			2015
Balance at beginning of period	$	811		$	746
Bad debt expense (recovery)	(113		)	248
Uncollectible accounts written off, net of recoveries	(28		)	26
Change due to foreign currency translation	(6		)	(10		)
Balance at end of period	$	664		$	1,010

Components of inventories

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



	December 31, 2016		September 30, 2016
Raw materials, parts and subassemblies, net	$	23,161	$	25,525
Work-in-progress	815		996
Total inventories	$	23,976	$	26,521

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):



	December 31, 2016			September 30, 2016
Costs incurred on uncompleted contracts	$	1,090,422		$	1,088,921
Estimated earnings	350,185			350,125
	1,440,607			1,439,046
Less: Billings to date	(1,420,864		)	(1,416,914		)
Net underbilled position	$	19,743		$	22,132
Included in the accompanying balance sheets under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts – underbilled	$	59,951		$	66,106
Billings in excess of costs and estimated earnings on uncompleted contracts – overbilled	(40,208		)	(43,974		)
Net underbilled position	$	19,743		$	22,132

Activity in product warranty accrual

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



	Three months ended December 31,
	2016			2015
Balance at beginning of period	$	4,639		$	4,930
Increase to warranty expense	370			1,326
Deduction for warranty charges	(725		)	(1,100		)
Change due to foreign currency translation	(54		)	(51		)
Balance at end of period	$	4,230		$	5,105

Goodwill and Intangible Assets (Tables)

3 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of intangible assets subject to amortization

Intangible assets balances, subject to amortization, at December 31, 2016 and September 30, 2016 consisted of the following (in thousands):



	December 31, 2016							September 30, 2016
	Gross Carrying Value		Accumulated Amortization			Net Carrying Value		Gross Carrying Value		Accumulated Amortization			Net Carrying Value
Purchased technology	$	11,749	$	(10,782	)	$	967	$	11,749	$	(10,693	)	$	1,056

Long-Term Debt (Tables)

3 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Components of Long-term debt

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



	December 31 2016			September 30 2016
Industrial development revenue bonds	$	2,000		$	2,400
Less current portion	(400		)	(400		)
Total long-term debt and capital lease obligations	$	1,600		$	2,000

- 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=64930739&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=64930785&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=64930785&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

+ Details

Stock-Based Compensation (Tables)

3 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Restricted Stock Units Activity

RSU activity (number of shares) for the three months ended December 31, 2016 is summarized below:



	Number of Restricted Stock Units		Weighted Average Fair Value Per Share
Outstanding at September 30, 2016	159,988		$	43.12
Granted	61,100		39.65
Vested	(27,551	)	39.08
Outstanding at December 31, 2016	193,537		$	42.60

Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Fair Value of Assets and Liabilities 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 December 31, 2016 (in thousands):



	Fair Value Measurements at December 31, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at December 31, 2016
Assets:
Cash equivalents	$	23,110	$	—	$	—	$	23,110
Short-term investments	14,874		—		—		14,874
Deferred compensation	—		5,703		—		5,703
Liabilities:
Deferred compensation	—		4,441		—		4,441

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, 2016 (in thousands):



	Fair Value Measurements at September 30, 2016
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at September 30, 2016
Assets:
Cash equivalents	$	435	$	—	$	—	$	435
Deferred compensation	1,643		4,130		—		5,773
Liabilities:
Deferred compensation	—		4,449		—		4,449

Income Taxes (Tables)

3 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate

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



	Three months ended December 31,
	2016			2015
Loss before income taxes	$	(1,741	)	$	(1,506	)

Income tax benefit	(1,441		)	(1,047		)

Net loss	$	(300	)	$	(459	)

Effective tax rate	83		%	70		%



	Three months ended December 31,
	2016		2015
Statutory rate	35	%	35	%
Foreign valuation allowance	15		(11	)
Research and development credit	22		45
State income taxes, net of federal benefit	2		3
Rate differential and other	9		(2	)
Effective tax rate	83	%	70	%

Earnings Per Share (Computation of Basic and Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Numerator:
Net loss	$ (300)	$ (459)
Denominator:
Weighted average basic shares	11,438	11,395
Dilutive effect of restricted stock units	0	0
Weighted average diluted shares with assumed conversions	11,438	11,395
Net loss per share:
Basic (in dollars per share)	$ (0.03)	$ (0.04)
Diluted (in dollars per share)	$ (0.03)	$ (0.04)

Detail of Selected Balance Sheet Accounts (Activity in Allowance for Doubtful Accounts) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Allowance for Doubtful Accounts Receivable [Roll Forward]
Balance at beginning of period	$ 811	$ 746
Bad debt expense (recovery)		248
Uncollectible accounts written off, net of recoveries	(28)	26
Change due to foreign currency translation	(6)	(10)
Balance at end of period	$ 664	$ 1,010

Detail of Selected Balance Sheet Accounts (Components of Inventories) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Movement in Standard Product Warranty Accrual [Roll Forward]
Raw materials, parts and subassemblies, net	$ 23,161	$ 25,525
Work-in-progress	815	996
Total inventories	$ 23,976	$ 26,521

Detail of Selected Balance Sheet Accounts (Cost and Estimated Earnings on Uncompleted Contracts) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Balance Sheet Related Disclosures [Abstract]
Costs incurred on uncompleted contracts	$ 1,090,422	$ 1,088,921
Estimated earnings	350,185	350,125
Total	1,440,607	1,439,046
Less: Billings to date	(1,420,864)	(1,416,914)
Net underbilled position	19,743	22,132
Included in the accompanying balance sheets under the following captions:
Costs and estimated earnings in excess of billings on uncompleted contracts – underbilled	59,951	66,106
Billings in excess of costs and estimated earnings on uncompleted contracts – overbilled	(40,208)	(43,974)
Net underbilled position	$ 19,743	$ 22,132

Detail of Selected Balance Sheet Accounts (Activity in Product Warranty Accrual) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Movement in Standard Product Warranty Accrual [Roll Forward]
Balance at beginning of period	$ 4,639	$ 4,930
Increase to warranty expense	370	1,326
Deduction for warranty charges	(725)	(1,100)
Change due to foreign currency translation	(54)	(51)
Balance at end of period	$ 4,230	$ 5,105

Goodwill and Intangible Assets (Schedule of Intangible Assets Subject to Amortization) (Details) - Purchased Technology - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Finite Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 11,749	$ 11,749
Accumulated Amortization	(10,782)	(10,693)
Net Carrying Value	$ 967	$ 1,056

Goodwill and Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended			9 Months Ended
	Dec. 31, 2016	Dec. 31, 2015	Dec. 31, 2013	Jun. 30, 2015	Sep. 30, 2016
Finite Lived Intangible Assets [Line Items]
Amortization of intangible assets	$ 88	$ 88
Other current assets	$ 2,608				$ 2,457
Deferred credit amortization period	4 years
Gains in other income	$ 507	507
General Electric Company
Finite Lived Intangible Assets [Line Items]
Cash received from amended supply agreement			$ 10,000
Additional amount paid on execution of agreement				$ 7,000
Acquired finite-lived intangible assets, period				3 years
Other current assets	2,300
Deferred credit			$ 8,100
General Electric Company \| Other Income
Finite Lived Intangible Assets [Line Items]
Gains in other income	$ 500	$ 500
Supply Agreement
Finite Lived Intangible Assets [Line Items]
Useful life of intangible asset	15 years

Long-Term Debt (Components of Long-Term Debt) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Debt Disclosure [Abstract]
Industrial development revenue bonds	$ 2,000	$ 2,400
Less current portion	(400)	(400)
Total long-term debt and capital lease obligations	$ 1,600	$ 2,000

Long Term Debt (Narrative) (Details) - USD ($)	3 Months Ended
Long Term Debt (Narrative) (Details) - USD ($)	Dec. 31, 2016	Oct. 31, 2001
U.S. Revolver
Line Of Credit Facility [Line Items]
Percentage of voting capital stock pledged as collateral	100.00%
Non-domestic subsidiaries of voting capital stock	65.00%
Revolving credit facility	$ 75,000,000.0
Revolving credit interest rate	The interest rate for amounts outstanding under 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	$ 20,300,000
Credit facility expiration date	Dec. 31, 2018
Amount of credit facility remaining borrowing capacity	$ 54,700,000
Revolving credit facility borrowings, outstanding amount	$ 0
U.S. Revolver \| Maximum
Line Of Credit Facility [Line Items]
Basis spread on variable rate	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]
Revolving credit facility	$ 7,437,000
Outstanding letters of credit	$ 0
Credit facility expiration date	Mar. 31, 2018
Amount of credit facility remaining borrowing capacity	$ 7,400,000
Revolving credit facility borrowings, outstanding amount	$ 0
Canadian Revolver \| Maximum
Line Of Credit Facility [Line Items]
Basis spread on variable rate	1.75%
Canadian Revolver \| Minimum
Line Of Credit Facility [Line Items]
Basis spread on variable rate	0.50%
Industrial Development Revenue Bonds
Line Of Credit Facility [Line Items]
Borrowings		$ 8,000,000.0
Reimbursement agreement requires annual redemptions	$ 400,000
Interest rate	0.90%

Commitments and Contingencies (Narrative) (Details)	3 Months Ended
Commitments and Contingencies (Narrative) (Details)	Dec. 31, 2016 USD ($)
Guarantee Obligations [Line Items]
Additional bonding capacity	$ 520,600,000
Liquidated damages	2,700,000
Probable liquidated damages	1,700,000
Loss contingency, estimate of actual or projected loss	1,500,000
Facility Agreement \| Powell (UK) Limited
Guarantee Obligations [Line Items]
Guarantee liability	4,800,000
Revolving credit facility	6,168,000
Amount of credit facility remaining borrowing capacity	1,400,000
Financial Standby Letter of Credit
Guarantee Obligations [Line Items]
Guarantee liability	20,300,000
Surety Bonds
Guarantee Obligations [Line Items]
Guarantee liability	$ 229,400,000

Stock-Based Compensation (Narrative) (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended
	Feb. 29, 2016	Dec. 31, 2016	Dec. 31, 2015	Sep. 30, 2016
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	3 years
Unvested restricted stock outstanding		193,537		159,988
Compensation expense		$ 0.9	$ 2.1
Restricted Stock Units (RSUs) \| Time 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%
Vesting period	3 years
Restricted Stock Units (RSUs) \| Performance Based Restricted Stock Unit
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	3 years
Target RSUs granted range	40.00%
Restricted Stock
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Compensation expense		$ 0.1	$ 0.2

Stock-Based Compensation (Schedule of Restricted Stock Units Activity) (Details) - Restricted Stock Units (RSUs)	3 Months Ended
	Dec. 31, 2016 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding Beginning Balance, Number of Restricted Stock Units \| shares	159,988
Granted, Number of Restricted Stock Units \| shares	61,100
Vested, Number of Restricted Stock Units \| shares	(27,551)
Outstanding Ending Balance, Number of Restricted Stock Units \| shares	193,537
Outstanding Beginning Balance, Weighted Average Fair Value Per Share \| $ / shares	$ 43.12
Granted, Weighted Average Fair Value Per Share \| $ / shares	39.65
Vested, Weighted Average Fair Value Per Share \| $ / shares	39.08
Outstanding Ending Balance, Weighted Average Fair Value Per Share \| $ / shares	$ 42.60

Stock-Based Compensation (Schedule of Restricted Stock Units Activity) (Details 2) - USD ($)	1 Months Ended	3 Months Ended
	Feb. 29, 2016	Dec. 31, 2016	Dec. 31, 2015
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Restricted stock granted		$ 0	$ 0
Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	3 years
Restricted Stock Units (RSUs) \| Chief Executive Officer
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Share-based compensation accelerated vesting shares			60,909
Time Based Restricted Stock Unit \| Restricted Stock Units (RSUs)
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Vesting period	3 years

Fair Value Measurements (Fair Value of Assets and Liabilities Measured on Recurring Basis) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Sep. 30, 2016
Assets:
Cash equivalents	$ 23,110	$ 435
Short-term investments	14,874,000
Deferred compensation	5,703	5,773
Liabilities:
Deferred compensation	4,441	4,449
Fair Value, Inputs, Level 1
Assets:
Cash equivalents	23,110	435
Short-term investments	14,874,000
Deferred compensation	0	1,643
Fair Value, Inputs, Level 2
Assets:
Deferred compensation	5,703	4,130
Liabilities:
Deferred compensation	$ 4,441	$ 4,449

- Definition

Fair value portion of investment securities, including, but not limited to, marketable securities, derivative financial instruments, and investments accounted for under the equity method.

+ 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(12))
-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
-Glossary Trading Securities
-URI http://asc.fasb.org/extlink&oid=6526789

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(5))
-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03(6))
-URI http://asc.fasb.org/extlink&oid=6876686&loc=d3e534808-122878

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 35
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=27723805&loc=d3e24584-111560

Reference 6: 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(2))
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 25
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65884222&loc=d3e22054-111558

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03(a)(1))
-URI http://asc.fasb.org/extlink&oid=6879938&loc=d3e572229-122910

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Available-for-Sale Securities
-URI http://asc.fasb.org/extlink&oid=6505594

+ Details

Fair Value Measurements (Narrative) (Details)	3 Months Ended
Fair Value Measurements (Narrative) (Details)	Dec. 31, 2016 USD ($)
Fair Value Disclosures [Abstract]
Transfers between measurement levels	$ 0

Income Taxes (Schedule of Effective Tax Rate) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Loss before income taxes	$ (1,741)	$ (1,506)
Income tax benefit	(1,441)	(1,047)
Net loss	$ (300)	$ (459)
Effective tax rate	83.00%	70.00%

Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details)	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Statutory rate	35.00%	35.00%
Foreign valuation allowance	15.00%	(11.00%)
Research and development credit	22.00%	45.00%
State income taxes, net of federal benefit	2.00%	3.00%
Rate differential and other	9.00%	(2.00%)
Effective tax rate	83.00%	70.00%

Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Thousands	Dec. 31, 2016	Dec. 31, 2015
Income Tax Disclosure [Abstract]
Income tax benefit	$ (1,441)	$ (1,047)
Effective tax rate	83.00%	70.00%
Unrecognized tax benefits, decrease resulting from prior period tax positions	$ 300	$ 800

Restructuring and Separation Costs (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Restructuring and Related Activities [Abstract]
Restructuring and separation costs	$ 0	$ 3,797